Mid-Morning Market Update: Markets Decline; Kohl's Misses Q2 Views

Following the market opening Thursday, the Dow traded down 0.28 percent to 17,354.07 while the NASDAQ slipped 0.18 percent to 5,035.15. The S&P also fell, dropping 0.27 percent to 2,080.40.

Leading and Lagging Sectors

Cyclical consumer goods & services shares gained by 0.08 percent in the US market on Thursday. Top gainers in the sector included Global Cash Access Holdings, Inc. GCA, Briggs & Stratton Corporation BGG, and Dillard's, Inc. DDS.

In trading on Thursday, basic materials shares dipped by 0.80 percent. Meanwhile, top losers in the sector included Gold Fields Limited (ADR) GFI, down 7 percent, and AngloGold Ashanti Limited (ADR) AU, off 5 percent.

Top Headline

Kohl's Corporation KSS reported weaker-than-expected results for the second quarter.

The Menomonee Falls, Wisconsin-based company posted quarterly net income of $130 million, or $0.66 per share, compared to $232 million, or $1.13 per share, in the year-ago quarter. Excluding loss on extinguishment of debt, the company’s earnings declined to $1.07 per share from $1.13 per share.

Its sales climbed to $4.267 billion from $4.242 billion. However, analysts were expecting earnings of $1.16 per share on revenue of $4.31 billion.

Equities Trading UP

News Corp NWSA shares shot up 7 percent to $15.04 after the company reported stronger-than-expected earnings for its fiscal fourth quarter. The company also reported that it is reviewing strategic options for its Amplify education unit.

GW Pharmaceuticals PLC- ADR GWPH shares were also up, gaining 10 percent to $113.56. Morgan Stanley initiated coverage on GW Pharmaceuticals with a Overweight rating and a $150.00 price target.

Shares of Inotek Pharmaceuticals Corp ITEK got a boost, shooting up 6 percent to $14.26 after the company priced its 5.4 million share offering at $12.75 per share.

Equities Trading DOWN

Rockwell Medical Inc RMTI shares tumbled 14 percent to $11.80. Morgan Stanley initiated coverage on Rockwell Medical with a Underweight rating and a $7.00 price target.

Shares of Shake Shack Inc SHAK were down 8 percent to $59.46 after the company priced its 4 million share secondary offering at $60 per share.

Kohl's Corporation KSS was down, falling 9 percent to $55.79 after the company reported weaker-than-expected results for the second quarter.

Commodities

In commodity news, oil traded down 0.99 percent to $42.87, while gold traded down 0.83 percent to $1,114.30.

Silver traded down 0.88 percent Thursday to $15.34, while copper rose 0.06 percent to $2.35.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 1.68 percent, the Spanish Ibex Index gained 1.48 percent, while Italy’s FTSE MIB Index surged 2.20 percent. Meanwhile, the German DAX climbed 1.79 percent, and the French CAC 40 jumped 1.85 percent while UK shares rose 0.59 percent.

Economics

U.S. retail sales increased 0.6 percent in July, versus economists’ expectations for a 0.5 percent growth.

U.S. jobless claims increased 5,000 to 274,000 in the week ended August 8. However, economists were expecting claims to total 270,000.

U.S. import prices slipped 0.9 percent in July, while export prices declined 0.2 percent in July. Economists were projecting a 1.1 percent drop in import prices and 0.1 percent decline in export prices.

U.S. business inventories rose 0.80 percent in June, versus economists’ expectations for a 0.30 percent growth.