Updated from 10:23 a.m. ET on Wednesday, June 21.
Stocks moved mostly higher on Wednesday, June 21, as crude oil prices stabilized after a steep selloff.
The S&P 500 increased 0.12%, and the Nasdaq rose 0.5%. The Dow Jones Industrial Average was slightly lower, falling 0.03%.
Crude oil prices crept higher after a steeper decline in domestic stockpiles than anticipated. Crude stockpiles dropped by 2.5 million barrels over the past week, according to the Energy Information Administration. Analysts anticipated a decline of 2.1 million barrels. Gasoline supplies fell, while distillates climbed.
Crude oil prices entered into a bear market on Tuesday, June 20, with West Texas Intermediate crude having fallen more than 20% from a late February high. Crude plunged more than 2% on worries over global oversupply and ballooning production.
A painful day for crude oil on Tuesday extended beyond commodities markets, spilled over into equities and dragged major benchmark indexes from records. The S&P 500 and Dow pulled away from records set on Monday, June 19.
West Texas Intermediate crude was up 1% to $43.95 a barrel on Wednesday, reversing losses earlier in the session.
Existing home sales for May in the U.S. rose at a better clip than anticipated. Sales of previously owned homes increased 1.1% to a seasonally adjusted annual pace of 5.62 million. Analysts anticipated a pace of 5.55 million.
Computer software company Adobe Systems Inc. (ADBE) reported stronger-than-expected second-quarter earnings. The San Jose-based company reported earnings of $1.02 a share on revenue of $1.77 billion., topping analysts' forecasts for earnings of 95 cents on revenue of $1.73 billion. Adobe said revenue from its digital media segment rose to $1.21 billion, with Creative revenue increasing to a record $1.01 billion.
"This truly was a beat across the board and we would expect Adobe to continue its momentous run as the company is the unmatched leader in the market for digital content creation." wrote Jim Cramer and the AAP team. Adobe is a holding in Cramer's Action Alerts PLUS Charitable Trust Portfolio.
FedEx Corp. (FDX) also beat quarterly earnings and sales estimates over its recent quarter. The package delivery company earned $3.75 a share over its fourth quarter, swinging from a loss of 26 cents a share a year earlier. Adjusted earnings of $4.25 a share roared past estimates of $3.87. Sales of $15.7 billion exceeded analysts' target of $15.6 billion.
Red Hat Inc. (RHT) surged 10% after beating earnings estimates and bumping its full-year guidance higher. The tech company earned an adjusted 56 cents a share, 3 cents higher than anticipated. Sales of $676.8 million exceeded consensus of $648 million. Red Hat anticipates full-year earnings of $2.66 to $2.70 a share, higher than a previous range of $2.60 to $2.64.
Winnebago Industries Inc. (WGO) rose 9% after reporting an increase in third-quarter profit. The camper van company earned 61 cents a share, 8 cents higher than a year earlier and above consensus of 57 cents a share. Revenue of $476.4 million came in higher than anticipated.
La-Z-Boy Inc. (LZB) rose 14% after topping earnings estimates over its recent quarter. The reclining chair company earned 57 cents a share over its fourth quarter, higher than 45 cents a share in the year-ago quarter. Analysts anticipated earnings of 46 cents a share. Revenue dipped 1%, though came in higher than expected. Same-store sales increased 2.4%.
Etsy Inc. (ETSY) increased 1% after announcing plans to cut 140 jobs, or 15% of its workforce. The latest cuts are in addition to the 90 job cuts announced in May. The online crafts store anticipates severance costs of $6 million to $8.8 million.
Advanced Micro Devices Inc. (AMD) surged as it continued to benefit from the unveiling of details on its new super processing chip, Epyc. AMD listed Hewlett Packard Enterprise Co. (HPE) , Dell Technologies Inc. (DVMT) , AsusTek Computer Inc. (ASUUY) and Lenovo Group Ltd. (LNVGY) as clients debuting products featuring its processor.
Travis Kalanick, the founder of Uber Technologies Inc., resigned as CEO of the ride-sharing company under pressure from investors and just days after he was asked to take a leave of absence in the wake of a report into allegations of discrimination and bullying at the startup. Venture capital firm Benchmark, whose partner Bill Gurley is one of Uber's largest shareholders and sits on its board, as well as investors First Round Capital, Lowercase Capital, Menlo Ventures and Fidelity Investments, all pressed Kalanick to quit, according to a report from Reuters.
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