Mid-Afternoon Market Update: Kite Pharma Releases Positive Non-Hodgkin's Lymphoma Result; iKang Healthcare Disappoints

Heading into the close on Tuesday, the Dow traded up 0.30 percent to 17,127.22 while the NASDAQ surged 0.36 percent to 4,573.89.  The S&P also rose, gaining 0.20 percent to 2,001.59.

Leading and Lagging Sectors

On Tuesday, the energy sector proved to be a source of strength for the market. Leading the sector was strength from SandRidge Permian Trust PER and Penn Virginia PVA.

In trading on Tuesday, utilities shares were relative laggards, down on the day by about 0.43 percent. Meanwhile, top decliners in the sector included Empresa Distribuidora y Comercializadora Norte S.A. EDN, down 2.73 percent, and Pampa Energia SA PAM, off 4.13 percent.

Top Headline

Best Buy Co BBY reported better-than-expected earnings for the second quarter. However, the company’s revenue missed analysts’ estimates.

The Richfield, Minnesota-based company posted quarterly adjusted earnings per share, excluding certain items, of $0.44 versus $0.32 in the year-ago period. However, analysts were expecting earnings of $0.31 per share.

Its total sales dropped to $8.9 billion versus $9.27 billion, versus analysts’ estimates of $8.99 billion.

Equities Trading UP

Kite Pharma KITE shares shot up 21.26 percent to $27.04on positive non-Hodgkin's lymphoma trial results using KTE-C19.

Shares of DSW DSW got a boost, shooting up 8.39 percent to $30.75 after the company reported upbeat fiscal second-quarter results.

Tim Hortons THI shares were also up, gaining 8.74 percent to $81.25 after Burger King BKW agreed to buy Tim Hortons for around $11 billion.

Equities Trading DOWN

Shares of iKang Healthcare Group KANG were down 12.52 percent to $19.82 after the company reported downbeat quarterly earnings.

Trina Solar TSL shares tumbled 8.30 percent to $12.26 after the company reported downbeat sales for the second quarter.

Sanderson Farms SAFM was down, falling 5.89 percent to $89.51 after the company reported weaker-than-expected profit for its fiscal third quarter.

Commodities

In commodity news, oil traded up 0.55 percent to $93.86, while gold traded up 0.44 percent to $1,284.50.

Silver traded up 0.17 percent Tuesday to $19.39, while copper fell 0.90 percent to $3.19.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 gained 0.73 percent, the Spanish IBEX Index climbed 1.28 percent, while Italy’s FTSE MIB Index surged 1.17 percent. Meanwhile, the German DAX rose 0.82 percent and the French CAC 40 surged 1.18 percent while UK shares gained 0.70 percent.

Economics

The ICSC-Goldman Store Sales Index gained 0.6% in the week ended Saturday versus the earlier week.

US durable goods orders rose 22.6% in July, versus economists’ expectations for a 12.6% gain.

The Johnson Redbook Retail Sales Index rose 0.5% in the first three weeks of August versus July.

The FHFA house price index for June rose 0.4% in June.

The S&P/Case-Shiller home price index gained 1% in June, versus a 1.2% gain in May.

The Conference Board's consumer confidence index rose to 92.40 in August, versus a prior reading of 90.90. However, economists were expecting a reading of 89.00.

The Richmond Fed manufacturing index gained to 12.00 in August, versus a prior reading of 7.00. However, economists were expecting a reading of 6.00.