Mid-Morning Market Update: Markets Open Mixed; Crude Oil Hits 17-Month High On OPEC Commitments

Following the market opening Monday, the Dow traded up 0.23 percent to 19,802.89 while the NASDAQ declined 0.36 percent to 5,424.98. The S&P also rose, gaining 0.07 percent to 2,261.00.

Leading and Lagging Sectors

Monday morning, energy shares gained by 2.1 percent. Meanwhile, top gainers in the sector included Pacific Drilling SA PACD, and W&T Offshore, Inc. WTI.

In trading on Monday, technology shares fell by 0.54 percent. Meanwhile, top losers in the sector included VirnetX Holding Corporation VHC, down 7 percent, and Northrop Grumman Corporation NOC, down 6 percent.

Top Headline

The price of oil soared over the weekend and hit a 17-month high after OPEC and non-OPEC members struck an agreement to support oil prices.

By Monday morning, the price of oil gained more than 6 percent. Brent crude futures gained more than $2 per barrel to trade at $56.61 and traded as high as $57.89. U.S. crude futures also gained more than $2 per barrel and was seen trading at $53.75.

The agreement marks the first of its kind since 2001 and will see both OPEC and non-OPEC members collectively scaling back their oil output. Initial talks date back to the end of November when OPEC members agreed to slash their collective output by 1.2 million barrels of oil per day for six months as of January 1.

Equities Trading UP

Achaogen Inc AKAO shares shot up 57 percent to $8.24 after the company disclosed positive results in Phase 3 cUTI and CRE clinical trials of plazomicin.

Shares of Bonanza Creek Energy Inc BCEI got a boost, shooting up 26 percent to $1.71.

Stone Energy Corporation SGY shares were also up, gaining 12 percent to $7.55 after the company reported extensions to a restructuring support agreement on Friday.

Equities Trading DOWN

Ophthotech Corp OPHT shares dropped 85 percent to $5.94 after the company disclosed that Phase 3 trials for Fovista did not meet pre-specified primary endpoint.

Shares of Performant Financial Corp PFMT were down 40 percent to $2.30 after the company issued an update regarding the Department of Education contract procurement process.

Alexion Pharmaceuticals, Inc. ALXN was down, falling around 12 percent to $115.82 after the company dropped a bombshell that CEO David Hallal and board member Vikas Sinha are leaving the company amid an ongoing audit and finance committee investigation. The news of the departures seems to have overshadowed a positive update on the progress of the audit. “At this point in time, the Audit and Finance Committee’s investigation has not identified any facts that require the Company to update its previously reported historical results,” the Alexion press release read. In addition, the company reports that the investigation is “nearing completion.”

Commodities

In commodity news, oil traded up 4.25 percent to $53.69 while gold traded down 0.02 percent to $1,161.70.

Silver traded up 0.64 percent Monday to $17.08, while copper fell 0.55 percent to $2.63.

Eurozone

European shares were mixed today. The eurozone’s STOXX 600 dropped 0.32 percent, the Spanish Ibex Index rose 0.13 percent, while Italy’s FTSE MIB Index climbed 0.96 percent. Meanwhile the German DAX dropped 0.22 percent, and the French CAC 40 gained 0.01 percent while U.K. shares fell 0.59 percent.

Economics

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The Treasury will auction 3-year notes at 11:30 a.m. ET.

The Treasury is set to auction 10-year notes at 1:00 p.m. ET.

The U.S. Treasury budget data for November will be released at 2:00 p.m. ET.