Mid-Morning Market Update: Markets Mostly Lower; Express Misses Q2 Views

Following the market opening Wednesday, the Dow traded down 0.13 percent to 18,529.25 while the NASDAQ gained 0.03 percent to 5,261.61. The S&P also fell, dropping 0.07 percent to 2,185.42.

Leading and Lagging Sectors

Wednesday morning, financial shares gained by 0.3 percent. Meanwhile, top gainers in the sector included China Hgs Real Estate Inc HGSH, and LNB Bancorp Inc LNBB.

In trading on Wednesday, basic materials shares fell by 0.67 percent. Meanwhile, top losers in the sector included Endeavour Silver Corp EXK, down 5 percent, and McEwen Mining Inc MUX, down 5 percent.

Top Headline

Express Inc. EXPR reported downbeat results for its fiscal second quarter and issued a weak outlook for the full year.

The retailer's net income for the second quarter was $10.1 million, or $0.13 a share, down from $21.0 million, or $0.25 a share, in the year-ago quarter. Street analysts expected an EPS of $0.17. Express generated net sales of $504.8 million, down 6 percent from $535.6 million in the previous year quarter and came in below the analysts' predictions of $520.95 million. The company's comparable store sales witnessed 8 percent drop.

Moving ahead, the retailer expects EPS of $0.09-$0.15 for the third quarter, which is sharply below than the Street estimates of $0.32 a share. The company expects comparable sales to record negative high single to low double digits in the same period.

For the full year, Express expects adjusted EPS to be $1.00 $1.14 on negative comparable sales of high single digits. Street is looking for an EPS of $1.46 for the same period.

Equities Trading UP

Uranium Resources, Inc. URRE shares shot up 45 percent to $1.92 following Tuesday’s announcement of acquisition of first lithium property in Nevada.

Shares of Lucas Energy, Inc. LEI got a boost, shooting up 22 percent to $4.30 as the company disclosed that its shareholders voted to approve the Segundo transaction and related financings.

Lannett Company, Inc. LCI shares were also up, gaining 22 percent to $39.32 after the company posted better-than-expected fourth-quarter results and issued a strong outlook.

Equities Trading DOWN

Express, Inc. EXPR shares dropped 24 percent to $12.26 after the company reported downbeat results for its fiscal second quarter and issued a weak outlook for the full year.

Shares of La-Z-Boy Incorporated LZB were down 16 percent to $26.29 as the company reported weaker-than-expected sales for its first quarter.

Dycom Industries, Inc. DY was down, falling around 4 percent to $88.18. Dycom reported stronger-than-expected results for its fourth quarter on Tuesday. However, earnings guidance and new unit figures disappointed investors.

Commodities

In commodity news, oil traded down 1.54 percent to $47.36 while gold traded down 1.05 percent to $1,332.00.

Silver traded down 1.23 percent Wednesday to $18.83, while copper fell 0.71 percent to $2.11.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.56 percent, the Spanish Ibex Index gained 0.97 percent, while Italy’s FTSE MIB Index gained 0.87 percent. Meanwhile the German DAX climbed 0.52 percent, and the French CAC 40 rose 0.64 percent, while U.K. shares fell 0.24 percent.

Economics

The MBA reported that its index of mortgage application activity declined 2.1 percent for the week ended August 19, 2016.

The Federal Housing Finance Agency House Price Index rose 0.2 percent to 234.80 for June. Economists were expecting a 0.3 percent growth.

Sales of existing homes dropped 3.2 percent to an annual rate of 5.39 million in July. However, economists projected a 5.51 million pace for the month.

The Energy Information Administration’s weekly report on petroleum inventories is schedule for release at 10:30 a.m. ET.

The Treasury will also auction 5-year notes at 1:00 p.m. ET.