Market Overview

Mid-Morning Market Update: Markets Open Lower; Verizon Earnings Top Estimates

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Following the market opening Tuesday, the Dow traded down 2.10 percent to 24,784.89 while the NASDAQ declined 2.74 percent to 7,263.72. The S&P also fell, dropping 2.22 percent to 2,694.90.

Leading and Lagging Sectors

Tuesday morning, the utilities shares slipped by just 0.1 percent. Meanwhile, top gainers in the sector included Chesapeake Utilities Corporation (NYSE: CPK) up 2 percent, and CPFL Energia S.A. (NYSE: CPL) up 1 percent.

In trading on Tuesday, energy shares tumbled 3.01 percent.

Top Headline

Verizon Communications Inc. (NYSE: VZ) reported better-than-expected results for its third quarter.

Verizon said it earned $1.22 per share in the quarter on revenue of $32.6 billion, which was better than the $1.19 per share and $32.52 billion analysts were expecting.

Equities Trading UP

Therapix Biosciences Ltd. (NASDAQ: TRPX) shares shot up 31 percent to $5.80. FSD Pharma Inc, a Canada-based licensed producer of marijuana, reached an agreement to acquire nano-cap company Therapix Biosciences, an Israel-based specialty clinical-stage pharmaceutical company with a focus on cannabinoid pharmaceuticals. Therapix Biosciences investors will receive $48 million worth of FSD Pharma stock.

Shares of Correvio Pharma Corp. (NASDAQ: CORV) got a boost, shooting up 30 percent to $4.0525 after the company said it will resubmit a new drug application following conversations with the FDA.

Asbury Automotive Group, Inc. (NYSE: ABG) shares were also up, gaining 9 percent to $64.76 after the company announced upbeat Q3 results.

 

Equities Trading DOWN

Astec Industries, Inc. (NASDAQ: ASTE) shares dropped 20 percent to $38.01 after the company reported downbeat Q3 results.

Shares of U.S. Silica Holdings, Inc. (NYSE: SLCA) were down 15 percent to $13.31 following downbeat results for its third quarter.

Chembio Diagnostics, Inc. (NASDAQ: CEMI) was down, falling around 18 percent to $8.10 after the company announced a proposed offering of common stock.

Commodities

In commodity news, oil traded down 2.47 percent to $67.65 while gold traded up 1.37 percent to $1,241.40.

Silver traded up 1.53 percent Tuesday to $14.81, while copper fell 1.45 to $2.745.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dropped 1.39 percent, the Spanish Ibex Index fell 0.82 percent, while Italy’s FTSE MIB Index dipped 1.11 percent. Meanwhile the German DAX slipped 2.3 percent, and the French CAC 40 dropped 1.51 percent while U.K. shares fell 1.06 percent.

Economics

The Johnson Redbook Retail Sales Index rose 5.6 percent year-over-year during the first two weeks of October.

The Richmond Fed's manufacturing index declined to 15.00 for October, versus a prior reading of 29.00. However, economists were expecting a reading of 25.00.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

The Treasury will auction 2-year notes at 1:00 p.m. ET.

Atlanta Federal Reserve Bank President Raphael Bostic will speak in Baton Rouge, LA at 1:30 p.m. ET.

Dallas Federal Reserve Bank President Robert Kaplan is set to speak in Galveston, Texas at 2:15 p.m. ET.

Chicago Federal Reserve Bank President Charles Evans will speak in Evanston, IL at 6:15 p.m. ET.

 

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