Stocks wavered at open but moved upward and were higher at midday.
Economic news flow was slow Wednesday morning, but corporate earnings continued to make headlines.
Stocks on the Move
Wendy's (WEN) shares had sunk by 4.6% at midday after the fast-food restaurant chain posted an 83% drop in quarterly net income, as a result of one-time charges, and a lower-than-expected gain in revenue.
After Tuesday's closing bell,
J.C. Penney (JCP) reported that its initial reading on first-quarter sales showed a 16% year-over-year decline, worse than the expected 13% drop. The retailer also expects same-store sales for the quarter to be down 17%, though the company says the results were negatively affected by former CEO Ron Johnson's strategies. Shares had jumped by 8.5% at midday on hopes that new CEO Myron Ullman will rejuvenate the company.
Walt Disney (DIS) posted second-quarter results after Tuesday's market close. Net income increased 32%, and revenue improved by 9.6%. Both readings exceeded Wall Street estimates, on the backs of the firm's parks and resorts segment as well as its movie-studio business. However, shares were 1.1% lower at midday.
Also after Tuesday's closing bell, Whole Foods Market (WFM) posted a 20% gain in second-quarter earnings and a 13% gain in year-over-year revenue. Both readings were nearly in line with Street estimates. The company also announced a 2-for-1 stock split. Shares had surged by 10.3% at midday.
Kevin O'Shaughnessy does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.