Mid-Morning Market Update: Markets Edge Lower; Home Depot Profit Tops Expectations

Following the market opening Tuesday, the Dow traded down 0.05 percent to 21,983.34 while the NASDAQ declined 0.23 percent to 6,325.62. The S&P also fell, dropping 0.12 percent to 2,462.96.

Leading and Lagging Sectors

Tuesday morning, the non-cyclical consumer goods & services shares climbed by 0.56 percent.

In trading on Tuesday, energy shares fell by 0.82 percent. Meanwhile, top losers in the sector included Atwood Oceanics, Inc. ATW, down 8 percent, and Diamond Offshore Drilling Inc DO down 8 percent.

Top Headline

Home Depot Inc HD reported better-than-expected earnings for its second quarter and raised its full-year guidance.

Home Depot earned $2.25 per share in the second quarter on revenue of $28.1 billion. Analysts were expecting the company to earn $2.21 per share on revenue of $27.8 billion. Comparable store sales in the U.S. rose 6.6 percent while comp sales for the whole company rose 6.3 percent.

Looking forward, the company expects full-year 2017 sales to rise 5.3 percent versus 2016 and for comp sales to be up around 5.5 percent.

Equities Trading UP

Extreme Networks, Inc EXTR shares shot up 12 percent to $10.40 after the company reported better-than-expected results for its fourth quarter and issued a strong forecast for the current quarter.

Shares of Helios and Matheson Analytics Inc HMNY got a boost, shooting up 11 percent to $3.11 as the company reported a deal to buy majority stake in MoviePass.

Crossroads Systems Inc CRDS shares were also up, gaining 37 percent to $2.99 as the company disclosed that it has filed a Chapter 11 case and a prepackaged Chapter 11 plan of reorganization. The company also reported that CRDS Investment LLC will invest $4 million in return for a 49.49 percent ownership of the company.

Equities Trading DOWN

Advance Auto Parts, Inc. AAP shares dropped 20 percent to $87.71 after the company reported weaker-than-expected profit for its second quarter.

Shares of Dicks Sporting Goods Inc DKS were down 18 percent to $28.80 after the company reported downbeat earnings for its second quarter and lowered its FY17 guidance.

Myomo Inc MYO was down, falling around 16 percent to $6.08. Myomo reported a Q2 loss of $3.35 per share on sales of $307,000.

Commodities

In commodity news, oil traded down 0.55 percent to $47.33 while gold traded down 1.33 percent to $1,273.20.

Silver traded down 2.99 percent Tuesday to $16.62, while copper fell 0.36 percent to $2.894.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.37 percent, the Spanish Ibex Index rose 0.31 percent, while Italy’s FTSE MIB Index surged 1.72 percent. Meanwhile the German DAX climbed 0.52 percent, and the French CAC 40 gained 0.68 percent while U.K. shares rose 0.55 percent.

Economics

U.S. retail sales rose 0.6 percent for July, versus economists’ expectations for a 0.4 percent growth.

The Empire State manufacturing index climbed to 25.20 in August, versus prior reading of 9.80. Economists were expecting a reading of 10.00.

U.S. import prices rose 0.10 percent for July, versus economists’ estimates for a 0.10 percent gain.

U.S. business inventories gained 0.5 percent for June, beating economists’ expectations for a 0.4 percent growth.

The NAHB housing market index rose to 68.00 in August, versus previous reading of 64.00. Economists projected a reading of 65.00.

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