Market Overview

Mid-Afternoon Market Update: Dow Down 1%; Performance Food Group Shares Fall Following Downbeat Earnings

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Toward the end of trading Wednesday, the Dow traded down 1 percent to 25,046.82 while the NASDAQ declined 1.49 percent to 7,753.32. The S&P also fell, dropping 1.04 percent to 2,810.35.

Leading and Lagging Sectors

Wednesday afternoon, the real estate shares rose 0.79 percent. Meanwhile, top gainers in the sector included Xinyuan Real Estate Co., Ltd. (NYSE: XIN) up 9 percent, and Mack-Cali Realty Corporation (NYSE: CLI) up 6 percent.

In trading on Wednesday, energy shares fell 3.17 percent.

Top Headline

Macy's (NYSE: M) reported better-than-expected results for its second quarter.

Earnings came in at $0.70 per share, beating estimates of $0.50 per share. Sales came in at $5.572 billion, beating estimates of $5.55 billion. Macy's expects FY18 adjusted earnings of $3.95 to $4.15 per share and total sales to be flat to up 0.7 percent year-over-year.

Equities Trading UP

GWG Holdings, Inc. (NASDAQ: GWGH) shares shot up 35 percent to $9.951 following Q2 results. GWG Holdings posted Q2 loss of $0.76 per share on sales of $24.32 million.

Shares of Canopy Growth Corp (NYSE: CGC) got a boost, shooting up 28 percent to $31.54 after the Canadian cannabis company received a $4 billion investment from stake holder Constellation Brands, Inc. (NYSE: STZ). As part of the agreement, Constellation will now own a 38 percent stake on Canopy, which will be better positioned to take advantage of the "tremendous" growth opportunities in the global cannabis market.

Pain Therapeutics, Inc. (NASDAQ: PTIE) shares were also up, gaining 84 percent to $2.0401 after the company was awarded a $3.2 million grant to support its clinical study for Alzheimer's treatment.

Equities Trading DOWN

Performance Food Group Company (NYSE: PFGC) shares dropped 12 percent to $33.175 after the company reported weaker-than-expected results for its fourth quarter and issued downbeat FY19 earnings forecast.

Shares of Casa Systems Inc (NASDAQ: CASA) were down 22 percent to $12.19 after the company missed Q2 sales estimates and issued weak 2018 guidance.

ParkerVision, Inc. (NASDAQ: PRKR) was down, falling around 35 percent to $0.376 after the company missed Q2 sales estimates.

Commodities

In commodity news, oil traded down 2.52 percent to $65.35 while gold traded down 1.29 percent to $1,185.20.

Silver traded down 3.91 percent Wednesday to $14.465, while copper fell 3.91 to $2.577.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 dropped 1.36 percent, the Spanish Ibex Index fell 1.26 percent, while Italy’s FTSE MIB Index declined 0.30 percent. Meanwhile the German DAX fell 1.58 percent, and the French CAC 40 fell 1.82 percent while U.K. shares fell 1.49 percent.

Economics

U.S. retail sales rose 0.5 percent for July, beating market expectations for a 0.1 percent increase.

The NYSE: Empire State manufacturing index increased 3 points to a reading of 25.6 in August. However, economists were projecting a reading of 20.

U.S. nonfarm productivity rose to a 2.9 percent annual pace for the second quarter.

U.S. industrial production gained 0.1 percent for July.

The NAHB housing market index declined one point to a reading of 67 in August.

U.S. business inventories increased 0.1 percent for June, versus economists’ expectations for a 0.2 percent gain.

U.S. crude inventories increased 6.8 million barrels for the week ended August 10, the Energy Information Administration reported. Analysts expected a drop of 2.4 million barrels.

The Treasury International Capital report for June will be released at 4:00 p.m. ET.

Posted-In: Mid-Afternoon Market UpdateNews Eurozone Commodities Global Intraday Update Markets

 

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