Mid-Morning Market Update: Markets Mixed; Conn's Profit Misses Estimates

Following the market opening Tuesday, the Dow traded down 0.28 percent to 17,050.15 while the NASDAQ surged 0.18 percent to 4,588.32. The S&P also fell, dropping 0.09 percent to 2,001.52.

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 1-800-Flowers.com FLWS and LSI Industries LYTS.

In trading on Tuesday, energy shares were relative laggards, down on the day by about 0.27 percent. Top decliners in the sector included Cloud Peak Energy CLD, down 5.6 percent, and W&T Offshore WTI, off 2.8 percent.

Top Headline

Conn’s CONN reported weaker-than-expected second-quarter earnings and cut its full-year forecast.

Conn’s posted its quarterly profit of $17.7 million, or $0.48 per share, versus a year-ago profit of $19.2 million, or $0.52 per share. Excluding one-time items, the company earned $0.50 per share.

Its total revenue jumped 30% to $353 million. However, analysts were expecting earnings of $0.75 per share on revenue of $353.65 million.

Equities Trading UP

Norwegian Cruise Line Holdings NCLH shares shot up 11.59 percent to $37.17 after the company announced its plans to acquire Prestige Cruises International for $3.025 billion.

Shares of Staples SPLS got a boost, shooting up 4.97 percent to $12.26. Credit Suisse upgraded Staples from Market Perform to Outperform.

Dollar General DG shares were also up, gaining 1.20 percent to $64.76 after the company lifted its bid for Family Dollar FDO to $80 per share.

Equities Trading DOWN

Shares of Conns CONN were down 28.83 percent to $31.91 after the company reported weaker-than-expected second-quarter earnings and cut its full-year forecast.

Finisar FNSR shares tumbled 5.32 percent to $19.23. Analysts at Jefferies downgraded Finisar from Buy to Hold and lowered the target price from $25 to $19.

Exelixis EXEL was down, falling 52.54 percent to $1.97 after the company announced its plans to lower around 70% of its workforce. The company reported that its phase 3 pivotal trial of cabozantinib did not meet primary endpoint.

Commodities

In commodity news, oil traded down 1.21 percent to $94.80, while gold traded down 1.41 percent to $1,269.20.

Silver traded down 1.24 percent Tuesday to $19.25, while copper fell 0.25 percent to $3.15.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 fell 0.02 percent, the Spanish Ibex Index surged 0.26 percent, while Italy’s FTSE MIB Index gained 0.60 percent. Meanwhile, the German DAX rose 0.36 percent and the French CAC 40 climbed 0.12 percent while UK shares gained 0.01 percent.

Economics

The final reading of the Markit PMI manufacturing index fell to 57.90 in August, versus a prior reading of 58.00. However, economists were expecting a reading of 58.00.

The ISM manufacturing composite index surged to 59.00 in August, versus a previous reading of 57.10. However, economists were expecting a reading of 57.00.

US construction spending rose 1.80% in July, versus economists’ expectations for a 1.00% growth.

The Treasury is set to auction 3-and 6-month bills.