Mid-Morning Market Update: Markets Open Higher; Alcoa Profit Beats Expectations

Following the market opening Tuesday, the Dow traded up 0.65 percent to 18,344.87 while the NASDAQ climbed 0.77 percent to 5,027.12. The S&P also rose, gaining 0.66 percent to 2,151.33.

Leading and Lagging Sectors

On Tuesday, energy shares surged by 2.01 percent. Top gainers in the sector included Stone Energy Corporation SGY and Whiting Petroleum Corp WLL.

In trading on Tuesday, utilities shares fell by 0.45 percent. Meanwhile, top losers in the sector included Connecticut Water Service Inc CTWS, down 2 percent, and Pinnacle West Capital Corporation PNW, down 2 percent.

Top Headline

Alcoa Inc AA reported stronger-than-expected earnings for its second quarter on Monday.

Alcoa reported Q2 adjusted earnings of $0.15 per share, on revenue of $5.3 billion. However, analysts were expecting earnings of $0.10 per share on revenue of $5.2 billion.

Equities Trading UP

LATAM Airlines Group SA (ADR) LFL shares shot up 24 percent to $8.60 as Qatar Airways agreed to buy up to 10 percent stake in LATAM Airlines.

Shares of SAGE Therapeutics Inc SAGE got a boost, shooting up 40 percent to $47.11 as the company revealed that its Phase 2 clinical study of SAGE-547 has achieved primary endpoint for the treatment of severe postpartum depression.

Seagate Technology PLC STX shares were also up, gaining 19 percent to $28.59 after the company issued a strong revenue forecast for the fourth quarter and announced plans to lower 14 percent of its global workforce by the end of fiscal 2017.

Equities Trading DOWN

CytRx Corporation CYTR shares dropped 70 percent to $0.769 after the company reported initial results of Phase 3 trial of aldoxorubicin in patients with second-line soft tissue sarcoma.

Shares of VOXX International Corp VOXX were down 7 percent to $2.75. VOXX reported a Q1 loss of $0.18 per share on revenue of $155.45 million.

Imperva Inc IMPV was down, falling around 5 percent to $45.99 after the company lowered its Q2 guidance. Deutsche Bank downgraded Imperva from Buy to Hold.

Commodities

In commodity news, oil traded up 3.17 percent to $46.18 while gold traded down 0.72 percent to $1,346.90.

Silver traded up 0.42 percent Tuesday to $20.39, while copper rose 1.68 percent to $2.18.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 1.05 percent, the Spanish Ibex Index climbed 2.37 percent, while Italy’s FTSE MIB Index rose 2.58 percent. Meanwhile the German DAX gained 1.48 percent, and the French CAC 40 climbed 1.64 percent, while U.K. shares rose 0.21 percent.

Economics

The NFIB small business optimism index gained 0.7 point to 94.5 in June, versus economists’ estimates for a reading of 94.0.

U.S. wholesale inventories rose 0.10 percent for May, versus economists’ expectations for a 0.20 percent growth.

U.S. job openings declined to 5.5 million in May, versus 5.79 openings in April, according to the JOLTS report.

The Treasury is set to auction 4-week bills at 11:30 a.m. ET.

The Treasury will auction 10-year notes at 1:00 p.m. ET.

Minneapolis Federal Reserve President Neel Kashkari is set to speak in Marquette, Michigan at 5:30 p.m. ET.

Cleveland Federal Reserve Bank President Loretta J. Mester will speak in Sydney, Australia at 10:30 p.m. ET.