Stocks Fall Again as Chinese Currency Moves Eyed

U.S. Market
Stocks were lower again this morning as China’s currency move continued to reverberate.

The yuan weakened further today after the fixing rate for the currency (the midpoint of where the yuan can trade against the dollar) was lowered again. However the currency’s losses were pared in late trading after the People’s Bank of China intervened in the market. The moves sent equity markets across the globe sharply lower.

Job openings fell to 5.25 million in June from 5.36 million in May according to the Labor Department’s JOLTS report. The quits rate was unchanged at 1.9% in the month. There are now 1.6 unemployed people for each opening.

At midday the Dow, S&P 500 and Nasdaq were down 1.4%, 1.3% and 1.5% respectively.

Stocks on the Move
Shares of Macy's (M) were off over 4% this morning after reporting quarterly results. Macy’s said same-store sales were down 1.5%, including licensed departments, as lower tourist spending and west coast port delays continue to weigh. Management also cut its sales guidance for the full –year.

Alibaba (BABA) announced disappointing revenue in its fiscal first quarter. The firm’s top line of $3.265 was below the $3.32 billion expected by analysts. Earnings were ahead of expectations as the firm had adjusted earnings per share of 59 cents per share versus estimates of 56 cents per share. There were also reports that Alibaba was teaming up with rival Tencent to invest in an Internet TV startup. Shares were down 6.5% at midday.

Foreign Markets
European markets were lower on Chinese concerns. The FTSE 100 was down 1.4% while the Paris CAC and Germany’s DAX each plunged over 3%.

Asian shares were also down. The Shanghai Composite was off 1.1%, the Nikkei 225 was down 1.6% while the Hang Seng shed 2.4%.