Stocks have picked up where they left off yesterday as markets continue to move higher amid the relative calm in the Middle East. President Donald Trump said yesterday that Iran "appears to be standing down" after the missile attack on Tuesday night that hit al-Asad air base in Iraq but caused no American or Iraqi lives to be lost. In the latest development related to Tuesday nights events, multiple reports are now indicating that U.S. officials believe that a Boeing (BA) jet crash that occurred near the time of the military aggression was caused by a missile strike.
ECONOMIC EVENTS: In the U.S., initial jobless claims fell 9,000 to 214,000 in the week ended January 4.
TOP NEWS: Boeing shares are up about 3% at midday following reports from Newsweek and CBS that indicate U.S. officials believe Iran shot down a jet made by the company and operated by a Ukrainian airline. The incident, which occurred on Tuesday night, killed all 176 people on board. President Trump said at the White House that he does not personally believe the Boeing 737-800 crash operated by Ukraine International Airlines was due to a mechanical error.
Shares of Bed Bath & Beyond (BBBY) are down nearly 20% after the company reported third quarter results that an analyst at Loop Capital called the worst "since the Great Recession." In addition to Bed Bath & Beyond's weak report and guidance retraction, other retailers - including Kohl's (KSS), L Brands (LB) and J.C. Penney (JCP) - reported same-store sales declines for the crucial holiday period. Bucking this morning's retail sector trend, shares of Chico's (CHS) are up 12% after the company raised its fourth quarter total net sales and consolidated comparable sales forecast to approximately flat, an improvement on its previous outlook of a low single-digit decline.
Tesla (TSLA) shares have slipped 3% after Baird analyst Ben Kallo downgraded the stock to Neutral from Outperform despite raising his price target for the shares to $525 from $355. While Kallo would not short the stock and remains "positively biased over the long run," he recommends taking profits at current levels with the risk/reward more balanced following the recent rise in Tesla's share price.
In M&A news, Wesco (WCC) confirmed it submitted an improved proposal to the board of directors of Anixter International (AXE) to acquire Anixter for $100 per share in cash and stock. The Anixter board has determined Wesco's proposal represents a "Superior Company Proposal" as defined in Anixter's merger agreement with Clayton, Dubilier & Rice, the bidder added in announcing its increased offer.
MAJOR MOVERS: Among the noteworthy gainers was Axonics (AXNX), which rose 25% after issuing Q4 revenue guidance above consensus. Also higher was DBV Technologies (DBVT), which gained 13% after the company reported "positive" topline results from its Phase 3 trial of its of investigational Viaskin Peanut patch for use in protecting peanut-allergic children.
Among the notable losers was Whiting Petroleum (WLL), which fell 7% after Wells Fargo analyst Nitin Kumar downgraded the stock to Underweight from Equal Weight. Also lower was Acuity Brands (AYI), which dropped 11% after reporting quarterly results.
INDEXES: Near midday, the Dow was up 209.99, or 0.73%, to 28,955.08, the Nasdaq was up 65.65, or 0.72%, to 9,194.89, and the S&P 500 was up 18.15, or 0.56%, to 3,271.20.
Boeing
+9.68 (+2.92%)
Bed Bath & Beyond
-3.24 (-19.44%)
Kohl's
-4.42 (-8.95%)
Tesla
-12.82 (-2.61%)
L Brands
+0.12 (+0.66%)
JCP
+
Chico's
+0.435 (+11.55%)
Anixter
+2.295 (+2.38%)
Wesco
-0.71 (-1.19%)
Axonics
+6.55 (+24.25%)
DBV Technologies
+1.56 (+13.95%)
Whiting Petroleum
-0.56 (-7.52%)
Acuity Brands
-15.85 (-11.08%)