Market Overview

Mid-Day Market Update: Crude Oil Up 2.75%; Cerulean Pharma Shares Surge On News Of Novartis Collaboration



Midway through trading Wednesday, the Dow traded up 0.31 percent to 18,217.41 while the NASDAQ declined 0.04 percent to 5,241.98. The S&P also rose, gaining 0.20 percent to 2,143.96.

Leading and Lagging Sectors

On Wednesday, energy shares gained by 1.24 percent. Meanwhile, top gainers in the sector included CGG SA (ADR) (NYSE: CGG), and Baytex Energy Corp (USA) (NYSE: BTE).

In trading on Wednesday, healthcare shares fell by 0.28 percent. Meanwhile, top losers in the sector included Acadia Healthcare Company Inc (NASDAQ: ACHC), down 10 percent, and Sangamo Biosciences, Inc. (NASDAQ: SGMO), down 9 percent.

Top Headline

Morgan Stanley (NYSE: MS) reported stronger-than-expected results for the third quarter. This is the fourth straight quarter of an EPS beat.

The company's profit jumped from $1.0 billion to $1.6 billion while EPS climbed from $0.48 to $0.81 and came in above the Street estimates of $0.63 a share.

Morgan Stanley's net revenue advanced from $7.8 billion to $8.9 billion and topped the Street analysts' expectations of $8.17 billion. Excluding DVA, its revenue would have been $7.3 billion in the previous year quarter.

Equities Trading UP

Cerulean Pharma Inc (NASDAQ: CERU) shares shot up 45 percent to $0.989 after the company disclosed that it has struck a strategic collaboration agreement with Swiss drug giant Novartis AG (ADR) (NYSE: NVS) to develop nanoparticle-drug conjugates.

Shares of Banc of California Inc (NYSE: BANC) got a boost, shooting up 19 percent to $13.38 as the company reported better-than-expected earnings for its latest quarter.

GNC Holdings Inc (NYSE: GNC) shares were also up, gaining 15 percent to $22.24. According to a Wall Street Journal report, GNC has recently met with prospective buyers from China. The current market cap of the company is about $1.4 billion and has an estimated debt of close to $1.6 billion. Including the debt, the possible deal could be valued at about $4 billion.

Equities Trading DOWN

VASCO Data Security International, Inc. (NASDAQ: VDSI) shares dropped 15 percent to $15.31 as the company lowered its FY16 revenue guidance. Dougherty & Co. downgraded VASCO Data Security from Buy to Neutral.

Shares of Imperva Inc (NYSE: IMPV) were down 14 percent to $40.10 after concerns were raised on the possible sale. According to a Bloomberg report, the sale process has been put on a hold, as the company is seeking increased deal price.

Puma Biotechnology Inc (NYSE: PBYI) was down, falling around 15 percent to $44.80 after the company announced a $150 million offering of common stock.


In commodity news, oil traded up 2.75 percent to $52.01 while gold traded up 0.78 percent to $1,272.80.

Silver traded up 0.58 percent Wednesday to $17.74, while copper rose 0.02 percent to $2.11.


European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.42 percent, the Spanish Ibex Index rose 1.01 percent, while Italy’s FTSE MIB Index gained 0.59 percent. Meanwhile the German DAX climbed 0.29 percent, and the French CAC 40 gained 0.41 percent while U.K. shares rose 0.32 percent.


The MBA’s index of mortgage application activity rose 0.6 percent for the week ended October 8, 2016.

U.S. housing starts declined 9 percent in September from August to an annual rate of 1.05 million. Economists were expecting a 1.18 million pace for the month.

Crude supplies declined 5.2 million barrels for the week ended October 14, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 2.5 million barrels. Gasoline supplies gained 2.5 million barrels, while distillate stockpiles slipped 1.2 million barrels.

Dallas Federal Reserve Bank President Rob Kaplan will speak in Fort Worth at 1:30 p.m. ET.

The Federal Reserve will release its latest Beige Book report at 2:00 p.m. ET.

New York Federal Reserve Bank President William Dudley is set to speak in New York at 7:45 p.m. ET.


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