Market Overview

Markets Open Higher; Rite Aid Lowers Profit Forecast

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Markets Open Higher; Rite Aid Lowers Profit Forecast

Following the market opening Thursday, the Dow traded up 0.37 percent to 17,219.69 while the NASDAQ surged 0.49 percent to 4,584.39. The S&P also rose, gaining 0.38 percent to 2,009.08.

Leading and Lagging Sectors

In trading on Thursday, financial shares were relative leaders, up on the day by about 0.66 percent. Top gainers in the sector included Triple-S Management (NYSE: GTS), up 5.9 percent, and The Bancorp (NASDAQ: TBBK), up 3.6 percent.

Utilities shares declined 0.18 percent on Thursday. Top losers in the sector included CPFL Energia SA (NYSE: CPL), down 2.9 percent, and Companhia Paranaense de Energia (NYSE: ELP), off 1.6 percent.

Top Headline

Rite Aid (NYSE: RAD) lowered its FY15 earnings outlook. However, the company also reported better-than-expected second-quarter earnings.

The Camp Hill, Pennsylvania-based company posted quarterly net income of $127.8 million, or $0.13 per share, versus $32.8 million, or $0.03 per share, in the year-ago period.

Its revenue rose to $6.5 billion from $6.3 billion. However, analysts were expecting earnings of $0.06 per share on revenue of $6.47 billion.

Equities Trading UP

ConAgra Foods (NYSE: CAG) shares shot up 3.69 percent to $33.19 after the company reported stronger-than-expected fiscal first quarter earnings.

Shares of Penn West Petroleum (NYSE: PWE) got a boost, shooting up 11.41 percent to $7.81 after the company reported Q2 GAAP EPS of C$0.29 on gross revenue of C$650.0 million and announced the results of internal review of accounting practices. The company also confirmed no impact on strategic direction.

Herman Miller (NASDAQ: MLHR) shares were also up, gaining 3.05 percent to $31.81 after the company reported upbeat fiscal first-quarter revenue and issued a strong forecast.

Equities Trading DOWN

Shares of Pier 1 Imports (NYSE: PIR) were down 17.60 percent to $12.81 after the company reported weaker-than-expected Q2 results and lowered its FY15 forecast. Analysts at Wells Fargo downgraded Pier 1 from Outperform to Market Perform.

Rite Aid (NYSE: RAD) shares tumbled 13.85 percent to $5.72 after the company lowered its FY15 earnings outlook. However, the company also reported better-than-expected second-quarter earnings.

Peabody Energy (NYSE: BTU) was down, falling 4.72 percent to $13.52 after Goldman Sachs downgraded the stock from Neutral to Sell and lowered the target price from $15 to $13.

Commodities

In commodity news, oil traded down 0.30 percent to $94.14, while gold traded down 1.46 percent to $1,217.80.

Silver traded down 2.13 percent Thursday to $18.34, while copper fell 1.61 percent to $3.09.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.87 percent, the Spanish Ibex Index surged 0.75 percent, while Italy’s FTSE MIB Index jumped 0.28 percent. Meanwhile, the German DAX rose 0.90 percent and the French CAC 40 gained 0.61 percent while UK shares gained 0.36 percent.

Economics

US jobless claims fell 36,000 to 280,000 in the week that ended September 13. However, economists were expecting claims to reach 305,000 in the week.

Construction on new US homes fell 14.4% to 956,000 in August, versus 1.12 million in July. However, economists were estimating starts to reach a rate of 1.04 million.

The general conditions index of the Philadelphia Fed's Survey fell to 22.50 in September, versus a prior reading of 28.00 However, economists were expecting a reading of 23.00.

The Treasury is set to auction 3-montha and 6-month bills. The Treasury will also auction 2-year, 5-year and 7-year notes.

Data on money supply will be released at 4:30 p.m. ET.

Posted-In: News Eurozone Futures Commodities Markets

 

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