Goldman Sachs, JPMorgan Chase Report Strong Earnings; Retail Numbers Fall Below Estimates

With the final hour of trading underway for Tuesday, the Dow traded flat at 0.02 percent to 17,058.15 while the NASDAQ tumbled 0.55 percent to 4,416.05. The S&P also fell, dropping 0.69 percent to 1,973.81.

Leading and Lagging Sectors

Tuesday morning, the basic materials sector proved to be a source of strength for the market. Leading the sector was strength from Rockwood Holdings ROC and Companhia Siderurgica Nacional SID.

In trading on Tuesday, energy shares were relative laggards, down on the day by about 0.26 percent. Top decliners in the sector included Miller Energy Resources MILL, down 7.08 percent, and Oasis Petroleum OAS, off 3.49 percent.

Top Headline

The Goldman Sachs Group GS reported stronger-than-expected second-quarter results.

Goldman Sachs posted its quarterly earnings of $2.04 billion, or $4.10 per share, up 9% from $1.93 billion, or $3.70 per share, in the year-ago period.

Its total revenue rose 6% to $9.13 billion from $8.61 billion. However, analysts were projecting earnings of $3.05 per share on revenue of $7.97 billion.

Equities Trading UP

Rockwood Holdings ROC shares shot up 11.11 percent to $83.96 after Albemarle ALB announced its plans to acquire Rockwood in a cash and stock transaction valued at around $6.2 billion.

Shares of Plug Power PLUG got a boost, shooting up 17.22 percent to $4.90 following Monday's initiation at FBR with a Outperform rating.

JPMorgan Chase & Co JPM shares were also up, gaining 3.75 percent to $58.40 after the company reported better-than-expected second-quarter earnings.

Equities Trading DOWN

Shares of Lorillard LO were down 9.79 percent to $60.64 after Reynolds American RAI agreed to acquire Lorillard in a cash-and-stock transaction valued at $27.4 billion, including the assumption of net debt.

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Aaron's AAN shares tumbled 9.78 percent to $30.25 after the company lowered its Q2 forecast.

Johnson & Johnson JNJ was down, falling 1.92 percent to $103.34 on Q2 results. Johnson & Johnson reported a rise in its second-quarter earnings and lifted its profit forecast for the full year.

Commodities

In commodity news, oil traded down 0.99 percent to $99.91, while gold traded down 0.70 percent to $1,294.80.

Silver traded down 0.62 percent Tuesday to $20.78, while copper fell 0.05 percent to $3.25.

Eurozone

European shares were lower today.

The eurozone’s STOXX 600 fell 0.40 percent, the Spanish IBEX Index dropped 1.23 percent, while Italy’s FTSE MIB Index declined 1.33 percent.

Meanwhile, the German DAX fell 0.65 percent and the French CAC 40 dropped 1.03 percent while UK shares dropped 0.53 percent.

Economics

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

US retail sales gained 0.2% in June, versus economists’ expectations for a 0.6% rise.

The import price index rose 0.1% in June, versus economists’ expectations for a 0.4% gain. US export price index declined 0.4% in June.

The Empire State manufacturing index surged to 25.60 in July, versus a prior reading of 19.28. However, economists were expecting a reading of 17.00.

US business inventories rose 0.50% in May, versus economists’ expectations for a 0.60% gain.