Mid-Day Market Update: Aratana Therapeutics Jumps Following Positive Pivotal Results for AT-002; MBIA Shares Slip

Midway through trading Monday, the Dow traded down 1.17 percent to 17,737.65 while the NASDAQ slipped 1.40 percent to 5,009.15. The S&P also fell, dropping 1.18 percent to 2,076.68.

Leading and Lagging Sectors

Utilities shares rose by 0.01 percent on Monday. Meanwhile, top gainers in the sector included Huaneng Power International Inc (ADR) HNP, up 2 percent, and Empire District Electric Co EDE, up 2 percent.

In trading on Monday, financial shares slipped by 1.82 percent. Meanwhile, top losers in the sector included MBIA Inc. MBI, down 17 percent, and Assured Guaranty Ltd. AGO, off 12 percent.

Top Headline

SYSCO Corporation SYY reported that it has terminated a merger agreement with US Foods. Sysco will pay $300 million in breakup fee to US Foods and another $12.5 million to Performance Foods Group.

Sysco announced its plans to buy back up to $3 billion of stock.

Equities Trading UP

Aratana Therapeutics Inc PETX shares shot up 16 percent to $15.65 after the company announced positive results from its pivotal field effectiveness study of capromorelin (AT-002), the company's innovative therapeutic for appetite stimulation in dogs.

Shares of MYR Group Inc MYRG got a boost, shooting up 4 percent to $30.44. MYR Group will replace Molina Healthcare, Inc. MOH in the S&P SmallCap 600 after the close of trading on June 30.

KongZhong Corporation (ADR) KZ shares were also up, gaining 5 percent to $7.39 after the company announced the receipt of 'going private' offer from group led by Chairman and CEO for $8.56 per share.

Equities Trading DOWN

MBIA Inc. MBI shares tumbled 17 percent to $6.87. BTIG Research downgraded MBIA from Buy to Neutral.

Shares of Vitae Pharmaceuticals Inc VTAE were down 15 percent to $12.89. Vitae Pharmaceuticals announced the initiation of Phase 1 autoimmune study and reported top-line results from metformin arm of ongoing Phase 2 clinical trial of BI187004/VTP-34072 in overweight type 2 diabetics.

Assured Guaranty Ltd. AGO was down, falling 13 percent to $23.98. BTIG Research downgraded Assured Guaranty from Buy to Neutral.

Commodities

In commodity news, oil traded down 1.91 percent to $58.49, while gold traded up 0.39 percent to $1,177.80.

Silver traded down 0.40 percent Monday to $15.71, while copper fell 0.34 percent to $2.63.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 2.64 percent, the Spanish Ibex Index slipped 4.51 percent, while Italy’s FTSE MIB Index declined 4.86 percent. Meanwhile, the German DAX fell 3.31 percent, and the French CAC 40 dropped 3.63 percent while UK shares slipped 1.83 percent.

Economics

The pending home sales index increased 0.9 percent in May, the National Association of Realtors reported. Economists were expecting a 1.2 percent growth.

The Dallas Fed general activity index rose to a reading of -7.00 in June, versus a prior reading of -20.80. However, economists were expecting a reading of -16.00.

Data on farm prices for June will be released at 3:00 p.m. ET.