Mid-Day Market Update: Wednesday's Movers, China Intervenes With Yuan And Kraft Heinz Job Cut
The U.S. stock market continued to decline in Wednesday’s session, brought down by batches of disappointing earnings from corporations alongside worries of China’s growth rate.
China’s yuan continued to declined for the second straight day, just after devaluing their currency on Tuesday in hopes to boost exports. China intervened to aim the yuan higher after falling nearly 2 percent in Wednesday’s trading session, its lowest level against the U.S. dollar in four years.
According to The Wall Street Journal, China’s Central Bank, the People’s Bank of China announced that the volatility in the yuan’s trading is “normal” and promised to remain the exchange rate “basically stable.” Instead of calming investors down, investors quickly sold the yuan and businesses were converting yuan holdings into dollars. The PBOC then recommended state-owned banks to start selling dollars in the last 15 minutes of trading; resulting in the yuan to increase 1 percent against the dollar just before the close of Chinese markets on Wednesday.
Job openings fell slightly in June to 5.25 million from 5.36 million in May, but overall demand for workers is still strong. About 1.79 million people were laid off in the month of June, up from 1.66 million in May.
The Kraft Heinz Company (NASDAQ: KHC) reported that it would be cutting 2,500 jobs (5 percent of its global workforce) in the US and Canada as it plans to cut $1.5 billion from its budget.
Alibaba Group Holding Ltd (NYSE: BABA) reported less-than-expected Q1 earnings; Sales of 20.25 billion yuan, or $3.27 billion, a 28 percent increase over the last year. Wall Street analysts had expected revenues of $3.39 billion. The growth in sales is much slower than the company’s average growth of 56 percent year-over-year.
Eleven Biotherapeutics Inc (NASDAQ: EBIO) skyrocketed a whopping 126 percent after the biopharm company reported first patients dosed with EBI-005 in a Phase III study in patients with moderate and severe allergic conjunctivitis. Its EBI-005 drug offers the potential to mediate allergic responses by blocking interleukin-1 receptor.
Echo Therapeutics Inc (NASDAQ: ECTE) soared 24 percent after the company announced that one of its strategic partners, Medical Technologies Innovation Asia, believed that Echo’s local produced needle-free CGM products will be designated as a Class 2 medical device, according to the StreetInsider.com
Wayfair Inc (NYSE: W) was lifted 20 percent after beat its earnings expectations. It had sales of $491.75 million, up 66.4 percent year-over-year, versus the projected $439.43 million. The company also reported a loss of $0.15 per share, up from analysts expected loss of $0.29 per share.
Inogen Inc (NASDAQ: INGN) was heightened 19 percent after the medical technology company reported Q2 earnings of $3.5 million, or $0.17 per share on sales of $44 million. Analysts expected earnings of $0.15 per share on sales of $37.1 million.
The Hackett Group Inc (NASDAQ: HCKT) was up 16 percent after the advisory firm reported Q2 earnings of $3.7 million ($0.19 per share) on sales of $66.4 million. Analysts expected earnings of $0.17 per share and sales of $62.3 million.
Freshpet Inc (NASDAQ: FRPT) dwindled 12 percent after the fresh food manufacturer missed earnings by $0.01. The company reported a loss of $2.2 million, or $0.07 per share compared to analyst expectations of a $0.05 per share loss.
Vivint Solar Inc (NYSE: VSLR) declined 10 percent after the solar energy company reported a loss of $0.85 per share versus analyst expectations of a $0.66 per share loss.
Puma Biotechnology Inc (NYSE: PBYI) shot down 8 percent. The biopharmaceutical company this week reported a loss of $2.01 per share versus analysts expected loss of $1.58 per share. Puma reported a loss of $1.29 per share a year ago.
Viavi Solutions Inc (NASDAQ: VIAV) sank 8 percent after CEO Tom Waechter stepped down from the business, leaving Richard Belluzzo, chairman, as interim CEO. The company also reported $427.7 million in revenues versus expected sales of $538 million.
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