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Mid-Morning Market Update: Markets Mostly Flat; HD Supply Misses Q2 Views

DRD, OLN, APA, SFM, AGIO, TVTX, ELMD

 


Following the market opening Wednesday, the Dow traded down 0.07 percent to 18,525.45 while the NASDAQ gained 0.10 percent to 5,280.95. The S&P also fell, dropping 0.03 percent to 2,185.77.

Leading and Lagging Sectors

Wednesday morning, energy shares surged by 0.43 percent. Meanwhile, top gainers in the sector included Apache Corporation (NYSE: APA), and Approach Resources Inc. (NASDAQ: AREX).

In trading on Wednesday, basic materials shares fell by 0.26 percent. Meanwhile, top losers in the sector included Olin Corporation (NYSE: OLN), down 5 percent, and DRDGOLD Ltd. (ADR) (NYSE: DRD), down 5 percent.

Top Headline

HD Supply Holdings Inc (NASDAQ: HDS) reported below than expected results for the second quarter.

The company reported net income of $98 million, down from $109 million while EPS dipped from $0.54 to $0.49. On an adjusted basis, profit increased from $114 million to $171 million and EPS from $0.56 to $0.85. This is $0.03 a share lower than the Street estimates of $0.88 a share. HD Supply's net sales advanced 4.1 percent to $2.0 billion. Analysts predicted $2.03 billion revenue.

Going forward, the company expects adjusted EPS to be $0.77-$0.82 on revenue guidance of $1.985-$2.035 billion for the third quarter. Street analysts are looking for an EPS of $0.91 on revenue of $2.06 billion.


Equities Trading UP

Cogentix Medical Inc (NASDAQ: CGNT) shares shot up 31 percent to $1.57 after the company disclosed that it has entered into a definitive agreement for a $25 million equity investment.

Shares of Retrophin Inc (NASDAQ: RTRX) got a boost, shooting up 28 percent to $20.95 as the company disclosed that its Phase 2 DUET study of sparsentan achieved primary efficacy endpoint.

Agios Pharmaceuticals Inc (NASDAQ: AGIO) shares were also up, gaining 21 percent to $45.20 as the company disclosed that its partner Celgene Corporation (NASDAQ: CELG) will submit a new drug application to the FDA for enasidenib based on ongoing Phase 1/2 study.


Equities Trading DOWN

Sprouts Farmers Market Inc (NASDAQ: SFM) shares dropped 16 percent to $19.13 as the company lowered its full-year forecast and announced a $250 million buyback plan.

Shares of Electromed, Inc. (NYSE: ELMD) were down 11 percent to $4.37 as the company reported weak results for the fourth quarter.

HD Supply Holdings Inc (NASDAQ: HDS) was down, falling around 13 percent to $31.38 after the company reported weaker-than-expected results for the second quarter.


Commodities


In commodity news, oil traded up 0.31 percent to $44.97 while gold traded up 0.05 percent to $1,354.70.

Silver traded down 0.36 percent Wednesday to $20.07, while copper rose 0.72 percent to $2.10.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.23 percent, the Spanish Ibex Index climbed 1.05 percent, while Italy’s FTSE MIB Index gained 1.14 percent. Meanwhile the German DAX rose 0.50 percent, and the French CAC 40 gained 0.37 percent while U.K. shares rose 0.24 percent.

Economics


The MBA reported that its index of mortgage application activity rose 0.9 percent for the week ended September 2.

The Johnson Redbook Retail Sales Index declined 0.1 percent during the first week of September versus August.

Job openings rose to 5.87 million in July, from a prior reading of 5.62 million, according to the Labor Department's JOLTS report. Economists were expecting openings of 5.58 million.

The Fed will release its latest Beige Book report at 2:00 p.m. ET.



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