Market Overview

Mid-Day Market Update: Mattress Firm Drops Following Earnings Miss; Global Blood Therapeutics Shares Surge

Share:

Midway through trading Friday, the Dow traded down 0.39 percent to 17,914.17 while the NASDAQ declined 0.87 percent to 4,915.27. The S&P also fell, dropping 0.59 percent to 2,103.08.

Leading and Lagging Sectors

On Friday, utilities shares slipped by just 0.3 percent. Top gainers in the sector included Pure Cycle Corporation (NASDAQ: PCYO) and SJW Corp. (NYSE: SJW).

In trading on Friday, energy shares tumbled by 1.3 percent. Meanwhile, top losers in the sector included Baytex Energy Corp (USA) (NYSE: BTE), down 7 percent, and Teekay LNG Partners L.P. (NYSE: TGP), down 6 percent.

Top Headline

Westlake Chemical Corporation announced plans to acquire Axiall Corp for $33.00 per share in all-cash transaction.

The transaction is likely to complete by the fourth quarter of 2016.

Equities Trading UP

Sophiris Bio Inc (NASDAQ: SPHS) shares shot up 78 percent to $2.09 after the company reported successful results from Phase 2a trial of topsalvsin in localized prostate cancer.

Shares of Axiall Corp (NYSE: AXLL) got a boost, shooting up 26 percent to $32.51 after Westlake Chemical Corporation (NYSE: WLK) announced plans to acquire Axiall for $33.00 per share in all-cash transaction.

Global Blood Therapeutics Inc (NASDAQ: GBT) shares were also up, gaining 20 percent to $26.57 after the company reported new data supporting safety and efficacy profile of GBT440.

Equities Trading DOWN

GigPeak Inc (NYSE: GIG) shares dropped 19 percent to $2.13. GigPeak priced offering of 11.32 million shares of common stock at $2 per share.

Shares of Mattress Firm Holding Corp (NASDAQ: MFRM) were down 15 percent to $28.64 as the company reported a wider-than-expected loss for its first quarter and lowered its annual outlook. Bank of America downgraded Mattress Firm from Neutral to Underperform and lowered the price target from $42.00 to $28.00.

Gevo, Inc. (NASDAQ: GEVO) was down, falling around 35 percent to $0.45. Gevo priced 21.08 million shares at $0.45 per share.

Commodities

In commodity news, oil traded down 1.70 percent to $49.70 while gold traded up 0.53 percent to $1,279.40.

Silver traded up 0.59 percent Friday to $17.37, while copper fell 0.17 percent to $2.04.

Eurozone

European shares were lower today. The eurozone's STOXX 600 fell 2.48 percent, the Spanish Ibex Index dropped 3.07 percent, while Italy's FTSE MIB Index slipped 3.52 percent. Meanwhile the German DAX declined 2.40 percent, and the French CAC 40 fell 2.23 percent, while U.K. shares fell 1.98 percent.

Economics

The University of Michigan consumer sentiment index slipped to 94.30 in June, versus a prior reading of 94.70. Economists were expecting a reading of 94.00.

The Federal Budget report for May will be released at 2:00 p.m. ET.

Posted-In: Earnings News Eurozone Commodities M&A Global Intraday Update Markets

 

Related Articles (BTE + AXLL)

View Comments and Join the Discussion!

Seaport Global Downgrades Franklin Electric

Apple Chooses Intel Over Qualcomm As Main Component Supplier