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Mid-Morning Market Update: Markets Open Higher; Alibaba Profit Tops Estimates

M, KSS, KURA, KEP, BABA, TCCO

 

Following the market opening Thursday, the Dow traded up 0.41 percent to 18,571.44 while the NASDAQ climbed 0.46 percent to 5,228.45. The S&P also rose, gaining 0.34 percent to 2,182.82.

Leading and Lagging Sectors

Thursday morning, the cyclical consumer goods & services sector proved to be a source of strength for the market. Leading the sector was strength from Kohl's Corporation (NYSE: KSS) and Macy's Inc (NYSE: M).

In trading on Thursday, utilities shares slipped by 0.06 percent. Meanwhile, top losers in the sector included Korea Electric Power Corporation (ADR) (NYSE: KEP), down 2.5 percent, and TransAlta Corporation (USA) (NYSE: TAC), down 1 percent.

Top Headline

Alibaba Group Holding Ltd (NYSE: BABA) reported better than estimated results for the first quarter.

Alibaba reported non-GAAP EPS of $0.74 representing 33 percent year-over-year growth. This was $0.11 a share higher than the Street estimate of $0.63. In local currency its adjusted EPS was RMB 4.90.

Alibaba's revenue for the three-month period was RMB 32.154 billion or US$4.84 billion, an increase of 59 percent from the previous year period. Street expected revenue of $4.54 billion.


Equities Trading UP

Kura Oncology Inc (NASDAQ: KURA) shares shot up 38 percent to $6.03 as the company posted a narrower-than-expected quarterly loss and issued an update on its Phase 2 trial of tipifarnib in HRAS mutant solid tumors.

Shares of Macy's Inc (NYSE: M) got a boost, shooting up 16 percent to $39.43 as the company posted better-than-expected Q2 earnings. The company announced its continuing pursuance of its real estates’ opportunities while evaluating four possible Macy's flagship stores downtown in various cities. Macy's also announced its plan to close about 100 full line stores and charged $249 million in Q2 related to these closings.

Kohl's Corporation (NYSE: KSS) shares were also up, gaining 15 percent to $43.89 after the company posted stronger-than-expected quarterly results.


Equities Trading DOWN

Quorum Health Corp (NYSE: QHC) shares dropped 55 percent to $4.46. Quorum Health reported a Q2 loss of $8.63 per share on revenue of $529.73 million.

Shares of A Schulman Inc (NASDAQ: SHLM) were down 30 percent to $20.91 after the company lowered its FY16 guidance.

Technical Communications Corporation (NASDAQ: TCCO) was down, falling around 24 percent to $2.52. Technical Communications reported a loss of $0.51 per share on revenue of $581,000 for the three months ended July 2, 2016.


Commodities


In commodity news, oil traded up 0.29 percent to $41.83 while gold traded up 0.10 percent to $1,353.20.

Silver traded up 0.05 percent Thursday to $20.18, while copper rose 0.37 percent to $2.18.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.37 percent, the Spanish Ibex Index gained 0.31 percent, while Italy’s FTSE MIB Index climbed 0.33 percent. Meanwhile the German DAX rose 0.57 percent, and the French CAC 40 climbed 0.72 percent, while U.K. shares fell 0.21 percent.

Economics

U.S. initial jobless claims dropped 1,000 to 266,000 in the August 6 week. However, economists were expecting claims to total 265,000 in the week.

Import prices increased 0.1 percent in July, versus economists’ expectations for a 0.3 percent drop. Export prices rose 0.2 percent in July, versus economists’ expectations for a 0.1 percent gain.

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

The Treasury is set to auction 30-year bonds at 1:00 p.m. ET.

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



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