The Nasdaq has touched a record intraday high, helped by gains in technology shares while the Dow Jones opened little changed. Facebook rose as much 1.7 percent to a record high, giving the index its biggest boost.
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“At Sprouts, we have operated and managed through similar competitive and deflationary periods”, said Amin Maredia, chief executive officer of Sprouts Farmers Market.
Investors have been weighing the likelihood of a rate hike this month from the Federal Reserve, with recent economic data including last Friday’s weaker-than-expected jobs report suggesting the USA central bank could hold off for now. Analysts say the Federal Reserve has been prepping the markets for a possible hike in December.
Traders have priced in a 15 percent chance of a hike in September and a 45.7 percent chance in December, according the CME Group’s FedWatch tool.
The company also adjusted its projections for full-year earnings per share in the range of 83 cents to 86 cents, which is lower than prior estimates between 92 cents per share to 94 cents per share. The typically defensive sector has risen 7.8 percent this year.
Sprouts Farmers Market on Wednesday said sales for its current quarter and fiscal year would be considerably lower than expected, citing ongoing product price deflation accompanied by heavy promotions by competitors, resulting in declines in store traffic.
Retrophin RTRX.O jumped 28 percent after the company said its drug to treat a kidney disorder met the main goal of a mid-stage study.
Shares of Chipotle Mexican Grill gained 5.8 percent after William Ackman’s Pershing Square Capital Management disclosed a 9.9 percent stake in the chain.
Advancing issues outnumbered decliners on the NYSE by 1,482 to 1,149. On the Nasdaq, 1,583 issues rose and 1,089 fell.
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However, the Nasdaq Composite hit a new all-time high in early trading and posted its fourth straight winning session.
