Mid-Morning Market Update: Markets Edge Higher; CarMax Tops Q2 Expectations

Following the market opening Wednesday, the Dow traded up 0.06 percent to 26,507.24 while the NASDAQ climbed 0.04 percent to 8,010.33. The S&P also rose, gaining 0.03 percent to 2,916.33.

Leading and Lagging Sectors

Wednesday morning, the health care shares rose 0.45 percent. Meanwhile, top gainers in the sector included Aldeyra Therapeutics Inc ALDX up 48 percent, and AVEO Pharmaceuticals, Inc. AVEO up 10 percent.

In trading on Wednesday, materials shares fell 0.85 percent.

Top Headline

CarMax, Inc KMX reported better-than-expected results for its second quarter.

CarMax posted quarterly adjusted earnings of $1.24 per share on sales of $4.77 billion. However, analysts were expecting earnings of $1.21 per share on sales of $4.65 billion.

Equities Trading UP

Aldeyra Therapeutics Inc ALDX shares shot up 48 percent to $14.68 after announcing positive Phase 2b results for its topical ocular reproxalap in patients with dry eye disease.

Shares of India Globalization Capital, Inc. IGC got a boost, shooting up 25 percent to $2.90 after the company late Tuesday won an agreement for global rights to develop CBD-infused drinks.

Electromed, Inc. ELMD shares were also up, gaining 20 percent to $6.59 following Q4 results. Electromed posted Q4 earnings of $0.13 per share on sales of $8.2 million.

Equities Trading DOWN

Digital Ally, Inc. DGLY shares dropped 16 percent to $2.9831. Digital Ally priced its 2.4 million share offering at $3.05 per share.

Shares of Aceto Corporation ACET were down 10 percent to $2.535. Garrett Motion Inc. will replace Aceto in the S&P SmallCap 600 on Tuesday, October 2.

Nightstar Therapeutics plc NITE was down, falling around 7 percent to $19.0486 after reporting a 4 million ADS offering.

Commodities

In commodity news, oil traded down 0.75 percent to $71.74 while gold traded down 0.31 percent to $1,201.40.

Silver traded down 0.33 percent Wednesday to $14.445, while copper rose 0.05 to $2.825.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 climbed 0.04 percent, the Spanish Ibex Index rose 0.19 percent, while Italy’s FTSE MIB Index declined 0.35 percent. Meanwhile the German DAX dropped 0.21 percent, and the French CAC 40 rose 0.32 percent while U.K. shares fell 0.08 percent.

Economics

U.S. new home sales rose 3.5 percent at an annual rate of 629,000 for August. However, economists were expecting a 630,000 rate.

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

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET.

The Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.