Mid-Morning Market Update: Markets Open Higher; IHS Profit Beats Estimates
Following the market opening Tuesday, the Dow traded up 0.64 percent to 16,530.10 while the NASDAQ surged 0.63 percent to 4,139.47. The S&P also rose, gaining 0.51 percent to 1,836.13.
IHS projects FY14 subscription revenue to rise 6% to 7%. The company projects total revenue of $2.17 to $2.23 billion and an adjusted profit of $5.50 to $5.85 per share. However, analysts projected a profit of $5.58 per share on revenue of $2.2 billion.
IHS posted its quarterly net income at $40.8 million, or $0.60 per share, versus a year-ago profit of $46.4 million, or $0.69 per share. Excluding items, it earned $1.46 per share, versus analysts' estimates of $1.27 per share.
Its revenue climbed 35% to $559.7 million, while subscription revenue jumped 38%. However, analysts were projecting revenue of $534.8 million.
Equities Trading UP Shares of Neurocrine Biosciences (NASDAQ: NBIX ) got a boost, shooting up 57.43 percent to $15.37 after the company reported positive results of VMAT2 inhibitor NBI-98854 in Kinect 2 study.
Epizyme (NASDAQ: EPZM ) shot up 54.63 percent to $31.70 after the company reported two major milestone achievements. It announced the achievement of a proof of concept milestone in the EPZ-5676 DOT1L inhibitor clinical program.
Convergys (NYSE: CVG ) was also up, gaining 12.44 percent to $23.46 after the company announced its plans to acquire Stream Global Services for $820 million in cash. Convergys also reaffirmed its outlook for 2013.
Equities Trading DOWN Shares of Key Energy Services (NYSE: KEG ) were down 6.51 percent to $7.32 after the company issued Q4 update.
PBF Energy (NYSE: PBF ) tumbled 5.85 percent to $28.16 after the company priced secondary offering of 15 million shares at $28 per share. Gulfport Energy (NASDAQ: GPOR ) was down, falling 6 percent to $55.66 after the company reported 2013 exit rate of 27,780 barrels of oil equivalent per day. RBC Capital downgraded Gulfport Energy from Outperform to Sector Perform and cut the price target from $64.00 to $61.00.
Commodities In commodity news, oil traded down 0.04 percent to $93.39, while gold traded down 0.69 percent to $1,229.40. Silver traded down 1.88 percent Tuesday to $19.73, while copper fell 0.43 percent to $3.35.
Eurozone European shares were higher today. The Spanish Ibex Index rose 2.07 percent, while Italy's FTSE MIB Index surged 0.92 percent. Meanwhile, the German DAX climbed 0.55 percent and the French CAC 40 rose 0.35 percent while U.K. shares climbed 0.37 percent. Economics The ICSC-Goldman Sachs store sales index dropped 5.4% in the week ended Saturday versus the earlier week. The Johnson Redbook Retail Sales Index fell 0.6% in December versus November. US trade deficit declined around 13% to $34.3 billion in November, versus a revised $39.3 billion in the earlier month. However, economists were expecting a deficit of $40.0 billion. The Treasury is set to auction 4-and 52-week bills. The Treasury will also auction 3-year notes.
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