Mid-Morning Market Update: Markets Drop, Yum China Same-Store Sales Down 13%

Following the market opening Tuesday, the Dow traded down 0.32 percent to 15,370.03 while the NASDAQ declined 0.43 percent to 3,654.24. The S&P fell, dropping 0.20 percent to 1,686.11.

Top Headline
Yesterday, Yum! Brands YUM reported a 13 percent fall in its July same-store sales in China. Yum's same-store sales fell 10 percent in June. However, analysts were expecting a 7.1 percent drop in July same-restaurant sales in China. Analysts at Buckingham Research downgraded the stock from Buy to Neutral.

Equities Trading UP
Avanir Pharmaceuticals AVNR shot up 8.92 percent to $4.9014 after the company announced an agreement with Merck & Co MRK to co-promote Merck's type 2 diabetes therapies. Shares of NQ Mobile NQ got a boost, shooting up 12.58 percent to $17.90 after the company reported upbeat Q2 results and issued strong revenue forecast. Osiris Therapeutics OSIR was also up, gaining 72.70 percent to $18.41 after the company reported strong efficacy for Grafix to treat diabetic foot ulcers.

Equities Trading DOWN
Shares of Orbitz Worldwide OWW were down 11.58 percent to $10.38 after the company reported that PAR Capital Management has sold 8.1 million of its 24.6 million shares of Orbitz Worldwide stock. Valspar VAL shares tumbled 7.39 percent to $65.54 after the company reported downbeat Q3 results. Rose Rock Midstream RRMS was down, falling 4.51 percent to $33.23 after the company announced the pricing of public offering of common units.

Commodities
In commodity news, oil traded down 0.14 percent to $105.96, while gold traded down 0.15 percent to $1,332.20. Silver traded up 0.85 percent Tuesday to $21.52, while copper rose 0.18 percent to $3.31.

Eurozone
European shares were higher on upbeat ZEW survey. The Spanish Ibex Index gained 0.38 percent and the Italian FTSE MIB Index rose 0.62 percent. Meanwhile, the German DAX gained 0.70 percent and the French CAC 40 rose 0.38 percent while U.K. shares gained 0.45 percent.

Economics
The NFIB small-business optimism index gained 0.6 points to 94.1 in July. The ICSC/Goldman Sachs Retail Chain Store Sales Index dropped 0.2 percent in the latest week ended Saturday versus the previous week. US retail sales rose 0.2 percent in July, versus economists' expectations for a 0.3 percent increase. US imports increased 0.2 percent in July, versus economists' estimates of a 0.8 percent rise. The Johnson Redbook Retail Sales Index rose 3.7 percent y/y in the first week of August. US business inventories came in flat in June. However, economists were expecting inventories to increase 0.2 percent in June. The Fed's Dennis Lockhart is expected to speak and the Treasury will auction 4-week bills.