U.S. shares advanced as Alcoa Inc. gained after earnings topped estimates and investors awaited minutes from the Federal Reserve’s last meeting. The S&P 500 (INDEXSP:.INX) edged up 0.3 percent at 11:28 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) rose 0.2 percent, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) climbed 0.5 percent. Most followed shares also included Garmin, Gigamon, Reynolds American, Container Store, Autoliv, American Airlines, AbbVie, America Movil, and Bob Evans Farms.
Alcoa Inc. (NYSE:AA), the struggling aluminum producer, advanced 3.9 percent to $15.42 after reporting better-than-expected second-quarter profit on the strength of its aluminum-smelting business. Net income rose to $138 million, or 12 cents per share, in the second quarter, compared with a loss of $119 million, or a loss of 11 cents per share, a year earlier. The Fort Myers, Florida-based company returned to profitability after suffering losses in three of the previous four quarters, largely because of writedowns in the value of production facilities, costs for closing down plants and a legal settlement involving a foreign affiliate.
In technology stocks, Garmin Ltd. (NASDAQ:GRMN), a GPS products maker, stumbled 6 percent to C$57.03 after it was downgraded to "underperform" from "sector perform" at Pacific Crest, which pointed to potential headwinds over the next few quarters. Among them: the potential introduction by Apple of an 'iWatch" product.
Gigamon Inc. (NYSE:GIMO), a designer of networking products, plummeted 31 percent to $12.56. The company reported preliminary second-quarter revenue of as much as $35 million. That was lower than its earlier forecast of as much as $42 million, and missed analyst estimates of $40.3 million.
In consumer-discretionary shares, Autoliv Inc. (NYSE:ALV), the manufacturer of automotive safety systems, lost 1.3 percent to $106.25 after Nordea Bank AB downgraded the shares to "hold" from "buy".
American Airlines Group Inc. (NASDAQ:AAL) rallied 2.5 percent to $41.26, boosting U.S. carriers, after raising its margin forecast. The carrier said second-quarter pretax margins would exceed the company’s previous forecast. The company also said it sees strong global travel demand and no “material pockets of weakness.”
The Container Store Group Inc. (NYSE:TCS), a retailer of storage and organization products, tumbled 9.5 percent to $24.50. The company reported quarterly earnings that missed analysts’ estimates and said it’s “experiencing retail ‘funk.’”
Bob Evans Farms Inc. (NASDAQ:BOBE), a Columbus, Ohio-based operator of family restaurants, slipped 3.1 percent to $48.24 as quarterly revenue missed estimates. The company reported quarterly revenue that failed to meet analyst estimates.
In other stocks, AbbVie Inc. (NYSE:ABBV) inched down 1.2 percent to $55 after the U.S. drug company was forced to retract statements it made the previous day on shareholder support for its $51.62 billion takeover offer for London-listed Shire Plc (NASDAQ:SHPG). The U.S. drug company said it wanted to clarify certain press and wire-service reports, adding, “AbbVie confirms that it has not received any written commitments of support and accordingly retracts the statements.” AbbVie raised its offer for Shire to 30.1 billion pounds yesterday, hoping to win over its reluctant target after three earlier offers were rejected.
America Movil (NYSE:AMX), the Mexican telecom giant controlled by billionaire Carlos Slim, jumped 5.2 percent to $21.81 after saying it is prepared to divest assets to cut its market share below 50 percent. Such a move would avoid the impact of new, tougher regulations that seek to encourage more competition.
Reynolds American Inc. (NYSE:RAI), the second-largest seller of cigarettes in the U.S, rose 2.8 percent to $62.99 as the U.K.’s Daily Mail speculated that British American Tobacco Plc (BAT) may purchase the rest of the company. BAT holds about 42 percent of Reynolds, according to Bloomberg.
Reported by Proactive Investors 17 hours ago.
Alcoa Inc. (NYSE:AA), the struggling aluminum producer, advanced 3.9 percent to $15.42 after reporting better-than-expected second-quarter profit on the strength of its aluminum-smelting business. Net income rose to $138 million, or 12 cents per share, in the second quarter, compared with a loss of $119 million, or a loss of 11 cents per share, a year earlier. The Fort Myers, Florida-based company returned to profitability after suffering losses in three of the previous four quarters, largely because of writedowns in the value of production facilities, costs for closing down plants and a legal settlement involving a foreign affiliate.
In technology stocks, Garmin Ltd. (NASDAQ:GRMN), a GPS products maker, stumbled 6 percent to C$57.03 after it was downgraded to "underperform" from "sector perform" at Pacific Crest, which pointed to potential headwinds over the next few quarters. Among them: the potential introduction by Apple of an 'iWatch" product.
Gigamon Inc. (NYSE:GIMO), a designer of networking products, plummeted 31 percent to $12.56. The company reported preliminary second-quarter revenue of as much as $35 million. That was lower than its earlier forecast of as much as $42 million, and missed analyst estimates of $40.3 million.
In consumer-discretionary shares, Autoliv Inc. (NYSE:ALV), the manufacturer of automotive safety systems, lost 1.3 percent to $106.25 after Nordea Bank AB downgraded the shares to "hold" from "buy".
American Airlines Group Inc. (NASDAQ:AAL) rallied 2.5 percent to $41.26, boosting U.S. carriers, after raising its margin forecast. The carrier said second-quarter pretax margins would exceed the company’s previous forecast. The company also said it sees strong global travel demand and no “material pockets of weakness.”
The Container Store Group Inc. (NYSE:TCS), a retailer of storage and organization products, tumbled 9.5 percent to $24.50. The company reported quarterly earnings that missed analysts’ estimates and said it’s “experiencing retail ‘funk.’”
Bob Evans Farms Inc. (NASDAQ:BOBE), a Columbus, Ohio-based operator of family restaurants, slipped 3.1 percent to $48.24 as quarterly revenue missed estimates. The company reported quarterly revenue that failed to meet analyst estimates.
In other stocks, AbbVie Inc. (NYSE:ABBV) inched down 1.2 percent to $55 after the U.S. drug company was forced to retract statements it made the previous day on shareholder support for its $51.62 billion takeover offer for London-listed Shire Plc (NASDAQ:SHPG). The U.S. drug company said it wanted to clarify certain press and wire-service reports, adding, “AbbVie confirms that it has not received any written commitments of support and accordingly retracts the statements.” AbbVie raised its offer for Shire to 30.1 billion pounds yesterday, hoping to win over its reluctant target after three earlier offers were rejected.
America Movil (NYSE:AMX), the Mexican telecom giant controlled by billionaire Carlos Slim, jumped 5.2 percent to $21.81 after saying it is prepared to divest assets to cut its market share below 50 percent. Such a move would avoid the impact of new, tougher regulations that seek to encourage more competition.
Reynolds American Inc. (NYSE:RAI), the second-largest seller of cigarettes in the U.S, rose 2.8 percent to $62.99 as the U.K.’s Daily Mail speculated that British American Tobacco Plc (BAT) may purchase the rest of the company. BAT holds about 42 percent of Reynolds, according to Bloomberg.
Reported by Proactive Investors 17 hours ago.