Mid-Morning Market Update: Markets Open Lower; Staples Posts Downbeat Earnings

Following the market opening Tuesday, the Dow traded down 0.40 percent to 16,445.69 while the NASDAQ tumbled 0.51 percent to 4,104.61. The S&P also fell, dropping 0.33 percent to 1,878.79.

In trading on Tuesday, utilities shares were relative leaders, up on the day by about 0.13 percent. Leading the sector was strength from ONEOK

and Calpine

. Cyclical consumer goods & services shares declined around 0.75 percent in Tuesday's trading. Top losers in the sector included Dick's Sporting Goods

, down 16 percent, and Staples

, off 10 percent.

Staples

in its fiscal first-quarter profit. Staples posted its quarterly earnings of $96.2 million, or $0.15 per share, versus $169.9 million, or $0.26 per share, in the year-ago period. Excluding certain items, it earned $0.18 per share. Its sales declined 2.8% to $5.65 billion. However, analysts were expecting earnings of $0.21 per share on revenue of $5.61 billion. Staples expects Q2 adjusted earnings of $0.09 to $0.14 per share, versus analysts' estimates of $0.15 per share.

Aeroflex Holding

shares shot up 25.75 percent to $10.45 after the company agreed to be acquired by Cobham plc for $10.50 per share, or $1.46 billion. Shares of Ophthotech

got a boost, shooting up 18.56 percent to $37.30 after the company reported that it has entered into an ex-US licensing and commercialization deal with Novartis Pharmaceuticals. Red Robin Gourmet Burgers

shares were also up, gaining 9.63 percent to $70.00 after the company reported better-than-expected quarterly results.

Shares of Dick's Sporting Goods

were 16.12 percent to $44.59 after the company reported quarterly results and

forecast. Staples

shares tumbled 11.02 percent to $11.92 after the company reported weaker-than-expected first-quarter earnings and issued a downbeat outlook. Urban Outfitters

was down, falling 7.08 percent to $33.61 after the company reported

earnings. Urban Outfitters posted its quarterly profit of $37.5 million, or $0.26 per share, on revenue of $686.3 million. However, analysts were expecting earnings of $0.27 per share on revenue of $680.3 million.

In commodity news,

to $102.43, while gold traded down 0.36 percent to $1,289.10. Silver traded down 0.40 percent Tuesday to $19.28, while copper fell 1.09 percent to $3.13.

European shares

today. The eurozone's STOXX 600 dropped 0.11 percent, the Spanish Ibex Index rose 0.32 percent, while Italy's FTSE MIB Index gained 0.09 percent. Meanwhile, the German DAX tumbled 0.30 percent and the French CAC 40 declined 0.41 percent while UK shares slipped 0.60 percent.

The ICSC-Goldman same-store sales index declined 1.3% in the week ended Saturday versus the prior week. The Johnson Redbook Retail Sales Index gained 1% in the first two weeks of May versus April. The Treasury is set to auction 4-week bills.