Mid-Morning Market Update: Markets Mostly Flat; AutoZone Misses Q3 Expectations

Following the market opening Tuesday, the Dow traded up 0.05 percent to 20,904.18 while the NASDAQ declined 0.10 percent to 6,127.30. The S&P also rose, gaining 0.04 percent to 2,395.01.

Leading and Lagging Sectors

Non-cyclical consumer goods & services sector was the top gainer in the US market on Tuesday.

In trading on Tuesday, basic materials shares fell 0.15 percent. Meanwhile, top losers in the sector included Grupo Simec SAB de CV (ADR) SIM, down 4 percent, and Eldorado Gold Corp (USA) EGO, down 2 percent.

Top Headline

AutoZone, Inc. AZO posted weaker-than-expected earnings for its third quarter on Tuesday.

AutoZone reported earnings of $11.44 per share in the quarter on revenue of $2.62 billion. Analysts were expecting earnings of $11.66 per share on revenue of $2.71 billion.

Equities Trading UP

Global Sources Ltd. (Bermuda) GSOL shares shot up 49 percent to $17.83 after the company disclosed that it has entered into definitive amalgamation agreement with Expo Holdings I Ltd. and Expo Holdings II Ltd.

Shares of Helios and Matheson Analytics Inc HMNY got a boost, shooting up 66 percent to $4.07 after the company reported a license agreement with IsItYou.

Independence Holding Company IHC shares were also up, gaining 14 percent to $20.00. Independence Holding reported Q4 earnings of $0.49 per share on revenue of $78.871 million. The company also announced intent to begin tender offer to buyback up to 2 million shares of common stock.

Equities Trading DOWN

Spi Energy Co Ltd (ADR) SPI shares dropped 23 percent to $0.300 after the company reported the receipt of delinquency notice from the NASDAQ.

Shares of Kirkland's, Inc. KIRK were down 11 percent to $8.94 after the company posted a wider-than-expected loss for its first quarter.

Nordson Corporation NDSN was down, falling around 7 percent to $121.84. Nordson posted upbeat results for its second quarter on Monday.

Commodities

In commodity news, oil traded up 0.95 percent to $50.81 while gold traded down 0.06 percent to $1,260.60.

Silver traded up 0.31 percent Tuesday to $17.245, while copper fell 0.37 percent to $2.586.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.27 percent, the Spanish Ibex Index climbed 1.13 percent, while Italy’s FTSE MIB Index gained 0.34 percent. Meanwhile the German DAX climbed 0.45 percent, and the French CAC 40 surged 0.65 percent while U.K. shares rose 0.15 percent.

Economics

The Johnson Redbook Retail Sales Index declined 1.1 percent during the first three weeks of May versus April.

The flash reading of Markit manufacturing PMI declined to 52.50 for May, versus a prior reading of 52.80. Economists projected a reading of 53.00. The Markit services PMI rose to 54.00 for May, versus a previous reading of 53.10. Economists were expecting a reading of 53.10.

New home sales declined 11.4 percent to an annual rate of 569,000 in April. However, economists were expecting a 610,000 annual pace.

The Treasury is set to auction 4-and 52-week bills at 11:30 a.m. ET.

The Treasury will auction 2-year notes at 1:00 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari is set to speak in Minneapolis at 3:15 p.m. ET.

Philadelphia Federal Reserve Bank President Patrick Harker will speak in New York at 5:00 p.m. ET.