Mid-Morning Market Update: Markets Edge Higher; Dollar General Tops Q1 Expectations

Following the market opening Thursday, the Dow traded up 0.11 percent to 21,031.24 while the NASDAQ climbed 0.29 percent to 6,216.66. The S&P also rose, gaining 0.23 percent to 2,417.37.

Leading and Lagging Sectors

Cyclical consumer goods & services sector was the top gainer in the US market on Thursday. Top gainers in the sector included Shiloh Industries, Inc. SHLO, Goodyear Tire & Rubber Co GT, and Dollar General Corp. DG.

In trading on Thursday, financial shares rose by just 0.03 percent. Meanwhile, top losers in the sector included Taubman Centers, Inc. TCO, down 4 percent, and Banco Macro SA (ADR) BMA, down 2 percent.

Top Headline

Dollar General Corp. DG posted stronger-than-expected results for its first quarter and raised its FY17 sales growth outlook.

Dollar General posted Q1 earnings of $1.03 per share on revenue of $5.61 billion. However, analysts were expecting earnings of $1 per share on revenue of $5.59 billion.

Dollar General raised its FY17 sales growth outlook to 5 percent to 7 percent, versus earlier forecast of 4 percent to 6 percent.

Equities Trading UP

Spi Energy Co Ltd (ADR) SPI shares shot up 55 percent to $2.10 after the company reported a deal with Capital Stage to sell UK solar project.

Shares of ChinaCache International Holdings Ltd CCIH got a boost, shooting up 43 percent to $1.34 as the company disclosed that it has received Content Delivery Network License from the Chinese Government.

Palo Alto Networks Inc PANW shares were also up, gaining 17 percent to $138.80 after the company reported better-than-expected results for its third quarter and issued a strong earnings forecast for the current quarter.

Equities Trading DOWN

Express, Inc. EXPR shares dropped 19 percent to $6.29 after the company posted a wider-than-expected loss for its first quarter.

Shares of Vera Bradley, Inc. VRA were down 7 percent to $8.76. On Wednesday, Vera Bradley posted a narrower-than-expected quarterly loss, while sales missed estimates.

Microbot Medical Inc MBOT was down, falling around 17 percent to $3.77 after surging 68.03 percent on Wednesday.

Commodities

In commodity news, oil traded up 0.21 percent to $48.42 while gold traded down 0.80 percent to $1,265.20.

Silver traded down 1.82 percent Thursday to $17.09, while copper fell 0.19 percent to $2.575.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.37 percent, the Spanish Ibex Index fell 0.09 percent, while Italy’s FTSE MIB Index surged 0.72 percent. Meanwhile the German DAX climbed 0.29 percent, and the French CAC 40 gained 0.68 percent while U.K. shares rose 0.45 percent.

Economics

Private-sector employers added 253,000 jobs in May, ADP reported. However, economists were expecting a gain of 185,000 jobs.

Initial jobless claims rose 13,000 to 248,000 in the latest week. However, economists projected jobless claims to reach 239,000 reading during the week.

The Markit manufacturing PMI increased to 52.70 for May, versus a previous reading of 52.50. However, economists were estimating a reading of 52.50.

The ISM manufacturing index rose to 54.90 in May, versus a prior reading of 54.90. Economists expected a reading of 54.50.

U.S. construction spending declined 1.40 percent for April, versus economists’ expectations for a 0.50 percent gain.

The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET.

The EIA’s weekly report on petroleum inventories in the U.S. will be released at 11:00 a.m. ET.

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