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Mid-Morning Market Update: Markets Spike Higher, JC Penney Drops On Stock Sale Report

By: Benzinga
Posted: 3/5/2013 10:27:00 AM
Referenced Stocks: BYD;CREE;IPXL;JCP;MTG

Following the market opening Tuesday, the Dow traded up 0.70 percent to 14,226.74 while the NASDAQ rose 0.88 percent to 3,209.98. The S&P also rose, gaining 0.74 percent to 1,536.52.

Index Technicals: The S&P 500 will attempt to take out its 1,531 resistance today after breaking out over its 1,525 intraday resistance.

The Dow looks set to test its 2007 highs of 14,198.

The Russell is poised to take out its 918 resistance and head upwards to test its 932 all time highs.

The NASDAQ will continue to struggle to break out over its September 2012 highs of 3,197 and its February high of 3,214.

Top Headline Shares of J.C. Penney Co (NYSE: JCP ) declined on reports that a stakeholder is selling a large block of shares in the retailer.

CNBC reported, citing sources, that Deutsche Bank would price 10 million shares in a secondary offering between $16.40 and $16.60.

Equities Trading UP MGIC Investment (NYSE: MTG ) shot up 16.27 percent to $4.86 after Barclays upgraded the stock from Underweight to Overweight.

Shares of Cree (NASDAQ: CREE ) got a boost, shooting up 10.78 percent to $49.54 after the company lifted its Q3 forecast.

Ascena Retail Group (NASDAQ: ASNA ) was also up, gaining 11.68 percent to $18.46 after the company reported upbeat FQ2 results.

Equities Trading DOWN Impax Laboratories (NASDAQ: IPXL ) shares tumbled 23.45 percent to $15.31 after the FDA identified 12 problems at its Hayward manufacturing facility.

J. C. Penney Company (NYSE: JCP ) was also down, falling 6.15 percent to $15.71 on reports that a stakeholder is selling a large block of shares in the retailer.

Shares of Boyd Gaming (NYSE: BYD ) were down 6 percent to $6.95 after the company reported a loss in the fourth quarter.

Commodities In commodity news, oil traded up 0.28 percent to $90.37, while gold traded up 0.59 percent to $1,581.60.

Silver traded up 1.66 percent Tuesday to $28.97, while copper rose 0.87 percent to $3.53.

Eurozone European shares were higher following the stronger than expected services PMI data.The Eurozone Services PMI rose to 47.9 in February from 47.3 in January on expectations of a flat reading month-over-month. Also, the U.K. Non-Manufacutring PMI rose to 51.8 from 51.5 in January, beating expectations of a reading of 51.

The Spanish Ibex Index rose 1.46 percent and the Italian FTSE MIB Index gained 2.04 percent. The STOXX Europe 600 Index rose 1.57 percent, London's FTSE 100 Index surged 1.13 percent, French CAC 40 Index rose 1.59 percent and German DAX 30 index climbed 1.93 percent.

Economics The ICSC-Goldman Sachs same-store sales index increased 1.8% y/y for the latest week ended March 2.

US chain-store sales rose 2.2% y/y for the latest week ended March 2, 2013, according to Redbook Research's latest indicator.

The ISM reported that its survey of purchasing managers climbed to 56% in February, versus 55.2% in January. The ISM's new-orders index gained 3.8 points to 58.2% in the month.

The Treasury is set to auction 4- and 52-week bills and the Fed's Jeffrey Lacker is set to speak.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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