Market Overview

Mid-Day Market Update: Tuesday's Movers, China's Yuan Devalued, U.S. Productivity and More

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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 U.S. Dollar Index increased 0.35 percent, and crude oil WTI fell 3.94 percent on Tuesday’s mid-day 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 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.

The Labor Department announced that the U.S. 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 WSJ expected an annual growth rate of 1.6 percent.

Google Inc (NASDAQ: GOOG) announced a new parent company, Alphabet. The new company will be a holding company for all of Google’s subsidiaries.

Winners

American Midstream Partners LP (NYSE: AMID) skyrocketed 42 percent after the energy company reported in-line Q2 earnings.

Vertex Energy Inc (NASDAQ: VTNR) was lifted 47 percent after the environmental services company reported a Q2 loss of $0.02 per share, $0.16 better than analysts expected.

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

Novavax, Inc. (NASDAQ: 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 (NASDAQ: NTLS) was up 23 percent after the wireless communications company was acquired by Shenandoah Telecommunications Company (NASDAQ: SHEN) for a deal amounting to $640 million in cash.

Losers

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

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

Arotech Corporation (NASDAQ: 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 (NYSE: ONVO) was down 26 percent after the biological company reported a loss of $8.5 million for Q1.

Envestnet Inc (NYSE: ENV) shot down 25 percent after the wealth management software provider acquired Yoodle Inc (NASDAQ: YDLE) for $590 million, just after Envestnet reported earnings of $2.5 million for Q2 on sales of $102.7 million.

Posted-In: News Global Intraday Update Movers

 

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