After seeing initial strength on the heels of upbeat economic data, stocks have fluctuated over the course of early trading on Wednesday. The major averages have pulled back off their highs for the young session, with the Dow sliding into negative territory.
Franklin Resources Inc. on Wednesday reported a 5 percent increase in profit for the third quarter from last year on higher revenues that were partly offset by increases in operating expenses and taxes. Both revenue and earnings per share for the quarter missed analysts' expectations. However, the company's assets under management increased 13 percent from last year.
After reporting a notable contraction in U.S. economic activity in the first quarter, the Commerce Department released a report on Wednesday showing that gross domestic product rebounded by more than anticipated in the second quarter.
Employment in the U.S. private sector continued to see notable growth in the month of July, according to a report released by payroll processor ADP on Wednesday, although the pace of job growth came in below economist estimates.
Wireless carrier Sprint Corp. (S) Wednesday reported a profit for the first quarter, adding that total retail postpaid net losses were fewer in the quarter. The stock is up nearly 3 percent in pre-market activity.
After turning lower over the course of the previous session, stocks are likely to move back to the upside in early trading on Wednesday. The major index futures are currently pointing to a higher open for the markets, with the Dow futures up by 59 points.
Print and related services provider R.R. Donnelley & Sons Co. Wednesday reported lower second-quarter net profit, despite sales growth of about 13 percent. The company also backed its sales outlook for full year 2014.
IAC/InterActiveCorp. on Wednesday reported a loss for the second quarter, reflecting lower revenues and the impact of the write-down of certain investments. Both revenue and adjusted earnings per share for the quarter missed analysts' estimates. In addition, the company raised its quarterly cash dividend by more than 40 percent.
Utility company Dominion Resources, Inc. (D) Wednesday reported lower profit for the second quarter, amid a drop in revenues. However, operating earnings per share were flat with the prior year and met Wall Street estimates. Further, the firm backed its full year earnings outlook.
Eurozone economic sentiment rose unexpectedly in July driven by confidence improvements in industrial and construction, survey data revealed Wednesday. The economic confidence index rose marginally to 102.2 in July from 102.1 in June, figures from European Commission showed. Economists had forecast the score to fall to 101.9 from June's originally estimated value of 102.
Health insurers Humana Inc. and WellPoint, Inc. reported Wednesday lower profit in their second quarter, despite significant revenue growth with improved premiums and medical memberships. Humana's earnings met analysts' view, while WellPoint's adjusted earnings topped estimates. For fiscal 2014, Humana backed earnings forecast, while WellPoint lifted its view.
The Bank of England on Wednesday outlined plans to tighten bankers' bonus rules that eventually limits their inclination to take high risk. According to the new proposal, bankers could be forced to pay back their bonuses up to seven years from the date of payment if they break financial conduct rules.
Early indications suggest that Wall Street stocks may open slightly higher ahead of another earnings onslaught, although only a handful of these are significant enough to impact the market mood. The markets may also have to deal with a few economic catalysts, including advance second quarter GDP estimate...
ZELTIQ Aesthetics Inc. has upped its full-year 2014 revenue outlook, following better-than-expected Q2 results, thanks to the growing momentum and awareness for CoolSculpting, the company's non-surgical contouring treatment for fat reduction.
British lender Barclays Plc Wednesday reported a sharp increase in first-half profit, while adjusted profit declined by currency movements and a fall in Investment Bank income. Antony Jenkins, Group chief executive said, "Performance in the Investment Bank was impacted by the repositioning underway as well as difficult trading conditions in the quarter, but it is where we expected it..."