After initially showing a lack of direction, stocks have moved mostly higher over the course of the trading session on Wednesday. Buying interest has remained somewhat subdued, however, limiting the upside for the markets.
Businessman David Perdue narrowly defeated eleven-term Congressman Jack Kingston, R-Ga., in a runoff for the Republican Senate nomination in Georgia on Tuesday. With all precincts reporting, unofficial results show Perdue with a slim 50.9 percent to 49.1 percent lead over Kingston.
Stocks are turning in a lackluster performance in early trading on Wednesday after moving mostly higher over the course of the previous session. The major averages are showing only modest moves, although the S&P 500 did manage to reach a new record intraday high.
GlaxoSmithKline Plc Wednesday reported a decline in second-quarter profit, reflecting mainly a drop in turnover due to weak respiratory drugs sales, as well as ongoing bribery investigation in China. The company also cuts its core earnings per share outlook for full year 2014. The shares fell more than 5 percent on the NYSE and London.
Bank of England Governor Mark Carney said on Wednesday that interest rate will have to start rising to maintain price stability as the economy normalizes. "As the economy normalizes, Bank Rate will need to start to rise in order to achieve the inflation target," Carney said in a speech in Glasgow, Scotland.
The European Council on Wednesday decided to allow Lithuania to adopt the euro as its currency.
Euro notes and coins will be issued in Lithuania from January 1, 2015. EU's Council of Ministers gave the final green light for Lithuania joining the currency union, following the overwhelming endorsement by the European Parliament, and the European Commission's report on Lithuania's practical prepara
Biotechnology company Biogen Idec, Inc. Wednesday reported 46 percent jump in second-quarter profit, as revenues climbed 40 percent driven by strong sales of multiple sclerosis or MS drugs Tecfidera and Tysabri. The company also lifted its outlook for the full year 2014 once again, citing growth of Tecfidera in the U.S. and Europe, and strength of its other multiple-sclerosis therapies.
Airline operator Delta Air Lines, Inc., the first of the large US airlines to report second-quarter results, reported Wednesday a profit that grew from last year, reflecting lower fuel expenses and improved revenues. Adjusted earnings per share matched analysts' expectations, while quarterly revenues missed estimates by a whisker.
After ending the previous session mostly higher, stocks may see some further upside in early trading on Wednesday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 17 points.
BCE Inc. (BCE.TO, BCE), Canada's largest communications company, Wednesday said it would privatize Bell Aliant by acquiring the interest of its affiliate's public minority shareholders for a total consideration of about C$3.95 billion.
Aerospace and defense giant Boeing Co. Wednesday reported a 52 percent jump in profit for the second quarter, reflecting higher revenues and tax benefits that more than offset a charge related to the company's tanker program. Looking ahead, for fiscal 2014, Boeing raised its earnings outlook while reaffirming its revenue expectations.
PepsiCo, Inc. reported a decline in second-quarter profit on charges. Core earnings per share beat analysts' estimates. Revenues edged up, and beat their view. Further, the company lifted fiscal 2014 core earnings growth forecast. CEO Indra Nooyi said, "Despite operating in what continues to be a challenging and volatile macro environment, we are delivering consistent, strong results."
Defense contractors Northrop Grumman Corp. and General Dynamics Corp. reported Wednesday profits for the second quarter that topped analysts' expectations. Both the companies saw their results being boosted by improved margins as revenues declined. Profit at Northrop Grumman grew, while General Dynamics's profit declined from last year. Northrop also raised its full-year 2014 earnings forecast.
Eagle Pharmaceuticals Inc.'s (EGRX) injectable drug Ryanodex, indicated for the treatment of malignant hyperthermia, has won FDA approval. This is the second regulatory approval, which the company is receiving in less than a month.
The Bank of Spain on Wednesday boosted its growth projections for Spain this year and the next after the economy grew at a faster rate in the second quarter. In its monthly economic bulletin, the bank raised the growth forecast for this year to 1.3 percent from the 1.2 percent seen previously. The projection for the next year was lifted to 2 percent from 1.7 percent.