Mid-Morning Market Update: Markets Open Higher; UniFirst Posts Lower Q1 Profit

Following the market opening Wednesday, the Dow traded up 0.19 percent to 19,920.30 while the NASDAQ climbed 0.50 percent to 5,456.24. The S&P also rose, gaining 0.40 percent to 2,266.82.

Leading and Lagging Sectors

Cyclical consumer goods & services shares gained around 0.91 percent in trading on Wednesday. Meanwhile, top gainers in the sector included Gap Inc GPS, and Shoe Carnival, Inc. SCVL.

In trading on Wednesday, energy shares slipped by 0.02 percent. Meanwhile, top losers in the sector included Global Partners LP GLP, down 4 percent, and DCP Midstream Partners, LP DPM, down 4 percent.

Top Headline

UniFirst Corp UNF reported a drop in its earnings for the first quarter and lowered its forecast for the current year.

UniFirst reported a quarterly profit of $28.2 million, or $1.38 per share, compared to $35.9 million, or $1.78 per share, in the year-ago period.

Its revenue rose 3.4 percent to $386.1 million. Analysts were expecting earnings of $1.58 per share on revenue of $393.08 million.

The company now expects full-year earnings of $4.85 to $5 per share, versus its earlier forecast of $5 to $5.15 per share.

Equities Trading UP

Evoke Pharma Inc EVOK shares shot up 42 percent to $2.93. Evoke Pharma disclosed that Phase 3 Gimoti trial failed to reach its primary endpoint. However, the company announced that 51 percent of patients responded better to Gimoti than placebo.

Shares of CymaBay Therapeutics Inc CBAY got a boost, shooting up 32 percent to $2.50 after the company reported a licensing deal with Kowa Pharmaceuticals America, Inc. for exclusive US rights to arhalofenate.

O2Micro International Limited (ADR) OIIM shares were also up, gaining 15 percent to $2.18 after the company revised its Q4 financial guidance. O2Micro raised its Q4 revenue guidance from $14.7 million-$15.6 million to $15.4 million-$15.9 million.

Equities Trading DOWN

Agile Therapeutics Inc AGRX shares dropped 60 percent to $2.01 after the company reported top-line results from its Phase 3 SECURE clinical trial of Twirla.

Shares of UniFirst Corp UNF were down around 9 percent to $132.85 after the company reported a drop in its earnings for the first quarter and lowered its forecast for the current year.

Emergent Capital Inc EMG was down, falling around 14 percent to $1.13 after the company disclosed that its White Eagle life settlement subsidiary has amended its revolving credit facility. The company also reported that its Red Falcon life settlement subsidiary has been merged into the White Eagle subsidiary.

Commodities

In commodity news, oil traded up 0.17 percent to $52.42 while gold traded up 0.28 percent to $1,165.20.

Silver traded up 0.31 percent Wednesday to $16.46, while copper rose 2.47 percent to $2.55.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.05 percent, the Spanish Ibex Index fell 0.03 percent, while Italy’s FTSE MIB Index gained 0.31 percent. Meanwhile the German DAX slipped 0.11 percent, and the French CAC 40 gained 0.02 percent while U.K. shares fell 0.04 percent.

Economics

The MBA’s index of mortgage application activity rose 0.10 percent for the latest week.

The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.