Markets Mostly Higher Despite Initial Negative Reaction From FOMC Minutes
5:31p ET August 20, 2014 (Benzinga) Print
U.S. stocks were mostly higher as the S&P 500 and Dow continue trading near historical all time highs.
The S&P 500 briefly dipped in to negative territory immediately following the Federal Reserves's minutes while the Dow trading lower but stayed in positive territory. The Nasdaq index saw the largest decline post FOMC minutes only to recover to intra-day highs and then give back all of its gains in late afternoon.
Members of the Federal Reserve committee voted nine to one to maintain the taper and a policy of maintaining lower than normal rates. Charles Plosser, Philadelphia Fed President was the lone dissenter who believes that his peers are underplaying the improving labor market and inflation is marching towards a two percent target.
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The Dow gained 0.35 percent, closing at 16,979.13.
The S&P 500 gained 0.25 percent, closing at 1,986.51.
The Nasdaq lost 0.02 percent, closing at 4,526.48.
Gold lost 0.35 percent, trading at $1,292.10 an ounce.
Oil gained 0.64 percent, trading at $93.45 a barrel.
Silver gained 0.38 percent, trading at $19.49 an ounce.
News of Note
MBA Mortgage Composite Index rose 1.4 percent after declining 2.7 percent last week.
MBA Mortgage Purchase Index declined 0.4 percent after declining one percent last week.
MBA Mortgage Refinance Index rose three percent after declining four percent last week.
EIA Crude Inventories fell 4.5 million barrels versus expectations of a decline of 1.1 million barrels.
EIA Gasoline Inventories rose 0.6 million barrels versus expectations of a decline of 1.6 million barrels.
EIA Distillates Inventories fell one million barrels versus expectations of a decline of 0.6 million barrels.
Winners of Note
This morning, The Hain Celestial Group (NASDAQ: HAIN) reported its fourth quarter results. The company announced an EPS of $0.90, beating the consensus estimate of $0.89. Revenue of $583.80 million beat the consensus estimate of $578.30 million. Net income for the quarter rose to $35.72 million from $25.93 million in the same quarter a year ago as the company saw strong sales growth across all regions. U.S. sales rose 13.2 percent from a year ago to $322.98 million; United Kingdom sales rose 65.5 percent to $200.47 million while Rest of World sales rose 5.7 percent to $60.38 million. The company noted that it benefited from strong momentum for organic and natural products across many channels. The Hain Celestial Group issued guidance and sees its fiscal 2015 EPS being in a range of $3.72 to $3.90 versus a consensus estimate of $3.73. Revenue is guided to be in a range of $2.72 billion to $2.8 billion, above the consensus estimate of $2.51 billion. Shares gained 11.02 percent, closing at $96.51.
This morning, American Eagle Outfitters (NYSE: AEO) reported its second quarter results. The company announced an EPS of $0.03, beating the consensus estimate of $0.00. Revenue of $710.60 million beat the consensus estimate of $689.95 million. Net income for the quarter fell to $5.813 million from $19.594 million in the same quarter a year ago as comparable-store sales fell seven percent in the quarter. The company's gross profit rate fell 40 basis points to 33.4 percent. American Eagle's interim CEO Jay Schottenstein commented that the results “do not reflect our potential” but the company did build a “sustainable path to higher profitability.” The company issued guidance and sees its third quarter Eps being in a range of $0.17 to $0.19, versus the consensus estimate of $0.18. Comp sales are expected to decline at a mid single-digit rate. Shares gained 11.99 percent, closing at $12.98.
Infineion announced it will acquire International Rectifier (NYSE: IRF) for $40 per share, or $3 billion in cash. The company stated that the combination of the two companies will benefit from greater R&D scale in addition to operational and manufacturing synergies. Shares of International Rectifier hit new 52-week highs of $39.50 before closing the day at $39.10, up 47.21 percent.
