Mid-Day Market Update: Microsoft Gains Following Earnings Beat; Zafgen Shares Slide

 


Midway through trading Wednesday, the Dow traded up 0.27 percent to 18,608.88 while the NASDAQ climbed 1.04 percent to 5,088.82. The S&P also rose, gaining 0.45 percent to 2,173.55.

Leading and Lagging Sectors

On Wednesday, technology shares climbed by 1.34 percent. Top gainers in the sector included Marvell Technology Group Ltd. MRVL and Medidata Solutions Inc MDSO.

In trading on Wednesday, utilities shares fell by 0.33 percent. Meanwhile, top losers in the sector included Empresa Distribuidora y Cmrz Nrt SA(ADR) EDN, down 2 percent, and NRG Energy Inc NRG, down 2 percent.

Top Headline

Morgan Stanley MS announced better-than-expected adjusted earnings and revenue for the second quarter.

Morgan Stanley reported net income applicable to its shareholders of $1.6 billion or $0.75 per share, down from net income of $1.8 billion or $0.85 per share in the year-ago quarter. The company indicated that its prior year quarter included DVA revenue of $182 million. Excluding DVA in the prior year quarter, net income applicable was $1.7 billion, or $0.79 per share. This was higher than the Street analysts' estimation of $0.50 a share.

The company's top line fell to $8.9 billion from $9.7 billion in the previous year quarter. This was also better than the Street prediction of $8.3 billion.

Equities Trading UP

Progenics Pharmaceuticals, Inc. PGNX shares shot up 28 percent to $6.33 after announcing the FDA approval of RELISTOR tablets for the treatment of opioid-induced constipation in adults with chronic non-cancer pain.

Shares of TerraForm Global Inc GLBL got a boost, shooting up 11 percent to $3.62. TerraForm Global reported preliminary unaudited financial information for the second half of 2015 and first quarter of 2016. Terraform Global Inc reported that SunEdison Inc is planning to sell its interest in the Terraform.

Microsoft Corporation MSFT shares were also up, gaining 7 percent to $56.66 as the company reported better-than-expected results for its fiscal fourth quarter on Tuesday.


Equities Trading DOWN

Zafgen Inc ZFGN shares dropped 50 percent to $3.39 after the company reported that it has suspended the development of its obesity drug Beloranib.

Shares of Exponent, Inc. EXPO were down 14 percent to $50.23 after the company reported downbeat Q2 results.

Ryerson Holding Corp RYI was down, falling around 11 percent to $14.47. Ryerson priced its 5 million share offering at $15.25 per share.


Commodities

In commodity news, oil traded up 0.34 percent to $44.80 while gold traded down 1.07 percent to $1,318.00.

Silver traded down 2.33 percent Wednesday to $19.54, while copper fell 0.62 percent to $2.25.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.74 percent, the Spanish Ibex Index climbed 0.66 percent, while Italy’s FTSE MIB Index rose 0.27 percent. Meanwhile the German DAX climbed 1.37 percent, and the French CAC 40 gained 0.82 percent, while U.K. shares rose 0.37 percent.

Economics

The MBA reported that its index of mortgage application activity declined 1.30 percent for the week ended July 15, 2016.

Crude supplies slipped 2.3 million barrels for the week ended July 15, the U.S. Energy Information Administration reported. However, analysts were expecting a drop of 1.25 million barrels. Gasoline supplies increased 900,000 barrels, while distillate stockpiles slipped 200,000 barrels last week.

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Posted In: EarningsNewsEurozoneCommoditiesGlobalIntraday UpdateMarketsMoversMid-Day Market Update
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