Market Overview

Mid-Morning Market Update: Markets Open Lower; RadioShack Reports Wider Loss

Mid-Morning Market Update: Markets Open Lower; RadioShack Reports Wider Loss

Following the market opening Tuesday, the Dow traded down 0.25 percent to 16,900.80 while the NASDAQ declined 0.31 percent to 4,322.77. The S&P also fell, dropping 0.31 percent to 1,945.30.

Leading and Lagging Sectors

Healthcare sector was the top gainer in Tuesday’s trading. Top gainers in the sector included Achillion Pharmaceuticals (NASDAQ: ACHN), up 45.8 percent, and MEI Pharma (NASDAQ: MEIP), up 7.4 percent.

Cyclical consumer goods & services shares dropped around 0.47 percent in trading on Tuesday. Top losers in the sector included Francesca's Holdings (NASDAQ: FRAN), and Bona Film Group (NASDAQ: BONA).

Top Headline

RadioShack (NYSE: RSH) reported a wider-than-expected first-quarter loss.

RadioShack posted a quarterly net loss of $98.3 million, or $0.97 per share, versus s year-ago loss of $28 million, or $0.28 per share.

Its sales declined to $736.7 million from $848.4 million, while comparable store sales dropped 14%. However, analysts were expecting a loss of $0.52 per share on sales of $767 million.

Equities Trading UP

Achillion Pharmaceuticals (NASDAQ: ACHN) shares shot up 48.47 percent to $6.31 after jumping 47.57% on Monday. The company reported the initiation of ACH-3422 dosing in HCV-infected patients.

Shares of Receptos (NASDAQ: RCPT) got a boost, shooting up 39.54 percent to $40.74 following Monday's announcement that RPC1063 has met primary efficacy endpoint.

Scientific Games (NASDAQ: SGMS) shares were also up, gaining 12.36 percent to $10.27 after the company named Gavin Isaacs as new CEO.

Equities Trading DOWN

Shares of Francesca's Holdings (NASDAQ: FRAN) were 10.93 percent to $13.61 after the company reported downbeat Q1 results and issued a weak outlook.

B/E Aerospace (NASDAQ: BEAV) shares tumbled 4.78 percent to $94.15 after the company announced its plans to split into two companies. The company also lifted its FY14 earnings guidance.

Casey's General Stores (NASDAQ: CASY) was down, falling 4.20 percent to $71.63 after the company reported a drop in its fiscal fourth-quarter earnings. The company posted its quarterly earnings of $0.59 per share on revenue of $1.92 billion. However, analysts were estimating earnings of $0.53 per share on revenue of $1.92 billion.


In commodity news, oil traded up 0.14 percent to $104.56, while gold traded up 0.61 percent to $1,261.50.

Silver traded up 0.49 percent Tuesday to $19.16, while copper fell 0.28 percent to $3.04.


European shares were mixed today.

The eurozone’s STOXX 600 gained 0.12 percent, the Spanish Ibex Index fell 0.20 percent, while Italy’s FTSE MIB Index declined 0.12 percent.

Meanwhile, the German DAX rose 0.12 percent and the French CAC 40 fell 0.01 percent while UK shares dropped 0.33 percent.


The NFIB Small Business Optimism Index rose to 96.6 in May versus 95.2 in April. However, economists were expecting a reading of 95.8.

The ICSC-Goldman's same-store sales index declined 2.8% in the week ended Saturday versus the earlier week.

The Johnson Redbook Retail Sales Index fell 1.8% in the first week of June versus May.

US wholesale inventories increased 1.1% in April, while wholesale sales rose 1.3%.

The Treasury is set to auction 4-week bills and 3-year notes.


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