Stocks opened little changed as the market searched for direction following yesterday's selloff. The market turned mixed in early trading, but when the Conference Board's consumer confidence reading showed a higher than expected number, the market began to move higher. The move has been broad-based, with each of the major averages up roughly 1% near noon, but off their earlier highs.
ECONOMIC EVENTS: In the U.S., the 20-city survey by Case Shiller showed its home price index fell 0.02% to 213.72 in August. The Conference Board's consumer confidence reading rose to a third consecutive 18-year high of 137.9 in October from 135.3 in September.
COMPANY NEWS: Shares of General Electric (GE) are down 8.5% after the company reported lower than expected Q3 earnings and revenue and said it plans to reorganize Power into two units - a unified Gas business combining GE's gas product and services groups and a second unit constituting the portfolio of GE Power's other assets including Steam, Grid Solutions, Nuclear, and Power Conversion. Additionally, new Chairman and CEO Lawrence Culp reported that the company plans to reduce its quarterly dividend from 12c to 1c per share, which will allow GE to retain about $3.9B of cash per year compared to the prior payout level.
Coca-Cola (KO) shares were up 1% at midday after the beverage maker reported better than expected sales and profits, boosted by Diet Coke, bottled water and other low and no-sugar drinks.
Apple (AAPL), at an event in Brooklyn, NY, unveiled a new MacBook Air, a new Mac mini and a new iPad Pro. Of note, the new iPad "pushes 11-inch and 12.9-inch Liquid Retina displays to the edges" and will feature a USB-C connector instead of the company's proprietary Lightning ports.
MAJOR MOVERS: Among the noteworthy gainers was Electro Scientific (ESIO), which surged 89% after it agreed to be acquired by MKS Instruments for $30 per share. MKS shares were 4% higher after the deal news. Also higher were Under Armour (UAA) and Akamai (AKAM), which gained a respective 26% and 16% after reporting quarterly results.
Among the notable losers was Evoqua Water (AQUA), which fell 26% after cutting its fiscal 2018 revenue guidance and announcing a restructuring plan. Also lower were Community Health (CYH) and AutoNation (AN), which declined 9% and 6%, respectively, after reporting quarterly results.
INDEXES: Near midday, the Dow was up 194.97, or 0.8%, to 24,637.89, the Nasdaq was up 61.07, or 0.87%, to 7,111.36, and the S&P 500 was up 19.16, or 0.73%, to 2,660.41.
GE Aerospace
-0.86 (-7.75%)
Apple
+0.69 (+0.32%)
Coca-Cola
+0.64 (+1.38%)
Electro Scientific
+13.19 (+88.17%)
MKS Instruments
+2.89 (+4.17%)
Under Armour
+4.72 (+25.93%)
Under Armour
+4.07 (+24.21%)
Akamai
+9.98 (+16.10%)
Evoqua Water
-3.64 (-26.28%)
Community Health
-0.34 (-10.69%)
AutoNation
-2.42 (-5.74%)