Mid-Day Market Update: Lennar Gains On Upbeat Earnings; Adobe Shares Slide

Midway through trading Wednesday, the Dow traded up 0.09 percent to 17,147.20 while the NASDAQ surged 0.12 percent to 4,558.39. The S&P also rose, gaining 0.05 percent to 1,999.89.

Leading and Lagging Sectors

In trading on Wednesday, industrials shares were relative leaders, up on the day by about 0.28 percent. Top gainers in the sector included Republic Airways Holdings RJET, up 8.2 percent, and Insulet PODD, up 5.8 percent.

Basic materials sector was the top decliner in the US market on Wednesday. Top losers in the sector included Owens-Illinois OI, down 6.6 percent, and Rock-Tenn Company RKT, off 3.3 percent.

Top Headline

FedEx FDX reported upbeat results for the fiscal first-quarter.

The Memphis, Tennessee-based company posted quarterly earnings of $606 million, or $2.10 per share, compared to $489 million, or $1.53 per share, in the year-ago quarter.

Its revenue gained 6% to $11.7 billion from $11.0 billion. However, analysts were expecting earnings of $1.94 per share on revenue of $11.47 billion.

Equities Trading UP

Auxilium Pharmaceuticals AUXL shares shot up 42.17 percent to $30.59 after the company received an unsolicited bid to be acquired for $28.10 per share from Endo International plc ENDP.

Shares of United States Steel X got a boost, shooting up 8.97 percent to $45.12 after the company reported strategic actions and issued a strong Q3 outlook.

Lennar LEN shares were also up, gaining 6.13 percent to $41.53 after the company reported better-than-expected fiscal third-quarter earnings.

Equities Trading DOWN

Shares of Rackspace Hosting RAX were down 16.12 percent to $33.00 after the company said it will remain independent despite "entertaining various proposals" from suitors.

General Mills GIS shares tumbled 3.56 percent to $51.29 after the company reported weaker-than-expected fiscal first-quarter results.

Adobe Systems ADBE was down, falling 4.44 percent to $67.59 after the company issued a weak fiscal fourth-quarter forecast. Adobe reported its Q3 earnings of $0.28 per share on revenue of $1.01 billion.

Commodities

In commodity news, oil traded down 0.57 percent to $94.34, while gold traded down 0.02 percent to $1,236.50.

Silver traded down 0.19 percent Wednesday to $18.69, while copper fell 0.51 percent to $3.15.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.51 percent, the Spanish Ibex Index surged 0.96 percent, while Italy’s FTSE MIB Index jumped 1.45 percent. Meanwhile, the German DAX rose 0.37 percent and the French CAC 40 gained 0.55 percent while UK shares dropped 0.07 percent.

Economics

The MBA reported that its index of mortgage application activity rose 7.90% in the week ended September 12.

The consumer price index fell 0.2% in August, while the core CPI was unchanged in the month. However, economists were expecting consumer prices to remain unchanged in the month.

The US current account deficit shrank 3.8% to $98.50 billion in the second quarter, versus a revised $102.2 billion in the first quarter. However, economists were expecting current account deficit to reach $113.40 billion in the quarter.

The NAHB housing market index rose to 59.00 in September, versus a prior reading of 55.00. However, economists were expecting a reading of 56.00.

US oil inventories increased 3.7 million barrels in the week ended September 12, according to the Energy Information Administration. However, analysts were expecting a drop of 400,000 barrels. Gasoline supplies fell 1.6 million barrels, while distillates supplies climbed 300,000 barrels.

The Federal Open Market Committee will announce its policy decision at 2:00 p.m. ET, while the Fed Chairwoman Janet Yellen will hold a press conference at 2:30 p.m. ET.