Mid-Afternoon Market Update: Allied Nevada Gold Gets Crushed as Markets Drop
Toward the end of trading Tuesday, the Dow traded down 0.56 percent to 15,524.03 while the NASDAQ declined 0.70 percent to 3,667.66. The S&P also fell, dropping 0.54 percent to 1,697.95.
Fossil (NASDAQ: FOSL) reported an 18 percent rise in its second-quarter earnings and lifted its full-year earnings forecast. Fossil now expects full-year earnings of $6.15 to $6.35 per share, versus its May forecast of $6 to $6.26 per share. It now projects net sales to rise between 11 and 12 percent, versus its earlier view of 10 to 11 percent growth. Fossil's quarterly profit surged to $67.7 million, or $1.15 per share, from $57.3 million, or $0.92 per share, in the year-ago period. Its sales rose 11 percent to $706.2 million. The company in May expected earnings of $0.89 to $0.94 per share on 8 to 9 percent sales growth.
Equities Trading UP
Fossil (NASDAQ: FOSL) shot up 18.19 percent to $126.96 after the company reported an 18 percent rise in its second-quarter earnings and lifted its full-year earnings forecast. Shares of PBF Energy (NYSE: PBF) were up as well, gaining 9.90 percent to $24.64 despite the stock going ex dividend this morning. Volcano (NASDAQ: VOLC) was also up, gaining 7.27 percent to $22.12 on Q2 results. Analysts at Canaccord Genuity upgraded the stock from Hold to Buy.
Equities Trading DOWN
Shares of American Eagle Outfitters (NYSE: AEO) were down 13.47 percent to $17.28 after the company cut its Q2 earnings forecast. McDermott International (NYSE: MDR) shares tumbled 19.82 percent to $7.00 on Q2 results. The company announced the resignation of its COO John McCormack. Allied Nevada Gold (NYSE: ANV) got crushed on today's session, dropping a staggering 25.59 percent to $4.385 after the company missed analyst expectations in its second-quarter report this morning.
In commodity news, oil traded down 1.13 percent to $105.36, while gold traded down 1.44 percent to $1,283.70. Silver traded down 0.76 percent Tuesday to $19.56, while copper rose 0.17 percent to $3.17.
European shares were lower today. The Italian economy shrunk less than expected in the second quarter new data showed as the first estimate of Q2 GDP was reported as a contraction of 0.2 percent. British industrial production rose sharply in June, climbing 1.1 percent compared to the forecast of 0.6 percent. The Spanish Ibex Index dropped 0.31 percent and the Italian FTSE MIB Index declined 0.44 percent. Meanwhile, the German DAX tumbled 1.26 percent and the French CAC 40 fell 0.43 percent while U.K. shares declined 0.29 percent.
The US trade deficit narrowed by 22.4 percent to $34.2 billion in June. However, economists were expecting the deficit to decline to $43 billion in June. The ICSC-Goldman same-store sales index increased 0.3 percent in the latest week ended Saturday from the previous week. The Johnson Redbook Retail Sales Index rose 1% for the first four weeks of July versus June. US job openings surged to 3.94 million in June, from 3.91 million in May. The Treasury is scheduled to auction 3-year notes and STRIPS.
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