Mid-Morning Market Update: Markets Open Higher; Joy Global Issues Weak Forecast
Following the market opening Wednesday, the Dow traded up 0.31 percent to 17,578.85 while the NASDAQ climbed 0.16 percent to 5,003.30. The S&P also rose, gaining 0.25 percent to 2,048.53.
Leading and Lagging Sectors
On Wednesday, telecommunications services shares surged by 1.29 percent. Top gainers in the sector included NTT Docomo Inc (ADR) (NYSE: DCM), Frontier Communications Corp (NASDAQ: FTR), and Centurylink Inc (NYSE: CTL).
In trading on Wednesday, energy shares rose by just 0.08 percent. Meanwhile, top losers in the sector included TETRA Technologies, Inc. (NYSE: TTI), down 3 percent, and Newpark Resources Inc (NYSE: NR), down 3 percent.
Joy Global Inc. (NYSE: JOY) reported better-than-expected earnings for its fourth quarter. However, the company issued a weak forecast for the fiscal year and lowered its quarterly dividend to a $0.01 per share
Joy Global reported a quarterly loss of $1.32 billion, or $13.43 per share, versus a year-ago profit of $129.7 million, or $1.31 per share. Its adjusted earnings came in at $0.43 per share for the latest quarter.
Its revenue slipped 24 percent to $853 million. However, analysts were expecting earnings of $042 per share on revenue of $791.14
Equities Trading UP
China Finance Online Co. (ADR) (NASDAQ: JRJC) shares shot up 41 percent to $6.42 following Q3 earnings report and sale of stake in Shanghai Meining Computer Software.
Shares of Array Biopharma Inc (NASDAQ: ARRY) got a boost, shooting up 30 percent to $4.99 after the company reported that its Phase 3 binimetinib trial has met primary endpoint for NRAS-mutant melanoma.
SolarCity Corp (NASDAQ: SCTY) shares were also up, gaining 25 percent to $49.92. Roth Capital maintained SolarCity with a Buy and raised the price target from $55.00 to $65.00.
Equities Trading DOWN
RPX Corp (NASDAQ: RPXC) shares tumbled 12 percent to $11.92 after the company agreed to acquire Inventus Solutions for $232 million in cash.
Joy Global Inc. (NYSE: JOY) was down, falling 6 percent to $10.80. Joy Global reported better-than-expected earnings for its fourth quarter. However, the company issued a weak forecast for the fiscal year and lowered its quarterly dividend to a $0.01 per share.
In commodity news, oil traded down 1.31 percent to $36.86, while gold traded up 1.11 percent to $1,073.40.
Silver traded up 2.54 percent Wednesday to $14.12, while copper rose 1.12 percent to $2.08.
European shares were higher today. The eurozone's STOXX 600 rose 0.72 percent, the Spanish Ibex Index surged 0.59 percent, while Italy's FTSE MIB Index climbed 0.24 percent. Meanwhile, the German DAX climbed 0.94 percent, and the French CAC 40 jumped 0.74 percent, while U.K. shares rose 1.05 percent.
US housing starts climbed 10.5 percent to an annual rate of 1.173 million in November. However, economists were projecting a 1.14 million rate.
US industrial production declined 0.6 percent in November, versus economists' expectations for a 0.1 percent drop.
The flash reading of Markit manufacturing PMI slipped to 51.30 in December, versus a prior reading of 52.80. Economists were expecting a reading of 52.60.
The FOMC will announce its policy decision at 2:00 p.m. ET, while the Fed Chair Janet Yellen will hold a press conference at 2:30 p.m. ET.
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