Mid-Morning Market Update: Markets Mixed; Abercrombie & Fitch Lowers Earnings Guidance

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Following the market opening Wednesday, the Dow traded up 0.04 percent to 17,885.81 while the NASDAQ declined 0.06 percent to 4,753.06. The S&P also rose, gaining 0.21 percent to 2,070.99.

Leading and Lagging Sectors

On Wednesday, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from Endeavour Silver (NYSE: EXK ) and Silver Standard Resources (NASDAQ: SSRI ).

In trading on Wednesday, telecommunications services shares were relative laggards, down on the day by about 0.63 percent. Meanwhile, top losers in the sector included China Telecom Corp. Ltd. (NYSE: CHA ), down 2.2 percent, and Atlantic Tele-Network (NASDAQ: ATNI ), off 0.8 percent.

Top Headline

Abercrombie & Fitch (NYSE: ANF ) reported a profit in the fiscal third quarter. However, the company's revenue missed analysts' estimates. The company also lowered its earnings forecast for the full year.

The New Albany, Ohio-based company posted quarterly net income of $18.2 million, or $0.25 per share, versus a year-ago net loss of $15.6 million, or $0.20 per share. Its adjusted earnings came in at $30.4 million, or $0.42 per share, versus a year-ago profit of $40.5 million, or $0.52 per share.

Its revenue declined 12% to $911 million, while same-store sales slipped 10%. However, analysts were expecting earnings of $0.41 per share on revenue of $918.29 million.

For the full-year, Abercrombie & Fitch now projects earnings of $1.50 to $1.65 per share, versus its earlier outlook of $2.15 to $2.35 per share. Analysts expected earnings of $1.74 per share. It expects Q4 comparable sales to decline by a mid-to-high single-digit percentage.

Equities Trading UP

G-III Apparel Group (NASDAQ: GIII ) shares shot up 9.96 percent to $92.76 after the company reported better-than-expected results for the third quarter and raised its full-year forecast.

Shares of Carbonite (NASDAQ: CARB ) got a boost, shooting up 24.15 percent to $14.60 after the company confirmed the receipt of unsolicited proposal from J2 Global (NASDAQ: JCOM ).

Sequenom (NASDAQ: SQNM ) shares were also up, gaining 26.56 percent to $3.86 on settlement of patent disputes with Illumina (NASDAQ: ILMN ) and agreement to pool noninvasive prenatal testing IP.

Equities Trading DOWN

Puma Biotechnology (NYSE: PBYI ) shares tumbled 14.24 percent to $192.95 on delay in the NDA filing for PB272.

Shares of Bob Evans Farms (NASDAQ: BOBE ) were down 7.70 percent to $51.49 after the company reported better-than-expected earnings for the fiscal 2015 second quarter. However, the company's revenue missed analysts' estimates. Analysts at KeyBanc downgraded Bob Evans from Hold to Underweight.

J. C. Penney Company (NYSE: JCP ) was down, falling 5.41 percent to $6.99 after analysts at Goldman Sachs downgraded the stock from Neutral to Sell.


In commodity news, oil traded up 0.82 percent to $67.43, while gold traded up 0.31 percent to $1,203.10.

Silver traded down 0.07 percent Wednesday to $16.45, while copper fell 0.71 percent to $2.87.


European shares were mostly higher today. The eurozone's STOXX 600 rose 0.39 percent, the Spanish Ibex Index gained 1.02 percent, while Italy's FTSE MIB Index climbed 0.59 percent. Meanwhile, the German DAX rose 0.26 percent and the French CAC 40 slipped 0.05 percent while UK shares fell 0.37 percent.


The MBA reported that its index of mortgage application activity dropped 7.30% in the week ended November 28, 2014.

Private-sector employers added 208,000 jobs in November, ADP reported. However, economists were projecting an addition of 223,000 jobs.

US productivity rose at a revised annual pace of 2.3% in the third quarter, versus a prior reading of a 2% growth.

The final reading of US Markit Services PMI fell to 56.20 in November, versus a prior reading of 56.30. However, economists were expecting a reading of 56.50.

The ISM non-manufacturing index surged to 59.30 in November, versus a prior reading of 57.10. However, economists were expecting a reading of 57.50.

The Federal Reserve will release its latest Beige Book report at 2:00 p.m. ET.

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities , Futures
Referenced Symbols: EXK , ATNI , GIII , ILMN

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