Market Overview

Mid-Day Market Update: VMware Surges On Earnings Beat; Flexsteel Shares Tumble

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Midway through trading Wednesday, the Dow traded down 0.12 percent to 18,032.41 while the NASDAQ declined 0.11 percent to 4,934.68. The S&P also fell, dropping 0.18 percent to 2,097.09.

Leading and Lagging Sectors

On Wednesday, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from Teck Resources Ltd (USA) (NYSE: TCK) and Endeavour Silver Corp (NYSE: EXK).

In trading on Wednesday, utilities shares fell by 0.82 percent. Meanwhile, top losers in the sector included NorthWestern Corp (NYSE: NWE), down 2 percent, and Huaneng Power International Inc (ADR) (NYSE: HNP), down 2 percent.

Top Headline

The Coca-Cola Co (NYSE: KO) reported better-than-expected earnings for its first quarter on Wednesday.

Coke posted a quarterly profit of $1.48 billion, or $0.34 per share, compared to $1.56 billion, or $0.35 per share, in the year-ago period. Excluding certain items, the company's earnings came in at $0.45 per share, beating analysts' estimates of $0.44 per share.

Its revenue declined 4 percent to $10.28 billion, versus analysts' expectations of $10.28 billion.

Equities Trading UP

Hansen Medical, Inc. (NASDAQ: HNSN) shares shot up 40 percent to $3.99 after the company agreed to be acquired by Auris Surgical.

Shares of VMware, Inc. (NYSE: VMW) got a boost, shooting up 13 percent to $58.01 as the company reported better-than-expected Q1 earnings. The company's board of directors also authorized a $1.2 billion share buyback program.

OncoSec Medical Inc (NASDAQ: ONCS) shares were also up, gaining 20 percent to $2.88. OncoSec presented positive melanoma clinical data at the AACR Annual Meeting 2016.

Equities Trading DOWN

CalAmp Corp. (NASDAQ: CAMP) shares dropped 13 percent to $15.15. CalAmp reported in-line Q4 earnings, but the company issued a weak forecast for the full year.

Shares of Flexsteel Industries, Inc. (NASDAQ: FLXS) were down 13 percent to $37.24. Flexsteel Industries reported Q3 adjusted earnings of $0.68 per share on revenue of $125.4 million

Argos Therapeutics Inc (NASDAQ: ARGS) was down, falling around 26 percent to $7.96. Argos Therapeutics reported plans to reduce workforce by 13 percent and announced the resignation of its COO Fred Miesowicz.

Commodities

In commodity news, oil traded down 2.39 percent to $40.10 while gold traded down 0.08 percent to $1,253.30.

Silver traded up 0.61 percent Wednesday to $17.08, while copper fell 0.16 percent to $2.23.

Eurozone

European shares were higher today. The eurozone's STOXX 600 rose 0.04 percent, the Spanish Ibex Index gained 1.56 percent, while Italy's FTSE MIB Index rose 0.68 percent. Meanwhile, the German DAX gained 0.21 percent, and the French CAC 40 rose 0.08 percent, while U.K. shares fell 0.30 percent.

Economics

Existing home sales increased 5.1 percent to an annual rate of 5.33 million in March, according to the National Association of Realtors. However, economists were expecting a 5.3 million rate.

Crude oil supplies rose 2.1 million barrels for the week ended April 15, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 1.6 million barrels. Gasoline supplies dropped 100,000 barrels, while distillate stockpiles fell 3.6 million barrels last week.

Posted-In: Earnings M&A News Guidance Eurozone Commodities Global Intraday Update

 

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