Mid-Morning Market Update: Markets Mostly Flat; G-III Apparel Misses Q2 Expectations

 


Following the market opening Tuesday, the Dow traded down 0.07 percent to 18,489.98 while the NASDAQ gained 0.06 percent to 5,235.35. The S&P also fell, dropping 0.03 percent to 2,179.81.

Leading and Lagging Sectors

Tuesday morning, energy shares gained by 0.58 percent. Meanwhile, top gainers in the sector included Approach Resources Inc. AREX, and Comstock Resources Inc CRK.

In trading on Tuesday, basic materials shares fell by 0.51 percent. Meanwhile, top losers in the sector included DRDGOLD Ltd. (ADR) DRD, down 4 percent, and Randgold Resources Ltd. (ADR) GOLD, down 2 percent.

Top Headline

G-III Apparel Group, Ltd. GIII reported weaker-than-expected results for its second quarter and lowered its full-year guidance.

The company suffered a net loss of $1.3 million or a loss per share of $0.03 compared to net income of $12.5 million or $0.27 a share in the year-ago period. Results included professional fees of about $0.04 a share. Excluding this, it would have earned $0.01 a share, which is sharply lower than the Street estimates of $0.18 a share.

G-III Apparel's net sales witnessed 7 percent drop from $473.9 million to $442.3 million and missed the analysts' predictions of $484.85 million.

Equities Trading UP

Rigel Pharmaceuticals, Inc. RIGL shares shot up 34 percent to $3.54 as the company disclosed that fostamatinib, its oral spleen tyrosine kinase inhibitor, met the primary endpoint in the final stage trial program for adult chronic/persistent immune thrombocytopenia treatment.

Shares of Karyopharm Therapeutics Inc KPTI got a boost, shooting up 18 percent to $8.38. Jefferies upgraded Karyopharm Therapeutics from Hold to Buy and raised the price target from $9 to $12.

Orexigen Therapeutics, Inc. OREX shares were also up, gaining 15 percent to $4.41 as the company reported a distribution agreement with Valeant Canada for Contrave.


Equities Trading DOWN

Christopher & Banks Corporation CBK shares dropped 14 percent to $1.78 after the company posted a wider-than-expected loss for the second quarter on Tuesday.

Shares of Abercrombie & Fitch Co. ANF were down 17 percent to $19.02 after the company reported a wider-than-expected Q2 loss.

G-III Apparel Group, Ltd. GIII was down, falling around 17 percent to $34.50 after the company reported weaker-than-expected results for its second quarter and lowered its full-year guidance.


Commodities


In commodity news, oil traded up 0.64 percent to $47.28 while gold traded down 0.39 percent to $1,321.90.

Silver traded down 0.26 percent Tuesday to $18.81, while copper fell 0.12 percent to $2.08.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.59 percent, the Spanish Ibex Index rose 0.98 percent, while Italy’s FTSE MIB Index surged 1.39 percent. Meanwhile the German DAX gained 1.02 percent, and the French CAC 40 climbed 0.85 percent while U.K. shares fell 0.04 percent.

Economics

The Johnson Redbook Retail Sales Index declined 0.3 percent during the first four weeks in August versus July.

The S&P/Case-Shiller home price index rose 5.10 percent year-over-year in June, versus economists’ expectations for a 5.20 percent gain.

The Conference Board's consumer confidence index rose to 101.10 in August, versus a prior reading of 97.30. Economists were expecting a reading of 97.30.

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

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Posted In: EarningsNewsEurozoneCommoditiesGlobalIntraday UpdateMarketsMoversMid-Morning Market Update
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