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Mid-Morning Market Update: Markets Open Higher; CVS Health Earnings Beat Estimates

CVS

Following the market opening Tuesday, the Dow traded up 0.20 percent to 25,511.53 while the NASDAQ climbed 0.75 percent to 7,383.71. The S&P also rose, gaining 0.39 percent to 2,748.90.

Leading and Lagging Sectors

Tuesday morning, the communication services shares climbed 0.6 percent. Meanwhile, top gainers in the sector included Gogo Inc (NASDAQ: GOGO) up 25 percent, and Internet Initiative Japan Inc. (NASDAQ: IIJI) up 13 percent.

In trading on Tuesday, financial shares fell 0.3 percent.

Top Headline

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

CVS reported earnings of $1.73 per share, beating estimates of $1.71. Sales totaled $47.269 billion, which missed estimates of $47.2 billion.

CVS Health reaffirmed its FY18 adjusted earnings forecast of $6.98 to $7.08 per share.

 

Equities Trading UP

ConvergeOne Holdings, Inc. (NASDAQ: CVON) shares shot up 32 percent to $12.44 after the company agreed to be purchased by CVC Fund VII for $1.8 billion.

Shares of Vericel Corporation (NASDAQ: VCEL) got a boost, shooting up 34 percent to $15.41 after the company reported upbeat Q3 results and raised its FY18 total net product sales guidance.

On Deck Capital, Inc. (NYSE: ONDK) shares were also up, gaining 22 percent to $8.20 after the company reported upbeat Q3 earnings.

Equities Trading DOWN

GreenSky, Inc. (NASDAQ: GSKY) shares dropped 39 percent to $9.00 after the company reported Q3 results and lowered EBITDA guidance.

Shares of frontdoor, inc. (NASDAQ: FTDR) were down 30 percent to $24.60 after the company posted downbeat Q3 earnings.

AAC Holdings, Inc. (NYSE: AAC) was down, falling around 31 percent to $3.65 following Q3 results. AAC Holdings posted a Q3 loss of $0.08 per share on sales of $77.5 million.

Commodities

In commodity news, oil traded up 0.11 percent to $63.17 while gold traded up 0.27 percent to $1,235.60.

Silver traded down 0.05 percent Tuesday to $14.64, while copper rose 0.04 to $2.757.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.51 percent, the Spanish Ibex Index fell 0.76 percent, while Italy’s FTSE MIB Index slipped 0.29 percent. Meanwhile the German DAX slipped 0.36 percent, and the French CAC 40 slipped 0.55 percent while U.K. shares fell 0.98 percent.

Economics

The Johnson Redbook Retail Sales Index rose 0.1 percent during the first four weeks of October versus September.

The number of job openings declined to 7 million in September, compared to 7.3 million in August.

The Treasury is set to auction 8-week bills at 11:30 a.m. ET.

The Treasury will auction 52-week bills and 10-year notes at 1:00 p.m. ET.



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