Following the market opening Wednesday, the Dow traded up 0.03 percent to 18,539.28 while the NASDAQ declined 0.16 percent to
5,217.30. The S&P also fell, dropping 0.05 percent to 2,180.69.
Leading and Lagging Sectors
Wednesday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength
from Eldorado Gold Corp (USA) (NYSE: EGO) and
Endeavour Silver Corp (NYSE: EXK).
In trading on Wednesday, healthcare shares slipped by 0.42 percent. Meanwhile, top losers in the sector included Myriad
Genetics, Inc. (NASDAQ: MYGN), down 29 percent, and
Zogenix, Inc. (NASDAQ: ZGNX), down 11 percent.
Top Headline
Michael Kors Holdings Ltd (NYSE: KORS) reported
better-than-expected earnings and revenue for the first quarter. However, the company offered a soft outlook for the second quarter
and fiscal year 2017.
The global apparel retailer's net income was $147.1 million, or $0.83 a share, in the first quarter. On an adjusted basis, its
net income would have been $156.0 million, or $0.88 a share. This was way ahead of the Street analysts' estimate of $0.74 a
share.
Michael Kors' total revenue rose modestly by 0.2 percent from $986.0 million to $987.9 million surprising the Street, which was
predicting a year-over-year drop of 3.3 percent. On a constant currency basis, revenue was flat.
Moving ahead, the retailer expects EPS to be $0.84-$0.88 on revenues of $1.07-$1.085 billion for the second quarter. Street
analysts' have consensus EPS estimate of $1.03 on $1.11 billion revenue.
Equities Trading UP
DXP Enterprises Inc (NASDAQ: DXPE) shares shot up
35 percent to $23.53 following Q2 results. DXP Enterprises reported Q2 earnings of $0.34 per share on revenue of $256.2
million.
Shares of OpGen Inc (NASDAQ: OPGN) got a boost,
shooting up 25 percent to $2.60. OpGen reported a Q2 Loss of $0.37 per share on revenue of $1.2 million.
Healthways, Inc. (NASDAQ: HWAY) shares were also
up, gaining 20 percent to $21.64 as the company posted better-than-expected Q2 earnings.
Equities Trading DOWN
SunPower Corporation (NASDAQ: SPWR) shares dropped
28 percent to $10.70 after the company posted a loss for its second quarter and issued a weak revenue forecast. Management expected
a workforce reduction of about 15 percent totaling about 1,200 employees in the future and restructuring charges totaling $30-$45
million.
Shares of Myriad Genetics, Inc. (NASDAQ: MYGN)
were down 29 percent to $20.79 after the company posted weaker-than-expected Q4 results and issued a downbeat guidance.
WaferGen Bio-systems, Inc. (NASDAQ: WGBS) was
down, falling around 29 percent to $0.893 after the company reported a wider-than-expected quarterly loss.
Commodities
In commodity news, oil traded up 0.54 percent to $43.00 while gold traded up 0.86 percent to $1,358.30.
Silver traded up 2.34 percent Wednesday to $20.32, while copper rose 1.95 percent to $2.19.
Eurozone
European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.12 percent, the Spanish Ibex Index rose 0.13 percent,
while Italy’s FTSE MIB Index gained 0.09 percent. Meanwhile the German DAX fell 0.29 percent, and the French CAC 40 slipped 0.19
percent, while U.K. shares fell 0.01 percent.
Economics
The MBA reported that its index of mortgage application activity rose 7.1 percent for the week ended August 5, 2016.
The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.
The U.S. Treasury budget data for July will be released at 2:00 p.m. ET.
The Treasury is set to auction 10-year notes at 1:00 p.m. ET.
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