Post Market News
Stocks that were active in U.S. trading on Wednesday include Alcatel Lucent SA (NYSE:ALU) (EPA:ALU), Adobe Systems Incorporated (NASDAQ:ADBE), Tetra Tech, Inc. (NASDAQ:TTEK), Pool Corporation (NASDAQ:POOL) and VIVUS, Inc. (NASDAQ:VVUS).
- U.S.: Dow Jones: 15,202.81 (-0.75%), S&P 500: 1,631.15 (-1.25%), Nasdaq: 3,446.65 (-1.02%)
- World Markets: Shanghai: 2,143.45 (-0.73%), Nikkei 225: 13,245.22 (+1.83%), Hang Seng Index: 20,986.89 (-1.13%), TSEC: , FTSE 100: 8,007.39 (-0.05%), EURO STOXX 50: 2,683.98 (-0.63%), BSE Sensex: 19,245.70 (+0.12%)
- Metals: Gold: $1,374.00 (+0.52%), Silver: $21.62 (-0.25%), Platinum: $1,423.90 (-1.12%)
- Currency: EUR/USD: 1.3272 (-0.98%), USD/JPY: 96.42 (+1.18%), GBP/USD: 1.5486 (-1.05%), USD/CAD: 1.0286 (+0.83%), USD/CNY: 6.1269 (-0.03%), AUD/USD: 0.9343 (-1.54%)
- 10 year U.S. Treasury: 2.31% (+0.15), 30 year U.S. Treasury: 3.41% (+0.09)
Market & Economy Update
In a major announcement today, Federal Reserve chief Ben Bernanke said that the Central Bank may start tapering its asset purchase program later this year and stop it completely in the middle of 2014 if the U.S. economy continues to recover at the expected pace. His announcement caused a free fall in stock markets. The Dow Jones Industrial Average fell 115.42 points to 15,202.81, the S&P 500 Index plunged 20.72 points to 1,631.11, while Nasdaq plummeted 35.44 points to 3,446.74.
Stocks In Focus
Alcatel Lucent SA (NYSE:ALU) (EPA:ALU)
Alcatel Lucent shares surged after the company’s newly appointed CEO Michel Combes announced a massive restructuring program. Alcatel Lucent announced the company will raise 2 billion euros ($2.7 billion) by the end of 2015. The company said it will raise 1 billion euros by cutting costs and another 1 billion euros by selling assets. Alcatel Lucent shares rose 3.21 percent to end the session at $1.93.
Adobe Systems Incorporated (NASDAQ:ADBE)
Adobe reported better than expected second quarter profits amid rising demand for its cloud computing services. The company earned 36 cents a share on revenues of $1.01 billion. Analysts polled by Thompson Reuters were expecting 33 cents in earnings and $1.01 billion in sales. Shares soared 5.58 percent to end the trading session at $45.78.
Tetra Tech, Inc. (NASDAQ:TTEK)
The engineering services company expects to incur losses during the third quarter due to higher restructuring costs. It is also hurt by revelations related to some change orders on projects for the state the central government customers. Tetra tech estimates to incur 30-50 cents in losses during the third quarter. Shares plunged 13.62 percent to $23.09.
Pool Corporation (NASDAQ:POOL)
The wholesale distributor reduced its 2013 earnings forecast. Pool said that unusually cool and wet weather in Europe and North America resulted into late pool openings and low sales. Shares plummeted 5.76 percent to end the trading session at $51.57.
VIVUS, Inc. (NASDAQ:VVUS)
The biopharmaceutical company said a study showed that its Stendra drug, which is used to treat erectile dysfunction, can enable sexual activity in less than 15 minutes. Vivus said it will file an application with the USFDA and European Medicines Agency to obtain new labeling about shorter wait time. Shares jumped 3.12 percent to $14.19.