Market Overview

Mid-Afternoon Market Update: Dot Hill Jumps On Acquisition News; Canadian Solar Shares Decline

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Toward the end of trading Wednesday, the Dow traded down 0.39 percent to 17,443.83 while the NASDAQ slipped 0.26 percent to 5,046.09. The S&P also fell, dropping 0.36 percent to 2,089.36.

Leading and Lagging Sectors

Utilities shares slipped by just 0.03 percent in the US market on Wednesday. However, top gainers in the sector included Chesapeake Utilities Corporation (NYSE: CPK), Brookfield Infrastructure Partners L.P. (NYSE: BIP), and Exelon Corporation (NYSE: EXC).

In trading on Wednesday, energy shares dipped by 2.01 percent. Meanwhile, top losers in the sector included Baytex Energy Corp (USA) (NYSE: BTE), down 14 percent, and LRR Energy LP (NYSE: LRE), off 12 percent.

Top Headline

Target Corporation (NYSE: TGT) reported stronger-than-expected earnings for the second quarter and raised its profit forecast for the year.

The Minneapolis, Minnesota-based company reported quarterly net earnings of $753 million, or $1.18 per share, compared to $234 million, or $0.37 per share, in the year-ago period. Excluding one-time items, the company’s earnings climbed 20.6 percent to $1.22 per share.

Its total sales climbed 2.8 percent to $17.4 billion. However, analysts were expecting earnings of $1.11 per share on revenue of $17.4 billion.

Equities Trading UP

Dot Hill Systems Corp. (NASDAQ: HILL) shares shot up 87 percent to $9.69 as the company agreed to be acquired by Seagate Technology PLC (NASDAQ: STX) for $9.75 per share in cash.

Photronics, Inc. (NASDAQ: PLAB) shares were also up, gaining 11 percent to $8.61 on better-than-expected Q3 results.

Shares of Gevo, Inc. (NASDAQ: GEVO) got a boost, shooting up 10 percent to $2.49. Analysts at H.C. Wainwright initiated coverage on Gevo with a Buy rating and a target price of $5.

Equities Trading DOWN

Canadian Solar Inc. (NASDAQ: CSIQ) shares tumbled 19 percent to $20.08. Canadian Solar reported better-than-expected Q2 results, but issued a weak forecast.

Shares of Tarena International Inc(ADR) (NASDAQ: TEDU) were down 30 percent to $8.55. Tarena reported Q3 earnings of $0.05 per share on revenue of $41.3 million.

Flexsteel Industries, Inc. (NASDAQ: FLXS) was down, falling 18 percent to $34.03. Flexsteel Industries posted Q4 adjusted earnings of $0.75 per share, on revenue of $121.3 million.

Commodities

In commodity news, oil traded down 4.18 percent to $40.84, while gold traded up 1.02 percent to $1,128.30.

Silver traded up 3.04 percent Wednesday to $15.29, while copper fell 0.35 percent to $2.28.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 fell 1.76 percent, the Spanish Ibex Index declined 1.06 percent, while Italy’s FTSE MIB Index dropped 1.77 percent. Meanwhile, the German DAX slipped 2.14 percent, and the French CAC 40 dropped 1.75 percent while UK shares fell 1.88 percent.

Economics

The consumer price index increased 0.1 percent in July, versus economists’ expectations for a 0.2 percent growth.

Crude supplies rose 2.6 million barrels for the week ended August 14, the U.S. Energy Information Administration said. However, analysts were expecting a decline of 1.2 million barrels. Gasoline supplies slipped 2.7 million barrels, while distillate stockpiles rose 600,000 barrels last week.

The Federal Open Market Committee released minutes of its latest meeting.

Posted-In: Earnings M&A News Guidance Eurozone Futures Commodities Global

 

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