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Mid-Morning Market Update: Markets Open Higher; Target Profit Tops Expectations

JKHY, URBN, V.PAR.H, TGT, T.X, FENG, DRD, RAVE, INDP, OBSEF

Following the market opening Wednesday, the Dow traded up 0.29 percent to 22,062.54 while the NASDAQ gained 0.12 percent to 6,340.81. The S&P also rose, gaining 0.22 percent to 2,470.00.

Leading and Lagging Sectors

Wednesday morning, the basic materials shares climbed by 0.93 percent. Meanwhile, top gainers in the sector included DRDGOLD Ltd. (ADR) (NYSE: DRD), up 5 percent, and United States Steel Corporation (NYSE: X), up 5 percent.

In trading on Wednesday, technology shares rose by just 0.07 percent. Meanwhile, top losers in the sector included PAR Technology Corporation (NYSE: PAR), down 6 percent, and Jack Henry & Associates, Inc. (NASDAQ: JKHY) down 4 percent.

Top Headline

Target Corporation (NYSE: TGT) reported better-than-expected earnings for its second quarter and issued a strong forecast for the full year.

Target reported that it earned $1.23 per share in the quarter on revenue of $16.429 billion; analysts were expecting the retail chain to earn $1.19 per share on revenue of $16.3 billion. Comparable sales for the entire company rose 1.3 percent in the quarter while the digital channel saw its comparable sales grow by 32 percent.

Looking forward, Target expects to earn 75–95 cents per share in the third quarter versus analysts expectations of $0.77 per share. For the full fiscal year, the company expects to earn $4.34 to $4.54 per share versus expectations for $4.39 per share.

Equities Trading UP

Urban Outfitters, Inc. (NASDAQ: URBN) shares shot up 23 percent to $20.63 after the company reported stronger-than-expected results for its second quarter.

Shares of Phoenix New Media Ltd ADR (NYSE: FENG) got a boost, shooting up 14 percent to $3.26. Phoenix New Media reported Q2 net income of $3.7 million on revenue of $58 million.

Intec Pharma Ltd (NASDAQ: NTEC) shares were also up, gaining 14 percent to $5.55. Intec Pharma priced 10.6 million share offering at $4.70 per share.

Equities Trading DOWN

Obseva SA (NASDAQ: OBSV) shares dropped 7 percent to $7.15. ObsEva reported a Q2 loss of $0.61 per share, versus a year-ago loss of $0.30 per share.

Shares of Jack Henry & Associates, Inc. (NASDAQ: JKHY) were down 5 percent to $101.13. Jack Henry & Associates reported Q4 earnings of $0.83 per share on revenue of $383.769 million.

Rave Restaurant Group Inc (NASDAQ: RAVE) was down, falling around 4 percent to $1.92. RAVE Restaurant reported a $5 million equity rights offering.

Commodities

In commodity news, oil traded down 0.02 percent to $47.54 while gold traded down 0.19 percent to $1,277.30.

Silver traded down 0.08 percent Wednesday to $16.70, while copper rose 1.35 percent to $2.922.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.76 percent, the Spanish Ibex Index rose 0.68 percent, while Italy’s FTSE MIB Index surged 1.16 percent. Meanwhile the German DAX climbed 0.84 percent, and the French CAC 40 gained 1.01 percent while U.K. shares rose 0.61 percent.

Economics

Housing starts declined 4.8 percent to an annual rate of 1.16 million in July. However, economists were expecting a 1.22 million 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 issue minutes of its latest meeting at 2:00 p.m. ET.



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