Mid-Day Market Update: Men's Wearhouse To Acquire Jos. A. Bank For $65/Share; Myriad Shares Slip
Midway through trading Tuesday, the Dow traded down 0.30 percent to 16,369.34while the NASDAQ tumbled 0.17 percent to 4,327.24. The S&P also fell, dropping 0.34 percent to 1,870.74.
Leading and Lagging Sectors
Tech stocks gained by 0.07 percent in Tuesday's trading. Top gainers in the sector included Vitesse Semiconductor (NASDAQ: VTSS), with shares up 2.7 percent and Fusion-io (NYSE: FIO), with shares up 4.2 percent. In trading on Tuesday, energy shares were relative laggards, down on the day by about 0.68 percent.
American Eagle Outfitters (NYSE: AEO) reported a drop in its fiscal fourth-quarter profit and issued a weak profit outlook. American Eagle's quarterly profit declined to $10.5 million, or $0.05 per share, versus a year-ago profit of $94.8 million, or $0.47 per share. Its sales slipped 7% to $1.04 billion versus $1.12 billion, while comparable sales dropped 7%. Excluding special items, its adjusted profit came in at $0.27 per share, versus analysts' estimates of $0.26 per share. American Eagle expects Q1 per-share earnings to break even, versus analysts' estimates of $0.13 per share.
Equities Trading UP
Boyd Gaming (NYSE: BYD) shot up 17.10 percent to $13.82 after hedge fund Elliot Associates disclosed a 4.99% stake in the company.
Shares of FuelCell Energy (NASDAQ: FCEL) got a boost, shooting up 15.27 percent to $4.53 after the company reported Q1 results. FuelCell posted its quarterly net income of $0.02 per share on revenue of $24.2 million.
The Men's Wearhouse (NYSE: MW) was also up, gaining 6.05 percent to $57.87 after the company announced its plans to acquire Jos. A. Bank Clothiers (NASDAQ: JOSB) for $65.00 per share in cash, or $1.8 billion in total.
Equities Trading DOWN
Shares of Myriad Genetics (NASDAQ: MYGN) were down 9.55 percent to $34.15 as the company failed to block Ambry Genetics. US Court denied the company's motion to block competitor genetic tests.
Vipshop Holdings (NYSE: VIPS) was down, falling 4.83 percent to $150.82 after the company proposed to offer $400 million of its convertible senior notes due 2019. Goldman Sachs downgraded the stock from Buy to Neutral and lifted the price target from $84.20 to $185.00.
In commodity news, oil traded down 0.58 percent to $100.53, while gold traded down 0.01 percent to $1,341.30.
Silver traded down 0.69 percent Tuesday to $20.77, while copper fell 2.28 percent to $2.96.
European shares were mostly higher today.
The Spanish Ibex Index fell 0.02 percent, while Italy's FTSE MIB Index climbed 0.90 percent.
Meanwhile, the German DAX gained 0.80 percent and the French CAC 40 declined 0.15 percent while U.K. shares rose 0.05 percent.
The ICSC-Goldman same-store sales index rose 1.3% in the week ended Saturday.
The NFIB Small Business Optimism Index fell 2.7 points to 91.4 in February.
The Johnson Redbook Retail Sales Index gained 2.5% y/y in the first week of March. US wholesale inventories rose 0.60% in January, versus economists' expectations for a 0.40% gain.
US wholesale sales declined 1.9% in the month. Job openings increased 3.97 million in January, from 3.91 million in December, according to the US Department of Labor. However, economists were expecting a rise of 4.01 million.
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