Mid-Morning Market Update: Markets Open Lower; Chico's FAS Earnings Top Views

Following the market opening Wednesday, the Dow traded down 0.21 percent to 18,414.92 while the NASDAQ declined 0.16 percent to 5,214.62. The S&P also fell, dropping 0.20 percent to 2,171.72.

Leading and Lagging Sectors

Wednesday morning, financial shares gained by 0.15 percent. Meanwhile, top gainers in the sector included Oconee Federal Financial OFED, and Universal American Corporation UAM.

In trading on Wednesday, basic materials shares fell by 0.69 percent. Meanwhile, top losers in the sector included Cliffs Natural Resources Inc CLF, down 3 percent, and DRDGOLD Ltd. (ADR) DRD, down 3 percent.

Top Headline

Chico's FAS, Inc. 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. SINO shares shot up 31 percent to $1.84 as the company reported a mobile application for short-haul trucking in the US.

Shares of Veeva Systems Inc VEEV got a boost, shooting up 12 percent to $42.25 as the company reported upbeat results for the second quarter and issued a strong forecast.

Matrix Service Co MTRX shares were also up, gaining 16 percent to $18.62 as the company posted better-than-expected Q4 results.

Equities Trading DOWN

Atossa Genetics Inc ATOS shares dropped 30 percent to $2.42. Atosssa Genetrics priced its 1.15 million share offering at $2.50 per share.

Shares of AeroVironment, Inc. AVAV were down 17 percent to $24.86 as the company posted a wider-than-expected loss for its first quarter.

Hemispherx BioPharma, Inc HEB was down, falling around 19 percent to $1.43 after the company reported a $5 million direct offering.

Commodities

In commodity news, oil traded down 1.08 percent to $45.85 while gold traded down 0.56 percent to $1,309.10.

Silver traded up 0.01 percent Wednesday to $18.68, while copper fell 0.05 percent to $2.08.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.17 percent, the Spanish Ibex Index rose 0.85 percent, while Italy’s FTSE MIB Index surged 0.68 percent. Meanwhile the German DAX declined 0.24 percent, and the French CAC 40 climbed 0.47 percent while U.K. shares fell 0.10 percent.

Economics

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.

The Energy Information Administration’s weekly report on petroleum inventories will be released at 10:30 a.m. ET.

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.