Mid-Morning Market Update: Markets Edge Lower; Goldman Sachs Profit Beats Estimates

Following the market opening Tuesday, the Dow traded down 0.07 percent to 18,519.32 while the NASDAQ declined 0.35 percent to 5,038.16. The S&P also fell, dropping 0.26 percent to 2,161.24.

Leading and Lagging Sectors

On Tuesday, healthcare shares rose by 0.02 percent. Top gainers in the sector included DexCom, Inc. DXCM and Cerus Corporation CERS.

In trading on Tuesday, basic materials shares fell by 1.28 percent. Meanwhile, top losers in the sector included Vale SA (ADR) VALE, down 4 percent, and Rio Tinto plc (ADR) RIO, down 4 percent.

Top Headline

Goldman Sachs Group Inc GS reported stronger-than-expected results for its second quarter on Tuesday.

The bank posted quarterly earnings $3.72 per share on revenue of $7.93 billion. However, analysts were expecting earnings of $3 per share on sales of $7.58 billion.

Its revenue from trading fixed income, commodities and currencies climbed 20 percent to $1.93 billion, while revenue from trading increased 2 percent to $3.68 billion in the quarter.

Equities Trading UP

Bridgeline Digital Inc BLIN shares shot up 24 percent to $1.12 as the company reported that one of the nation’s largest franchise systems has selected its iAPPS for Intranet.

Shares of Hudson Technologies, Inc. HDSN got a boost, shooting up 33 percent to $5.05 after the company reported that it has been awarded a Department of Defense contract with an estimated maximum value of $400 million.

Cerulean Pharma Inc CERU shares were also up, gaining 19 percent to $2.71 as the company reported that it has received the FDA Fast Track designation for CRLX101 for the treatment of platinum-resistant ovarian cancer.

Equities Trading DOWN

Super Micro Computer, Inc. SMCI shares dropped 29 percent to $18.81 after the company lowered its Q4 forecast and announced a $100 million buyback plan.

Shares of Netflix, Inc. NFLX were down 13 percent to $85.59. Netflix posted upbeat earnings for its second quarter, but the company reported weak subscriber growth for the quarter. Netflix added 1.7 million subscribers worldwide during the quarter, well short of the company’s projections.

SciClone Pharmaceuticals, Inc. SCLN was down, falling around 16 percent to $11.15. SciClone Pharma reported that it is no longer speaking with acquirers and plans to remain an independent company. The company projects FY2016 earnings of $0.70 to $0.74 per share on sales of $158.0 million to 163.0 million.

Commodities

In commodity news, oil traded down 0.07 percent to $45.21 while gold traded up 0.03 percent to $1,329.70.

Silver traded down 0.50 percent Tuesday to $19.98, while copper rose 0.45 percent to $2.25.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.63 percent, the Spanish Ibex Index slipped 0.68 percent, while Italy’s FTSE MIB Index dropped 1.50 percent. Meanwhile the German DAX declined 0.92 percent, and the French CAC 40 declined 0.79 percent, while U.K. shares rose 0.07 percent.

Economics

U.S. housing starts rose 4.8 percent to an annual pace of 1.19 million in June. However, economists were expecting a 1.17 million pace. Building permits increased 1.5 percent to an annual pace of 1.15 million.

The Treasury is set to auction 4-week and 52-week bills at 11:30 a.m. ET.