Mid-Morning Market Update: Markets Edge Lower; CVS Health Profit Tops Expectations

Following the market opening Tuesday, the Dow traded down 0.02 percent to 22,113.22 while the NASDAQ declined 0.13 percent to 6,375.52. The S&P also fell, dropping 0.09 percent to 2,478.64.

Leading and Lagging Sectors

Tuesday morning, the cyclical consumer goods & services sector proved to be a source of strength for the market. Leading the sector was strength from MDC Partners Inc MDCA and Clear Channel Outdoor Holdings, Inc. CCO.

In trading on Tuesday, basic materials shares were relative laggards, down on the day by about 0.64 percent. Meanwhile, top losers in the sector included Albemarle Corporation ALB, down 6 percent, and James Hardie Industries plc (ADR) JHX, down 6 percent.

Top Headline

CVS Health Corp CVS reported stronger-than-expected earnings for its second quarter.

CVS Health reported Q2 adjusted earnings of $1.33 per share, on sales of $45.7 billion. However, analysts were expecting earnings of $1.31 on revenue of $45.37 billion.

CVS Health narrowed its FY17 adjusted earnings guidance from $5.77-$5.93 per share, to $5.83-$5.93 per share.

Equities Trading UP

FibroGen Inc FGEN shares shot up 47 percent to $48.95 after the company posted a wider-than-expected Q2 loss and disclosed positive topline results from Phase 2 study of pamrevlumab in idiopathic pulmonary fibrosis.

Shares of Cutera, Inc. CUTR got a boost, shooting up 23 percent to $32.80 as the company posted upbeat quarterly results and raised its FY17 outlook.

Michael Kors Holdings Ltd KORS shares were also up, gaining 17 percent to $43.69 as the company reported better-than-expected Q1 results and issued a strong guidance.

Equities Trading DOWN

Atkore International Group Inc ATKR shares dropped 23 percent to $15.86. Atkore posted Q3 adjusted earnings of $0.44 per share on sales of $397.75 million. The company also lowered its FY earnings forecast.

Shares of Depomed Inc DEPO were down 28 percent to $6.62 after the company reported downbeat Q2 earnings and lowered its FY17 sales guidance. Janney Capital downgraded Depomed from Buy to Neutral.

Dean Foods Co DF was down, falling around 19 percent to $12.08 as the company posted downbeat Q2 earnings and lowered its FY17 adjusted earnings forecast.

Commodities

In commodity news, oil traded down 0.10 percent to $49.34 while gold traded up 0.39 percent to $1,269.60.

Silver traded up 0.82 percent Tuesday to $16.385, while copper fell 0.19 percent to $2.9015.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.19 percent, the Spanish Ibex Index rose 0.06 percent, while Italy’s FTSE MIB Index dropped 0.29 percent. Meanwhile the German DAX declined 0.32 percent, and the French CAC 40 dropped 0.18 percent while U.K. shares fell 0.05 percent.

Economics

The NFIB small business optimism index increased 1.6 points to 105.2 in July. However, economists were expecting a reading of 103.2 for July.

The Johnson Redbook Retail Sales Index declined 0.3 percent during the first week of August versus July.

U.S. job openings rose to 6.16 million for June, from 5.67 million in May, the Labor Department reported.

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

The Treasury will auction 3-year notes at 1:00 p.m. ET.