Mid-Morning Market Update: Markets Open Lower; Conagra Brands Earnings Beat Estimates

Following the market opening Thursday, the Dow traded down 0.16% to 26928.06 while the NASDAQ fell 0.56% to 8032.25. The S&P also fell, dropping 0.32% to 2,975.00.

Leading and Lagging Sectors

Utilities shares climbed 0.4% on Thursday. Meanwhile, top gainers in the sector included Brookfield Infrastructure Partners L.P. BIP, up 4%, and PG&E Corporation PCG, up 3%.

In trading on Thursday, communication services shares fell 0.8%.

Top Headline

Conagra Brands Inc CAG reported stronger-than-expected earnings for its first quarter, while sales missed views.

Earnings came in at 43 cents per share, beating estimates of 39 cents. Sales came in at $2.391 billion, versus estimates of $2.48 billion.


Equities Trading UP

Marinus Pharmaceuticals, Inc. MRNS shares shot up 28% to $1.75 after the company announced all patients in the Ganaxolone Phase 2 Refractory Status Epilepticus trial met the primary endpoint.

Shares of Rite Aid Corporation RAD got a boost, shooting up 27% to $9.79 after the company reported better-than-expected Q2 EPS results. The company also narrowed FY20 EPS guidance and reaffirmed its sales guidance.

SAExploration Holdings, Inc. SAEX shares were also up, gaining 19% to $2.15 after the company was awarded a $28 million ocean-bottom marine project.

Equities Trading DOWN

BioXcel Therapeutics, Inc. BTAI shares tumbled 17% to $8.11. BioXcel Therapeutics priced 2.303 million share common stock offering at $8.255 per share.

Shares of Enanta Pharmaceuticals, Inc. ENTA were down 16% to $60.24. Enanta Pharmaceuticals announced topline results from the Phase 2a ARGON-1 study that evaluated its EDP-305 for the treatment of non-alcoholic steatohepatitis, or NASH, which showed that the study met the primary endpoint, with a statistically significant ALT reduction of 28 U/L in the EDP-305, 2.5mg arm compared to 15 U/L in the placebo arm at week 12. JP Morgan downgraded the company from Neutral to Underweight and lowered the price target from $86 to $57.

Actuant Corporation ATU was down, falling 14% to $21.27 after the company reported Q4 results and issued weak Q1 forecast.
 

Commodities


In commodity news, oil traded down 0.2% to $56.38, while gold traded up 0.1% to $1,513.90.

Silver traded down 0.6% Thursday to $17.965, while copper rose 0.1% to $2.6145.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.7%, the Spanish Ibex Index rose 0.2%, while Italy’s FTSE MIB Index climbed 0.7%. Meanwhile, the German DAX gained 0.5%, and the French CAC 40 gained 0.7% while UK shares rose 1.1%.

Economics

Gross domestic product increased at an annual pace of 2% in the second quarter, unchanged versus the previous estimate.

Initial jobless claims rose 3,000 to 213,000 in the latest week. However, economists expected a reading of 211,000.

The advance trade deficit in goods increased 0.5% to $72.8 in August. However, economists were expecting a $74 billion deficit. The advanced wholesale inventories rose 0.4% in August, while advanced retail inventories were flat.

The pending home sales index rose 1.6% for August.

The Energy Information Administration’s weekly report on natural gas stocks in underground storage will be released at 10:30 a.m. ET.

The Kansas City Fed manufacturing index for September is schedule for release at 11:00 a.m. ET.

Federal Reserve Board of Governors Vice Chairman Richard Clarida is set to speak in San Francisco, CA at 11:45 a.m. ET.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

San Francisco Federal Reserve Bank President Mary Daly will speak in San Francisco, CA at 11:45 a.m. ET.

The Treasury will auction 7-year notes at 1:00 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari is set to speak in Billings, Montana at 2:00 p.m. ET.

Kansas City Federal Reserve Bank President Esther George will testify before the House Financial Services Committee in Washington, D.C. at 2:00 p.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.