Market Overview

Mid-Day Market Update: Prothena Slides After Lead Drug Fails Phase 2 Trial; The Stars Group Shares Surge

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Midway through trading Monday, the Dow traded down 0.07 percent to 24,446.44 while the NASDAQ climbed 0.35 percent to 7,171.31. The S&P also rose, gaining 0.16 percent to 2,674.51.

Leading and Lagging Sectors

On Monday, the utilities shares climbed 0.3 percent. Meanwhile, top gainers in the sector included Vectren Corporation (NYSE: VVC), up 6 percent, and Kenon Holdings Ltd. (NYSE: KEN), up 5 percent.

In trading on Monday, energy shares fell 0.41 percent.

Top Headline

Hasbro, Inc. (NASDAQ: HAS) reported weaker-than-expected results for its first quarter on Monday.

The company said it earned 10 cents per share in the first quarter on revenue of $716.34 million versus expectations of 34 cents per share and $819.40 million.

Equities Trading UP

McDermott International, Inc. (NYSE: MDR) shares shot up 15 percent to $6.98 after the UK-based offshore oil service company Subsea 7 made an unsolicited bid to buy McDermott for $7 per share. However, the acquisition offer is contingent on McDermot terminating its pending merger with Chicago Bridge & Iron Company.

Shares of Stars Group Inc. (NASDAQ: TSG) got a boost, shooting up 13 percent to $32.95. Stars Group Inc (NASDAQ: TSG) announced plans to acquire Sky Betting & Gaming for $4.7 billion.

Insmed Incorporated (NASDAQ: INSM) shares were also up, gaining 10 percent to $25.72. Credit Suisse upgraded Insmed from Neutral to Outperform.

Equities Trading DOWN

Prothena Corporation plc (NASDAQ: PRTA) shares dropped 69 percent to $11.43 after a disappointing update relating to the company's treatment for AL amyloidosis. Prothena, a clinical-stage biopharmaceutical company that focuses on therapies in the neuroscience and orphan categories, said a Phase 2b study of its therapy called NEOD001 failed to achieve its primary or secondary endpoints. Prothena's Phase 2b study explored its NEOD001 therapy versus a placebo in previously-treated patients with AL amyloidosis and persistent cardiac dysfunction. Unfortunately, there were no statistically significant difference between the two treatment groups.

Shares of Flotek Industries, Inc. (NYSE: FTK) were down 35 percent to $4.11 as the company issued weak revenue forecast for the first quarter.

Gridsum Holding Inc. (NASDAQ: GSUM) was down, falling around 44 percent to $4.07. Gridsum reported suspension of audit report on financial statements.

Commodities

In commodity news, oil traded down 1.20 percent to $67.58 while gold traded down 1.02 percent to $1,324.60.

Silver traded down 2.91 percent Monday to $16.72, while copper fell 1.06 percent to $3.122.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.20 percent, the Spanish Ibex Index rose 0.12 percent, while Italy’s FTSE MIB Index climbed 0.25 percent. Meanwhile the German DAX rose 0.09 percent, and the French CAC 40 gained 0.26 percent while U.K. shares rose 0.26 percent.

Economics

The Chicago Fed National Activity Index fell to 0.10 in March, compared to 0.98 in February.

The Markit services PMI rose to 54.40 in April, versus prior reading of 54.00. Economists expected a reading of 54.30.

Existing home sales rose 1.1 percent to an annual rate of 5.60 million in April However, economists were projecting a 5.55 million rate.

Posted-In: Mid-Day Market UpdateNews Eurozone Commodities Global Intraday Update Markets

 

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