Mid-Morning Market Update: Markets Mostly Higher; Morgan Stanley Tops Q3 Estimates

Following the market opening Wednesday, the Dow traded up 0.19 percent to 18,195.55 while the NASDAQ declined 0.04 percent to 5,241.62. The S&P also rose, gaining 0.08 percent to 2,141.28.

Leading and Lagging Sectors

Wednesday morning, energy shares gained by 0.59 percent. Meanwhile, top gainers in the sector included CGG SA (ADR) CGG, and Unit Corporation UNT.

In trading on Wednesday, healthcare shares fell by 0.25 percent. Meanwhile, top losers in the sector included Acadia Healthcare Company Inc ACHC, down 14 percent, and Meridian Bioscience, Inc. VIVO, down 8 percent.

Top Headline

Morgan Stanley MS reported stronger-than-expected results for the third quarter. This is the fourth straight quarter of an EPS beat.

The company's profit jumped from $1.0 billion to $1.6 billion while EPS climbed from $0.48 to $0.81 and came in above the Street estimates of $0.63 a share.

Morgan Stanley's net revenue advanced from $7.8 billion to $8.9 billion and topped the Street analysts' expectations of $8.17 billion. Excluding DVA, its revenue would have been $7.3 billion in the previous year quarter.

Equities Trading UP

JetPay Corporation JTPY shares shot up 17 percent to $3.15 after the company disclosed a significant investment and board appointment of industry veteran Larry Stone.

Shares of Banc of California Inc BANC got a boost, shooting up 16 percent to $13.01 as the company reported better-than-expected earnings for its latest quarter.

America's Car-Mart, Inc. CRMT shares were also up, gaining 10 percent to $41.00. Bank of America upgraded America's Car-Mart from Underperform to Buy.

Equities Trading DOWN

VASCO Data Security International, Inc. VDSI shares dropped 17 percent to $14.81 as the company lowered its FY16 revenue guidance. Dougherty & Co. downgraded VASCO Data Security from Buy to Neutral.

Shares of Imperva Inc IMPV were down 16 percent to $39.20 after concerns were raised on the possible sale. According to a Bloomberg report, the sale process has been put on a hold, as the company is seeking increased deal price.

Cree, Inc. CREE was down, falling around 13 percent to $22.04 after the company issued a weak earnings forecast for the fiscal second quarter.

Commodities

In commodity news, oil traded up 1.32 percent to $51.29 while gold traded up 0.62 percent to $1,270.70.

Silver traded up 0.29 percent Wednesday to $17.69, while copper fell 0.45 percent to $2.10.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.15 percent, the Spanish Ibex Index rose 0.50 percent, while Italy’s FTSE MIB Index gained 0.02 percent. Meanwhile the German DAX climbed 0.08 percent, and the French CAC 40 gained 0.13 percent while U.K. shares fell 0.06 percent.

Economics

The MBA’s index of mortgage application activity rose 0.6 percent for the week ended October 8, 2016.

U.S. housing starts declined 9 percent in September from August to an annual rate of 1.05 million. Economists were expecting a 1.18 million pace for the month.

San Francisco Federal Reserve Bank President John Williams is set to speak in Newark, NJ at 8:45 a.m. ET.

The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.

Dallas Federal Reserve Bank President Rob Kaplan will speak in Fort Worth at 1:30 p.m. ET.

The Federal Reserve will release its latest Beige Book report at 2:00 p.m. ET.

New York Federal Reserve Bank President William Dudley is set to speak in New York at 7:45 p.m. ET.