Mid-Day Market Update: Coty Jumps On Report of Deal With P&G; Tahoe Resources Shares Drop

Midway through trading Tuesday, the Dow traded up 0.44 percent to 17,869.78 while the NASDAQ climbed 0.23 percent to 5,041.64. The S&P also rose, gaining 0.30 percent to 2,090.73.

Leading and Lagging Sectors

Non-cyclical consumer goods & services sector was the top gainer in the US market on Tuesday. Meanwhile, top gainers in the sector included Electro Rent Corporation ELRC, up 7 percent, and Monster Beverage Corp MNST, up 4 percent.

In trading on Tuesday, energy shares fell by 0.23 percent. Meanwhile, top losers in the sector included PHI Inc. PHII, down 4 percent, and Niska Gas Storage Partners LLC NKA, off 5 percent.

Top Headline

FactSet Research Systems Inc. FDS reported better-than-expected earnings for its fiscal third quarter on Tuesday.

The Norwalk, Connecticut-based company posted quarterly earnings of $61.4 million, or $1.45 per share, compared to $51.5 million, or $1.21 per share, in the year-ago period. Excluding items, the company’s adjusted earnings surged 13.6 percent to $1.42 per share.

Its revenue climbed 9.8 percent year-over-year to $254.5 million from $231.8 million. However, analysts were expecting earnings of $1.41 per share on revenue of $253.56 million.

Equities Trading UP

Aerie Pharmaceuticals Inc AERI shares shot up 55 percent to $20.56 on news that regulators agreed to a new primary endpoint for its study of its proposed glaucoma treatment. Needham upgraded Aerie Pharmaceuticals from Hold to Buy.

Shares of Coty Inc COTY got a boost, shooting up 20 percent to $31.17. Coty has purchased P&G's beauty product lines for $12 billion and also has won an auction for P&G's hair-care unit, a source familiar with the matter told Reuters.

XOMA Corp XOMA shares were also up, gaining 2 percent to $3.74 after the company reported that it has received Orphan Drug Designation for XOMA 358 from the U.S. FDA for the treatment of congenital hyperinsulinism.

Equities Trading DOWN

Avalanche Biotechnologies Inc AAVL shares tumbled 52 percent to $18.67 following mixed AVA-101 data and various analyst downgrades.

Shares of Tahoe Resources Inc TAHO were down 9 percent to $13.65 after Gold Corp. said it will sell its entire stake of about 58 million shares for about $13.96 per share.

Crossamerica Partners LP CAPL was down, falling 8 percent to $30.35 after the company priced 4.6 million units at $31.45 per unit.

Commodities

In commodity news, oil traded up 1.02 percent to $60.13, while gold traded down 0.57 percent to $1,179.00.

Silver traded down 0.86 percent Tuesday to $15.95, while copper fell 1.06 percent to $2.62.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.64 percent, the Spanish Ibex Index gained 0.27 percent, while Italy’s FTSE MIB Index surged 0.25 percent. Meanwhile, the German DAX climbed 0.54 percent, and the French CAC 40 rose 0.51 percent while UK shares fell 0.01 percent.

Economics

The Federal Open Market Committee begins its 2-day meeting today.

US housing starts declined 11.1 percent to an annual rate of 1.04 million in May. However, economists were projecting a starts rate of 1.10 million.