Market Overview

Mid-Day Market Update: Weight Watchers Surges On Takeover Rumors; Horsehead Holding Shares Drop

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Midway through trading Monday, the Dow traded down 0.25 percent to 17,686.55 while the NASDAQ slipped 0.29 percent to 4,994.84. The S&P also fell, dropping 0.28 percent to 2,070.96.

Leading and Lagging Sectors

Cyclical consumer goods & services shares slipped by just 0.01 percent on Monday. Meanwhile, top gainers in the sector included Gordmans Stores, Inc. (NASDAQ: GMAN), up 4 percent, and QuinStreet Inc (NASDAQ: QNST), up 4 percent.

In trading on Monday, basic materials shares dipped by 1.57 percent. Meanwhile, top losers in the sector included HORSEHEAD HOLDING CORP. (NASDAQ: ZINC), down 15 percent, and Sinopec Shanghai Petrochemical Co. (ADR) (NYSE: SHI), off 13 percent.

Top Headline

Humana Inc (NYSE: HUM) agreed to be acquired by Aetna Inc (NYSE: AET) for $35 billion.

Humana also issued a weak profit outlook. Humana projected Q2 adjusted earnings of $1.60 to $1.65 per share, and full-year adjusted earnings of $7.75 per share. Analysts expected Q2 earnings of $2.36 per share and full-year earnings of $8.64 per share.

Equities Trading UP

Weight Watchers International, Inc. (NYSE: WTW) shares shot up 19 percent to $4.85 on takeover talks.

Shares of Catabasis Pharmaceuticals Inc (NASDAQ: CATB) got a boost, shooting up 10 percent to $13.65 after the company reported that it has received the FDA Fast Track designation for CAT-1004 for the treatment of Duchenne Muscular Dystrophy.

Versartis Inc (NASDAQ: VSAR) shares were also up, gaining 30 percent to $19.01 after the company announced the removal of the FDA partial clinical hold and continuation of VRS-317 Phase 3 clinical trial.

Equities Trading DOWN

HORSEHEAD HOLDING CORP. (NASDAQ: ZINC) shares tumbled 16 percent to $9.66 after the company issued an update on operations at its Mooresboro, North Carolina zinc production facility.

Shares of Silicom Ltd. (NASDAQ: SILC) were down 22 percent to $28.55 after the company updated its second quarter guidance. The company expected Q2 revenue of $16.8 million to $17.2 million.

Allot Communications Ltd (NASDAQ: ALLT) was down, falling 15 percent to $6.00. Allot Communications issued a weak Q2 and FY revenue guidance.

Commodities

In commodity news, oil traded down 2.45 percent to $54.15, while gold traded up 0.21 percent to $1,165.90.

Silver traded up 0.50 percent Monday to $15.65, while copper fell 3.59 percent to $2.54.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 1.22 percent, the Spanish Ibex Index dropped 2.27 percent, while Italy’s FTSE MIB Index declined 3.70 percent. Meanwhile, the German DAX dropped 1.41 percent, and the French CAC 40 dipped 1.96 percent while UK shares slipped 1.38 percent.

Economics

The services PMI came in at 54.80 in June, versus a prior reading of 54.80.

The ISM services index climbed to 56 in June, versus a May reading of 55.7. Economists were expecting a reading of 55.

 

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