Market Overview

Mid-Day Market Update: Friday's Movers; China Banks Warn; Oil Rallies

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After a roller-coaster week in the market, U.S. stocks fell lower in Friday’s session:

  • The Dow Jones Industrial Index: Down 0.50 percent
  • The S&P 500 Index: Down 0.34 percent
  • The NASDAQ Composite: Down 0.38 percent
  • The US Dollar Index: Up 0.14 percent
  • Crude Oil WTI: Up 0.63 percent

China’s Shanghai Stock Exchange Composite Index spiked another 4.82 percent in Friday’s session, but major Chinese banks warned about their weakest profit growth for the first half in the past six years.

As China’s economy grows at the slowest rate in nearly 25 years, lenders are preparing themselves for even more worse loan industry. The Industrial and Commercial Bank of China’s president, Yi Huiman, stated to the public “we will continue to face pressure from non-performing loans for a period of time.”

In China’s current economic condition, interest rates could continue to fall which will further lessen the bank’s net interest margins, continuing the slowing profit margins of major Chinese banks. The Bank of China has already announced that second half margins were being crushed due to decreased interest rates.

The U.S. Commerce Department reported data showing yet another month of weakened inflation; personal consumption price index rose 0.1 percent from the month of June. Last year’s personal consumption price index rose 0.3 percent.

Winners

Stereotaxis Inc (NASDAQ: STXS) soared 23 percent after the robotic systems manufacturer/marketer, with Westmead Hospital, in Australia, reported that the hospital’s research provides significant data supporting the ablation effectiveness of Stereotaxis magnetic navigation.

Linn Energy LLC (NASDAQ: LINE) spiked 16 percent after the oil prices rally.

Big Lots Inc (NYSE: BIG) was lifted 15 percent after the discount retailer giant reported $17.6 million profits on sales of $1.21 billion in quarter two. The company had earnings per share of $0.40 while analysts expected earnings of $0.34 per share.

Smith & Wesson Holding Corporation (NASDAQ: SWHC) shot up 9 percent after the company reported earnings of $0.32 per share as opposed to analysts expected $0.22 per share. Revenues increased 12.2 percent year-over-year to $147.76 million which also landed above analysts expected sales of $142.76 million.

Losers

Bebe Stores Inc (NASDAQ: BEBE) sunk 33 percent after the women’s apparel and accessories retailer reported a loss of $5.2 million for Q4 of 2015 on sales of $104.3 million. Bebe also announced it will be entering China at a precarious time.

Violin Memory Inc (NYSE: VMEM) dwindled 30 percent after the data storage company reported sales of $15.3 million, a decrease of 18 percent from last year. Analysts expected sales of $18.07 million.

Aeropostale Inc (NYSE: ARO) declined 23 percent after the clothing retailer announced a loss of $0.55 per share on sales of $326.9 million. Analysts were expecting sales of ~$335 million.

Regis Corp (NYSE: RGS) fell 10 percent after the beauty salon franchiser reported a fourth quarter loss of $2.6 million ($0.01 per share). Sales dwindled 4.3 percent year over year to $462.9 million.

Posted-In: News Intraday Update Movers

 

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