Mid-Morning Market Update: Markets Open Higher; Ciena Issues Weak Revenue Forecast
Following the market opening Thursday, the Dow traded up 0.31 percent to 17,546.15 while the NASDAQ climbed 0.40 percent to 5,042.84. The S&P also rose, gaining 0.36 percent to 2,055.00.
Leading and Lagging Sectors
In trading on Thursday, cyclical consumer goods & services shares rose by 0.54 percent. Meanwhile, top gainers in the sector included Sears Holdings Corp (NASDAQ: SHLD), up 8 percent, and Johnson Outdoors Inc. (NASDAQ: JOUT), up 5 percent.
Utilities shares tumbled by 0.37 percent in the US market on Thursday. Top losers in the sector included CPFL Energia S.A. (ADR) (NYSE: CPL), Companhia Paranaense de Energia (ADR) (NYSE: ELP), and Entergy Corporation (NYSE: ETR).
Ciena Corporation (NYSE: CIEN) reported better-than-expected results for the fourth quarter, but the company issued a weak revenue forecast.
The company reported adjusted earnings of $0.42 per share on revenue of $692 million. However, analysts were expecting a profit of $0.38 per share on revenue of $683.56 million.
For the first quarter, Ciena expects revenue of $555 million to $590 million, versus analysts' expectations of $636.61 million.
Equities Trading UP
Blount International Inc (NYSE: BLT) shares shot up 85 percent to $9.97 after the company agreed to be acquired for $10.00 per share in cash.
American Superconductor Corporation (NASDAQ: AMSC) shares were also up, gaining 14 percent to $4.37 after the company raised its outlook for the third quarter.
Equities Trading DOWN
Methode Electronics Inc. (NYSE: MEI) shares tumbled 22 percent to $26.65. Methode Electronics reported downbeat Q2 revenue and lowered its FY16 forecast.
Shares of Men's Wearhouse Inc (NYSE: MW) were down 24 percent to $13.99. Men's Wearhouse reported in-line loss for the third quarter, but the company's revenue missed analysts' estimates. Comparable sales slipped 14.6 percent at Jos. A. Bank.
Ciena Corporation (NYSE: CIEN) was down, falling 14 percent to $20.78. Ciena reported better-than-expected results for the fourth quarter, but the company issued a weak revenue forecast.
In commodity news, oil traded down 0.89 percent to $36.83, while gold traded down 0.25 percent to $1,073.80.
Silver traded down 0.20 percent Thursday to $14.16, while copper rose 0.07 percent to $2.07.
European shares were lower today. The eurozone's STOXX 600 fell 0.35 percent, the Spanish Ibex Index declined 0.84 percent, while Italy's FTSE MIB Index dipped 0.32 percent. Meanwhile, the German DAX dropped 0.13 percent, and the French CAC 40 slipped 0.10 percent, while U.K. shares fell 0.48 percent.
US jobless claims surged by 13,000 to 282,000 in the week ended December 5. However, economists were expecting initial claims to rise to 269,000.
US import prices slipped 0.4 percent in November, while export prices declined 0.6 percent in November.
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