Market Overview

Mid-Afternoon Market Update: Carnival Sinks on Weak Guidance; Markets Go Into The Red

Mid-Afternoon Market Update: Carnival Sinks on Weak Guidance; Markets Go Into The Red

Toward the end of trading Tuesday, the Dow traded down 0.32 percent to 15,351.10 while the NASDAQ fell 0.12 percent to 3,780.30. The S&P was also down, dropping 0.18 percent to 1,698.55.

Top Headline
Lennar (NYSE: LEN) reported a 39% rise in its third-quarter net profit. Lennar's quarterly net profit surged to $120.7 million, or $0.54 per share, from $87.1 million, or $0.40 per share, in the year-ago period. Its revenue rose 46% to $1.6 billion from $1.1 billion, while new orders climbed 14%. However, analysts were estimating earnings of $0.45 per share on revenue of $1.55 billion.

Equities Trading UP
Greenway Medical Technologies (NYSE: GWAY) shot up 18.91 percent to $20.37 after the company agreed to be acquired by Vista Equity Partners for $20.35 per share.

Shares of Applied Materials (NASDAQ: AMAT) got a boost, shooting up 9.31 percent to $17.48 after the company announced its plans to acquire Tokyo Electron in an all-share deal.

EZchip Semiconductor (NASDAQ: EZCH) was also up, gaining 7.16 percent to $24.11 after a Cisco (NASDAQ: CSCO) announced a new product that would not threaten the company as previously thought. Equities Trading DOWN
Shares of Cypress Semiconductor (NASDAQ: CY) were down 16.05 percent to $9.91 after the company lowered its Q3 forecast.

Red Hat (NYSE: RHT) shares tumbled 11.51 percent to $46.84 after the company reported Q2 results. Piper Jaffray downgraded the stock from Overweight to Neutral.

Carnival (NYSE: CCL) was down, falling 7.91 percent to $34.44 after the company beat on the top and bottom line for Q3, but issued some disappointing guidance.

In commodity news, oil traded down 0.23 percent to $103.35, while gold traded down 0.29 percent to $1,323.40. Silver traded up 0.29percent Tuesday to $21.72, while copper fell 1.00 percent to $3.26.

European shares were higher today. The Spanish Ibex Index surged 0.64 percent, while Italy's FTSE MIB Index rose 0.85 percent. Meanwhile, the German DAX gained 0.34 percent and the French CAC 40 rose 0.56 percent while U.K. shares climbed 0.21 percent.

The ICSC-Goldman Sachs store sales index dropped 1% in the week ended Saturday versus the earlier week. The S&P/Case-Shiller home price index rose 1.8% in July from June, while the index climbed 12.4% y/y in the month.

The FHFA house price index climbed 1% in July from June, while the index surged 8.8% y/y.

The Johnson Redbook Retail Sales Index fell 0.4% in the first three weeks of September from August. The Richmond manufacturing index declined to 0.00 in September, versus a prior reading of 14.00.

However, economists were expecting a reading of 12.00. The Conference Board's consumer confidence index fell to 79.70 in September from a revised reading of 81.80 in August. Economists were expecting a reading of 79.90. The Treasury is set to auction 2-year notes.


Related Articles (BZSUM)

View Comments and Join the Discussion!

Posted-In: Earnings News Guidance Eurozone Commodities Forex Global Econ #s