Mid-Afternoon Market Update: Crude Oil Down Over 1%; Motorcar Parts of America Shares Spike Higher

Toward the end of trading Tuesday, the Dow traded down 0.50 percent to 17,644.22 while the NASDAQ declined 0.40 percent to 4,829.18. The S&P also fell, dropping 0.42 percent to 2,070.42.

Leading and Lagging Sectors

On Tuesday, non-cyclical consumer goods & services shares gained by 0.12 percent.

In trading on Tuesday, basic materials shares declined by 1.82 percent. Meanwhile, top losers in the sector included CVR Partners LP UAN, down 10 percent, and Resolute Forest Products Inc RFP, down 9 percent.

Top Headline

Isle of Capri Casinos ISLE reported better-than-expected earnings for its fourth quarter on Tuesday.

The company posted adjusted earnings of $0.62 per share on revenue of $264.9 million. However, analysts were expecting earnings of 0.54 per share on revenue of $266.8 million.

Equities Trading UP

Leading Brands, Inc (USA) LBIX shares shot up 66 percent to $2.49 following Q1 results. Leading Brands reported Q1 earnings of $0.10 per share on revenue of $3.033 million.

Shares of Vonage Holdings Corp. VG got a boost, shooting up 11 percent to $5.26. Citigroup upgraded Vonage Holdings from Neutral to Buy and raised the price target from $4.75 to $8.00.

Motorcar Parts of America, Inc. MPAA shares were also up, gaining 9 percent to $30.11 following quarterly results. Motorcar Parts of America reported Q4 adjusted earnings of $0.50 per share on adjusted revenue of $100.9 million.

Equities Trading DOWN

Infinity Pharmaceuticals Inc. INFI shares dropped 70 percent to $1.32. Infinity announced plans to cut 21 percent of the workforce. The company also reported that DYNAMO Phase 2 monotherapy study evaluating the efficacy and safety of duvelisib met its primary endpoint.

Shares of Dataram Corp DRAM were down 30 percent to $1.01 as the company reached a deal to acquire all of the outstanding shares of US Gold Corp and USGC subsidiaries.

Revance Therapeutics Inc RVNC was down, falling around 26 percent to $13.54 as the company reported that its REALISE 1 Phase 3 trial of DaxibotulinumtoxinA Topical Gel (RT001) to treat patients with moderate to severe lateral canthal lines (crow’s feet) had failed to meet co-primary and other endpoints. Brean Capital downgraded Revance Therapeutics from Buy to Hold and removed the price target.

Commodities

In commodity news, oil traded down 1.15 percent to $48.32 while gold traded up 0.15 percent to $1,288.80.

Silver traded down 0.16 percent Tuesday to $17.42, while copper fell 0.49 percent to $2.04.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 fell 1.92 percent, the Spanish Ibex Index dropped 2.13 percent, while Italy’s FTSE MIB Index slipped 2.11 percent. Meanwhile the German DAX declined 1.43 percent, and the French CAC 40 fell 2.29 percent, while U.K. shares fell 2.01 percent.

Economics

The NFIB small business optimism index increased 0.2 point to 93.8 in May.

U.S. retail sales rose 0.50 percent in May, versus economists’ expectations for a 0.30 percent growth.

U.S. import prices gained 1.4 percent in May, while rose 1.1 percent in the same month.

The Johnson Redbook Retail Sales Index declined 1 percent during the first two weeks of June versus May.

U.S. business inventories rose 0.10 percent for April, versus economists’ expectations for a 0.20 percent growth.

The Federal Open Market Committee begins two-day policy meeting today.