Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Mid-Morning Market Update: Markets Open Lower; Target Earnings Miss Views

RRGB, RL, TGT, AHH, CARA, ARDX, IIPR

Following the market opening Wednesday, the Dow traded down 0.28 percent to 24,765.43 while the NASDAQ declined 0.13 percent to 7,368.56. The S&P also fell, dropping 0.20 percent to 2,718.87.

Leading and Lagging Sectors

Wednesday morning, the real estate shares surged 0.67 percent. Meanwhile, top gainers in the sector included Innovative Industrial Properties, Inc. (NYSE: IIPR), up 5 percent, and Armada Hoffler Properties, Inc. (NYSE: AHH) up 3 percent.

In trading on Wednesday, financial shares fell 0.89 percent.

Top Headline

Target Corporation (NYSE: TGT) reported weaker-than-expected earnings for its first quarter, while sales exceeded estimates.

Target's Q1 adjusted earnings per share rose 9.4 percent to $1.32, trailing the $1.38 consensus estimate. Total revenues climbed 3.4 percent to $16.78 billion, which came on the back of 3-percent comps growth and 3.7-percent traffic growth. Analysts, on average, estimated revenue of $16.5 billion.

The company forecast both GAAP EPS from continuing operations and adjusted EPS of $1.30-$1.50, representing a 15-percent increase from last year at the midpoint.

Equities Trading UP

Cara Therapeutics, Inc. (NASDAQ: CARA) shares shot up 29 percent to $14.9675 in reaction to a new licensing agreement with Europe-based Vifor Pharma. As part of the agreement, the biopharmaceutical company that alleviates pain licensed worldwide rights (except U.S., Japan, and South Korea) to Vifor Pharma to commercialize its KORSUVA therapy to Vifor $70 million.

Shares of Tiffany & Co. (NYSE: TIF) got a boost, shooting up 16 percent to $118.93 after the company reported upbeat results for its first quarter and raised its FY2018 earnings guidance.

Ralph Lauren Corporation (NYSE: RL) shares were also up, gaining 14 percent to $132.34 after the company reported stronger-than-expected results for its fourth quarter.

Equities Trading DOWN

Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) shares dropped 19 percent to $47.125 after the company reported downbeat results for its first quarter and issued a weak earnings forecast for the second quarter.

Shares of Pfenex Inc. (NYSE: PFNX) were down 15 percent to $5.86. Pfenex priced its 6.8 million share offering at $5.50 per share.

Ardelyx, Inc. (NASDAQ: ARDX) was down, falling around 13 percent to $3.95. Ardelyx priced its 12.5 million share offering at $4.00 per share.

Commodities

In commodity news, oil traded down 0.29 percent to $71.99 while gold traded down 0.27 percent to $1,293.90.

Silver traded down 1.12 percent Wednesday to $16.39, while copper fell 1.71 to $3.0785.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dipped 1.02 percent, the Spanish Ibex Index fell 1.05 percent, while Italy’s FTSE MIB Index declined 1.37 percent. Meanwhile the German DAX fell 1.54 percent, and the French CAC 40 declined 1.28 percent while U.K. shares fell 1.06 percent.

Economics

The IHS Markit flash manufacturing PMI rose to 56.6 in May, compared to 56.5 in April.

New-home sales fell 1.5 percent to an annual rate of 662,000 in April.

The Treasury is set to auction 5-year notes at 1:00 p.m. ET.

The Federal Open Market Committee will issue minutes of its meeting at 2:00 p.m. ET.

Minneapolis Federal Reserve President Neel Kashkari is set to speak at 2:15 p.m. ET.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today