Market Overview

Mid-Day Market Update: Kythera Biopharmaceuticals Jumps On Acquisition News; La-Z-Boy Shares Slide


Midway through trading Wednesday, the Dow traded up 0.10 percent to 17,922.16 while the NASDAQ climbed 0.09 percent to 5,060.33. The S&P also rose, gaining 0.05 percent to 2,097.37.

Leading and Lagging Sectors

Utilities sector was the top gainer in the US market on Wednesday. Meanwhile, top gainers in the sector included NiSource Inc. (NYSE: NI), up 5 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), up 4 percent.

In trading on Wednesday, energy shares dropped by 0.36 percent. Meanwhile, top losers in the sector included Newpark Resources Inc (NYSE: NR), down 8 percent, and Energen Corporation (NYSE: EGN), off 5 percent.

Top Headline

Allergan PLC (NYSE: AGN) announced its plans to buy Kythera Biopharmaceuticals Inc (NASDAQ: KYTH) for around $2.1 billion in a cash-and-stock deal.

Allergan will pay $75 per share for Kythera. The companies expect the deal to close in the third quarter.

Equities Trading UP

Synergy Pharmaceuticals Inc (NASDAQ: SGYP) shares shot up 51 percent to $7.02 following the report of positive results from Phase 3 trial of Plecanatide.

Shares of Kythera Biopharmaceuticals Inc (NASDAQ: KYTH) got a boost, shooting up 22 percent to $74.19 after Allergan PLC (NYSE: AGN) announced its plans to buy Kythera Biopharma for $2.1 billion in cash & stock.

Hill-Rom Holdings, Inc. (NYSE: HRC) shares were also up, gaining 8 percent to $56.37 after the company announced its plans to acquire Welch Allyn for $2.05 billion in cash and stock.

Equities Trading DOWN

DavidsTea Inc (NASDAQ: DTEA) shares tumbled 22 percent to $22.82. DavidsTea reported Q1 earnings of C$0.04 per share on revenue of C$35.8 million. The company Sees expected Q2 sales of C$30 million to C$31 million and adjusted loss of C$0.09 to C$0.08 per share.

Shares of La-Z-Boy Incorporated (NYSE: LZB) were down 7 percent to $25.37. La-Z-Boy reported in-line earnings for its fiscal fourth quarter, but the company’s sales missed analysts’ estimates.

FedEx Corporation (NYSE: FDX) was down, falling 3 percent to $176.49 after the company reported downbeat Q4 sales.


In commodity news, oil traded down 0.67 percent to $59.57, while gold traded down 0.47 percent to $1,175.40.

Silver traded up 0.25 percent Wednesday to $16.01, while copper fell 0.48 percent to $2.61.


European shares were lower today. The eurozone’s STOXX 600 fell 0.44 percent, the Spanish Ibex Index slipped 0.61 percent, while Italy’s FTSE MIB Index declined 0.71 percent. Meanwhile, the German DAX slipped 0.65 percent, and the French CAC 40 dropped 1.01 percent while UK shares fell 0.27 percent.


The MBA reported that its index of mortgage application activity fell 5.5 percent in the week ended June 12, 2015.

Crude supplies slipped 2.7 million barrels for the week ended June 12, the U.S. Energy Information Administration said. Analysts were expecting a decline of 2.4 million barrels. Gasoline supplies rose 500,000 barrels, while distillate stockpiles climbed 100,000 barrels last week.

The FOMC will announce its policy decision at 2:00 p.m. ET, while the Fed Chairwoman Janet Yellen will hold a press conference at 2:30 p.m. ET.

Posted-In: Earnings News Eurozone Futures Commodities M&A Econ #s Intraday Update


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