Market Overview

Mid-Morning Market Update: Markets Open Higher; Apple Tops Q3 Expectations



Following the market opening Wednesday, the Dow traded up 0.30 percent to 18,528.81 while the NASDAQ gained 0.58 percent to 5,139.60. The S&P also rose, gaining 0.10 percent to 2,171.24.

Leading and Lagging Sectors

On Wednesday, technology shares climbed by 0.88 percent. Top gainers in the sector included Unisys Corporation (NYSE: UIS) and LogMeIn Inc (NASDAQ: LOGM).

In trading on Wednesday, non-cyclical consumer goods & services shares fell by 0.55 percent. Meanwhile, top losers in the sector included The Coca-Cola Co (NYSE: KO), down 3 percent, and Altria Group Inc (NYSE: MO), down 2 percent.

Top Headline

Apple Inc. (NASDAQ: AAPL) reported stronger-than-expected results for its fiscal third quarter on Tuesday.

The company reported earnings of $7.8 billion or $1.42 per share, which compares to Wall Street consensus EPS estimates of $1.38. The high estimate was $1.47 with a low estimate of $1.23. This represents a decline of 27 percent from the $1.85 that Apple reported in last year's third-quarter. The company reported quarterly revenue of $42.36 billion, beating analysts' estimates. Sales in the period were expected to be $42.09 billion, with a high estimate of $43.7 billion and a low estimate of $40.72 billion.

Equities Trading UP

Medigus Ltd. (NASDAQ: MDGS) shares shot up 142 percent to $3.17 after the company reported that it has received its first purchase order from Johns Hopkins Hospital for its MUSE™ system.

Shares of Sequenom, Inc. (NASDAQ: SQNM) got a boost, shooting up 179 percent to $2.38 as the company agreed to be acquired by Laboratory Corp. of America Holdings (NYSE: LH) for $2.40 per share in cash.

Dixie Group Inc (NASDAQ: DXYN) shares were also up, gaining 29 percent to $4.36. Dixie Group posted Q2 adjusted earnings of $0.12 per share on revenue of $105.3 million.

Equities Trading DOWN

Akamai Technologies, Inc. (NASDAQ: AKAM) shares dropped 16 percent to $49.03 after the company reported downbeat Q2 revenue and issued a weak Q3 guidance.

Shares of Twitter Inc (NYSE: TWTR) were down 12 percent to $16.22. Twitter reported better-than-expected earnings for its second quarter, but revenue fell short of expectations. The company also issued a weak revenue forecast for the third quarter.

Diana Containerships Inc (NASDAQ: DCIX) was down, falling around 14 percent to $3.41 after the company posted Q2 results. Diana Containerships reported a Q2 loss of $0.88 per share.


In commodity news, oil traded up 0.09 percent to $42.96 while gold traded up 0.44 percent to $1,334.20.

Silver traded up 1.33 percent Wednesday to $19.95, while copper fell 0.38 percent to $2.22.


European shares were higher today. The eurozone’s STOXX 600 rose 0.76 percent, the Spanish Ibex Index climbed 1.79 percent, while Italy’s FTSE MIB Index rose 1.74 percent. Meanwhile the German DAX rose 0.87 percent, and the French CAC 40 rose 1.57 percent, while U.K. shares rose 0.73 percent.


The MBA’s index of mortgage application activity declined 11.20 percent in the week ended July 22, 2016.

U.S. durable-goods orders declined 4 percent for June, versus economists’ expectations for a 1.1 percent drop.

The pending home sales index increased 0.2 percent to 111.0 in June, compared to 110.8 in May. Economists were expecting a 1.4 percent growth for June.

The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET.


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