Market Overview

Mid-Day Market Update: Dow Turns Negative; SeaDrill Shares Climb On News Of Potential Refinancing



Midway through trading Tuesday, the Dow traded down 0.16 percent to 18,224.78 while the NASDAQ climbed 0.07 percent to 5,304.40. The S&P also fell, dropping 0.15 percent to 2,157.87.

Leading and Lagging Sectors

On Tuesday, financial shares rose by 0.16 percent. Meanwhile, top gainers in the sector included American Realty Investors, Inc. (NYSE: ARL), and Meta Financial Group Inc. (NASDAQ: CASH).

In trading on Tuesday, utilities shares tumbled by 1.63 percent. Meanwhile, top losers in the sector included AES Corp (NYSE: AES), down 4 percent, and Companhia Energetica Minas Gerais (ADR) (NYSE: CIG), down 4 percent.

Top Headline

Darden Restaurants, Inc. (NYSE: DRI) reported strong earnings for the first quarter and boosted its EPS forecast for the fiscal year 2017.

The company reported net earnings of $110.2 million, or $0.87 a share, up from $86.4 million, or $0.67 a share, in the year-ago quarter. While profit represented 27.5 percent year-over-year growth, EPS grew nearly 30 percent. Adjusted earnings came in at $0.88 per share for the latest quarter.

Darden's sales advanced from $1.687 billion to $1.714 billion representing 1.6 percent increase from last year period. Its same-store sales grew 1.3 percent for the first quarter. Analysts were expecting earnings of $0.82 per share on revenue of $1.72 billion.

Equities Trading UP

Summit Therapeutics PLC (ADR) (NASDAQ: SMMT) shares shot up 99 percent to $17.20. Sarepta Therapeutics Inc (NASDAQ: SRPT) and Summit Therapeutics reached an exclusive license and collaboration agreement. As a result, Sarepta has been granted rights in Europe, and Turkey apart from the Commonwealth of Independent States to Summit's utrophin modulator pipeline. This included its lead clinical candidate, ezutromid, designed for Duchenne muscular dystrophy treatment.

Shares of Seadrill Ltd (NYSE: SDRL) got a boost, shooting up 28 percent to $2.75 following reports of a possible refinancing option. While Bloomberg reported that the company's biggest shareholder, John Fredriksen, is ready to infuse $1.2 billion to restructure the debt load, SeaDrill indicated there is nothing to disclose. However, the company indicated it was in discussion with stakeholders on its refinancing and recapitalization plans.

Sears Holdings Corp (NASDAQ: SHLD) shares were also up, gaining 11 percent to $12.67. Bloomberg reported that Stanley Black & Decker has shown interest in Sears' Craftsman division, according to people familiar with the matter.

Equities Trading DOWN

Trinity Biotech plc (ADR) (NASDAQ: TRIB) shares dropped 50 percent to $6.49 after the company disclosed that it has withdrawn its 510(k) premarket notification submission for its Meritas Troponin-I Test and Meritas Point-of-Care Analyzer.

Shares of Iradimed Corp (NASDAQ: IRMD) were down 35 percent to $11.10 after the company lowered its Q3 guidance.

Costamare Inc (NYSE: CMRE) was down, falling around 17 percent to $7.53. Costamere reported new financing arrangements and decreased its cash dividend from $0.29 per share to $0.10 per share.


In commodity news, oil traded up 0.33 percent to $48.97 while gold traded down 2.60 percent to $1,278.60.

Silver traded down 4.18 percent Tuesday to $18.08, while copper fell 0.94 percent to $2.17.


European shares were higher today. The eurozone’s STOXX 600 rose 0.84 percent, the Spanish Ibex Index rose 0.20 percent, while Italy’s FTSE MIB Index gained 0.21 percent. Meanwhile the German DAX climbed 1.03 percent, and the French CAC 40 gained 1.11 percent while U.K. shares rose 1.30 percent.


The Johnson Redbook Retail Sales Index declined .4 percent during the first five weeks of September versus August.

Chicago Federal Reserve Bank President Charles Evans will speak in Auckland, New Zealand at 8:00 p.m. ET.

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


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