Mid-Afternoon Market Update: Dow Falls Over 200 Points; Catabasis Shares Spike Higher

Toward the end of trading Thursday, the Dow traded down 1.14 percent to 18,130.13 while the NASDAQ declined 0.97 percent to 5,266.87. The S&P also fell, dropping 0.98 percent to 2,150.00.

Leading and Lagging Sectors

Thursday afternoon, energy shares slipped by just 0.1 percent. Meanwhile, top gainers in the sector included Superior Energy Services, Inc. SPN, and Yanzhou Coal Mining Co Ltd (ADR) YZC.

In trading on Thursday, healthcare shares tumbled by 2.13 percent. Meanwhile, top losers in the sector included Exelixis, Inc. EXEL, down 9 percent, and BioDelivery Sciences International, Inc. BDSI, down 10 percent.

Top Headline

PepsiCo, Inc. PEP delivered better than expected core EPS and revenue for the third quarter. The company's outlook for the current fiscal year came in above the estimates.

The company reported GAAP EPS of $1.37 compared to $0.36 representing a 282 percent jump from the previous year period that included Venezuela impairment charges. Its reported net income was $1.99 billion. Foreign exchange translation unfavorably impacted its EPS by three percentage points. Its core EPS of $1.40 for the recent third quarter, which represented an increase of four percent, came in above the Street estimates of $1.35 a share.

PepsiCo's net revenue fell 2 percent from $16.33 billion to $16.03 billion in the most recent third quarter. However, this was above the analysts' predictions of $15.83 billion.

Equities Trading UP

Aegerion Pharmaceuticals, Inc. AEGR shares shot up 23 percent to $3.06 as the company disclosed that its JUXTAPID capsules have been approved in Japan for the treatment of homozygous familial hypercholesterolemia.

Shares of Catabasis Pharmaceuticals Inc CATB got a boost, shooting up 46 percent to $6.52. Catabasis Pharmaceuticals and Sarepta Therapeutics Inc SRPT reported a joint research collaboration in Duchenne Muscular Dystrophy.

Tabula Rasa HealthCare Inc TRHC shares were also up, gaining 19 percent to $14.26. Tabula Rasa priced IPO at $12 per share.

Equities Trading DOWN

Intra-Cellular Therapies Inc ITCI shares dropped 64 percent to $15.26 after its lead product candidate, ITI-007, failed a late-stage study in schizophrenia. Apparently, the drug couldn't beat the placebo, nor could it equal the performance of the active control risperidone.

Shares of Actinium Pharmaceuticals Inc ATNM were down 24 percent to $1.29. Actinium priced 8 million shares at $1.25 per share.

Shineco Inc TYHT was down, falling around 32 percent to $19.50. On Wednesday, Shineco priced IPO at $4.50 per share.

Commodities

In commodity news, oil traded up 1.72 percent to $47.86 while gold traded up 0.21 percent to $1,326.50.

Silver traded up 0.31 percent Thursday to $19.18, while copper fell 0.07 percent to $2.19
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Eurozone

European shares closed mostly higher today. The eurozone’s STOXX 600 gained 0.04 percent, the Spanish Ibex Index rose 0.64 percent, while Italy’s FTSE MIB Index gained 0.72 percent. Meanwhile the German DAX fell 0.31 percent, and the French CAC 40 gained 0.26 percent while U.K. shares rose 1.02 percent.

Economics

U.S. gross domestic product grew at a 1.4 percent pace in the second quarter, versus economists’ expectations for a 1.3 percent growth.

U.S. jobless claims increased 3,000 to 254,000 in the latest week. Economists projected claims to total 260,000 in the week.

The pending home sales index declined 2.4 percent to 108.5 in August. However, economists were expecting a 0.3 percent growth.

Supplies of natural gas gained 49 billion cubic feet for the week ended September 23, the U.S. Energy Information Administration reported. Analysts projected a gain of 54 billion cubic feet.

Kansas City Federal Reserve Bank President Esther George is set to speak at 4:15 p.m. ET.

Data on money supply for the latest week will be released at 4:30 p.m. ET.

Federal Reserve Chair Janet Yellen is set to speak at the Kansas City Fed's Minority Bankers Forum at 5:10 p.m. ET.