Mid-Morning Market Update: Markets Open Lower; Lowe's Earnings Miss Expectations

Following the market opening Wednesday, the Dow traded down 0.36 percent to 21,821.01 while the NASDAQ declined 0.41 percent to 6,271.94. The S&P also fell, dropping 0.37 percent to 2,443.43.

Leading and Lagging Sectors

Wednesday morning, the non-cyclical consumer goods & services shares climbed by 0.16 percent. Meanwhile, top gainers in the sector included Regis Corporation RGS, up 17 percent, and Darling Ingredients Inc DAR, up 5 percent.

In trading on Wednesday, healthcare shares fell by 0.38 percent. Meanwhile, top losers in the sector included Compugen Ltd. (USA) CGEN, down 4 percent, and Stryker Corporation SYK down 4 percent.

Top Headline

Lowe's Companies, Inc. LOW reported weaker-than-expected profit for its second quarter on Wednesday.

Lowe's earned $1.57 per share in the second quarter on revenue of $19.5 billion, while Wall Street analysts were expecting the company to earn $1.61 per share on revenue of $19.53 billion. Net earnings for the quarter rose from $1.2 billion a year ago to $1.4 billion.

Equities Trading UP

Intra-Cellular Therapies Inc ITCI shares shot up 32 percent to $14.85 after the company issued positive regulatory update on schizophrenia program.

Shares of Paratek Pharmaceuticals Inc PRTK got a boost, shooting up 25 percent to $23.85 after Bloomberg reported that the company is exploring strategic options, including a potential sale.

Regis Corporation RGS shares were also up, gaining 17 percent to $12.14. Regis posted Q4 adjusted earnings of $0.20 per share on revenue of $424.2 million.

Equities Trading DOWN

Precipio Inc PRPO shares dropped 47 percent to $2.38. Precipio reported that it has priced its $6,000,000 public offering.

Shares of Root9B Holdings Inc RTNB were down 17 percent to $2.48. Root9B Holdings has issued secured convertible promissory notes for principal amount of $500,000.

La-Z-Boy Incorporated LZB was down, falling around 20 percent to $24.85 as the company posted weaker-than-expected earnings for its first quarter on Tuesday.

Commodities

In commodity news, oil traded down 0.38 percent to $47.65 while gold traded up 0.36 percent to $1,295.60.

Silver traded up 0.41 percent Wednesday to $17.13, while copper fell 0.53 percent to $2.9915.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.38 percent, the Spanish Ibex Index fell 0.59 percent, while Italy’s FTSE MIB Index slipped 0.60 percent. Meanwhile the German DAX dropped 0.27 percent, and the French CAC 40 slipped 0.08 percent while U.K. shares fell 0.04 percent.

Economics

The MBA’s index of mortgage application activity declined 0.5 percent for the latest week.

The IHS Markit flash manufacturing PMI dropped to 52.5 in August, compared to 53.3 in July. The services PMI climbed to 56.9, versus 54.7 in July.

New-home sales dropped 9.4 percent to an annual rate of 571,000 in July. However, economists were expecting a 616,000 rate.

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

Dallas Federal Reserve Bank President Robert Kaplan is set to speak in Midland, Texas at 1:05 p.m. ET.