Mid-Morning Market Update: Markets Open Higher; SYSCO Profit Tops Estimates

Following the market opening Monday, the Dow traded up 0.36 percent to 18,644.27 while the NASDAQ climbed 0.40 percent to 5,253.64. The S&P also rose, gaining 0.26 percent to 2,189.61.

Leading and Lagging Sectors

Monday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from Braskem SA (ADR) BAK and James Hardie Industries plc (ADR) JHX.

In trading on Monday, utilities shares slipped by 0.03 percent. Meanwhile, top losers in the sector included Companhia Energetica Minas Gerais (ADR) CIG, down 2 percent, and Consolidated Edison, Inc. ED, down 1 percent.

Top Headline

SYSCO Corporation SYY reported better-than-expected quarterly earnings.

Sysco reported Q4 adjusted earnings of $0.64 per share, on revenue of $13.65 billion. However, analysts were expecting earnings of $0.61 per share on revenue of $13.68 billion.

Equities Trading UP

American Electric Technologies, Inc. AETI shares shot up 59 percent to $4.21 following Q2 results. AETI reported quarterly earnings of $0.06 per share on revenue of $12.3 million.

Shares of Providence & Worcester Railroad Company PWX got a boost, shooting up 50 percent to $24.47 after Genesee & Wyoming Inc GWR reported the purchase of Providence and Worcester Railroad for $25 per share.

Sorl Auto Parts, Inc. SORL shares were also up, gaining 38 percent to $2.55 as the company reported upbeat Q2 results.

Equities Trading DOWN

Aurinia Pharmaceuticals Inc AUPH shares dropped 54 percent to $1.87. Aurinia Pharma reported that its Phase IIB voclosporin study met its primary endpoint.

Shares of Performance Sports Group Ltd PSG were down 43 percent to $2.00. Performance Sports reported that it would not file its Annual Report on Form 10-K by the August 15, 2016 deadline.

Merus Labs International Inc (USA) MSLI was down, falling around 12 percent to $1.10. Merus Labs reported a Q3 net loss of $5.1 million, versus a year-ago loss of $1.8 million.

Commodities

In commodity news, oil traded up 1.06 percent to $45.66 while gold traded up 0.02 percent to $1,343.50.

Silver traded up 0.47 percent Monday to $19.80, while copper rose 0.14 percent to $2.15.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.02 percent, the Spanish Ibex Index rose 0.08 percent, while Italy’s FTSE MIB Index gained 0.17 percent. Meanwhile the German DAX gained 0.23 percent, and the French CAC 40 slipped 0.05 percent, while U.K. shares rose 0.41 percent.

Economics

The Empire State manufacturing index declined to -4.20 in August, versus a prior reading of 0.55. Economists were expecting a reading of 2.50.

The National Association of Home Builders’ housing market index increased 2 points to 60 in August, versus a revised reading of 58 in July. However, economists projected a reading of 60 for the month.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The Treasury International Capital data for June will be released at 4:00 p.m. ET.