Mid-Afternoon Market Update: Dow Gains 125 Points; Net 1 Shares Spike Higher

 


Toward the end of trading Wednesday, the Dow traded up 0.70 percent to 18,294.87 while the NASDAQ climbed 0.69 percent to 5,326.23. The S&P also rose, gaining 0.53 percent to 2,161.79.

Leading and Lagging Sectors

Wednesday afternoon, energy shares gained by 2.07 percent. Meanwhile, top gainers in the sector included Resolute Energy Corp REN, and Tidewater Inc. TDW.

In trading on Wednesday, telecommunications services shares tumbled by 0.21 percent. Meanwhile, top losers in the sector included SBA Communications Corporation SBAC, down 3 percent, and Cincinnati Bell Inc. CBB, down 6 percent.

Top Headline

Constellation Brands, Inc. STZ announced better-than-expected quarterly results and lifted its FY17 forecast. The company also agreed to buy High West Distillery to expand its portfolio.

The company reported net income of $358.9 million, or $1.75 a share, up from $302.4 million, or $1.49 a share, in the year-ago quarter. On an adjusted basis, it would have earned $1.77 a share.

Constellation's net sales grew from $1.73 billion to $2.02 billion in the most recent second quarter. However, analysts were expecting earnings of $1.66 per share on revenue of $1.97 billion.

Equities Trading UP

Catalyst Pharmaceuticals Inc CPRX shares shot up 26 percent to $1.41. Piper Jaffray upgraded Catalyst Pharmaceuticals from Neutral to Overweight and raised the price target from $1.00 to $4.00.

Shares of Corbus Pharmaceuticals Holdings Inc CRBP got a boost, shooting up 34 percent to $9.42. Cantor Fitzgerald initiated coverage on Corbus Pharmaceuticals with a Buy rating and a $17.00 price target.

Net 1 UEPS Technologies Inc UEPS shares were also up, gaining 19 percent to $10.73 after the company reported the acquisition of a strategic stake in Blue Label Telecoms Limited.


Equities Trading DOWN

Immunomedics, Inc. IMMU shares dropped 25 percent to $2.45 after the company reported a $30 million financing at $3 per unit.

Shares of Cytosorbents Corp CTSO were down 12 percent to $5.92 after the company reported top-line safety data from its REFRESH I cardiac surgery trial.

AZZ Inc AZZ was down, falling around 10 percent to $58.69. AZZ reported Q2 earnings of $0.38 per share on revenue of $195 million. The company projects FY17 earnings of $3.15 to $3.45 per share, on sales of $930 million to $970 million.


Commodities


In commodity news, oil traded up 2.32 percent to $49.82 while gold traded up 0.05 percent to $1,270.30.

Silver traded up 0.48 percent Wednesday to $17.86, while copper rose 0.14 percent to $2.17.

Eurozone

European shares closed mostly lower today. The eurozone’s STOXX 600 declined 0.55 percent, the Spanish Ibex Index rose 0.11 percent, while Italy’s FTSE MIB Index gained 1.03 percent. Meanwhile the German DAX slipped 0.32 percent, and the French CAC 40 declined 0.29 percent while U.K. shares fell 0.58 percent.

Economics

The MBA’s index of mortgage application activity rose 2.90 percent for the week ended September 30.

Private-sector employers added 154,000 jobs in September, compared to 175,000 jobs in August, Automatic Data Processing Inc. reported. However, economists were expecting a gain of 170,000 jobs.

The U.S. trade deficit increased 3 percent to $40.7 billion in August. Economists projected trade gap to reach $39 billion in the month. Exports rose 0.8 percent to $187.9 billion, while imports gained 1.2 percent to $228.6 billion in August.

The Markit services PMI rose to 52.30 for September, versus a prior reading of 51.90. Economists were expecting a reading of 51.90.

U.S. factory orders rose 0.20 percent for August, versus economists’ expectations for a 0.10 percent decline.

The ISM non-manufacturing index increased to 57.10 for September, versus a previous reading of 51.40. Economists were projecting a reading of 53.00.

Crude supplies slipped 3 million barrels for the week ended September 30, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 2 million barrels. Gasoline supplies rose 200,000 barrels, while distillate stockpiles decliend 2.4 million barrels for the week.

Richmond Fed President Jeffrey M. Lacker will speak at Marshall University in Huntington, West Virginia at 5:00 p.m. ET.

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Posted In: EarningsNewsGuidanceEurozoneCommoditiesGlobalIntraday UpdateMarketsMoversMid-Afternoon Market Update
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