Mid-Day Market Update: Tuesday's Movers; PBoC Slashes Interest Rates, Raises Liquidity
After one of the most volatile single-day market sessions in the United States, the People’s Bank Of China lowered interest rates.
China’s growth worries and devalued currency sent drastic shocks to world economies; the Dow Jones Industrial Index sank nearly 1,100 points as it opened on Monday morning causing major investor sell-offs. It regained momentum later on in the trading session, but still declined nearly 600 points heading into Monday’s close.
In order to bump its credit-easing attempts, China stepped in and slashed interest rates and increased liquidity; China’s one-year lending rate will drop to ~4.6 percent (down 25 basis points) on Wednesday.
The Shanghai Stock Exchange Composite Index still managed to declined 7.63 percent in Tuesday’s session, but China’s central bank’s announcement eased pressure on global markets:
- The Dow Jones Industrial Index: Up 2.14 percent
- The S&P 500 Index: Up 2.35 percent
- The NASDAQ Composite: Up 2.93 percent
- The US Dollar Index: Up 0.50 percent
- The Crude Oil WTI: Up 2.51 percent
Best Buy Co Inc (NYSE: BBY) reported stronger-than-expected earnings of $0.49 per diluted share for Q2, up 17 percent compared to last year. Revenue also increased 0.8 percent to $8.53 billion.
Forward Industries Inc (NASDAQ: FORD) skyrocketed 41 percent after the manufacturer signed a supplier agreement extension with Bayer Healthcare LLC to supply global custom carry cases for their diabetic products; the agreement is through the end of 2018.
ITT Educational Services Inc (NYSE: ESI) soared 24 percent after the company increased its efforts to overturn the unlawful suspension imposed by the California State Approving Agency for Veterans education (CSAAVE).
Abengoa SA (NASDAQ: ABGB) was lifted 18 percent after the technological solutions company was awarded the construction of a new port terminal in Caputto, Montevideo (Uruguay). The contract is worth more than $93 million.
JinkoSolar Holding Co Ltd (NYSE: JKS) was up 18 percent after People’s Bank Of China announced an interest rate cut; most of Chinese internet and solar companies soared on this news as well.
Global Power Equipment Group Inc (NYSE: GLPW) dwindled 13 percent after the company reported new contracts from the Tennessee Valley Authority and Energy Northwest worth $565 million over a 3 year term. The company has also changed its relationship with Southern Company.
Daktronics Inc (NASDAQ: DAKT) decreased 13 percent after the company missed earnings by $0.05 per share; it reported earnings of $0.09 per share, down from analyst projections of $0.14 per share, on sales of $150.20 million, down from analysts expected $171.34 million.
SunEdison Inc (NYSE: SUNE) was down 6 percent after the photovoltaic energy solutions developer and provider was downgraded from Buy to Neutral rating by UBS Securities. The research firm also lowered its price target from $20 down to $11.
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