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Mid-Afternoon Market Update: Cree Drops On Earnings Miss; OSI Systems Shares Surge

PAM, OSIS, HMY, TGT, URBN, EDN

 


Toward the end of trading Wednesday, the Dow traded up 0.01 percent to 18,553.84 while the NASDAQ declined 0.16 percent to 5,218.85. The S&P also rose, gaining 0.02 percent to 2,178.53.

Leading and Lagging Sectors

Wednesday afternoon, the utilities sector proved to be a source of strength for the market. Leading the sector was strength from Pampa Energia S.A. (ADR) (NYSE: PAM) and Empresa Distribuidora y Cmrz Nrt SA(ADR) (NYSE: EDN).

In trading on Wednesday, basic materials shares slipped by 0.43 percent. Meanwhile, top losers in the sector included Harmony Gold Mining Co. (ADR) (NYSE: HMY), down 6 percent, and Stillwater Mining Company (NYSE: SWC), down 4 percent.

Top Headline

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 25 percent to $3.29 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 16 percent to $36.11 as the company reported stronger-than-expected results for its second quarter on Tuesday.

OSI Systems, Inc. (NASDAQ: OSIS) shares were also up, gaining 12 percent to $67.77. OSI Systems posted upbeat earnings for its fourth quarter on Tuesday.


Equities Trading DOWN

StemCells Inc (NASDAQ: STEM) shares dropped 27 percent to $1.91 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 Barnes & Noble, Inc. (NYSE: BKS) were down 12 percent to $11.81 as the company announced the departure of its CEO Ronald Boire. Gabelli & Co. downgraded Barnes & Noble from Buy to Hold.

Cree, Inc. (NASDAQ: CREE) was down, falling around 15 percent to $23.48 as the company reported downbeat earnings for its fourth quarter and issued a weak forecast for the current quarter.


Commodities


In commodity news, oil traded up 0.70 percent to $47.55 while gold traded down 0.34 percent to $1,352.30.

Silver traded down 0.65 percent Wednesday to $19.75, while copper fell 0.64 percent to $2.17.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 fell 0.83 percent, the Spanish Ibex Index declined 1.56 percent, while Italy’s FTSE MIB Index dipped 1.58 percent. Meanwhile the German DAX declined 1.30 percent, and the French CAC 40 fell 0.96 percent, while U.K. shares fell 0.50 percent.

Economics

The MBA reported that its index of mortgage application activity declined 4 percent for the week ended August 12.

U.S. crude supplies dropped 2.5 million barrels in the week ended August 12, the U.S. Energy Information Administration reported. However, analysts were expecting a decline of 200,000 barrels. Gasoline supplies slipped 2.7 million barrels, while distillate stockpiles gained 1.9 million barrels last week.

The Federal Open Market Committee released minutes of its latest meeting.



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