Market Overview

Mid-Morning Market Update: Markets Open Higher; Coach Profit Beats Views

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Following the market opening Tuesday, the Dow traded up 0.18 percent to 18,561.95 while the NASDAQ climbed 0.20 percent to 5,223.78. The S&P also rose, gaining 0.14 percent to 2,183.99.

Leading and Lagging Sectors

Tuesday morning, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Pacific Drilling SA (NYSE: PACD) and Tidewater Inc. (NYSE: TDW).

In trading on Tuesday, healthcare shares fell by 1.05 percent. Meanwhile, top losers in the sector included Clovis Oncology Inc (NASDAQ: CLVS), down 8 percent, and Raptor Pharmaceutical Corp. (NASDAQ: RPTP), down 8 percent.

Top Headline

Coach Inc (NYSE: COH) announced better-than-expected earnings for the fourth quarter. However, its revenue fell shy of the estimates.

The luxury firm's profit for the three-month period was $82 million, or EPS of $0.29. In comparison, the company earned a profit of $12 million, or EPS of $0.04, in the year-ago period. On an adjusted basis, its net income would have been $126 million, or $0.45 a share, representing 47 percent year-over-year growth. This was $0.04 a share better than the analysts' estimate of $0.41.

Coach's net sales advanced 15 percent to $1.15 billion and fell short of the Street predictions of $1.17 billion revenue.


Equities Trading UP

Resolute Energy Corp (NYSE: REN) shares shot up 28 percent to $10.70. Resolute reported a net loss of $36.9 million, or $2.44 per share, on adjusted revenue of $35.4 million. The company increased production guidance by 13 percent, and see a record low lease operating expense in the quarter.

Shares of Monster Worldwide, Inc. (NYSE: MWW) got a boost, shooting up 23 percent to $3.41 after Randstad announced plans to acquire Monster Worldwide for $3.40 per share in cash.

Walter Investment Management Corp (NYSE: WAC) shares were also up, gaining 29 percent to $2.95 following Q2 results. Walter Investment posted adjusted earnings of $0.07 per share on revenue of $187.5 million. Walter Investment reported a $231 million mortgage servicing agreement with New Residential Investment Corp.


Equities Trading DOWN

Connecture Inc (NASDAQ: CNXR) shares dropped 26 percent to $1.88 after the company reported a wider-than-expected Q2 loss and lowered its FY16 sales outlook.

Shares of Model N Inc (NYSE: MODN) were down 26 percent to $10.25. Model N posted a narrower-than-expected Q2 loss, but issued a weak forecast.

TubeMogul Inc (NASDAQ: TUBE) was down, falling around 21 percent to $10.02 after the company reported a wider-than-expected quarterly loss.


Commodities


In commodity news, oil traded up 0.51 percent to $43.24 while gold traded up 0.30 percent to $1,345.30.

Silver traded up 0.10 percent Tuesday to $19.83, while copper fell 0.60 percent to $2.15.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.44 percent, the Spanish Ibex Index rose 0.72 percent, while Italy’s FTSE MIB Index gained 0.18 percent. Meanwhile the German DAX rose 1.01 percent, and the French CAC 40 gained 0.71 percent, while U.K. shares rose 0.65 percent.

Economics

Productivity declined 0.5 percent, versus economists’ expectations for a 0.4 percent growth. Unit-labor costs increased 2.0 percent in the second quarter.

The Johnson Redbook Retail Sales Index declined 0.2 percent during the first week of August versus July.

US wholesale inventories rose 0.30 percent for June, versus economists’ expectations for a 0.10 percent gain.

The Treasury is set to auction 4-week bills at 11:30 a.m. ET.

The Treasury will auction 3-year notes at 1:00 p.m. ET.

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

 

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