Market Overview

Mid-Morning Market Update: Markets Open Higher, Dollar General Profit Rises 3%

Mid-Morning Market Update: Markets Open Higher, Dollar General Profit Rises 3%
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Following the market opening Tuesday, the Dow traded up 0.26 percent to 15,292.97, while the NASDAQ rose 0.31 percent to 3,476.05. The S&P was also up, gaining 0.29 percent to 1,645.14.

Top Headline
Dollar General (NYSE: DG) reported a 3% rise in its first-quarter profit.

Dollar General's quarterly profit surged to $220.08 million, or $0.67 per share, versus $213.41 million, or $0.63 per share, in the year-ago period. Its adjusted earnings came in at $0.71 per share.

Its revenue surged to $4.24 billion from $3.90 billion, while same-store sales rose 2.6%. However, analysts were estimating earnings of $0.71 per share on revenue of $4.24 billion. Dollar General projects full-year adjusted earnings of $3.15 to $3.22 per share, versus its earlier forecast of $3.15 to $3.30 per share.

Equities Trading UP
ExactTarget (NYSE: ET) shot up, gaining 52.66 percent to $33.74, after (NYSE: CRM) announced its plans to buy the company for $2.34 billion.

G-III Apparel Group (NASDAQ: GIII) was also up 12.80 percent to $48.21 after the company reported upbeat first-quarter results and lifted its full-year outlook.

General Motors Company (NYSE: GM) got a boost, shooting up 1.98 percent to $35.10. GM will replace H. J. Heinz Co (NYSE: HNZ) in the S&P 500 on Thursday.

Equities Trading DOWN
Dollar General (NYSE: DG) was down, falling 6.80 percent to $49.91 on Q1 results.

U.S. Silica Holdings (NYSE: SLCA) shares tumbled 5.47 percent to $20.41 after the company announced secondary offering of 10 million shares of common stock by selling stockholder.

The Carlyle Group LP (NASDAQ: CG) was down 4.53 percent to $28.06 after Calpers announced its plans to sell its 4% stake in the company.

In commodity news, oil traded down 0.48 percent to $93.00, while gold dropped 1 percent to $1,397.60.

Silver traded down 1.41 percent Tuesday to $22.40, while copper rose 0.72 percent to $3.35.

European shares traded higher in early trade after the positive Spanish economic news and also on the ESM news. Spain's unemployment count, those collecting unemployment benefits, declined 98,265 in May to 4.89 million, a drop of almost 2 percent.

The Spanish Ibex Index rose 1.30 percent and the Italian FTSE MIB Index gained 0.58 percent. Meanwhile, the German DAX climbed 0.34 percent and the French CAC 40 rose 0.48 percent while U.K. shares gained 0.64 percent.

US trade deficit widened 8.5% to $40.3 billion in April, versus a revised $37.1 billion in March. However, economists were expecting the deficit to rise to $41.5 billion. US exports increased 1.2% to $187.4 billion in April, while imports rose 2.4% to $227.7 billion.

The ICSC/Goldman Sachs Retail Chain Store Sales Index increased 1.9% in the week ended Saturday versus the prior week.

The Johnson Redbook Retail Sales Index gained 0.6% in the first four weeks of May versus April.

Fed members Sarah Bloom Raskin, Esther George, and Richard Fischer are expected to speak.

The Treasury is also expected to auction 4-week bills.

Posted-In: Earnings News Guidance Commodities Global Econ #s Economics Hot


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