Market News: Rite Aid, Tesla, Pier 1 Imports, ConAgra

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The stock markets in the United States slightly declined after a huge rally yesterday following the decision of the Federal Reserve to maintain its $85 billion stimulus or bond-buying activity and wait for more economic progress before starting to taper.

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In an interview with Bloomberg, Kevin Caron, market strategist at Stifel Nicolaus & Co. said, “It’s been essentially a bleeding off of some of the party atmosphere from yesterday. At some point the market’s got to take a breather and I think today’s that day. There’s no real catalyst today in the data.”

Meanwhile, Brian Moynihan, CEO of Bank of America (NYSE:BAC) said the current situation of the economy is constructive, and the downside risk is minimal.

Based on the latest economic data, the sales of the previously owned homes in the United States rose to the highest level in August.

Based on the survey conducted by Bloomberg, economists projected that the economy will grow at 1.6 percent, the lowest rates since 2009, and 3 percent by 2015.

U.S. Markets

  • Dow Jones Industrial Average (DJIA)- 15,636.66 (-0.26%)
  • S&P 500- 1,722.33 (-0.18%)
  • NASDAQ- 3,789.38 (+0.15%)
  • Russell 2000- 1,075.58 (-0.13%)

European Markets

  • EURO STOXX 50 Price EUR- 2, 936.20 (+0.94%)
  • FTSE 100 Index- 6,625.39 (+01.01%)
  • Deutsche Borse AG German Stock Index DAX- 8,694.18 (+0.67%)

Asia Pacific Markets

  • Nikkei 225- 14, 766.18 (+1.80%)
  • Hong Kong Hang Seng Index- 23, 502.51 (+1.67%)
    • Shanghai Shenzhen CSI 300 Index- 2, 432.51 (+0.21%)

Stocks In Focus

The stock price of Rite Aid Corporation (NYSE:RAD) increased by 23.45 percent to $4.58 per share after reporting good financial results for the second quarter. The department store chain $32.8 million net income or $0.03 diluted earnings per share on $6.3 billion revenue. Its adjusted EBITDA was $34.6 billion, or 5.4 percent of revenues. Its earnings exceeded analysts’ estimate of $0.04 losses per share.

Tesla Motors Inc (NASDAQ:TSLA) surged to an all-time high at $180.47 per share, and slightly pulled after hours to $177.92 per share, up by 7 percent today. The stock rose after Deutsche Bank analyst Rod Lache noted that the electric car manufacturer is going in the right direction to outperform margin expectations “modestly” in the third quarter. He raised his target price for the stock from $160 to $200 per share.

The stock value of Pier 1 Imports Inc (NYSE:PIR) declined by nearly 14 percent to $20.33 per share after reducing its guidance for the fiscal year because its second quarter profit missed the estimates of the Street. The company reported a 7.6 percent sales increase of $395.6 million, but lower than the $404.6 million estimate of analysts. Pier 1 cut its earnings outlook in the range of $1.23 to $1.29 per share from its previous guidance of $1.27 to $1.32 per share.

ConAgra Foods, Inc. (NYSE:CAG) plummeted by nearly 4 percent to $30.80 per share after reporting first quarter results below the expectations of analysts. The company posted $0.37 earnings per share on $4.2 billion revenue compared with the estimate of analysts at $0.39 earnings per share on $4.29 billion revenue. ConAgra lowered its 2014 adjusted EPS forecast in the rage of $2.34 to $2.38 per share.

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