Mid-Afternoon Market Update: A Schulman Drops On Lowered Guidance; Macy's Shares Spike Higher

Toward the end of trading Thursday, the Dow traded up 0.71 percent to 18,626.87 while the NASDAQ climbed 0.53 percent to 5,232.37. The S&P also rose, gaining 0.52 percent to 2,186.87.

Leading and Lagging Sectors

Thursday afternoon, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Aegean Marine Petroleum Network Inc. ANW and Resolute Energy Corp REN.

In trading on Thursday, utilities shares slipped by 0.01 percent. Meanwhile, top losers in the sector included Korea Electric Power Corporation (ADR) KEP, down 2 percent, and TransAlta Corporation (USA) TAC, down 2 percent.

Top Headline

Alibaba Group Holding Ltd BABA reported better than estimated results for the first quarter.

Alibaba reported non-GAAP EPS of $0.74 representing 33 percent year-over-year growth. This was $0.11 a share higher than the Street estimate of $0.63. In local currency its adjusted EPS was RMB 4.90.

Alibaba's revenue for the three-month period was RMB 32.154 billion or US$4.84 billion, an increase of 59 percent from the previous year period. Street expected revenue of $4.54 billion.

Equities Trading UP

Kura Oncology Inc KURA shares shot up 30 percent to $5.68 as the company posted a narrower-than-expected quarterly loss and issued an update on its Phase 2 trial of tipifarnib in HRAS mutant solid tumors.

Shares of Macy's Inc M got a boost, shooting up 18 percent to $40.20 as the company posted better-than-expected Q2 earnings. The company announced its continuing pursuance of its real estates’ opportunities while evaluating four possible Macy's flagship stores downtown in various cities. Macy's also announced its plan to close about 100 full line stores and charged $249 million in Q2 related to these closings.

Aegean Marine Petroleum Network Inc. ANW shares were also up, gaining 18 percent to $7.77 as the company posted upbeat Q2 earnings.

Equities Trading DOWN

Quorum Health Corp QHC shares dropped 52 percent to $4.85. Quorum Health reported a Q2 loss of $8.63 per share on revenue of $529.73 million.

Shares of A Schulman Inc SHLM were down 27 percent to $21.76 after the company lowered its FY16 guidance.

Energy Focus Inc EFOI was down, falling around 20 percent to $4.70 as the company posted weaker-than-expected Q2 results and issued a downbeat revenue forecast for the current quarter.

Commodities

In commodity news, oil traded up 4.12 percent to $43.43 while gold traded down 0.20 percent to $1,349.20.

Silver traded down 0.50 percent Thursday to $20.07, while copper rose 0.64 percent to $2.20.

Eurozone

European shares closed higher today. The eurozone’s STOXX 600 gained 0.78 percent, the Spanish Ibex Index gained 0.70 percent, while Italy’s FTSE MIB Index climbed 1.06 percent. Meanwhile the German DAX rose 0.86 percent, and the French CAC 40 climbed 1.17 percent, while U.K. shares rose 0.70 percent.

Economics

U.S. initial jobless claims dropped 1,000 to 266,000 in the August 6 week. However, economists were expecting claims to total 265,000 in the week.

Import prices increased 0.1 percent in July, versus economists’ expectations for a 0.3 percent drop. Export prices rose 0.2 percent in July, versus economists’ expectations for a 0.1 percent gain.

U.S. natural-gas supplies increased 29 billion cubic feet last week, the Energy Information Administration reported. However, analysts were expecting a gain of 25 billion cubic feet.

Data on money supply for the recent week will be released at 4:30 p.m. ET.