Mid-Morning Market Update: Markets Drop, Yum China Same-Store Sales Down 13%

By Jake L'Ecuyer,

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Following the market opening Tuesday, the Dow traded down 0.32 percent to 15,370.03 while the NASDAQ declined 0.43 percent to 3,654.24. The S&P fell, dropping 0.20 percent to 1,686.11.

Top Headline Yesterday, Yum! Brands (NYSE: YUM ) reported a 13 percent fall in its July same-store sales in China. Yum's same-store sales fell 10 percent in June. However, analysts were expecting a 7.1 percent drop in July same-restaurant sales in China. Analysts at Buckingham Research downgraded the stock from Buy to Neutral.

Equities Trading UPAvanir Pharmaceuticals (NASDAQ: AVNR ) shot up 8.92 percent to $4.9014 after the company announced an agreement with Merck & Co (NYSE: MRK ) to co-promote Merck's type 2 diabetes therapies. Shares of NQ Mobile (NYSE: NQ ) got a boost, shooting up 12.58 percent to $17.90 after the company reported upbeat Q2 results and issued strong revenue forecast. Osiris Therapeutics (NASDAQ: OSIR ) was also up, gaining 72.70 percent to $18.41 after the company reported strong efficacy for Grafix to treat diabetic foot ulcers.

Equities Trading DOWN Shares of Orbitz Worldwide (NYSE: OWW ) were down 11.58 percent to $10.38 after the company reported that PAR Capital Management has sold 8.1 million of its 24.6 million shares of Orbitz Worldwide stock. Valspar (NYSE: VAL ) shares tumbled 7.39 percent to $65.54 after the company reported downbeat Q3 results. Rose Rock Midstream (NYSE: RRMS ) was down, falling 4.51 percent to $33.23 after the company announced the pricing of public offering of common units.

Commodities In commodity news, oil traded down 0.14 percent to $105.96, while gold traded down 0.15 percent to $1,332.20. Silver traded up 0.85 percent Tuesday to $21.52, while copper rose 0.18 percent to $3.31.

Eurozone European shares were higher on upbeat ZEW survey. The Spanish Ibex Index gained 0.38 percent and the Italian FTSE MIB Index rose 0.62 percent. Meanwhile, the German DAX gained 0.70 percent and the French CAC 40 rose 0.38 percent while U.K. shares gained 0.45 percent.

Economics The NFIB small-business optimism index gained 0.6 points to 94.1 in July. The ICSC/Goldman Sachs Retail Chain Store Sales Index dropped 0.2 percent in the latest week ended Saturday versus the previous week. US retail sales rose 0.2 percent in July, versus economists' expectations for a 0.3 percent increase. US imports increased 0.2 percent in July, versus economists' estimates of a 0.8 percent rise. The Johnson Redbook Retail Sales Index rose 3.7 percent y/y in the first week of August. US business inventories came in flat in June. However, economists were expecting inventories to increase 0.2 percent in June. The Fed's Dennis Lockhart is expected to speak and the Treasury will auction 4-week bills.

(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Commodities , Economy
Referenced Stocks: AVNR , MRK , OSIR , OWW , VAL

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