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Mid-Day Market Update: Patriot National Climbs Following Offer from Ebix; Carbylan Therapeutics Shares Tumble

BA, PCYO, FCX, ED, CLRB

 

Midway through trading Wednesday, the Dow traded up 0.40 percent to 17,745.49 while the NASDAQ climbed 0.43 percent to 4,864.39. The S&P also rose, gaining 0.39 percent to 2,083.38.

Leading and Lagging Sectors


On Wednesday, basic materials shares gained by 1.7 percent. Top gainers in the sector included Freeport-McMoRan Inc (NYSE: FCX) and AK Steel Holding Corporation (NYSE: AKS).

In trading on Wednesday, utilities shares declined by 0.7 percent. Meanwhile, top losers in the sector included Pure Cycle Corporation (NASDAQ: PCYO), down 8 percent, and Consolidated Water Co. Ltd. (NYSE: ED), down 7 percent.

Top Headline


Aegerion Pharmaceuticals, Inc. and QLT Inc. (NASDAQ: QLTI) revealed that they reached a definitive merger agreement under which Aegerion will be merged with a fully owned indirect subsidiary of QLT.

According to the company, after the planned merger completion, each outstanding share of Aegerion would be exchanged for 1.0256 shares of QLT common stock. The companies indicated QLT intends to change its name after the closing of the proposed transaction to Novelion Therapeutics Inc.

Equities Trading UP


Patriot National Inc (NYSE: PN) shares shot up 31 percent to $9.05 as Ebix Inc (NASDAQ: EBIX) offered to buy Patriot National for $9.50 per share.

Shares of Aegerion Pharmaceuticals, Inc. (NASDAQ: AEGR) got a boost, shooting up 34 percent to $1.78 following merger announcement with QLT.

Cellectar Biosciences Inc (NASDAQ: CLRB) shares were also up, gaining 15 percent to $3.81 after the company reported positive results of a tumor-targeting study.

 

Equities Trading DOWN


Carbylan Therapeutics Inc (NASDAQ: CBYL) shares dropped 18 percent to $0.939 following announcement of share purchase agreement. KalVista will become wholly-owned subsidary of Carbylan.

Shares of Aurinia Pharmaceuticals Inc (NASDAQ: AUPH) were down 11 percent to $2.58 as the company reported a private placement of shares at $2.36 per unit for a total of $7.08 million.

Bob Evans Farms Inc (NASDAQ: BOBE) was down, falling around 9 percent to $40.59. Bob Evans Farms reported better-than-expected earnings for its fourth quarter, but issued a weak earnings forecast for the year.


Commodities


In commodity news, oil traded down 0.64 percent to $48.18 while gold traded down 0.17 percent to $1,285.90.

Silver traded up 0.26 percent Wednesday to $17.47, while copper rose 2.38 percent to $2.09.

Eurozone


European shares were higher today. The eurozone’s STOXX 600 rose 1.36 percent, the Spanish Ibex Index gained 1.87 percent, while Italy’s FTSE MIB Index climbed 1.58 percent. Meanwhile the German DAX gained 1.28 percent, and the French CAC 40 rose 1.53 percent, while U.K. shares rose 1.15 percent.

Economics


The MBA reported that its index of mortgage application activity declined 2.40 percent for the week ended June 10, 2016.

U.S. producer prices increased 0.4 percent in May, versus economists’ expectations for a 0.3 percent growth.

The Empire State manufacturing index climbed to 6.01 in June, versus a prior reading of -9.02. Economists were expecting a reading of -4.00.

U.S. industrial production declined 0.40 percent for May, versus economists’ expectations for a 0.20 percent drop.

U.S. crude supplies slipped by 933,000 barrels for the week ended June 10, the U.S. Energy Information Administration reported. However, analysts were expecting a decline of 2.26 million barrels. Gasoline supplies slipped 2.6 million barrels, while distillate stockpiles rose 786,000 barrels last week.

The Federal Open Market Committee will announce policy decision at 2:00 p.m. ET, while the Fed Chair Janet Yellen will hold a press conference at 2:30 p.m. ET.



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