Market Overview

Mid-Afternoon Market Update: Echelon Climbs On Acquisition News; InspireMD Shares Slide

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Toward the end of trading Friday, the Dow traded up 1.04 percent to 24,468.61 while the NASDAQ climbed 0.60 percent to 7,548.41. The S&P also rose, gaining 0.83 percent to 2,738.74.

Leading and Lagging Sectors

Friday afternoon, the energy shares surged 1.25 percent. Meanwhile, top gainers in the sector included Enbridge Inc. (NYSE: ENB) up 8 percent, and Spectra Energy Partners, LP (NYSE: SEP) up 8 percent.

In trading on Friday, telecommunication services shares rose by just 0.2 percent.

Top Headline

Constellation Brands, Inc. (NYSE: 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. (NASDAQ: GEMP) shares shot up 88 percent to $9.84 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 (NASDAQ: ELON) got a boost, shooting up 96 percent to $8.2205 following news that Adesto Technologies Corporation (NASDAQ: IOTS) will buy the company at $8.50 per share.

Acceleron Pharma Inc (NASDAQ: XLRN) shares were also up, gaining 43 percent to $48.43. Acceleron Pharma and Celgene Corporation (NASDAQ: CELG) announced their luspatercept, which is evaluated in a Phase 3 study dubbed MEDALIST to treat patients with low-to intermediate risk myelodysplastic syndromes met the primary and key secondary endpoints.

Equities Trading DOWN

InspireMD Inc (NYSE: NSPR) shares dropped 55 percent to $0.229. InspireMD priced its 33.33 million unit offering at $0.30 per unit.

Shares of Community Health Systems, Inc. (NYSE: CYH) were down 10 percent to $3.335 after the company reported pricing of senior secured notes due 2024.

CHF Solutions Inc (NASDAQ: CHFS) was down, falling around 12 percent to $1.84 after reporting pricing of common stock offering.

 

Commodities

In commodity news, oil traded up 0.91 percent to $74.12 while gold traded up 0.45 percent to $1,256.60.

Silver traded up 1 percent Friday to $16.32, while copper fell 0.19 to $2.966.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.81 percent, the Spanish Ibex Index rose 0.35 percent, while Italy’s FTSE MIB Index rose 0.90 percent. Meanwhile the German DAX gained 1.06 percent, and the French CAC 40 climbed 0.91 percent while U.K. shares rose 0.28 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 total number of active U.S. oil rigs fell by 4 to 858 rigs this week, Baker Hughes Inc reported.

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

 

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