Market Overview

Mid-Morning Market Update: Markets Fall; Home Depot Profit Beats Estimates

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Following the market opening Tuesday, the Dow traded down 0.23 percent to 16,169.19 while the NASDAQ declined 0.27 percent to 4,281.28. The S&P also fell, dropping 0.25 percent to 1,843.09.

Leading and Lagging Sectors
In trading on Tuesday, cyclical consumer goods & services shares were relative leaders, up on the day by about 0.16 percent. Among leading sector stocks, gains came from Martha Stewart Living Omnimedia (NYSE: MSO), Haverty Furniture Companies (NYSE: HVT), Polypore International (NYSE: PPO) and Tesla Motors (NASDAQ: TSLA).

Basic materials sector was the leading decliner in the US market today. Basic materials shares declined 0.57 percent in today's trading. Top decliners in the sector included Mechel OAO (NYSE: MTL), off 4.1 percent, and Ferro (NYSE: FOE), down 3.5 percent.

Top Headline
Home Depot (NYSE: HD) reported a better-than-expected fourth-quarter profit and raised its quarterly dividend by 21%. Home Depot's quarterly earnings per share surged to $0.73 versus $0.68 in the year-earlier period. However, its net profit fell to $1.01 billion versus $1.02 billion. Its sales declined 3% to $17.7 billion. However, analysts were estimating earnings of $0.71 per share on sales of $17.9 billion. Its same-store sales also gained 4.4% in the quarter. Home Depot lifted its quarterly dividend by 21% to $0.47 per share.

Equities Trading UP
InterMune (NASDAQ: ITMN) shot up 158.24 percent to $36.05 after the company announced Phase 3 ASCEND trial results of pirfenidone in idiopathic pulmonary fibrosis.

Shares of zulily (NASDAQ: ZU) got a boost, shooting up 30.21 percent to $55.78 after the company reported upbeat Q4 results.

Aircastle (NYSE: AYR) was also up, gaining 11.11 percent to $21.20 after the company reported better-than-expected Q4 results and announced a $900 million agreement for purchase and leaseback of Boeing 777-300ERs with LATAM Airlines Group

Equities Trading DOWN
Shares of RealPage (NASDAQ: RP) were down 21.65 percent to $16.24 on Q4 results. Analysts at RBC Capital downgraded the stock from Outperform to Sector Perform and lowered the price target from $28 to $22.

Office Depot (NYSE: ODP) shares tumbled 13.94 percent to $4.60 after the company reported a fourth-quarter loss. VIVUS (NASDAQ: VVUS) was down, falling 13.19 percent to $5.86 after the company reported Q4 results. JP Morgan downgraded the stock from Overweight to Neutral and cut the price target from $15.00 to $8.00.

Commodities
In commodity news, oil traded down 1.25 percent to $101.53, while gold traded down 0.17 percent to $1,335.70.

Silver traded down 0.92 percent Tuesday to $21.89, while copper fell 0.77 percent to $3.22.

Eurozone
European shares were mostly lower today.

The Spanish Ibex Index rose 0.15 percent, while Italy's FTSE MIB Index fell 0.34 percent.

Meanwhile, the German DAX slipped 0.38 percent and the French CAC 40 dropped 0.32 percent while U.K. shares declined 0.77 percent.

Economics
The ICSC-Goldman same-store sales index declined 0.6% in the week ended Saturday versus the prior week.

The Johnson Redbook Retail Sales Index dropped 1.3% in the first three weeks of February versus January.

The seasonally adjusted S&P/Case-Shiller home price index rose 0.76% in December, down from 0.9% in November.

Home prices also surged 13.4% y/y in December. US home prices climbed 0.8% in December, according to the Federal Housing Finance Agency. Home prices also increased 7.7% y/y in the month.

The Conference Board's consumer confidence index fell to 78.10 in February, versus a prior reading of 80.70. However, economists were expecting a reading of 80.00.

The Richmond Fed manufacturing index declined to -6.00 in February, versus a prior reading of 12.00. However, economists were projecting a reading of 5.00.

The Treasury is set to auction 4-week bills and 2-year notes.

Posted-In: Earnings News Guidance Eurozone Futures Forex Global Econ #s

 

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