Mid-Morning Market Update: Markets Open Lower; Target Cuts Profit Outlook
Following the market opening Wednesday, the Dow traded down 0.35 percent to 18,487.96 while the NASDAQ declined 0.27 percent to 5,212.75. The S&P also fell, dropping 0.29 percent to 2,171.74.
Leading and Lagging Sectors
Wednesday morning, the non-cyclical consumer goods & services sector proved to be a source of strength for the market.
In trading on Wednesday, utilities shares slipped by 0.74 percent. Meanwhile, top losers in the sector included Companhia Energetica Minas Gerais (ADR) (NYSE: CIG), down 6 percent, and Companhia Paranaense de Energia (ADR) (NYSE: ELP), down 4 percent.
Target Corporation (NYSE: TGT) reported better-than-expected earnings for its second quarter, but lowered its full-year profit guidance.
Excluding items, Target posted quarterly earnings of $1.23 per share, beating analysts’ expectations of $1.12 per share. Its net sales declined 7.2 percent to $16.17 billion, versus analysts' estimates of $16.18 billion.
The company now expects full-year profit of $4.80 to $5.20 per share, versus a previous range of $5.20 to $5.40 per share.
Equities Trading UP
Sky Solar Holdings Ltd (ADR) (NASDAQ: SKYS) shares shot up 93 percent to $5.09 as the company reported the potential sale of certain assets held by Sky Solar Japan for $165 million.
Shares of Urban Outfitters, Inc. (NASDAQ: URBN) got a boost, shooting up 15 percent to $35.95 as the company reported stronger-than-expected results for its second quarter on Tuesday.
Citi Trends, Inc. (NASDAQ: CTRN) shares were also up, gaining 15 percent to $20.39 following Q2 results. Citi Trends posted a Q2 loss of $0.01 per share on revenue of $155.3 million.
Equities Trading DOWN
StemCells Inc (NASDAQ: STEM) shares dropped 28 percent to $1.87 as the company reported that it will accept warrant exercises from holders to purchase common stock issued on April 29, 2015 at a reduced exercise price of $1.10 per share. StemCells shares jumped 598.55 percent on Tuesday.
Shares of 21Vianet Group Inc (NASDAQ: VNET) were down 12 percent to $9.30. 21Vianet Group reported a Q2 adjusted loss of $0.17 per ADS on revenue of $137.1 million. JP Morgan downgraded 21Vianet Group from Neutral to Underweight.
Cree, Inc. (NASDAQ: CREE) was down, falling around 16 percent to $23.21 as the company reported downbeat earnings for its fourth quarter and issued a weak forecast for the current quarter.
In commodity news, oil traded down 0.36 percent to $47.05 while gold traded down 0.56 percent to $1,349.30.
Silver traded down 0.77 percent Wednesday to $19.72, while copper fell 0.57 percent to $2.17.
European shares were lower today. The eurozone’s STOXX 600 fell 0.58 percent, the Spanish Ibex Index declined 1.12 percent, while Italy’s FTSE MIB Index dipped 1.13 percent. Meanwhile the German DAX declined 1.09 percent, and the French CAC 40 fell 0.68 percent, while U.K. shares fell 0.30 percent.
The MBA reported that its index of mortgage application activity declined 4 percent for the week ended August 12.
The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
St. Louis Federal Reserve Bank President James Bullard is set to speak in St. Louis at 1:00 p.m. ET.
The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.
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