Mid-Morning Market Update: Markets Open Lower; Lennar Tops Q2 Expectations

Following the market opening Tuesday, the Dow traded down 0.05 percent to 21,517.34 while the NASDAQ declined 0.22 percent to 6,225.31. The S&P also fell, dropping 0.29 percent to 2,446.38.

Leading and Lagging Sectors

Healthcare shares rose by 0.35 percent in the US market on Tuesday. Top gainers in the sector included Catalyst Pharmaceuticals Inc CPRX, Immunomedics, Inc. IMMU, and ImmunoGen, Inc. IMGN.

In trading on Tuesday, energy shares fell by 2.02 percent. Meanwhile, top losers in the sector included Hornbeck Offshore Services, Inc. HOS, down 12 percent, and Cenovus Energy Inc (USA) CVE, down 9 percent.

Top Headline

Lennar CorporationLEN reported stronger-than-expected results for its second quarter on Tuesday.

Lennar posted quarterly earnings of $0.91 per share on revenue of $3.3 billion. However, analysts were expecting earnings of $0.78 per share on revenue of $2.87 billion.

Equities Trading UP

Vivint Solar Inc VSLR shares shot up 16 percent to $5.05. Goldman Sachs upgraded Vivint Solar from Neutral to Buy.

Shares of Lennar Corporation LEN got a boost, shooting up 6 percent to $55.65 after the company reported stronger-than-expected results for its second quarter.

Lipocine Inc LPCN shares were also up, gaining 7 percent to $4.30 as the company disclosed that LPCN 1021 met its primary endpoint.

Equities Trading DOWN

Egalet Corp EGLT shares dropped 14 percent to $2.47. Egalet disclosed that it has received a Complete Response Letter from the FDA for prior approval supplement for 10 mg and 15 mg dosage strengths of OXAYDO.

Shares of Cenovus Energy Inc (USA) CVE were down 10 percent to $6.99 after the company reported that its President and CEO Brian Ferguson will retire on October 31, 2017.

Fang Holdings Ltd SFUN was down, falling around 11 percent to $3.26. SouFun Holdings reported a Q1 loss of $12 million on revenue of $109.8 million.

Commodities

In commodity news, oil traded down 2.62 percent to $43.04 while gold traded up 0.03 percent to $1,247.10.

Silver traded down 0.22 percent Tuesday to $16.465, while copper fell 1.17 percent to $2.5755.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.20 percent, the Spanish Ibex Index fell 0.54 percent, while Italy’s FTSE MIB Index declined 0.25 percent. Meanwhile the German DAX gained 0.03 percent, and the French CAC 40 climbed 0.15 percent while U.K. shares fell 0.19 percent.

Economics

The U.S. current-account deficit increased 2.5 percent to $116.8 billion for the first quarter. However, economists were expecting a deficit of $124 billion in the quarter.

The Johnson Redbook Retail Sales Index rose 0.7 percent during the first three weeks of June versus May.

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

Dallas Federal Reserve Bank President Robert Kaplan is set to speak in San Francisco at 3:00 p.m. ET.