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Mid-Day Market Update: YY Climbs After Strong Q3 Results; SandRidge Energy Shares Plummet

DQ, YY, OXBR

Midway through trading Wednesday, the Dow traded down 0.40 percent to 23,316.29 while the NASDAQ declined 0.35 percent to 6,714.46. The S&P also fell, dropping 0.37 percent to 2,569.23.

Leading and Lagging Sectors

On Wednesday, the telecommunications services sector proved to be a source of strength for the market. Leading the sector was strength from Consolidated Communications Holdings Inc (NASDAQ: CNSL) and Partner Communications Company Ltd (ADR) (NASDAQ: PTNR).

In trading on Wednesday, energy shares were relative laggards, down on the day by about 0.87 percent. Meanwhile, top losers in the sector included JA Solar Holdings Co., Ltd. (ADR) (NASDAQ: JASO), down 12 percent, and Daqo New Energy Corp (NYSE: DQ) down 5 percent.

Top Headline

Target Corporation (NYSE: TGT) reported better-than-expected earnings for its third quarter.

Target posted quarterly adjusted earnings of $0.91 per share on revenue of $16.667 billion. However, analysts were expecting earnings of $0.86 per share on revenue of $16.6 billion. Comparable store sales rose 0.9 percent in the quarter.

Target raised its FY17 adjusted earnings outlook from $4.34-$4.54 per share to $4.40-$4.60 per share. It expects Q4 adjusted earnings of $1.05 to $1.25 per share, versus analysts’ estimates of $1.24 per share.

Equities Trading UP

Sorl Auto Parts, Inc. (NASDAQ: SORL) shares shot up 21 percent to $7.22 after the company reported strong results for its third quarter and raised its FY17 outlook. The company reported Q3 EPS of 44 cents, up from 17 cents in the same quarter of last year. The company reported sales of $101.33 million, up from $63.7 million in the same quarter of last year.

Shares of YY Inc (ADR) (NASDAQ: YY) got a boost, shooting up 20 percent to $107.11 after beating top and bottom-line Q3 estimates. Jefferies upgraded YY from Hold to Buy.

American Renal Associates Holdings Inc (NYSE: ARA) shares were also up, gaining 18 percent to $11.78 after reporting upbeat third-quarter earnings.

Equities Trading DOWN

Acorda Therapeutics Inc (NASDAQ: ACOR) shares dropped 38 percent to $17.42 after the company issued an update on Toazdenant development program.

Shares of Oxbridge Re Holdings Ltd. (NASDAQ: OXBR) were down 25 percent to $2.50. Oxbridge Re Holdings reported a Q3 loss of $3.97 per share on sales of $19.33 million.

SandRidge Energy, Inc. (NYSE: SD) was down, falling around 18 percent to $15.14. SandRidge Energy confirmed that it will buy Bonanza Creek Energy, Inc. (NYSE: BCEI) for $36 per share in cash and stock.

Commodities

In commodity news, oil traded down 0.84 percent to $55.23 while gold traded down 0.22 percent to $1,280.10.

Silver traded down 0.25 percent Wednesday to $17.03, while copper fell 0.55 percent to $3.048.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.59 percent, the Spanish Ibex Index fell 0.04 percent, while Italy’s FTSE MIB Index dropped 0.83 percent. Meanwhile the German DAX declined 0.68 percent, and the French CAC 40 dropped 0.28 percent while U.K. shares fell 0.52 percent.

Economics

The Consumer Price Index gained 0.10 percent for October, versus economists’ expectations for a 0.10 percent growth.

U.S. retail sales rose 0.20 percent for October, versus economists’ expectations for a 0.10 percent gain.

The Empire State manufacturing index declined to 19.40 for November, versus prior reading of 30.20. Economists expected a reading of 26.00.

U.S. business inventories were unchanged for September, versus economists’ expectations for a 0.10 percent gain.

Domestic crude supplies gained 1.85 million barrels for the week ended November 10, the U.S. Energy Information Administration reported. Analysts projected a drop of 2.20 million barrels. Gasoline stockpiles climbed 894,000 barrels, while distillate stockpiles slipped 799,000 barrels for the week.

The Treasury International Capital data for September will be released at 4:00 p.m. ET.

Boston Federal Reserve Bank President Eric Rosengren is set to speak in Boston at 4:00 p.m. ET.



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