Mid-Morning Market Update: Markets Open Higher; FedEx Profit Misses Estimates

Following the market opening Wednesday, the Dow traded up 0.37 percent to 17,131.49 while the NASDAQ climbed 0.36 percent to 4,564.03. The S&P also rose, gaining 0.53 percent to 1,983.24.

Leading and Lagging Sectors

In trading on Wednesday, energy shares were relative leaders, up on the day by about 2.95 percent. Meanwhile, top gainers in the sector included Warren Resources WRES, up 14.4 percent, and Panhandle Oil and Gas PHX, up 11.8 percent.

Industrials sector was the top loser in the US market on Wednesday. Meanwhile, top decliners in the sector included B/E Aerospace BEAV, down 27.3 percent, and FedEx FDX, off 4.9 percent.

Top Headline

FedEx FDX reported weaker-than-expected fiscal second-quarter results.

The Memphis, Tennessee-based company posted quarterly net income of $616 million, or $2.14 per share, compared to $500 million, or $1.57 per share, in the year-ago period. Share repurchases benefited latest quarter earnings by $0.16 per share.

Its revenue rose 5% to $11.9 billion. However, analysts were expecting earnings of $2.22 per share on revenue of $11.98 billion.
Equities Trading UP

Auspex Pharmaceuticals ASPX shares shot up 94.34 percent to $48.76 following positive SD-809 trial results.

Shares of Volcano VOLC got a boost, shooting up 55 percent to $17.81 after Philips PHG agreed to acquire Volcano for $18.00 per share.

Digital River DRIV shares were also up, gaining 46.98 percent to $24.78 on extension of Microsoft agreement to March 31st, 2017.

Equities Trading DOWN

Cliffs Natural Resources CLF shares tumbled 14.78 percent to $5.80 after Credit Suisse reduced the price target on the stock from $10 to $1.

Shares of Ruby Tuesday RT were down 11.33 percent to $7.20 after the company reported a 1% y/y drop in its same-store sales in the second quarter. Ruby Tuesday in October had expected same-store growth of between 1% and 2% for the period ended December 2.

POZEN POZN was down, falling 12.29 percent to $7.92 following the announcement of a complete response letter from the FDA.

Commodities

In commodity news, oil traded down 2.59 percent to $54.48, while gold traded up 0.35 percent to $1,198.50.

Silver traded up 0.46 percent Wednesday to $15.83, while copper fell 0.80 percent to $2.84.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dropped 0.71 percent, the Spanish Ibex Index slipped 1.29 percent, while Italy’s FTSE MIB Index declined 1.82 percent. Meanwhile, the German DAX dropped 1.04 percent and the French CAC 40 fell 0.80 percent while UK shares slipped 0.91 percent.

Economics

The MBA reported that its index of mortgage application activity

The consumer price index dropped 0.3% in November, versus economists’ expectations for a 0.1% decline. US core CPI gained 0.10% last month, versus economists’ expectations for a 0.10% rise.

The U.S. current account deficit widened to $100.3 billion in the third quarter, versus a revised $98.4 billion in the previous period. However, economists were expecting a deficit of $97.90 billion.

The Federal Open Market Committee is scheduled to announce its policy decision at 2:00 p.m. ET, while the Fed Chairwoman Janet Yellen will hold a press conference at 2:30 p.m. ET.