Mid-Morning Market Update: Markets Open Lower; PepsiCo Tops Q2 Expectations

Following the market opening Tuesday, the Dow traded down 0.4% to 26698.97 while the NASDAQ fell 0.01% to 8097.48. The S&P also fell, dropping 0.21% to 2969.58.

Leading and Lagging Sectors

Health care shares rose 0.1% on Tuesday. Meanwhile, top gainers in the sector included CytomX Therapeutics, Inc. CTMX, up 11%, and Oasmia Pharmaceutical AB OASM, up 7%.

In trading on Tuesday, materials shares fell 0.6%.

Top Headline

PepsiCo, Inc. PEP reported better-than-expected results for its second quarter.

The company reported second-quarter earnings of $1.54 per share, which beat the analyst consensus estimate of $1.50. The company reported sales of $16.45 billion, which beat the analyst consensus estimate of $16.42 billion.

Equities Trading UP

Acacia Communications, Inc. ACIA shares shot up 35% to $64.84 after Cisco Systems, Inc. CSCO announced plans to acquire the company for $70 per share in cash, or for approximately $2.6 billion on a fully diluted basis, net of cash and marketable securities.

Shares of Camber Energy CEI got a boost, shooting up 100% to $4.09 after falling 30.95% on Monday.

Altimmune, Inc. ALT shares were also up, gaining 10% to $2.7250 after the company announced to acquire Spitfire Pharma, which will add a NASH drug candidate to the company's portfolio.

Equities Trading DOWN

FuelCell Energy, Inc. FCEL shares tumbled 21% to $0.5901 on seemingly no news. The movement could potentially be a sell-off following a rise of over 300% last week.

Shares of AquaVenture Holdings Limited WAAS were down 9% to $17.15 after the company reported a 4.1 million share common stock offering.

Soliton, Inc. SOLY was down, falling 13% to $16.19 after jumping 61.9% on Monday.

Commodities

In commodity news, oil traded up 0.7% to $58.07, while gold traded down 0.3% to $1,395.20.

Silver traded up 0.1% Tuesday to $15.07, while copper fell 1.1% to $2.63.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 0.7%, the Spanish Ibex Index fell 0.5%, while Italy’s FTSE MIB Index dropped 0.2%. Meanwhile, the German DAX declined 1.1%, and the French CAC 40 fell 0.5% while UK shares fell 0.1%.

Economics

The NFIB small business optimism index fell to 103.3 in June, versus a reading of 105.0 in May.

The Johnson Redbook Retail Sales Index fell 2.2% during the first four weeks of June versus May.

U.S. job openings slipped to 7.32 million in May from 7.37 million, according to the Labor Department's JOLTS report.

Atlanta Federal Reserve Bank President Raphael Bostic is set to speak in Washington University, St. Louis, Missouri at 1:00 p.m. ET.

The Treasury is set to auction 3-year notes at 1:00 p.m. ET.

Federal Reserve Board of Governors Vice Chairman for Supervision Randal Quarles will speak in Boston, MA at 2:00 p.m. ET.