Market Overview

Mid-Morning Market Update: Markets Edge Higher; Coach Beats Q4 Expectations

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Following the market opening Tuesday, the Dow traded up 0.09 percent to 17,613.36 while the NASDAQ gained 0.14 percent to 5,122.33. The S&P also rose, gaining 0.09 percent to 2,099.88.

Leading and Lagging Sectors

Basic materials sector was the top gainer in the US market on Tuesday. Leading the sector was strength from UFP Technologies, Inc. (NASDAQ: UFPT) and Westlake Chemical Corporation (NYSE: WLK).

In trading on Tuesday, technology shares were relative laggards, down on the day by about 0.40 percent. Meanwhile, top losers in the sector included Skyworks Solutions Inc (NASDAQ: SWKS), down 6 percent, and Veeco Instruments Inc. (NASDAQ: VECO), off 5 percent.

Top Headline

Coach Inc (NYSE: COH) reported stronger-than-expected results for its fiscal fourth quarter.

The New York-based company posted quarterly net income of $11.7 million, or $0.04 per share, versus $75.2 million, or $0.27 per share, in the year-ago quarter. Excluding items, the company’s earnings came in at $0.31 per share.

Its sales declined to $1.00 billion from $1.14 billion. However, analysts were expecting earnings of $0.29 per share on revenue of $973 million.

Equities Trading UP

Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX) shares shot up 36 percent to $79.48 after Team Health Holdings LLC (NYSE: TMH) announced its plans to buy IPC Healthcare in a $1.6 billion deal.

Lendingtree Inc (NASDAQ: TREE) shares were also up, gaining 29 percent to $106.40 after the company reported better-than-expected Q2 results and raised its full-year forecast.

Shares of eLong, Inc. (ADR) (NASDAQ: LONG) got a boost, shooting up 21 percent to $17.16 as the company announced the receipt of a preliminary non-binding "going private" proposal of $18.00 per ADS. eLong reported a Q2 loss of $1.58 per share on revenue of $35.2 million.

Equities Trading DOWN

TriNet Group Inc (NYSE: TNET) shares tumbled 42 percent to $15.44. TriNet Group reported Q2 earnings of $0.14 per share on revenue of $137.5 million.

Shares of On Deck Capital Inc (NYSE: ONDK) were down 23 percent to $10.26 on Q2 results. Deutsche Bank downgraded On Deck Capital from Buy to Hold and lowered the price target to $14.00.

Cognex Corporation (NASDAQ: CGNX) was down, falling 22 percent to $35.10 after the company reported downbeat Q2 sales and issued a weak sales forecast for the third quarter.

Commodities

In commodity news, oil traded up 1.70 percent to $45.94, while gold traded up 0.09 percent to $1,090.40.

Silver traded up 0.38 percent Tuesday to $14.57, while copper rose 0.96 percent to $2.37.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.39 percent, the Spanish Ibex Index dropped 1.45 percent, while Italy’s FTSE MIB Index dipped 1.46 percent. Meanwhile, the German DAX fell 0.30 percent, and the French CAC 40 slipped 0.61 percent while UK shares fell 0.16 percent.

Economics

The Johnson Redbook Retail Sales Index rose 0.2 percent in the first four weeks of July versus June.

US factory orders rose 1.80 percent in June, versus economists’ expectations for a 1.80 percent growth.

 

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