The major averages were mixed for much of the morning, as the Dow got a bit of a boost from its two big banking members that reported this morning and the tech-heavy Nasdaq saw a drag from a profit warning from a large semiconductor distributor. All three indexes have turned red, however, after President Trump told reporters at the White House, according to CNBC, that a trade deal with China has "a long way to go."
ECONOMIC EVENTS: In the U.S., the retail sales report slightly beat estimates with 0.4% month-over-month sales gains both with and without autos in June. An index of import prices declined 0.9% and export prices fell 0.7% in June. Industrial production was flat in June, with capacity utilization dipping to 77.9% from 78.1%, which was weaker than expected. Business inventories rose 0.3% in May, with sales up 0.2%. The NAHB housing market index for July rebounded 1 point to 65 after falling 2 points in June.
TOP NEWS: Two big banking members of the Dow - JPMorgan (JPM) and Goldman Sachs (GS) - are both slightly higher following their quarterly reports, giving some support to the blue chip index. JPMorgan Chairman and CEO Jamie Dimon said the bank had a "strong second quarter and first half of 2019," adding that it continues to see "positive momentum with the U.S. consumer." Meanwhile, Goldman Chairman and CEO David Solomon said he is "encouraged by the results for the first half of the year" and thinks the firm is "positioned to benefit from a growing global economy...given the strength of our client franchise."
The third Dow member to report this morning, Johnson & Johnson (JNJ), is offsetting some of the banks' strength with a slide of 1% despite the fact that the drug and consumer goods giant reported better than expected Q2 results, backed its FY19 adjusted profit view and raised its full-year sales outlook.
Another household name in finance, Wells Fargo (WFC), is down 2% after the bank's second quarter report. The bank's headline earnings and revenue topped consensus expectations and interim CEO Allen Parker said Wells continued to make progress on its top priorities, which he identified as focusing on customers and team members; meeting the expectations of regulators; and "continuing the important transformation" of the company.
Arrow Electronics (ARW) is down 2% after the semiconductor distributor cut its guidance, stating that its "anticipated results for the second quarter are lower than we had initially expected due to deteriorating demand conditions in the global components business."
MAJOR MOVERS: Among the noteworthy gainers was Melinta Therapeutics (MLNT), which rose 6% after announcing the FDA accepted a supplemental new drug application for Baxdela for priority review and reporting preliminary Q2 net product sales of approximately $13.8M. Also higher was J.B. Hunt (JBHT), which gained 6% after reporting quarterly results.
Among the notable losers was Qutoutiao (QTT), which slid 6% after announcing that, in compliance with recent regulatory requirements, Midu Novels will temporarily suspend content updates and certain commercial activities from July 16 to October 15. Also lower was Domino's Pizza (DPZ), which fell 8% after reporting quarterly results.
INDEXES: Near midday, the Dow was down 61.18, or 0.22%, to 27,297.98, the Nasdaq was down 48.08, or 0.58%, to 8,210.11, and the S&P 500 was down 11.55, or 0.38%, to 3,002.75.
JPMorgan
+0.9 (+0.79%)
Goldman Sachs
+1.73 (+0.82%)
Johnson & Johnson
-1.89 (-1.40%)
Wells Fargo
-1.11 (-2.38%)
Melinta Therapeutics
+0.29 (+6.94%)
J.B. Hunt
+5.9 (+6.38%)
Qutoutiao
-0.27 (-5.96%)
Domino's Pizza
-20.97 (-7.77%)