U.S. stocks advanced on Monday morning on news from the Institute for Supply Management. The manufacturing index fell to a reading of 59.8% in September from 61.3%. The Dow Jones Industrial Average traded up 1.02% to 26,728, the S&P 500 index rose 0.71% to 2,935, while the Nasdaq Composite Index increased by 0.55% to 8,090.
Shares of Cal-Maine Foods Inc. (CALM, Financial) fell more than 8% on Monday morning after the company posted first quarter earnings per share of 26 cents on $340.58 million in revenue, reflecting 29.6% year-over-year growth. The company fell short of earnings estimates by 23 cents and revenue estimations by $11.69 million.
Dolph Baker, the company's chairman and CEO, said: āOur sales for the first quarter were up 29.6%, reflecting higher average customer selling prices for shell eggs and consistent sales volumes compared with the same period a year ago.ā
Due to lower income, the company cut its quarterly dividend from the previous quarter to 8.5 cents a share from 35.1 cents a share in the sequential fourth quarter.
The gross margin rate rose 1020 basis points to 16.8% for the quarter, while the SG&A expense rate improved 280 basis points to 13.1%.
Gainers
Ā· General Electric Co. (GE, Financial) 12.63 +1.34 +11.91%
Ā· Praxair Inc. (PX, Financial)
Ā· Davita Inc. (DVA, Financial)
Ā· Advanced Micro Devices Inc. (AMD, Financial)
Ā· Allergan Plc (AGN, Financial)
Losers
Ā· F5 Networks Inc. (FFIV, Financial)
Ā· Viacom Inc. (VIAB, Financial)
Ā· Electronic Arts Inc. (EA, Financial)
Ā· MGM Resorts International (MGM, Financial)
Ā· Arista Networks Inc. (ANET, Financial)
Global markets
The main European stock markets traded higher. The U.K.'s FTSE 100 fell 0.23%, France's CAC 40 gained 0.29%, Germany's Dax advanced 0.74% and Spain's Ibex 35 gained 0.43%.
In Asia, Japan's Nikkei 225 gained 0.52%, Indiaās BSE Sensex rose 0.83%, Hong Kong's Hang Seng advanced 0.26% and China's Shanghai Composite gained 1.06%.
Disclosure: The author holds no positions in any stocks mentioned.
