Market Overview

Mid-Day Market Update: Dow Drops 100 Points; Matrix Service Shares Gain Following Earnings Beat



Midway through trading Wednesday, the Dow traded down 0.54 percent to 18,354.21 while the NASDAQ declined 0.46 percent to 5,199.08. The S&P also fell, dropping 0.53 percent to 2,164.50.

Leading and Lagging Sectors

On Wednesday, non-cyclical consumer goods & services shares gained by 0.10 percent.

In trading on Wednesday, energy shares fell by 1.41 percent. Meanwhile, top losers in the sector included Approach Resources Inc. (NASDAQ: AREX), down 9 percent, and Frontline Ltd. (NYSE: FRO), down 8 percent.

Top Headline

Chico's FAS, Inc. (NYSE: CHS) reported better-than-expected earnings for the second quarter.

The specialty retailer reported net income of $23.0 million, or $0.17 a share, sharply higher than $2.1 million, or $0.02 a share, recorded in the year-ago quarter. However, on an adjusted basis, net income fell from $37.6 million to $33.3 million and EPS from $0.26 to $0.25., which was $0.03 a share higher than the Street estimates of $0.22 a share.

Chico's FAS net sales dipped 7.3 percent from $685.8 million to $635.7 million. Excluding Boston Proper from last year's sales number, its sales would have dropped 3.6 percent hurt by 3.1 percent fall in comparable sales.

Equities Trading UP

Sino-Global Shipping America, Ltd. (NASDAQ: SINO) shares shot up 17 percent to $1.63 as the company reported a mobile application for short-haul trucking in the US.

Shares of Chico's FAS, Inc. (NYSE: CHS) got a boost, shooting up 12 percent to $12.69 as the company posted better-than-expected earnings for the second quarter.

Matrix Service Co (NASDAQ: MTRX) shares were also up, gaining 16 percent to $18.57 as the company posted better-than-expected Q4 results.

Equities Trading DOWN

Atossa Genetics Inc (NASDAQ: ATOS) shares dropped 29 percent to $2.45. Atosssa Genetrics priced its 1.15 million share offering at $2.50 per share.

Shares of AeroVironment, Inc. (NASDAQ: AVAV) were down 18 percent to $24.44 as the company posted a wider-than-expected loss for its first quarter.

Hemispherx BioPharma, Inc (NYSE: HEB) was down, falling around 21 percent to $1.40 after the company reported a $5 million direct offering.


In commodity news, oil traded down 3 percent to $44.96 while gold traded down 0.40 percent to $1,311.20.

Silver traded up 0.52 percent Wednesday to $18.77, while copper rose 0.19 percent to $2.08.


European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.35 percent, the Spanish Ibex Index rose 0.36 percent, while Italy’s FTSE MIB Index surged 0.31 percent. Meanwhile the German DAX declined 0.61 percent, and the French CAC 40 declined 0.43 percent while U.K. shares fell 0.58 percent.


The MBA reported that its index of mortgage application activity rose 2.80 percent for the week ended August 26.

Private-sector employers added 177,000 jobs in August, ADP reportet. However, economists were projecting a gain of 175,000 jobs.

The Chicago PMI dropped to 51.50 for August, versus a previous reading of 55.80. Economists expected a reading of 54.00.

The pending home sales index rose 1.30 percent for July, versus economists’ expectations for a 0.60 percent growth.

Crude supplies increased 2.28 million barrels in the week ended August 26, the U.S. Energy Information Administration reported. However, analysts were estimating a gain of 921,000 barrels. Gasoline supplies slipped 700,000 barrels, while distillate stockpiles increased 1.5 million barrels.

Data on farm prices for August will be released at 3:00 p.m. ET.

Chicago Fed President Charles Evans is set to speak at the Shanghai Advanced Institute of Finance in Beijing at 3:15 p.m. ET.


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