Markets

Mid-Morning Market Update: Markets Tumble; Google Creates 'Alphabet,' A New Umbrella Company

Following the market opening Tuesday, the Dow traded down 0.93 percent to 17,451.45 while the NASDAQ slipped 0.58 percent to 5,072.24. The S&P also fell, dropping 0.74 percent to 2,088.72.

Leading and Lagging Sectors

Utilities shares slipped by just 0.1 percent in the US market on Tuesday. Top gainers in the sector included American Midstream Partners LP (NYSE: AMID ), Entergy Corporation (NYSE: ETR ), and Westar Energy Inc (NYSE: WR ).

In trading on Tuesday, basic materials shares dipped by 2.68 percent. Meanwhile, top losers in the sector included Freeport-McMoRan Inc (NYSE: FCX ), down 12 percent, and Allegheny Technologies Incorporated (NYSE: ATI ), off 7 percent.

Top Headline

Google Inc (NASDAQ: GOOGL ) (NASDAQ: GOOG ) announced it is creating a new company, Alphabet, which will consist of a collection of companies, with the largest being Google.

Google Co-Founder and CEO Larry Page will act as Alphabet's new CEO, while Sundar Pichai will step up to be Google's new CEO. Sergey Brin will act as Alphabet's president. Alphabet, for its part, will include Google's X lab, which incubates new projects like Wing, and investment arms, Ventures and Capital, among other companies.

Equities Trading UP

Yodlee Inc (NASDAQ: YDLE ) shares shot up 36 percent to $17.15 after the company agreed to be acquired by Envestnet Inc (NYSE: ENV ) for $18.88 per share or $660 million. Yodlee reported Q2 adjusted earnings of $0.00 per share on revenue of $26 million.

ICU Medical, Incorporated (NASDAQ: ICUI ) shares were also up, gaining 18 percent to $118.77 after the company reported upbeat Q2 earnings and raised its 2015 forecast.

Shares of TubeMogul Inc (NASDAQ: TUBE ) got a boost, shooting up 25 percent to $14.27 after the company reported better-than-expected Q2 results and issued a strong revenue outlook.

Equities Trading DOWN

World Acceptance Corp. (NASDAQ: WRLD ) shares tumbled 35 percent to $33.58 following the announcement of a receipt of letter from the CFPB's enforcement division on Monday. Janney Montgomery Scott analyst John Rowan downgraded the rating on World Acceptance from Buy to Neutral, with a fair value estimate of $38.

Shares of Avid Technology, Inc. (NASDAQ: AVID ) were down 34 percent to $7.89. Avid reported a Q2 loss of $0.10 per share on total sales of $109.767 million.

American Public Education, Inc. (NASDAQ: APEI ) was down, falling 20 percent to $20.15 after the company reported weaker-than-expected Q2 earnings.

Commodities

In commodity news, oil traded down 2.98 percent to $43.62, while gold traded up 0.24 percent to $1,106.80.

Silver traded down 0.83 percent Tuesday to $15.17, while copper fell 3.54 percent to $2.32.

Eurozone

European shares were lower today. The eurozone's STOXX 600 dropped 1.49 percent, the Spanish Ibex Index slipped 1.35 percent, while Italy's FTSE MIB Index fell 0.97 percent. Meanwhile, the German DAX fell 2.46 percent, and the French CAC 40 declined 1.74 percent while UK shares fell 0.94 percent.

Economics

US wholesale inventories rose 0.9 percent in June, versus economists' expectations for a 0.4 percent growth.

US nonfarm productivity gained 1.30 percent in the second quarter, versus economists' expectations for a 1.60 percent rise. Unit labor costs rose 0.50 percent, versus economists' expectations for a 0.10 percent growth.

© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Free Trading Education - Check out the free events taking place on Marketfy this week. Spaces are limited. Sign up today.

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


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

In This Story

AVID ICUI GOOG WRLD APEI

Other Topics

Commodities Futures