Mid-Day Market Update: Tuesday's Movers; China's Yuan Devalued, US Productivity, and More

The Dow Jones Industrial Index declined 1.24 percent, the S&P 500 dwindled 1.00 percent, the NASDAQ Composite lost 1.04 percent, the US Dollar Index increased 0.35 percent, and crude oil WTI fell 3.94 percent on Tuesday’s midday session.

Global stocks tumbled after China devalued its currency, the Yuan, in a move that China hopes to bring back its exports to growth and help sprout the economy. The decline in the Yuan could hurt could slow the competitiveness of firms foreign to China by making the prices of their goods/services more expensive, while companies that operate and generate sales in China could find their profits, in Yuan, to be worth less in their foreign currency, according to the Wall Street Journal.

Among the companies hit are the luxury-goods firms, mining, and car making companies which are highly sensitive and highly demanded in China. The Shanghai Stock Exchange Composite Index remained stagnant in Tuesday’s session, while the smaller Shenzhen Stock Exchange Composite Index increased 0.41 percent.

Moving onto the US, the Labor Department announced that the US worker productivity increased at a 1.3 percent seasonally adjusted annual rate in the second quarter; representing only a moderate economic growth, even with steady hiring. Economists that were surveyed by the Wall Street Journal expected an annual growth rate of 1.6 percent.

Google Inc GOOG has announced a parent company, Alphabet; the new company will be a holding company for all of Google’s subsidiaries, in which each will have its own letter. For example, Google’s search engine will be considered the letter “G” and Google Chrome will be the letter “C.”

The markets continued to rally in Tuesday’s session:
Winners:
American Midstream Partners LP AMID skyrocketed 42 percent after the energy company reported in-line Q2 earnings; the company also reported a drop-down plan from affiliate of ArcLight to drop down 25 percent of ArcLight’s 51.7 percent controlling interest in Delta House.

Vertex Energy Inc VTNR was lifted 41 percent after the environmental services company reported Q2 results; the company reported a loss of $0.02 per share, $0.16 better than expected by analysts.

Yoodle Inc YDLE soared 30 percent after technology and applications platform for digital financial services was acquired by Envestnet Inc ENV; the deal amounted to $590 million.

Novavax Inc NVAX was heightened 27 percent after the clinical-stage vaccine company reported positive, top-line data from RSV F-protein vaccine clinical trial in older adults.

NTELOS Holdings Corp NTLS was up 23 percent after the wireless communications company was acquired by Shenandoah Telecommunications Company SHEN for a deal amounting to $640 million in cash.

Losers:
World Acceptance Corp WRLD dwindled 40 percent after the small-loan consumer finance operator reported that the Consumer Financial Protection Bureau (CFPB) expects to bring civil charges against it.

Avid Technology Inc AVID declined 32 percent after the integrated technology company reported Q2 results; the company had a loss of $4.1 million on sales of $109.80 million. Revenues had dropped 12 percent year over year, while analysts expected sales of $125 million and $0.20 per share earnings.

Arotech Corporation ARTX sunk 28 percent after the defense and security company reported total sales of $21.6 million and a loss of $0.04 per share.

Organovo Holdings Inc ONVO was down 26 percent after the biological company reported a loss of $8.5 million for Q1 on sales of only $306,000.

Envestnet Inc ENV shot down 25 percent after the wealth management software provider acquired Yoodle Inc YDLE for $590 million, just after Envestnet reported earnings of $2.5 million for Q2 on sales of $102.7 million, topping analysts expected $102 million.