Mid-Morning Market Update: Markets Open Higher; Bank of America Earnings Top Estimates

Following the market opening Monday, the Dow traded up 0.85 percent to 24,568.05 while the NASDAQ climbed 0.53 percent to 7,143.98. The S&P also rose, gaining 0.71 percent to 2,675.18.

Leading and Lagging Sectors

Monday morning, the industrial shares climbed 0.97 percent. Meanwhile, top gainers in the sector included BlueLinx Holdings Inc. BXC, up 9 percent, and J.B. Hunt Transport Services, Inc. JBHT, up 7 percent.

In trading on Monday, real estate shares fell 0.02 percent.

Top Headline

Bank of America Corporation BAC reported better-than-expected profit for its first quarter.

The bank said it earned $0.62 per share in the first quarter on revenue of $23.1 billion versus expectations of $0.59 per share on revenue of $23.06 billion.

Equities Trading UP

Eldorado Resorts, Inc. ERI shares shot up 15 percent to $41.20 after the company announced plans to buy Tropicana Entertainment for $1.85 billion in cash. MGM Resorts International MGM reported the sale of Grand Victoria Casino in Elgin, Illinois to Eldorado Resorts for $327.5 million in cash.

Shares of Alkermes plc ALKS got a boost, shooting up 8 percent to $45.94 after the company reported the FDA acceptance for review of the NDA for ALKS 5461 for the adjunctive treatment of major depressive disorder.

Partner Communications Company Ltd. PTNR shares were also up, gaining 8 percent to $4.51 after the company reported a collaboration deal with Amazon Video in Israel.

Equities Trading DOWN

Celldex Therapeutics, Inc. CLDX shares dropped 59 percent to $0.89 after the company disclosed that its METRIC study in metastatic triple-negative breast cancer did not meet primary endpoint.

Shares of NewLink Genetics Corporation NLNK were down 15 percent to $3.7901 after the company reported initial Phase 1 data with indoximod plus radiation and chemotherapy for pediatric patients with diffuse intrinsic pontine glioma at the American Association for Cancer Research (AACR) 2018 Annual Meeting.

Blueprint Medicines Corporation BPMC was down, falling around 12 percent to $87.17 after the company disclosed proof-of-concept data from the ongoing Phase 1 ARROW clinical trial of BLU-667 in patients with RET-altered solid tumors.

Commodities

In commodity news, oil traded down 1.17 percent to $66.60 while gold traded down 0.09 percent to $1,346.70.

Silver traded down 0.23 percent Monday to $16.62, while copper rose 0.34 percent to $3.0815.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.21 percent, the Spanish Ibex Index rose 0.02 percent, while Italy’s FTSE MIB Index gained 0.14 percent. Meanwhile the German DAX dropped 0.11 percent, and the French CAC 40 slipped 0.01 percent while U.K. shares fell 0.49 percent.

Economics

U.S. retail sales rose 0.6 percent for March, versus economists’ expectations for a 0.4 percent gain.

The Empire State manufacturing index declined to 15.80 for April, versus prior reading of 22.50. Economists expected a reading of 18.80.

U.S. business inventories rose 0.6 percent for February.

The housing market index slipped 1 point to a reading of 69 for April.

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

Atlanta Federal Reserve Bank President Raphael Bostic is set to speak in Florence, Alabama at 1:15 p.m. ET.

The Treasury International Capital report for February will be released at 4:00 p.m. ET.