Mid-Afternoon Market Update: Dow Down 0.6%; CarMax Shares Fall After Q2 Results

Toward the end of trading Tuesday, the Dow traded down 0.60 percent to 17,069.87 while the NASDAQ gained 0.35 percent to 4,511.69. The S&P also fell, declining 0.49 percent to 1,984.48.

Leading and Lagging Sectors

In trading on Tuesday, basic materials shares were relative leaders, up on the day by about 0.02 percent. Top gainers in the sector included AuRico Gold AUQ, up 4.9 percent, and CF Industries Holdings CF, up 6.5 percent.

Non-cyclical consumer goods & services shares fell 0.76 percent on Tuesday. Top losers in the sector included Diamond Foods DMND, down 4.2 percent, and Omega Protein OME, off 3.6 percent.

Top Headline

Carnival CCL reported better-than-expected fiscal third-quarter earnings and raised its FY14 forecast.

The Miami, Florida-based company posted a quarterly fiscal third-quarter profit of $1.25 billion, or $1.60 per share, versus a year-ago profit of $934 million, or $1.20 per share.

Its revenue climbed to $4.95 billion from $4.73 billion. On an adjusted basis, Carnival earned $1.58 per share in the quarter. However, analysts were expecting a profit of $1.44 per share on revenue of $4.93 billion.

Equities Trading UP

Salix Pharmaceuticals SLXP shares shot up 4.52 percent to $167.05 on report of takeover talks with Allergan. Allergan AGN is set to acquire Salix Pharmaceuticals in a deal probably worth more than $10 billion, according to Dow Jones Newswires.

Shares of Sangamo Biosciences SGMO got a boost, shooting up 3.16 percent to $11.11 after dropping 5.90% on Monday. Jefferies initiated coverage on Sangamo BioSciences with a Buy rating and a $22.00 price target

CF Industries Holdings CF shares were also up, gaining 6.60 percent to $272.66 on confirmation of merger talks with Yara International ASA YARIY.

Equities Trading DOWN

Shares of Ascena Retail Group ASNA were down 17.66 percent to $13.61 after the company reported downbeat fourth-quarter earnings and issued a weak outlook.

Avanir Pharmaceuticals AVNR shares tumbled 2.24 percent to $10.96 after the company announced an offering of $200 million of common stock.

CarMax KMX was down, falling 10.21 percent to $47.42 after the company reported downbeat fiscal second-quarter profit.

Commodities

In commodity news, oil traded up 0.84 percent to $91.63, while gold traded up 0.46 percent to $1,223.50.

Silver traded up 0.06 percent Tuesday to $17.79, while copper fell 0.10 percent to $3.04.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 declined 1.38 percent, the Spanish Ibex Index fell 1.33 percent, while Italy’s FTSE MIB Index declined 1.56 percent. Meanwhile, the German DAX fell 1.58 percent and the French CAC 40 fell 1.87 percent while UK shares dropped 1.44 percent.

Economics

The ICSC-Goldman Store Sales Index rose 0.1% in the week ended Saturday versus the earlier week.

The Johnson Redbook Retail Sales Index declined 0.6% in the first three weeks of September versus August.

The FHFA house price index gained 0.1% in July, versus a 0.3% growth in June.

The flash reading of US Markit manufacturing PMI came in unchanged at 57.9 in September, versus economists’ expectations for a reading of 58.

The Richmond Fed manufacturing index rose to 14.00 in September, versus a prior reading of 12.00. However, economists were expecting a reading of 10.00.