April Webinar RegistrationApril Webinar Registration


Stocks Open Lower; Early Risers: Dave & Buster's, Micron

bull bear market

Stocks slipped in Wednesday's open. (albund/Shutterstock.com)

Stocks opened with narrow losses Wednesday, despite broad gains across global markets.

The Dow industrial and S&P 500 lost 0.1% and the Nasdaq fell 0.2%.

Markets traded higher overseas. Benchmarks across Asia booked gains near 1% Wednesday. Europe's markets rallied briskly, with Frankfurt's DAX and London's FTSE 100 each up more than 1.3% in afternoon trade, as banking stocks showed particular strength.

J&J Up; Apple Dips

Among Dow stocks, UnitedHealth Group (UNH) was nearly flat. Pfizer (PFE) fell 2.5% after news that British regulators fined the company $107 million on accusations that it overcharged consumers for an anti-epilepsy drug.

IBD 50 stock Dave & Buster's (PLAY) chalked up a 13% premarket gain. The arcade restaurant chain reported late Tuesday its third-quarter earnings soared 108% and revenue leapt 19%, both well ahead of analyst expectations. Management lifted its full-year earnings guidance to above consensus targets. The stock ended Tuesday in buy range, 2% above a 46.94 buy point from a double-bottom-with-handle base.

Western Digital (WDC) swung up nearly 5% after management adjusted its guidance for fiscal second-quarter revenue and earnings to above consensus projections. The maker of computer hard drives ended Tuesday up 82% from a May low, but still deep in a two-year consolidation.

Idaho-based chipmaker Micron Technologies (MU) popped nearly 2% at the open. Micron announced it had acquired the last outstanding shares of Taiwan-based Inotera Memories in a hard-fought deal valued at $4 billion. Micron expects immediate accretion to gross margins, as well as in earnings per share and free cash flow now that the deal has closed. Citigroup initiated coverage on the stock Wednesday morning with a buy rating and a price target of 30.

On the downside, Sigma Designs (SIGM) dived 31% after reporting weak third-quarter results late Tuesday. Mortgage REIT Ladder Capital (LADR) plunged 9% after pricing a secondary offering of 10 million shares at 13.60, an 11% discount to Tuesday's closing price.

JOLTS, Oil Inventories On Deck

In what looks to be relatively quiet news day on the economic front, the Labor Department's Job Openings and Labor Turnover Survey for October is due out at 10 a.m. ET. The Energy Information Administration delivers its weekly oil inventories report at 10:30 a.m. ET, and the Federal Reserve's October Consumer Credit numbers are set for a 3 p.m. ET release.

In oil futures, West Texas Intermediate reversed and slipped more than 1% to trade below $51 a barrel. Gold added 0.4% to trade at $1,175.30 an ounce. The dollar drifted lower. Bonds rose, trimming 2 basis points from the 10-year yield, to 2.37%.

RELATED:

Dave & Buster's, Western Digital Lift Views; MasterCard Ups Payout

Starbucks, Lululemon, Discounters Lead Investing Action Plan