Mid-Morning Market Update: Markets Mostly Flat; FedEx Results Top Street View

Following the market opening Wednesday, the Dow traded up 0.02 percent to 16,811.51 while the NASDAQ declined 0.03 percent to 4,335.75. The S&P also rose, gaining 0.12 percent to 1,944.36.

Leading and Lagging Sectors

Wednesday morning, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Korea Electric Power KEP and CPFL Energia SA CPL.

In trading on Wednesday, financial shares were relative laggards, down on the day by about 0.07 percent. Top losers in the sector included MBT Financial MBTF, down 6.7 percent, and Grupo Financiero Galicia SA GGAL, off 3.6 percent.

Top Headline

FedEx FDX reported better-than-expected fiscal fourth-quarter profit.

FedEx posted its quarterly profit of $730 million, or $2.46 per share, versus a year-ago profit of $679 million, or $2.13 per share.

Its revenue rose to $11.8 billion from $11.4 billion. However, analysts were expecting earnings of $2.36 per share on revenue of $11.7 billion.

Equities Trading UP

Insmed INSM shares shot up 32.45 percent to $16.51 after the company announced that the FDA granted Arikayce breakthrough therapy designation.

Shares of Adobe Systems ADBE got a boost, shooting up 9.51 percent to $73.98 after the company reported stronger-than-expected second-quarter earnings. Adobe reported its adjusted earnings of $0.37 per share, beating analysts’ estimates of $0.30 per share.

Air Products & Chemicals APD shares were also up, gaining 7.65 percent to $130.90 after the company named Rockwood's Seifi Ghasemi as its new chairman, president and CEO.

Equities Trading DOWN

Shares of La-Z-Boy LZB were 8.74 percent to $22.67 after the company reported downbeat fourth-quarter revenue. The company also announced its plans to stop production at Hudson plant this year. Its same-store sales declined 0.9% in the quarter, versus an 11.2% gain in the year-ago quarter.

NGL Energy Partners LP NGL shares tumbled 6.15 percent to $42.86 after the company priced an offering of 8 million shares at $43.85 per share.

ConAgra Foods CAG was down, falling 6.79 percent to $30.63 after the company lowered its forecast and said it would miss Q4 estimates.

Commodities

In commodity news, oil traded up 0.37 percent to $106.75, while gold traded up 0.02 percent to $1,272.30.

Silver traded up 0.02 percent Wednesday to $19.74, while copper rose 0.11 percent to $3.06.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 climbed 0.10 percent, the Spanish Ibex Index gained 0.32 percent, while Italy’s FTSE MIB Index fell 0.04 percent. Meanwhile, the German DAX gained 0.25 percent and the French CAC 40 fell 0.04 percent while UK shares gained 0.34 percent.

Economics

The MBA reported that its index of mortgage application activity dropped 9.20% in the week ended June 13.

The US current account deficit rose to $111.20 billion in the first quarter, versus $87.30 billion in the fourth quarter. However, economists were expecting a deficit of $97.0 billion.

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET, while the Fed Chairwoman Janet Yellen will hold a press conference at 2:30 p.m. ET.