U.S. stocks moved into the green on Wednesday as investors cheered Fox's decision to withdraw its bid from Time Warner, while also taking in some strong quarterly results. The gains came despite concerns about Russia and Ukraine and big declines from Time Warner and Walgreen.
Just after noon in New York, the Dow Jones Industrial Average was up 29 points at 16,458 following Tuesday's triple digit loss for the blue chip index, while the S&P 500 added 3 points to 1,924. The Nasdaq rallied 16 points to 4,369.
On the economic front in the U.S, it was a light day for economic numbers, with one report showing the June trade deficit shrunk 7% to $41.5 billion. Economists were expecting a deficit of $45 billion.
In corporate activity, 21st Century Fox has withdrawn its $80 billion bid to buy Time Warner (NYSE:TWX), saying the company will not engage in talks. Meanwhile, Time Warner said today it beat expectations with its earnings, while Fox (NASDAQ:FOXA) is set to report profits after the bell. Shares of Time Warner fell more than 11% Wednesday, while Fox added almost 4%.
Walgreen (NYSE:WAG), meanwhile, weighed on markets, lately down more than 12% after confirming it is buying the remainder of Europe's Alliance Boots that it doesn't already own in a $10.1 billion deal, but that it plans to remain a US-domiciled company rather than pursue a plan to cut its tax bill by re-incorporating in Europe.
In corporate earnings, Molson Coors (NYSE:TAP) reported second quarter sales and earnings that topped Wall Street forecasts, with shares jumping more than 6% on the back of the results. Ralph Lauren (NYSE:RL) posted this morning second quarter profit that beat expectations, while revenue essentially matched Street estimates. Shares of the retailer edged up Wednesday afternoon.
Walt Disney (NYSE:DIS) beat expectations on earnings and revenue in the second quarter, driven by strong theme park attendance, as well as from movies like Captain America and Frozen merchandise sales, with shares gaining 0.5%.
Groupon (NASDAQ:GRPN) earned one cent per share in the latest quarter on an adjusted basis, matching Street estimates, while revenue was shy of analyst forecasts. Shares tanked more than 15%, however, after the daily deals site also gave a current quarter forecast that disappointed investors.
Activision Blizzard (NASDAQ:ATVI) rose 3% Wednesday after the videogame maker beat earnings forecasts by 4 cents.
In other stock news, Sprint (NYSE:S) has abandoned its bid to acquire T-Mobile USA (NYSE:TMUS) due to regulatory hurdles, and is likely to name Brightstar's Marcelo Claure as its new CEO. At the same time, France's Iliad is thought to be considering an improved bid for T-Mobile.
Apple (NASDAQ:AAPL) and Samsung have agreed to drop all suits against each other in Germany, the UK, Japan, Australia, the Netherlands, France, South Korea, and Italy. The new iPhone is also said to be launching on September 9.
Bank of America (NYSE:BAC) shares popped after the Federal Reserve approved the bank's resubmitted capital plan, with the bank immediately responding with a quarterly dividend increase of 5 cents a share. The company did not, however, announce a $4 billion buyback that was included in its original plan.
European markets finished lower today, with shares in London leading the region after an unexpected contraction in Italy's GDP sparked fears. Also, Polish Prime Minister Donald Tusk said he has reasons to suspect that the threat of a direct intervention by Russia's military in Ukraine has increased over the last few days, with NATO's deputy secretary general saying that Russia has amassed about 20,000 troops along its border with eastern Ukraine.
Meanwhile, a cease-fire between Israel and Hamas was holding for a second day Wednesday, ahead of negotiations for a long-term deal in Cairo.
Asian stocks also finished in the red on Wednesday, led by losses in Japan. In commodities, gold futures for December rose $21.20 to $1,306.50 an ounce, while September crude fell 11 cents to $97.27 a barrel. Reported by Proactive Investors 2 hours ago.
Just after noon in New York, the Dow Jones Industrial Average was up 29 points at 16,458 following Tuesday's triple digit loss for the blue chip index, while the S&P 500 added 3 points to 1,924. The Nasdaq rallied 16 points to 4,369.
On the economic front in the U.S, it was a light day for economic numbers, with one report showing the June trade deficit shrunk 7% to $41.5 billion. Economists were expecting a deficit of $45 billion.
In corporate activity, 21st Century Fox has withdrawn its $80 billion bid to buy Time Warner (NYSE:TWX), saying the company will not engage in talks. Meanwhile, Time Warner said today it beat expectations with its earnings, while Fox (NASDAQ:FOXA) is set to report profits after the bell. Shares of Time Warner fell more than 11% Wednesday, while Fox added almost 4%.
Walgreen (NYSE:WAG), meanwhile, weighed on markets, lately down more than 12% after confirming it is buying the remainder of Europe's Alliance Boots that it doesn't already own in a $10.1 billion deal, but that it plans to remain a US-domiciled company rather than pursue a plan to cut its tax bill by re-incorporating in Europe.
In corporate earnings, Molson Coors (NYSE:TAP) reported second quarter sales and earnings that topped Wall Street forecasts, with shares jumping more than 6% on the back of the results. Ralph Lauren (NYSE:RL) posted this morning second quarter profit that beat expectations, while revenue essentially matched Street estimates. Shares of the retailer edged up Wednesday afternoon.
Walt Disney (NYSE:DIS) beat expectations on earnings and revenue in the second quarter, driven by strong theme park attendance, as well as from movies like Captain America and Frozen merchandise sales, with shares gaining 0.5%.
Groupon (NASDAQ:GRPN) earned one cent per share in the latest quarter on an adjusted basis, matching Street estimates, while revenue was shy of analyst forecasts. Shares tanked more than 15%, however, after the daily deals site also gave a current quarter forecast that disappointed investors.
Activision Blizzard (NASDAQ:ATVI) rose 3% Wednesday after the videogame maker beat earnings forecasts by 4 cents.
In other stock news, Sprint (NYSE:S) has abandoned its bid to acquire T-Mobile USA (NYSE:TMUS) due to regulatory hurdles, and is likely to name Brightstar's Marcelo Claure as its new CEO. At the same time, France's Iliad is thought to be considering an improved bid for T-Mobile.
Apple (NASDAQ:AAPL) and Samsung have agreed to drop all suits against each other in Germany, the UK, Japan, Australia, the Netherlands, France, South Korea, and Italy. The new iPhone is also said to be launching on September 9.
Bank of America (NYSE:BAC) shares popped after the Federal Reserve approved the bank's resubmitted capital plan, with the bank immediately responding with a quarterly dividend increase of 5 cents a share. The company did not, however, announce a $4 billion buyback that was included in its original plan.
European markets finished lower today, with shares in London leading the region after an unexpected contraction in Italy's GDP sparked fears. Also, Polish Prime Minister Donald Tusk said he has reasons to suspect that the threat of a direct intervention by Russia's military in Ukraine has increased over the last few days, with NATO's deputy secretary general saying that Russia has amassed about 20,000 troops along its border with eastern Ukraine.
Meanwhile, a cease-fire between Israel and Hamas was holding for a second day Wednesday, ahead of negotiations for a long-term deal in Cairo.
Asian stocks also finished in the red on Wednesday, led by losses in Japan. In commodities, gold futures for December rose $21.20 to $1,306.50 an ounce, while September crude fell 11 cents to $97.27 a barrel. Reported by Proactive Investors 2 hours ago.