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US Stock Markets Advance Monday

- By Omar Venerio

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) 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: "Our 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."

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

? General Electric Co. (GE) 12.63 +1.34 +11.91%

? Praxair Inc. (PX)

? Davita Inc. (DVA)

? Advanced Micro Devices Inc. (AMD)

? Allergan Plc (AGN)

Losers

? F5 Networks Inc. (FFIV)

? Viacom Inc. (VIAB)

? Electronic Arts Inc. (EA)

? MGM Resorts International (MGM)

? Arista Networks Inc. (ANET)

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%, India's 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.

This article first appeared on GuruFocus.