Mid-Morning Market Update: Markets Open Higher; D.R. Horton Profit Beats Expectations

Following the market opening Tuesday, the Dow traded up 0.18% to 27740.33 while the NASDAQ rose 0.35% to 8,493.98. The S&P also rose, gaining 0.38% to 3,098.68.

Leading and Lagging Sectors

Materials shares climbed 0.6% on Tuesday. Meanwhile, top gainers in the sector included Verso Corporation VRS, up 20%, and Ferro Corporation FOE, up 11%.

In trading on Tuesday, industrial shares rose by just 0.1%.

Top Headline

D.R. Horton, Inc. DHI reported better-than-expected earnings for its fourth quarter.

D.R. Horton reported quarterly earnings of $1.35 per share, beating analysts’ estimates of $1.25 per share. Its sales came in at $5.04 billion, versus expectations of $4.86 billion.

D.R. Horton raised its quarterly dividend from $0.15 to $0.175 per share. The company said it expects FY20 sales of $18.5 billion to $19.0 billion, versus estimates of $18.58 billion. It projects 2020 home sales to be between 60,000 and 61,000 homes.


Equities Trading UP

Craft Brew Alliance, Inc. BREW shares shot up 121% to $16.23 after Anheuser-Busch BUD agreed to purchase the remaining shares of the company it does not already own in a merger transaction for $16.50 per share in cash.

Shares of Applied DNA Sciences, Inc. APDN got a boost, shooting up 89% to $8.33 after the company announced successful DNA tagging of leather at an Asia-based tannery.

Ladenburg Thalmann Financial Services Inc. LTS shares were also up, gaining 23% to $3.46 after the company agreed to be acquired by Advisor Group for $3.50 per share in cash.

Equities Trading DOWN

Solid Biosciences Inc. SLDB shares tumbled 69% to $3.42 after the company put Phase I/II study of SGT-001 on clinical hold following notification from the FDA.

Shares of Diplomat Pharmacy, Inc. DPLO were down 59% to $2.57 after reporting downbeat Q3 earnings.

Fluent, Inc. FLNT was down, falling 26% to $1.87 after the company reported worse-than-expected Q3 EPS and sales results. The company also cut FY19 sales guidance below analyst estimates.


In commodity news, oil traded up 0.4% to $57.09, while gold traded down 0.2% to $1,453.90.

Silver traded down 0.3% Tuesday to $16.75, while copper fell 0.4% to $2.654.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.2%, the Spanish Ibex Index rose 0.2%, while Italy’s FTSE MIB Index climbed 1%. Meanwhile, the German DAX gained 0.6%, and the French CAC 40 rose 0.2% while UK shares rose 0.4%.


The NFIB small business optimism index increased 0.6 points to a reading of 102.4 in October.

The Johnson Redbook Retail Sales Index rose 0.1% during the first week of November versus October.

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

Philadelphia Federal Reserve Bank President Patrick Harker is set to speak in New York at 1:00 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Madison, Wisconsin at 6:00 p.m. ET.

Posted In: FinancialsInvestment Banking & BrokerageMid-Morning Market UpdateEarningsNewsEurozoneCommoditiesGlobalIntraday UpdateMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.