Market Overview

Mid-Day Market Update: Walgreens Surges On Earnings Beat; Coty Shares Slide

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Midway through trading Thursday, the Dow traded up 0.88 percent to 17,669.78 while the NASDAQ climbed 1.04 percent to 4,960.95. The S&P also rose, gaining 0.86 percent to 2,064.29.

Leading and Lagging Sectors

Basic materials shares jumped by 1.36 percent on Thursday. Meanwhile, top gainers in the sector included Sinopec Shanghai Petrochemical Co. (ADR) (NYSE: SHI), up 21 percent, and Aluminum Corp. of China Limited (ADR) (NYSE: ACH), up 10 percent.

In trading on Thursday, utilities shares fell 0.01 percent. Meanwhile, top losers in the sector included NorthWestern Corp (NYSE: NWE), down 1.5 percent, and IDACORP Inc (NYSE: IDA), off 1.5 percent.

Top Headline

PepsiCo, Inc. (NYSE: PEP) reported upbeat results for the second quarter and lifted its earnings outlook for the year.

The Purchase, New York-based company posted quarterly net income of $1.98 billion, or $1.33 per share, compared to $1.98 billion, or $1.29 per share, in the year-ago period. Excluding items, PepsiCo earned $1.32 per share. Its total revenue slipped 5.7 percent to $15.92 billion, while organic revenue surged 5.1 percent. Analysts were expecting earnings of $1.24 per share on revenue of $15.8 billion.

PepsiCo now projects adjusted earnings growth of 8 percent for 2015, versus earlier forecast for 7 percent growth. It also projects mid-single-digit organic revenue growth for the year.

Equities Trading UP

Sky Solar Holdings Ltd (ADR) (NASDAQ: SKYS) shares shot up 12 percent to $8.50 after the company reported that it has secured an $85 million loan from the Inter-American Development Bank, China Co-Financing Fund and the Canadian Climate Fund to finance photovoltaic solar energy plants in Uruguay.

Shares of Walgreens Boots Alliance Inc (NASDAQ: WBA) got a boost, shooting up 5 percent to $90.16 after the company reported better-than-expected earnings for its fiscal third quarter and raised its full-year profit forecast. The company also lifted its quarterly dividend by 6.7 percent to $0.36 per share.

Paychex, Inc. (NASDAQ: PAYX) shares were also up, gaining 1 percent to $47.79. Paychex lifted its quarterly dividend to $0.42 per share from $0.38 per share.

Equities Trading DOWN

QLogic Corporation (NASDAQ: QLGC) shares tumbled 23 percent to $10.82 after the company lowered its Q1 outlook.

Shares of Coty Inc (NYSE: COTY) were down 5 percent to $29.83 after the company announced its plans to buy Procter & Gamble Co’s (NYSE: PG) beauty business in a $12.5 billon deal.

Anthera Pharmaceuticals Inc (NASDAQ: ANTH) was down, falling 8 percent to $7.71 after the company priced 3.33 million shares at $7.50 per share.

Commodities

In commodity news, oil traded up 2.32 percent to $52.85, while gold traded down 0.09 percent to $1,162.40.

Silver traded up 1.50 percent Thursday to $15.39, while copper rose 2.14 percent to $2.55.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 2.35 percent, the Spanish Ibex Index gained 3.08 percent, while Italy’s FTSE MIB Index climbed 3.63 percent. Meanwhile, the German DAX gained 2.57 percent, and the French CAC 40 jumped 2.78 percent while UK shares climbed 1.54 percent.

Economics

US initial jobless claims rose 15,000 to 297,000 in the week ended July 4, 2015. However, economists were expecting claims to reach 275,000 in the week.

Posted-In: Earnings M&A News Guidance Dividends Eurozone Futures Commodities

 

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