Mid-Afternoon Market Update: Gold Futures Up 2%; CoLucid Shares Climb After Migraine Drug Achieves Primary And Key Secondary Endpoints

Toward the end of trading Tuesday, the Dow traded up 0.15 percent to 18,519.01 while the NASDAQ gained 0.33 percent to 5,267.35. The S&P also rose, gaining 0.15 percent to 2,183.24.

Leading and Lagging Sectors

Tuesday afternoon, utilities shares surged by 1.30 percent. Meanwhile, top gainers in the sector included Enbridge Inc (USA) ENB, and AES Corp AES.

In trading on Tuesday, cyclical consumer goods & services shares fell by 0.33 percent. Meanwhile, top losers in the sector included Cummins Inc. CMI, down 7 percent, and Stage Stores Inc SSI, down 5 percent.

Top Headline

Danaher Corporation DHR disclosed Tuesday that it reached a definitive merger deal with Cepheid CPHD to buy the latter for $53.00 a share in cash.

The total enterprise value of the transaction is approximately $4 billion, which included indebtedness and net of acquired cash. The companies expect the transaction to be completed before the end of the current year.

Equities Trading UP

CoLucid Pharmaceuticals Inc CLCD shares shot up 117 percent to $23.14 after the company disclosed that its SAMURAI final stage study evaluating lasmiditan achieved both the primary and key secondary efficacy endpoints. The company claimed that lasmiditan was well tolerated.

Shares of Navistar International Corp NAV got a boost, shooting up 42 percent to $19.98. Navistar disclosed it established a wide-ranging strategic alliance with Volkswagen Truck & Bus. As a result, the company would get an investment of $256 million from Volkswagen at $15.76 a share. This would translate into 16.6 percent stake.

Navidea Biopharmaceuticals Inc NAVB shares were also up, gaining 82 percent to $0.620 as the company announced a Letter of Intent to sell Lymphoseek in North America to Cardinal Health Inc CAH.

Equities Trading DOWN

Tonix Pharmaceuticals Holding Corp. TNXP shares dropped 57 percent to $0.933 as the company disclosed that its Phase 3 clinical study, AFFIRM, missed the primary efficacy endpoint.

Shares of Performance Sports Group Ltd PSG were down 11 percent to $3.18 as the company reported the termination of shareholder nomination agreement with Sagard Capital Partners, L.P.

Centene Corp CNC was down, falling around 7 percent to $63.78. Leerink Swann downgraded Centene from Outperform to Market Perform.

Commodities

In commodity news, oil traded up 0.41 percent to $44.62 while gold traded up 2.06 percent to $1,354.00.

Silver traded up 3.87 percent Tuesday to $20.12, while copper rose 0.60 percent to $2.09.

Eurozone

European shares closed mostly lower today. The eurozone’s STOXX 600 fell 0.33 percent, the Spanish Ibex Index declined 0.60 percent, while Italy’s FTSE MIB Index slipped 0.80 percent. Meanwhile the German DAX rose 0.14 percent, and the French CAC 40 fell 0.24 percent while U.K. shares fell 0.78 percent.

Economics

The ISM non-manufacturing index slipped to 51.40 in August, versus a prior reading of 55.50. Economists were expecting a reading of 55.00.

The Federal Reserve’s labor-market conditions index declined to negative 0.7 in August, versus a revised reading of 1.3 in July.

San Francisco Federal Reserve Bank President John Williams is set to speak in Reno, Nevada at 8:30 p.m. ET.