Mid-Morning Market Update: Markets Mostly Higher; Michael Kors Tops Q3 Views
Following the market opening Wednesday, the Dow traded up 0.61 percent to 25,063.70 while the NASDAQ declined 0.03 percent to 7,114.04. The S&P also rose, gaining 0.42 percent to 2,706.47.
Leading and Lagging Sectors
Wednesday morning, the cyclical consumer goods & services shares climbed 0.91 percent. Meanwhile, top gainers in the sector included Perry Ellis International, Inc. (NASDAQ: PERY), up 14 percent, and LSI Industries, Inc. (NASDAQ: LYTS), up 10 percent.
In trading on Wednesday, basic materials shares tumbled 0.06 percent. Meanwhile, top losers in the sector included James Hardie Industries plc (ADR) (NYSE: JHX), down 3 percent, and Freeport-McMoRan Inc (NYSE: FCX) down 3 percent.
Michael Kors Holdings Ltd (NYSE: KORS) reported upbeat Q3 results and raised its FY 2018 guidance.
The company said it earned $1.77 per share on revenue of $1.44 billion in the fourth quarter. However, Wall Street analysts were expecting the company to earn $1.29 per share on revenue of $1.38 billion.
Michael Kors raised its FY 2018 earnings guidance from $3.85-$3.95 per shares, to $4.40-$4.45 per shares.
Equities Trading UP
Snap Inc (NYSE: SNAP) shares shot up 32 percent to $18.57 after the company reported stronger-than-expected results for its fourth quarter. Snapchat reported daily active users up 18 percent year-over-year. Average revenue per user was up 46 percent year-over-year.
Shares of Model N Inc (NYSE: MODN) got a boost, shooting up 25 percent to $17.30 after the company posted upbeat quarterly results and issued a strong forecast.
DryShips Inc. (NASDAQ: DRYS) shares were also up, gaining 23 percent to $3.49. DryShips reported a $50 million buyback plan and announced a cash dividend for the quarter ended December 31, 2017.
Equities Trading DOWN
MACOM Technology Solutions Holdings Inc (NASDAQ: MTSI) shares dropped 31 percent to $20.96 after the company reported downbeat quarterly results.
Shares of Black Box Corporation (NASDAQ: BBOX) were down 12 percent to $2.83. Black Box reported a Q3 loss of $1.85 per share on sales of $194.9 million.
Chipotle Mexican Grill, Inc. (NYSE: CMG) was down, falling around 10 percent To $274.50. Chipotle posted upbeat earnings for its fourth quarter. Chipotle reported comps up 0.9 percent in the quarter and the company sees comps up in the low single digits for FY18.
In commodity news, oil traded up 0.63 percent to $63.79 while gold traded down 0.18 percent to $1,327.10.
Silver traded down 0.87 percent Wednesday to $16.435, while copper fell 2.04 percent to $3.124.
European shares were higher today. The eurozone’s STOXX 600 climbed 1.61 percent, the Spanish Ibex Index rose 1 percent, while Italy’s FTSE MIB Index surged 2.12 percent. Meanwhile the German DAX climbed 1.31 percent, and the French CAC 40 rose 1.34 percent while U.K. shares rose 1.88 percent.
The Energy Information Administration’s weekly report on petroleum inventories in the U.S. is schedule for release at 10:30 a.m. ET.
Chicago Federal Reserve Bank President Charles Evans is set to speak in Des Moines, Iowa at 11:15 a.m. ET.
The Treasury will auction 10-year notes at 1:00 p.m. ET.
Data on consumer credit for December will be released at 3:00 p.m. ET.
San Francisco Federal Reserve Bank President John Williams will speak in Hololulu, Hawaii at 5:20 p.m. ET.
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