Mid-Morning Market Update: Markets Open Higher; Advance Auto Parts Misses Q2 Expectations

Following the market opening Tuesday, the Dow traded up 1.47% to 26,277.25 while the NASDAQ rose 1.87% to 8,010.63. The S&P also rose, gaining 1.38% to 2,922.79.

Leading and Lagging Sectors

Information technology shares climbed 2.6% on Monday. Meanwhile, top gainers in the sector included Mmtec, Inc. MTC, up 74%, and Formula Systems (1985) Ltd. FORTY, up 4%.

In trading on Monday, utilities shares tumbled 0.3%.

Top Headline

Advance Auto Parts, Inc. AAP reported weaker-than-expected earnings for its second quarter.

Advance Auto Parts reported second-quarter earnings of $2 per share, which missed the analyst consensus estimate of $2.21. The company reported quarterly sales of $2.3 billion, which missed the analyst consensus estimate of $2.36 billion.

Equities Trading UP

Deciphera Pharmaceuticals Inc DCPH shares shot up 86% to $37.04 after the company reported a positive update that its Phase 1 Data for Ripretinib in Gastrointestinal Stromal Tumors achieved primary endpoint.

Shares of Alcentra Capital Corp ABDC got a boost, shooting up 13% to $9.20 after the company announced it will be acquired by Crescent BDC for $141.9 million.

Genworth Financial, Inc. GNW shares were also up, gaining 13% to $4.35 after the company announced Brookfield Business will acquire 57% controlling interest in Genworth Canada for $1.8 billion.

Equities Trading DOWN

Ra Medical Systems, Inc. RMED shares tumbled 59% to $1.15 after the company preliminary results for its second quarter. Ra Medical announced plans to delay Q2 earnings release and reported that its Audit Committee has begun independent investigation related to anonymous complaint.

Shares of Covetrus, Inc. CVET were down 40% to $14.00 after the company reported worse-than-expected Q2 EPS and sales results.

Bloom Energy Corporation BE was down, falling 35% to $5.23 after the company reported Q2 results. Bloom Energy said it expects weak order trends in key markets, which could lead to FY20 results missing expectations.

Commodities

In commodity news, oil traded up 2% to $56.05, while gold traded down 0.7% to $1,507.40.

Silver traded down 1.2% Tuesday to $16.87, while copper rose 1.2% to $2.6155.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.8%, the Spanish Ibex Index rose 0.8%, while Italy’s FTSE MIB Index climbed 1.3%. Meanwhile, the German DAX gained 0.5%, and the French CAC 40 rose 1% while UK shares rose 0.4%.

Economics

The NFIB small business optimism index increased 1.4 points month to 104.7 in July.

The Consumer Price Index rose 0.3% for July, versus economists’ expectations for a 0.3% gain.

The Johnson Redbook Retail Sales Index fell 2% during the first week of August versus July.

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