Mid-Afternoon Market Update: Tesla Plummets on Goldman Valuation Model; Bidu Holds Onto Gains

Toward the end of trading Tuesday, the Dow traded down 0.23 percent to 15,448.60 while the NASDAQ declined 0.32 percent to 3,596.80. The S&P also fell, dropping 0.42 percent to 1,675.36.

Goldman Sachs Group

reported a rise in its second-quarter net earnings. Goldman Sachs's quarterly net profit surged to $1.93 billion, or $3.70 per share, versus $962 million, or $1.78 per share, in the year-ago quarter. Its net profit applicable to common shareholders jumped to $1.86 billion versus $927 million. Its revenue gained to $8.61 billion from $6.63 billion. However, analysts were projecting earnings of $2.79 per share on revenue of $7.95 billion. Its quarterly investment banking revenue climbed 29% to $1.55 billion.

SHFL entertainment

shot up 22.01 percent to $22.82 after the company agreed to be acquired by Bally Technologies

for $1.3 billion. Shares of Rite Aid

were also up, gaining 8.13 percent to 3.06 after the company Baidu

was also up, gaining 4.31 percent to $105.97 after the company announced its plans to buy 91 Wireless in a $1.9 billion deal.

Shares of Liquidity Services

were down 9.88 percent to $29.18 after the company cut its Q3 outlook. Tesla

was also down, falling 14.13 percent to $109.27 after Goldman Sachs released a new valuation model for the company, setting an $84 price target. The report caused shares to plummet, breaking a major trendline and start to head for a bearish close. The fall in Tesla was not isolated, it also pulled down SolarCity

, which traded down 7.13 percent to $41.48.

In commodity news, oil traded down 0.43 percent to $105.86, while gold traded up 0.48 percent to $1,289.40. Silver traded down 0.12 percent Tuesday to $19.96, while copper rose 1.00 percent to $3.18.

European shares were lower following the weak ZEW report. The German ZEW Economic Sentiment Index came in below estimates showing that German economists are less optimistic than expected on the economy. The index printed 36.3, worse than the expected 39.6 and marking a declined from last month's 38.5. The Spanish Ibex Index fell 0.72 percent and the Italian FTSE MIB Index dropped 0.43 percent. Meanwhile, the German DAX declined 0.41 percent and the French CAC 40 fell 0.71 percent while U.K. shares tumbled 0.45 percent.

US consumer prices climbed 0.5% in June, while the core CPI rose 0.2%. However, economists were expecting a 0.5% rise in the CPI and a 0.2 % increase in the core CPI. The ICSC-Goldman Sachs store sales index fell 1.1% in the week ended Saturday versus the earlier week. The Johnson Redbook Retail Sales Index rose 0.8% for the first week of July versus June. Industrial production climbed 0.3% in June, versus economists' expectations for a 0.1% rise. The NAHB builder-confidence index surged to 57 in July, versus 51 in June. Fed President Esther George is expected to speak today.