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Mid-Morning Market Update: Markets Open Higher; Constellation Brands Tops Q2 Views

CPRX, STZ, AZZ, ULH, IGLDF

 


Following the market opening Wednesday, the Dow traded up 0.59 percent to 18,275.01 while the NASDAQ climbed 0.58 percent to 5,320.38. The S&P also rose, gaining 0.46 percent to 2,160.47.

Leading and Lagging Sectors

Wednesday morning, energy shares gained by 1.4 percent. Meanwhile, top gainers in the sector included Resolute Energy Corp (NYSE: REN), and Approach Resources Inc. (NASDAQ: AREX).

In trading on Wednesday, telecommunications services shares tumbled by 0.23 percent. Meanwhile, top losers in the sector included Internet Gold Golden Lines Ltd (NASDAQ: IGLD), down 4 percent, and NTT Docomo Inc (ADR) (NYSE: DCM), down 2 percent.

Top Headline

Constellation Brands, Inc. (NYSE: STZ) announced better-than-expected quarterly results and lifted its FY17 forecast. The company also agreed to buy High West Distillery to expand its portfolio.

The company reported net income of $358.9 million, or $1.75 a share, up from $302.4 million, or $1.49 a share, in the year-ago quarter. On an adjusted basis, it would have earned $1.77 a share.

Constellation's net sales grew from $1.73 billion to $2.02 billion in the most recent second quarter. However, analysts were expecting earnings of $1.66 per share on revenue of $1.97 billion.

Equities Trading UP

Catalyst Pharmaceuticals Inc (NASDAQ: CPRX) shares shot up 24 percent to $1.39. Piper Jaffray upgraded Catalyst Pharmaceuticals from Neutral to Overweight and raised the price target from $1.00 to $4.00.

Shares of Inventergy Global Inc (NASDAQ: INVT) got a boost, shooting up 19 percent to $1.51 as the company disclosed recent key initiatives to drive growth in multi-billion dollar markets.

Jones Energy Inc (NYSE: JONE) shares were also up, gaining 15 percent to $4.48. Stifel Nicolaus upgraded Jones Energy from Hold to Buy and raised the price target from $3.00 to $6.00.


Equities Trading DOWN

Immunomedics, Inc. (NASDAQ: IMMU) shares dropped 26 percent to $2.42 after the company reported a $30 million financing at $3 per unit.

Shares of Universal Logistics Holdings Inc (NASDAQ: ULH) were down 12 percent to $11.68. Universal Logistics Holdings expects Q3 earnings of $0.16 to $0.20 per share, on revenue of $260 million to $270 million. The company is expected to release its third quarter financial results after the market closes on October 27, 2016.

AZZ Inc (NYSE: AZZ) was down, falling around 11 percent to $57.71. AZZ reported Q2 earnings of $0.38 per share on revenue of $195 million. The company projects FY17 earnings of $3.15 to $3.45 per share, on sales of $930 million to $970 million.


Commodities


In commodity news, oil traded up 1.83 percent to $49.58 while gold traded up 0.31 percent to $1,273.60.

Silver traded up 0.62 percent Wednesday to $17.89, while copper rose 0.32 percent to $2.17.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.51 percent, the Spanish Ibex Index fell 0.12 percent, while Italy’s FTSE MIB Index gained 0.89 percent. Meanwhile the German DAX slipped 0.19 percent, and the French CAC 40 declined 0.24 percent while U.K. shares fell 0.65 percent.

Economics

The MBA’s index of mortgage application activity rose 2.90 percent for the week ended September 30.

Private-sector employers added 154,000 jobs in September, compared to 175,000 jobs in August, Automatic Data Processing Inc. reported. However, economists were expecting a gain of 170,000 jobs.

The U.S. trade deficit increased 3 percent to $40.7 billion in August. Economists projected trade gap to reach $39 billion in the month. Exports rose 0.8 percent to $187.9 billion, while imports gained 1.2 percent to $228.6 billion in August.

The Markit services PMI rose to 52.30 for September, versus a prior reading of 51.90. Economists were expecting a reading of 51.90.

U.S. factory orders rose 0.20 percent for August, versus economists’ expectations for a 0.10 percent decline.

The ISM non-manufacturing index increased to 57.10 for September, versus a previous reading of 51.40. Economists were projecting a reading of 53.00.

The Energy Information Administration’s weekly report on petroleum inventories will be released at 10:30 a.m. ET.

Richmond Federal Reserve Bank President Jeffrey Lacker is set to speak in Huntington, West Virginia at 1:00 p.m. ET.

Richmond Fed President Jeffrey M. Lacker will speak at Marshall University in Huntington, West Virginia at 5:00 p.m. ET.



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