Coming off a stellar day for equities, U.S. indices were down slightly in midday trading Thursday. The Dow Jones Industrials dipped about 0.2%; the Nasdaq and the S&P 500 were also in the red. Crude Oil hit $50 a barrel for the first time in seven months before pulling back slightly.
Shares of Dollar Tree (DLTR) jumped up approximately 12% after posting a solid first-quarter. Earnings of $0.91 beat analysts' expectation by $0.17. The Virginia-based company also reported sales of $5.09 billion. CEO Bob Sasser said the discount chain delivered sales at the mid-point of its guidance range in a challenging economic environment. Dollar Tree expects net sales for the second quarter to range between $5.03 billion and $5.12 billion, with diluted earnings between $0.66 and $0.72 per share. TheStreet's Jim Cramer spoke on CNBC's "Squawk on the Street" about the quarterly results this morning, saying "the amount of money they are making ... is extraordinary."
The same cannot be said for Pure Storage (PSTG), however, whose stock plummeted by more than 16% on a heavy trading day despite the company delivering first-quarter results that topped estimates. The data storage provider saw revenue grow to $139.9 million, beating analysts' forecasts of $138.1 million. But several analysts downgraded the stock after the earnings were reported. Oppenheimer analysts said "the margin of upside is narrowing" adding that investors are likely to think the worst: competition is narrowing the gap and slowing Pure's pace. Deutsche Bank felt similarly, downgrading the stock to Market Perform from Outperform.
Positive trial results for two drug candidates sent Minerva Neurosciences (NERV) shares skyrocketing; the stock nearly tripled on high trading volume. According to a company statement, the antidepressant drug candidate, MIN-117, saw 24% of patients achieve remission, and both dose options, 0.5 milligrams and 2.5 milligrams, demonstrated "favorable tolerability." Minerva's schizophrenia treatment, MIN-101, saw significant benefits over a placebo in improving negative symptoms, such as lack of volition and motivation. Currently, there is no approved treatment for these negative symptoms.
US Foods Holding (USFD) opened at $24.25 a share on its first day trading on the New York Stock Exchange and shares have surged by nearly 7% intraday. The food-services company sold more than 44 million shares in the second-largest initial public offering of the year.
Time Warner (TWX) stock rose slightly after news that Apple (AAPL) might be interested in purchasing the company, according to the Financial Times. Such discussions occurred at the end of 2015 and never included either Apple CEO Tim Cook or Time Warner CEO Jeff Bewkes. Apple has not pursued a bid for Time Warner, but is reportedly considering a number of possible media targets, including Netflix (NFLX), whose shares were up by 1.5% around midday.