Market Overview

Mid-Day Market Update: Crude Oil Up 2.5%; Rubicon Project Shares Tumble Following Disappointing Outlook

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Midway through trading Wednesday, the Dow traded up 0.12 percent to 18,335.41 while the NASDAQ gained 0.10 percent to 5,142.78. The S&P also rose, gaining 0.08 percent to 2,158.74.

Leading and Lagging Sectors

Wednesday morning, the financial sector proved to be a source of strength for the market. Leading the sector was strength from Genworth Financial Inc (NYSE: GNW) and Walker & Dunlop, Inc. (NYSE: WD).

In trading on Wednesday, healthcare shares fell by 0.5 percent. Meanwhile, top losers in the sector included Endologix, Inc. (NASDAQ: ELGX), down 11 percent, and Bruker Corporation (NASDAQ: BRKR), down 13 percent.

Top Headline

Humana Inc (NYSE: HUM) reported stronger-than-expected results for its second quarter on Wednesday.

Humana posted adjusted earnings of $2.30 per share on revenue of $14.01 billion. However, analysts were expecting earnings of $2.23 per share on revenue of $13.59 billion.

Equities Trading UP

Magellan Petroleum Corporation (NASDAQ: MPET) shares shot up 143 percent to $2.92 as the company reported that it has entered into a definitive merger agreement with Tellurian Investments.

Shares of Cesca Therapeutics Inc (NASDAQ: KOOL) got a boost, shooting up 31 percent to $5.83 after the company reported promising results from 40-month follow-up of patients enrolled in critical limb ischemia feasibility study.

Sizmek Inc (NASDAQ: SZMK) shares were also up, gaining 45 percent to $3.87 after the company agreed to be acquired by Vector Capital for $3.90 per share in cash. Sizmek posted a Q2 loss of $0.04 per share on revenue of $48.9 million.


Equities Trading DOWN

The Rubicon Project Inc (NYSE: RUBI) shares dropped 33 percent to $9.20. Although The Rubicon Project reported another beat quarter, the CY16 guidance came in well below expectations. Various analysts, including Citigroup, Oppenheimer, RBC Capital, Needham, Raymond James downgraded the stock.

Shares of Cray Inc. (NASDAQ: CRAY) were down 29 percent to $22.07 after the company posted a wider-than-expected quarterly loss and issued a weak sales outlook.

The Chefs Warehouse, Inc (NASDAQ: CHEF) was down, falling around 28 percent to $11.62 after the company reported downbeat Q2 results and issued a weak FY16 earnings outlook.


Commodities


In commodity news, oil traded up 2.53 percent to $40.51 while gold traded down 0.60 percent to $1,364.40.

Silver traded down 1 percent Wednesday to $20.50, while copper fell 0.52 percent to $2.20.

Eurozone

European shares were mixed today. The eurozone’s STOXX 600 rose 0.02 percent, the Spanish Ibex Index fell 0.19 percent, while Italy’s FTSE MIB Index gained 0.31 percent. Meanwhile the German DAX rose 0.21 percent, and the French CAC 40 declined 0.28 percent, while U.K. shares fell 0.17 percent.

Economics

The MBA reported that its index of mortgage application activity declined 3.5 percent for the week ended July 29, 2016.

Private-sector employers added 179,000 jobs in July, versus a revised 176,000 gain in the previous month, ADP reported Wednesday. However, economists were projecting a gain of 170,000 jobs.

The Markit Services PMI rose to 51.40 in July, versus a prior reading of 50.90. Economists expected a reading of 51.00.

The ISM non-manufacturing index declined to 55.50 in July, versus a previous reading of 56.50. Economists estimated a reading of 56.00.

U.S. crude stockpiles increased 1.41 million barrels for the week ended July 29, the Energy Information Administration reported. However, analysts were expecting a decline of 1.36 million barrels. Gasoline inventories declined 3.26 million barrels in the week.

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

 

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