Market Overview

Mid-Afternoon Market Update: Steelcase Tumbles Following Disappointing Earnings Report; Staples Shares Surge

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Toward the end of trading Thursday, the Dow traded up 0.13 percent to 21,436.97 while the NASDAQ gained 0.24 percent to 6,248.63. The S&P also rose, gaining 0.17 percent to 2,439.68.

Leading and Lagging Sectors

Healthcare shares rose by 1.68 percent in the US market on Thursday. Top gainers in the sector included Sangamo Therapeutics Inc (NASDAQ: SGMO), Valeant Pharmaceuticals Intl Inc (NYSE: VRX), and Tenet Healthcare Corp (NYSE: THC).

In trading on Thursday, industrial shares fell by 0.08 percent. Meanwhile, top losers in the sector included Accenture Plc (NYSE: ACN), down 4 percent, and Manitex International Inc (NASDAQ: MNTX), down 4 percent.

Top Headline

Accenture Plc (NYSE: ACN) reported in-line earnings for its third quarter, while sales exceeded estimates. The company also lowered its revenue forecast for the year.

Accenture posted quarterly earnings of $1.52 per share on net revenue of $8.87 billion. However, analysts were expecting earnings of $1.52 per share on revenue of $8.83 billion.

The company now projects full-year net revenue to increase 6 percent to 7 percent, versus its prior outlook for a 6 percent to 8 percent growth. However, Accenture raised its adjusted profit forecast to $5.84 to $5.91 per share, versus an earlier forecast of $5.70 to $5.87 per share.

 

Equities Trading UP

Oracle Corporation (NASDAQ: ORCL) shares shot up 9 percent to $50.47 after the company reported stronger-than-expected earnings for its fourth quarter. Wedbush upgraded Oracle from Neutral to Outperform.

Shares of Staples, Inc. (NASDAQ: SPLS) got a boost, shooting up 7 percent to $9.25 on chatter that the company is targeted for an acquisition. Sycamore Partners, a private equity giant, is reportedly in advanced talks to acquire the office supply retailer, Reuters reported. The deal could value Staples at more than $6 billion, a premium to Staples' valuation of $5.60 billion as of Wednesday's market close.

Barnes & Noble, Inc. (NYSE: BKS) shares were also up, gaining 8 percent to $7.00 after the company reported a narrower-than-expected loss for its fourth quarter.

Equities Trading DOWN

Steelcase Inc. (NYSE: SCS) shares dropped 14 percent to $14.10 after the company reported downbeat earnings for its first quarter and issued a weak outlook for the second quarter.

Shares of Kamada Ltd (NASDAQ: KMDA) were down 21 percent to $5.93 after the company reported the withdrawal of European Marketing Authorization Application for inhaled Alpha-1 Antitrypsin.

Jernigan Capital Inc (NYSE: JCAP) was down, falling around 7 percent to $22.63. Jernigan Capital priced an upsized offering of 3.5 million shares of common stock at $22 per share.

Commodities

In commodity news, oil traded up 0.63 percent to $42.80 while gold traded up 0.47 percent to $1,251.70.

Silver traded up 1.04 percent Thursday to $16.605, while copper fell 0.17 percent to $2.6105.

Eurozone

European shares closed mixed today. The eurozone’s STOXX 600 rose 0.01 percent, the Spanish Ibex Index fell 0.29 percent, while Italy’s FTSE MIB Index declined 0.67 percent. Meanwhile the German DAX gained 0.15 percent, and the French CAC 40 rose 0.15 percent while U.K. shares fell 0.11 percent.

Economics

U.S. initial jobless claims increased 3,000 to 241,000 in the latest week. However, economists were expecting a 240,000 reading.

The FHFA house price index rose 0.7 percent for April, versus economists’ expectations for a 0.4 percent gain.

The index of leading economic indicators rose 0.3 percent for May.

Domestic supplies of natural gas gained 61 billion cubic feet for the week ended June 16, the U.S. Energy Information Administration Thursday reported. However, analysts were estimating a rise of 58 billion cubic feet.

Data on money supply for the recent week will be released at 4:30 p.m. ET.

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

 

Related Articles (ACN + BKS)

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