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Mid-Day Market Update: Tobira Therapeutics Jumps Following Allergan Buyout; HNI Shares Slide

LEN, SRPT, WINT, HNI

 


Midway through trading Tuesday, the Dow traded up 0.26 percent to 18,167.66 while the NASDAQ climbed 0.17 percent to 5,243.88. The S&P also rose, gaining 0.17 percent to 2,142.85.

Leading and Lagging Sectors

On Tuesday, healthcare shares gained 0.70 percent. Meanwhile, top gainers in the sector included Sarepta Therapeutics Inc (NASDAQ: SRPT), and Idera Pharmaceuticals Inc (NASDAQ: IDRA).

In trading on Tuesday, cyclical consumer goods & services shares fell by 0.1 percent. Meanwhile, top losers in the sector included Ascena Retail Group Inc (NASDAQ: ASNA), down 28 percent, and HNI Corp (NYSE: HNI), down 22 percent.

Top Headline

Lennar Corporation (NYSE: LEN) reported 5.6 percent year-over-year earnings growth for the third quarter driven by 14 percent uptick in top line that came in above the Street analysts' estimates.

The company reported net earnings of $235.8 million, up 5.6 percent from $223.3 million while EPS advanced 5.2 percent from $0.96 to $1.01. Street analysts' expected the company to deliver an EPS of $0.90.

Lennar revenue increased 14 percent from $2.49 billion to $2.83 billion thus beating the Street estimates of $2.68 billion. While deliveries advanced 7 percent, new orders volume grew 8 percent and backlog volume increased 12 percent.


Equities Trading UP

Tobira Therapeutics Inc (NASDAQ: TBRA) shares shot up 705 percent to $38.17 after the company agreed to sell itself to Allergan plc (NYSE: AGN). As part a merger agreement between the two companies, Allergan will acquire Tobira for an upfront payment of $28.35 per share in cash and up to $49.84 per share in Contingent Value Rights (CVRs) which may be payable based on the completion of certain development, regulatory and commercial milestones. Total consideration for the acquisition could be up to $1.695 billion.

Shares of DTS Inc. (NASDAQ: DTSI) got a boost, shooting up 23 percent to $42.28. Tessera Technologies, Inc. (NASDAQ: TSRA) and DTS, Inc. reached a definitive agreement through which the former would buy the latter for $42.50 a share in cash.

Windtree Therapeutics Inc (NASDAQ: WINT) shares were also up, gaining 17 percent to $2.57 after announcing the FDA Fast Track designation for AEROSURF.


Equities Trading DOWN

Ascena Retail Group Inc (NASDAQ: ASNA) shares dropped 28 percent to $5.82 after the company reported downbeat earnings for its fourth quarter and issued a weak forecast for the first quarter.

Shares of HNI Corp (NYSE: HNI) were down 22 percent to $42.51 after the company lowered its Q3 and FY earnings outlook.

MGT Capital Investments Inc. (NYSE: MGT) was down, falling around 28 percent to $1.81 after the company issued an update on status of D-Vassive acquisition. The company has been told that it cannot list 43.8 million shares on the NYSE to close D-Vassive merger. MGT Capital still remains committed to close the deal.


Commodities


In commodity news, oil traded up 0.46 percent to $44.06 while gold traded down 0.02 percent to $1,317.60.

Silver traded down 0.03 percent Tuesday to $19.29, while copper rose 0.46 percent to $2.17.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 slipped 0.08 percent, the Spanish Ibex Index fell 0.34 percent, while Italy’s FTSE MIB Index declined 1.17 percent. Meanwhile the German DAX gained 0.19 percent, and the French CAC 40 declined 0.13 percent while U.K. shares rose 0.25 percent.

Economics

The Federal Open Market Committee begins its two-day policy meeting today.

Housing starts declined 5.8 percent in August to an annual pace of 1.14 million. Economists were expecting a 1.19 million pace for the month.

The Johnson Redbook Retail Sales Index declined 0.5 percent during the first three weeks of September versus August.



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