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Market Overview

Mid-Morning Market Update: Markets Open Higher; Conagra To Acquire Pinnacle Foods


Following the market opening Wednesday, the Dow traded up 0.94 percent to 24,511.54 while the NASDAQ climbed 0.49 percent to 7,598.76. The S&P also rose, gaining 0.72 percent to 2,742.78.

Leading and Lagging Sectors

Wednesday morning, the energy shares surged 2.01 percent. Meanwhile, top gainers in the sector included Seadrill Limited (NYSE: SDRL) up 11 percent, and Ensco plc (NYSE: ESV) up 10 percent.

In trading on Wednesday, health care shares rose by just 0.2 percent.

Top Headline

Conagra Brands Inc (NYSE: CAG) confirmed Wednesday morning it has reached an agreement to acquire Pinnacle Foods Inc (NYSE: PF) for $8.1 billion, or $10.9 billion including debt.

Conagra, the parent company of multiple food brands including Pam cooking spray and Hebrew National hot dogs, will pay Pinnacle shareholders $43.11 per share in cash plus 0.6494 shares of Conagra common stock for each share of Pinnacle Foods held. The deal implies a value of $68 per Pinnacle Foods share, which is a slight premium to Tuesday's closing price of $67.86.


Equities Trading UP

Cara Therapeutics, Inc. (NASDAQ: CARA) shares shot up 24 percent to $20.39 after management reported positive top-line data for a drug candidate. A Phase 2/3 trial of intravenous CR845 in abdominal surgery patients achieved primary endpoints for pain relief and secondary endpoints for nausea and vomiting reduction.

Shares of Galectin Therapeutics, Inc. (NASDAQ: GALT) got a boost, shooting up 16 percent to $7.24 after the company disclosed that it has received a patent for GR-MD-02 for the method and treatment of pulmonary fibrosis.

Arcadia Biosciences, Inc. (NASDAQ: RKDA) shares were also up, gaining 10 percent to $8.62 after the company and Farmer's Business Network announced partnership for Arcadia's GoodWheat.

Equities Trading DOWN

Aquinox Pharmaceuticals, Inc. (NASDAQ: AQXP) shares dropped 85 percent to $2.37 following news that AQX-1125 trial failed to meet primary endpoint.

Shares of Summit Therapeutics plc (NASDAQ: SMMT) were down 81 percent to $2.45 after the company disclosed that its PhaseOut Duchenne Muscular Dystrophy failed to meet primary endpoint.

Pain Therapeutics, Inc. (NASDAQ: PTIE) was down, falling around 71 percent to $2.46 after the company confirmed a 14-3 vote against approval for REMOXY by a FDA panel.



In commodity news, oil traded up 1.91 percent to $71.88 while gold traded down 0.35 percent to $1,255.50.

Silver traded down 0.71 percent Wednesday to $16.135, while copper fell 0.02 to $3.015.


European shares were higher today. The eurozone’s STOXX 600 gained 1 percent, the Spanish Ibex Index rose 0.53 percent, while Italy’s FTSE MIB Index climbed 1.16 percent. Meanwhile the German DAX climbed 1.29 percent, and the French CAC 40 surged 1.38 percent while U.K. shares rose 1.23 percent.


U.S. durable goods orders dropped 0.6 percent for May.

The trade deficit in goods shrank 3.7 percent to $64.8 billion in May. However, economists were expecting a $69.2 billion deficit..

The pending home sales index fell 0.5 percent to a reading of 105.9 for May.

The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 10:30 a.m. ET.

Federal Reserve Vice Chairman Randal Quarles is set to speak in Sun Valley, Idaho at 11:00 a.m. ET.

Boston Federal Reserve Bank President Eric Rosengren will speak in Boston at 12:15 p.m. ET.

The Treasury is set to auction 5-year notes at 1:00 p.m. ET.


Related Articles (CAG + AQXP)

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

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