Mid-Morning Market Update: Markets Tumble; Target Profit Beats Expectations

Following the market opening Wednesday, the Dow traded down 0.95 percent to 17,345.92 while the NASDAQ slipped 0.81 percent to 5,018.35. The S&P also fell, dropping 0.84 percent to 2,079.32.

Leading and Lagging Sectors

Utilities shares slipped by just 0.3 percent in the US market on Wednesday. However, top gainers in the sector included Pure Cycle Corporation PCYO, Brookfield Infrastructure Partners L.P. BIP, and Artesian Resources Corporation ARTNA.

In trading on Wednesday, energy shares dipped by 1.02 percent. Meanwhile, top losers in the sector included Basic Energy Services, Inc BAS, down 6 percent, and JinkoSolar Holding Co., Ltd. JKS, off 5 percent.

Top Headline

Target Corporation TGT reported stronger-than-expected earnings for the second quarter and raised its profit forecast for the year.

The Minneapolis, Minnesota-based company reported quarterly net earnings of $753 million, or $1.18 per share, compared to $234 million, or $0.37 per share, in the year-ago period. Excluding one-time items, the company’s earnings climbed 20.6 percent to $1.22 per share.

Its total sales climbed 2.8 percent to $17.4 billion. However, analysts were expecting earnings of $1.11 per share on revenue of $17.4 billion.

Equities Trading UP

Dot Hill Systems Corp. HILL shares shot up 87 percent to $9.69 as the company agreed to be acquired by Seagate Technology PLC STX for $9.75 per share in cash.

Photronics, Inc. PLAB shares were also up, gaining 13 percent to $8.73 on better-than-expected Q3 results.

Shares of Target Corporation TGT got a boost, shooting up 5 percent to $83.99 after the company reported upbeat Q2 earnings and raised its 2015 profit forecast.

Equities Trading DOWN

Canadian Solar Inc. CSIQ shares tumbled 18 percent to $20.14. Canadian Solar reported better-than-expected Q2 results, but issued a weak forecast.

Shares of Tarena International Inc(ADR) TEDU were down 18 percent to $9.94. Tarena reported Q3 earnings of $0.05 per share on revenue of $41.3 million.

China Distance Education Hldgs Ltd (ADR) DL was down, falling 12 percent to $10.10. China Distance Education reported Q3 earnings of $0.146 per share on revenue of $28.8 million and lowered its FY15 revenue forecast. The company also announced a $10 million buyback plan.

Commodities

In commodity news, oil traded down 0.73 percent to $42.31, while gold traded up 0.30 percent to $1,120.30.

Silver traded up 0.88 percent Wednesday to $14.97, while copper fell 0.57 percent to $2.27.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 0.84 percent, the Spanish Ibex Index declined 0.39 percent, while Italy’s FTSE MIB Index dropped 0.42 percent. Meanwhile, the German DAX slipped 1.35 percent, and the French CAC 40 dropped 1 percent while UK shares fell 0.97 percent.

Economics

The consumer price index increased 0.1 percent in July, versus economists’ expectations for a 0.2 percent growth.

The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.