Mid-Morning Market Update: Markets Open Higher; Constellation Brands Earnings Miss Estimates

Following the market opening Friday, the Dow traded up 0.97 percent to 24,450.38 while the NASDAQ climbed 0.64 percent to 7,551.43. The S&P also rose, gaining 0.67 percent to 2,734.45.

Leading and Lagging Sectors

Friday morning, the energy shares surged 1.44 percent. Meanwhile, top gainers in the sector included Sundance Energy Australia Limited SNDE up 7 percent, and Northern Oil and Gas, Inc. NOG up 4 percent.

In trading on Friday, telecommunication services shares fell 0.73 percent.

Top Headline

Constellation Brands, Inc. STZ reported weaker-than-expected earnings for its first quarter on Friday.

The parent company behind multiple alcohol brands said it earned $2.20 per share in the first quarter on revenue of $2.047 billion versus expectations of $2.45 per share and $2.04 billion. The company did raise its fiscal 2019 EPS outlook from a range of $9.38 to $9.68 to a new range of $10.93 to $11.23 per share.

Equities Trading UP

Gemphire Therapeutics Inc. GEMP shares shot up 105 percent to $10.73 after the clinical-stage biopharmaceutical company that focuses on treating cardiometabolic disorders announced encouraging results from a clinical study. The company said its Gemcabene therapy achieved its primary endpoint in a phase 2b study of significantly lowering triglyceride levels in patients compared to those who were treated with a placebo.

Shares of Echelon Corporation ELON got a boost, shooting up 97 percent to $8.252 following news that Adesto Technologies Corporation IOTS will buy the company at $8.50 per share.

Friedman Industries, Incorporated FRD shares were also up, gaining 29 percent to $8.25 following Q4 results. Friedman Industries posted Q4 earnings of $0.31 per share on sales of $43.96 million.

Equities Trading DOWN

Community Health Systems, Inc. CYH shares dropped 9 percent to $3.3899 after the company reported pricing of senior secured notes due 2024.

Shares of Profire Energy, Inc. PFIE were down 6 percent to $3.57. Profire Energy priced its 7.5 million share secondary offering at $3.25 per share.

Gevo, Inc. GEVO was down, falling around 27 percent to $4.67 after declining 15.32 percent on Thursday.

Commodities

In commodity news, oil traded up 0.29 percent to $73.66 while gold traded up 0.08 percent to $1,252.00.

Silver traded up 0.22 percent Friday to $16.195, while copper rose 0.02 to $2.972.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.95 percent, the Spanish Ibex Index rose 0.44 percent, while Italy’s FTSE MIB Index rose 0.87 percent. Meanwhile the German DAX gained 1.19 percent, and the French CAC 40 climbed 1.14 percent while U.K. shares rose 0.65 percent.

Economics

U.S. consumer spending rose 0.2 percent for May, versus economists’ expectations for a 0.4 percent increase. Personal income gained 0.4 percent for May.

The Chicago PMI surged to 64.1 for June, versus prior reading of 62.7. However, economists were expecting a reading of 60.

The final reading of University of Michigan's consumer sentiment index rose to 98.2 for June. However, economists projected a reading of 99.2.

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.