Market Overview

Mid-Day Market Update: Thursday's Movers, U.S. GDP, Royal Dutch Shell And More

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After a slow start in the first quarter of 2015, the U.S. GDP accelerated 2.3 percent in the second quarter. The growth is still less than last year’s tepid first half growth and below the pace of recovery.

According to The Wall Street Journal, economists projected the GDP to increase 2.7 percent in the second quarter. The GDP, on an average-annual basis thus far, has grown 1.5 percent compared to 1.9 percent last year.

The Commerce Department specified that the economy grew 0.6 percent in the first quarter, rather than the previously reported loss of 0.20 percent. According to WSJ, this year’s slower growth is due to a stronger dollar, lack of consumer spending, and sluggish business investments.

Royal Dutch Shell PLC (NYSE: RDS-A) reported that it plans to deploy 6,500 employees after the company’s profits dropped and oil prices declined dramatically. Profits were down 33 percent from last year to $3.4 billion.

The Dow Jones Industrial Index dwindled 0.30 percent, the S&P 500 Index declined 0.35 percent, the NASDAQ Composite went down 0.30 percent, and the US Dollar Index increased 0.50 percent in Thursday’s midday session.

Winners

Midcoast Energy Partners LP (NYSE: MEP) skyrocketed 32 percent after the natural gas operator announced a fifth consecutive quarterly dividend increase of 8.5 percent to $0.3525 versus last year's Q2.

QuickLogic Corporation (NASDAQ: QUIK) rose 29 percent after the semiconductor marketer announced its new EOS S3, the world’s most advanced sensor processing system-on-a-chip (SoC).

Gevo Inc (NASDAQ: GEVO) was up 27 percent after the renewable chemicals and biofuels company announced its first-ever pump sale of its Isobutanol-blended gasoline at an express lube service station located in Texas.

eHealth Inc (NASDAQ: EHTH) soared 26 percent after the online-health insurance provider reported positive earnings. The company reported earnings that beat estimates by $0.29 and Stifel Nicolaus upgraded the stock from Hold to Buy.

Intelsat SA (NYSE: I) was lifted 26 percent after the satellite provider raised $500 million of funding from leading international companies. Intelsat also reported sales of $598.1 million versus the projected $589.77.

Losers

Penn Virginia Corporation (NYSE: PVA) dwindled 29 percent after the independent oil and gas company reported a loss of $80.1 million in Q2 on sales of $83.6 million, analysts were expecting sales of $104.5 million.

ITT Educational Services Inc (NYSE: ESI) sank 29 percent after the postsecondary degree provider reported Q2 earnings and announced that new student enrollment in Q2 declined 18.6 percent versus last year.

LinnCo LLC (NASDAQ: LNCO) and Linn Energy LLC (NASDAQ: LINE) were down 26 percent and 23 percent after the limited liability company and energy company announced its intent to suspend distribution of dividends to repurchase $599 million of senior notes at a 35 percent discount.

Foundation Medicine Inc (NASDAQ: FMI) tumbled 23 percent after the molecular information company reported Q2 sales of $22.5 million while analysts expected sales of $23.6 million.

 

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