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Mid-Morning Market Update: Markets Edge Lower; PepsiCo Beats Q3 Expectations

ARCT, YZCAY, AMGN, ALNY, ATXS, SRPT, ATNM, PEP, EXEL, ITCI, ARWR

 

Following the market opening Thursday, the Dow traded down 0.06 percent to 18,329.07 while the NASDAQ declined 0.16 percent to 5,310.17. The S&P also fell, dropping 0.11 percent to 2,169.03.

Leading and Lagging Sectors

Thursday morning, energy shares gained 0.52 percent. Meanwhile, top gainers in the sector included Yanzhou Coal Mining Co Ltd (ADR) (NYSE: YZC), and CGG SA (ADR) (NYSE: CGG).

In trading on Thursday, healthcare shares tumbled by 0.60 percent. Meanwhile, top losers in the sector included Exelixis, Inc. (NASDAQ: EXEL), down 7 percent, and Alnylam Pharmaceuticals, Inc. (NASDAQ: ALNY), down 6 percent.

Top Headline

PepsiCo, Inc. (NYSE: PEP) delivered better than expected core EPS and revenue for the third quarter. The company's outlook for the current fiscal year came in above the estimates.

The company reported GAAP EPS of $1.37 compared to $0.36 representing a 282 percent jump from the previous year period that included Venezuela impairment charges. Its reported net income was $1.99 billion. Foreign exchange translation unfavorably impacted its EPS by three percentage points. Its core EPS of $1.40 for the recent third quarter, which represented an increase of four percent, came in above the Street estimates of $1.35 a share.

PepsiCo's net revenue fell 2 percent from $16.33 billion to $16.03 billion in the most recent third quarter. However, this was above the analysts' predictions of $15.83 billion.

Equities Trading UP

Aegerion Pharmaceuticals, Inc. (NASDAQ: AEGR) shares shot up 22 percent to $3.03 as the company disclosed that its JUXTAPID capsules have been approved in Japan for the treatment of homozygous familial hypercholesterolemia.

Shares of Catabasis Pharmaceuticals Inc (NASDAQ: CATB) got a boost, shooting up 33 percent to $5.95. Catabasis Pharmaceuticals and Sarepta Therapeutics Inc (NASDAQ: SRPT) reported a joint research collaboration in Duchenne Muscular Dystrophy.

Arrowhead Pharmaceuticals Inc (NASDAQ: ARWR) shares were also up, gaining 10 percent to $7.75. Amgen, Inc. (NASDAQ: AMGN) and Arrowhead Pharma reported two cardiovacular collaborations.


Equities Trading DOWN

Intra-Cellular Therapies Inc (NASDAQ: ITCI) shares dropped 63 percent to $15.66 after its lead product candidate, ITI-007, failed a late-stage study in schizophrenia. Apparently, the drug couldn't beat the placebo, nor could it equal the performance of the active control risperidone.

Shares of Actinium Pharmaceuticals Inc (NYSE: ATNM) were down 20 percent to $1.36. Actinium priced 8 million shares at $1.25 per share.

Alcobra Ltd (NASDAQ: ADHD) was down, falling around 54 percent to $2.10 after the company disclosed that the FDA has placed a full clinical hold on its IND applications for MDX in ADHD and Fragile X Syndrome. The company reported that it has received verbal notice of the clinical hold from the FDA.


Commodities


In commodity news, oil traded up 0.02 percent to $47.06 while gold traded down 0.23 percent to $1,320.60.

Silver traded up 0.02 percent Thursday to $19.13, while copper rose 0.23 percent to $2.19.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.53 percent, the Spanish Ibex Index rose 0.96 percent, while Italy’s FTSE MIB Index gained 1.06 percent. Meanwhile the German DAX climbed 0.43 percent, and the French CAC 40 gained 0.76 percent while U.K. shares rose 1.04 percent.

Economics

U.S. gross domestic product grew at a 1.4 percent pace in the second quarter, versus economists’ expectations for a 1.3 percent growth.

U.S. jobless claims increased 3,000 to 254,000 in the latest week. Economists projected claims to total 260,000 in the week.

The pending home sales index declined 2.4 percent to 108.5 in August. However, economists were expecting a 0.3 percent growth.

Federal Reserve Board Governor Jerome Powell is set to speak in St. Louis at 10:00 a.m. ET.

The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Rapid City, South Dakota at 2:30 p.m. ET.

Data on farm prices for the recent week will be released at 3:00 p.m. ET.

Kansas City Federal Reserve Bank President Esther George is set to speak at 4:15 p.m. ET.

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

Federal Reserve Chair Janet Yellen is set to speak at the Kansas City Fed's Minority Bankers Forum at 5:10 p.m. ET.



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