Mid-Morning Market Update: Markets Open Higher; VeriFone Issues Weak Forecast

Following the market opening Tuesday, the Dow traded up 0.54 percent to 19,903.73 while the NASDAQ climbed 0.95 percent to 5,464.09. The S&P also rose, gaining 0.66 percent to 2,271.92.

Leading and Lagging Sectors

Energy shares gained around 1.15 percent in trading on Tuesday. Meanwhile, top gainers in the sector included PetroChina Company Limited (ADR) PTR, and Alliance Holdings GP, L.P. AHGP.

In trading on Tuesday, basic materials shares rose by just 0.1 percent. Meanwhile, top losers in the sector included KMG Chemicals, Inc. KMG, down 2 percent, and POSCO (ADR) PKX, down 3 percent.

Top Headline

On Monday, VeriFone Systems Inc PAY reported better-than-expected earnings for its fourth quarter, but issued a weak outlook for the first quarter.

Verifone reported Q4 adjusted earnings of $0.30 per share on revenue of $468 million. Analysts were expecting earnings of $0.29 per share on revenue of $461.3 million.

Verifone projects Q1 earnings of $0.20 per share on revenue of $450 million. Analysts expected earnings of $0.36 per share on revenue of $471 million.

Equities Trading UP

Neovasc Inc (US) NVCN shares shot up 29 percent to $2.91 after the company reported the close of its $75 million transaction with Boston Scientific Corporation BSX.

Shares of Achaogen Inc AKAO got a boost, shooting up 10 percent to $14.35 as the company reported an offering of 5.7 million shares.

OpGen Inc OPGN shares were also up, gaining 71 percent to $1.79.

Equities Trading DOWN

Proteon Therapeutics Inc PRTO shares dropped 72 percent to $2.76 after the company disclosed that it did not meet primary endpoint in PATENCY-1 trial.

Shares of Inovalon Holdings Inc INOV were down 35 percent to $9.69 as the company cut its earnings and revenue guidance for full year 2016.

BioDelivery Sciences International, Inc. BDSI was down, falling around 7 percent to $1.87 after the company disclosed that its Clonidine Topical Gel Phase 2b trial missed the primary endpoint.

Commodities

In commodity news, oil traded up 0.73 percent to $54.14 while gold traded down 0.09 percent to $1,164.80.

Silver traded down 0.04 percent Tuesday to $17.18, while copper fell 0.29 percent to $2.61.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.72 percent, the Spanish Ibex Index rose 0.91 percent, while Italy’s FTSE MIB Index climbed 1.40 percent. Meanwhile the German DAX climbed 0.47 percent, and the French CAC 40 rose 0.49 percent while U.K. shares rose 0.60 percent.

Economics

The Federal Open Market Committee will begin its two-day policy meeting today.

U.S. import prices declined 0.30 percent for November, versus economists’ expectations for a 0.40 percent drop.

The Treasury is set to auction 4-week bills at 11:30 a.m. ET.

The Treasury will auction 30-year bonds at 1:00 p.m. ET.