Mid-Day Market Update: US Stocks Drop; Coca-Cola Shares Fall
Midway through trading Tuesday, the Dow traded down 0.28 percent to 15,441.60 while the NASDAQ declined 0.44 percent to 3,591.80. The S&P also fell, dropping 0.48 percent to 1,674.36.
Goldman Sachs Group (NYSE: GS) reported a rise in its second-quarter net earnings. Goldman Sachs's quarterly net profit surged to $1.93 billion, or $3.70 per share, versus $962 million, or $1.78 per share, in the year-ago quarter. Its net profit applicable to common shareholders jumped to $1.86 billion versus $927 million. Its revenue gained to $8.61 billion from $6.63 billion. However, analysts were projecting earnings of $2.79 per share on revenue of $7.95 billion. Its quarterly investment banking revenue climbed 29% to $1.55 billion.
Equities Trading UP
SHFL entertainment (NASDAQ: SHFL) shot up 21.60 percent to $22.74 after the company agreed to be acquired by Bally Technologies (NYSE: BYI) for $1.3 billion. Shares of Bally Technologies (NYSE: BYI) got a boost, shooting up 6.62 percent to $64.94 after the company announced its plans to buy SHFL Entertainment. Baidu (NASDAQ: BIDU) was also up, gaining 5.19 percent to $106.86 after the company announced its plans to buy 91 Wireless in a $1.9 billion deal.
Equities Trading DOWN
Shares of Liquidity Services (NASDAQ: LQDT) were down 9.88 percent to $29.18 after the company cut its Q3 outlook. Koppers Holdings (NYSE: KOP) was down, falling 9.29 percent to $35.95 after the company lowered its 2013 profit view. The Coca-Cola Company (NYSE: KO) shares tumbled 1.92 percent to $40.22 after the company reported a drop in its second-quarter net profit.
In commodity news, oil traded down 0.34 percent to $105.96, while gold traded up 0.30 percent to $1,287.40. Silver traded up 0.43 percent Tuesday to $19.93, while copper rose 1.14 percent to $3.18.
European shares were lower following the weak ZEW report. The German ZEW Economic Sentiment Index came in below estimates showing that German economists are less optimistic than expected on the economy. The index printed 36.3, worse than the expected 39.6 and marking a declined from last month's 38.5. The Spanish Ibex Index fell 0.72 percent and the Italian FTSE MIB Index dropped 0.43 percent. Meanwhile, the German DAX declined 0.41 percent and the French CAC 40 fell 0.71 percent while U.K. shares tumbled 0.45 percent.
US consumer prices climbed 0.5 percent in June, while the core CPI rose 0.2%. However, economists were expecting a 0.5 percent rise in the CPI and a 0.2 percent increase in the core CPI. The ICSC-Goldman Sachs store sales index fell 1.1 percent in the week ended Saturday versus the earlier week. The Johnson Redbook Retail Sales Index rose 0.8 percent for the first week of July versus June. Industrial production climbed 0.3 percent in June, versus economists' expectations for a 0.1% rise. The NAHB builder-confidence index surged to 57 in July, versus 51 in June. Fed President Esther George is expected to speak today.
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