Mid-Afternoon Market Update: Dow Jumps 140 Points; Imperva Shares Slide Following Reduced Q2 Outlook

Toward the end of trading Tuesday, the Dow traded up 0.77 percent to 18,366.47 while the NASDAQ climbed 0.79 percent to 5,028.23. The S&P also rose, gaining 0.81 percent to 2,154.37.

Leading and Lagging Sectors

On Tuesday, energy shares surged by 2.5 percent. Top gainers in the sector included Stone Energy Corporation SGY and Resolute Energy Corp REN.

In trading on Tuesday, utilities shares fell by 0.25 percent. Meanwhile, top losers in the sector included Alliant Energy Corporation LNT, down 2 percent, and Pampa Energia S.A. (ADR) PAM, down 3 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

Clean Diesel Technologies, Inc. CDTI shares shot up 77 percent to $0.663 on new vehicle model award from Honda to provide catalysts to 2017 Accord Hybrid.

Shares of SAGE Therapeutics Inc SAGE got a boost, shooting up 37 percent to $46.15 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 22 percent to $29.39 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 61 percent to $0.986 after the company reported initial results of Phase 3 trial of aldoxorubicin in patients with second-line soft tissue sarcoma.

Shares of DRDGOLD Ltd. (ADR) DRD were down 12 percent to $7.79. JP Morgan downgraded DRDGOLD from Neutral to Underweight.

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 4.62 percent to $46.83 while gold traded down 1.70 percent to $1,333.60.

Silver traded down 0.64 percent Tuesday to $20.18, while copper rose 3 percent to $2.21.

Eurozone

European shares closed mostly higher today. The eurozone’s STOXX 600 gained 1.06 percent, the Spanish Ibex Index climbed 2.42 percent, while Italy’s FTSE MIB Index rose 2.83 percent. Meanwhile the German DAX gained 1.33 percent, and the French CAC 40 climbed 1.57 percent, while U.K. shares fell 0.03 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.

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.