Market Overview

Mid-Day Market Update: LendingClub Slides Amid Dept. Of Justice Subpoena; Top Image Systems Shares Surge

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Midway through trading Tuesday, the Dow traded down 0.29 percent to 17,658.97 while the NASDAQ declined 0.31 percent to 4,760.43. The S&P also fell, dropping 0.26 percent to 2,061.39.

Leading and Lagging Sectors

Basic materials shares gained by 1.2 percent in trading on Tuesday. Top gainers in the sector included Stillwater Mining Company (NYSE: SWC), Stillwater Mining Company (NYSE: CLF), and Methanex Corporation (USA) (NASDAQ: MEOH).

In trading on Tuesday, non-cyclical consumer goods & services shares tumbled by 0.7 percent. Meanwhile, top losers in the sector included Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE), down 4 percent, and Xueda Education Group (ADR) (NYSE: XUE), down 3 percent.

Top Headline

Home Depot Inc (NYSE: HD) posted better-than-expected results for the first quarter and boosted its earnings forecast for the current year.

Home Depot's quarterly earnings rose 19 percent to $1.44 per share from $1.21 per share in the same period of the last year. The retailer's sales increased to $22.8 billion from $20.89 billion. However, analysts were expecting earnings of $1.35 per share on revenue of $22.35 billion.

Going forward, Home Depot said it expects earnings to grow about 14.8 percent to $6.27 a share in the current year from the last year. Similarly, the company expects sales to go up by about 6.3 percent with comp sales growth of 4.9 percent.

Equities Trading UP

Top Image Systems Ltd. (NASDAQ: TISA) shares shot up 46 percent to $2.28. Top Image Systems reported a Q1 loss of $0.02 per share on revenue of $8.5 million.

Shares of MGT Capital Investments Inc. (NYSE: MGT) got a boost, shooting up 47 percent to $4.36 after surging 73.26 percent on Monday.

Childrens Place Inc (NASDAQ: PLCE) shares were also up, gaining 7 percent to $72.72 after the company reported better-than-expected financial results for the first quarter and lifted its earnings forecast for the current year.

Equities Trading DOWN

Francesca's Holdings Corp (NASDAQ: FRAN) shares dropped 29 percent to $10.64 as the company reported the resignation of Chairman, President and CEO Michael W. Barnes. The company expects Q1 earnings of $0.17 per share.

Shares of Aegerion Pharmaceuticals, Inc. (NASDAQ: AEGR) were down 19 percent to $1.87. Aegerion Pharma reported a Q1 loss of $2.22 per share on sales of $35.7 million. The company also lowered its FY16 sales outlook.

LendingClub Corp (NYSE: LC) was down, falling around 10 percent to $3.55 after the company confirmed in a regulatory filing that it received a grand jury subpoena from the U.S. Department of Justice.

Commodities

In commodity news, oil traded up 0.90 percent to $48.15 while gold traded up 0.71 percent to $1,283.20.

Silver traded up 1.11 percent Tuesday to $17.35, while copper fell 0.22 percent to $2.08.

Eurozone

European shares were mostly lower today. The eurozone's STOXX 600 fell 0.09 percent, the Spanish Ibex Index rose 0.10 percent, while Italy's FTSE MIB Index slipped 1.6 percent. Meanwhile the German DAX fell 0.79 percent, and the French CAC 40 declined 0.58 percent, while U.K. shares rose 0.20 percent.

Economics

U.S. consumer prices rose 0.40 percent for April, versus economists' expectations for a 0.30 percent growth.

U.S. housing starts increased 6.60 percent to an annual rate of 1.17 million in April. However, economists were projecting starts to increase at a 1.13 million rate.

U.S. industrial production rose 0.70 percent for April, versus economists' expectations for a 0.30 percent gain.

Posted-In: Earnings News Guidance Eurozone Commodities Global Intraday Update Markets

 

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