Market Overview

Mid-Morning Market Update: Markets Open Higher; CVS Health Beats Q4 Estimates

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Following the market opening Wednesday, the Dow traded up 0.73% to 29490.80 while the NASDAQ rose 0.42% to 9679.83. The S&P also rose, gaining 0.45% to 3,372.74.

Leading and Lagging Sectors

Energy shares climbed 1.7% on Wednesday. Meanwhile, top gainers in the sector included Noble Corporation plc (NYSE: NE), up 33%, and Overseas Shipholding Group, Inc. (NYSE: OSG), up 11%.

In trading on Wednesday, utilities shares fell 0.2%.

Top Headline

CVS Health Corp (NYSE: CVS) reported stronger-than-expected results for its fourth quarter.

CVS Health reported quarterly earnings of $1.73 per share, which beat the analyst consensus estimate of $1.68. The company reported quarterly sales of $66.9 billion, which missed the analyst consensus estimate of $63.97 billion.

CVS said it expects FY20 adjusted earnings of $7.04 to $7.17 per share, versus analysts’ estimates of $7.15 per share.

Equities Trading UP

ACCO Brands Corporation (NYSE: ACCO) shares shot up 22% to $11.14 after the company reported better-than-expected Q4 results.

Shares of Computer Programs and Systems, Inc. (NASDAQ: CPSI) got a boost, shooting 19% to $33.24 after the company reported better-than-expected Q4 EPS and sales results.

Canaan Inc. (NASDAQ: CAN) shares were also up, gaining 18% to $5.18.

Equities Trading DOWN

PolarityTE, Inc. (NASDAQ: PTE) shares tumbled 45% to $1.74 after the company priced public offering of stock and warrants.

Shares of Bed Bath & Beyond Inc. (NASDAQ: BBBY) were down 25% to $11.07 as the company gave a bleak outlook in its preliminary report for the fourth quarter of the 2019 financial year. Bed Bath & Beyond also said that the same-store sales declined 5.4% in December 2019 and January 2020, the first two months of its fiscal fourth quarter of the year.

Insperity, Inc. (NYSE: NSP) was down, falling 25% to $67.21 after the company reported Q4 earnings results. Baird also downgraded the stock from Outperform to Neutral and lowered its price target from $107 to $73 per share.

Commodities

In commodity news, oil traded up 1.7% to $50.79, while gold traded down 0.1% to $1,569.80.

Silver traded down 0.3% Wednesday to $17.55, while copper rose 0.8% to $2.604.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.6%, the Spanish Ibex Index rose 0.6%, while Italy’s FTSE MIB Index rose 0.8% Meanwhile, the German DAX gained 0.8%, and the French CAC 40 climbed 0.5% while UK shares rose 0.3%.

Economics

The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is scheduled for release at 10:30 a.m. ET.

The Treasury is set to auction 10-year notes at 1:00 p.m. ET.

The U.S. Treasury budget report for January will be released at 2:00 p.m. ET.

 

Related Articles (BBBY + ACCO)

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Posted-In: Mid-Morning Market UpdateEarnings News Eurozone Commodities Global Intraday Update Markets

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