Mid-Morning Market Update: Markets Open Lower; Bristol-Myers Profit Tops Expectations

Following the market opening Monday, the Dow traded down 0.58 percent to 25,372.76 while the NASDAQ declined 0.03 percent to 7,239.06. The S&P also fell, dropping 0.42 percent to 2,750.45.

Leading and Lagging Sectors

Monday morning, the basic materials shares gained by 0.28 percent. Meanwhile, top gainers in the sector included Haynes International, Inc. HAYN, up 14 percent, and Century Aluminum Co CENX, up 7 percent.

In trading on Monday, energy shares tumbled 1.15 percent. Meanwhile, top losers in the sector included Kosmos Energy Ltd KOS, down 13 percent, and Legacy Reserves LP LGCY down 4 percent.

Top Headline

Bristol-Myers Squibb Co BMY reported better-than-expected earnings for its fourth quarter.

The company said it earned 68 cents per share in the fourth quarter on revenue of $5.45 billion, while Wall Street analysts were expecting the company to earn 67 cents per share on revenue of $5.35 billion.

Bristol-Myers Squibb expects FY 2018 adjusted earnings of $3.15 to $3.30 per share, versus analysts’ estimates of $3.23 per share. The company also disclosed that its Phase 3 CheckMate -227 study met its co-primary endpoint of progression-free survival with Opdivo and Yervoy.

Equities Trading UP

MediciNova, Inc. MNOV shares shot up 14 percent to $10.81. On Thursday, MediciNova reported that MN-166 showed a 26 percent reduction in confirmed disability progression in SPRINT-MS Phase 2b trial in progressive MS.

Shares of Haynes International, Inc. HAYN got a boost, shooting up 13 percent to $41.51. JP Morgan upgraded Haynes International from Neutral to Overweight.

Xunlei Ltd XNET shares were also up, gaining 8 percent to $13.80 after the company updated its Q4 guidance. Xulei expects Q4 sales of $80 million to $88 million.

Equities Trading DOWN

Eyegate Pharmaceuticals Inc EYEG shares dropped 39 percent to $0.625 after the company announced that EGP-473 did not meet co-primary endpoints.

Shares of Corcept Therapeutics Incorporated CORT were down 21 percent to $18.64.

Cenveo, Inc. CVO was down, falling around 13 percent to $0.410 after dropping Friday upon announcement of Chapter 11 Bankruptcy.

Commodities

In commodity news, oil traded down 0.5 percent to $65.12 while gold traded up 0.10 percent to $1,338.60.

Silver traded up 0.69 percent Monday to $16.825, while copper rose 1.35 percent to $3.2305.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 1.45 percent, the Spanish Ibex Index fell 1.42 percent, while Italy’s FTSE MIB Index dipped 1.44 percent. Meanwhile the German DAX dropped 0.83 percent, and the French CAC 40 fell 1.37 percent while U.K. shares fell 1.29 percent.

Economics

U.S. Markit services PMI dropped to 53.30 for January, versus a prior reading of 53.7. Economists were expecting a reading of 53.50.

The ISM non-manufacturing index rose to 59.90 in January, versus previous reading of 56. Economists projected a reading of 56.50.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The TD Ameritrade Investor Movement Index for January is schedule for release at 12:30 p.m. ET.