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Mid-Morning Market Update: Markets Open Higher; Walgreens Sales Miss Views

AMZN, PLUG, T.BLDP, WBA

Following the market opening Wednesday, the Dow traded up 0.66 percent to 20,826.73 while the NASDAQ rose 0.37 percent to 5,920.25. The S&P also rose, gaining 0.51 percent to 2,372.10.

Leading and Lagging Sectors

Wednesday morning, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Pioneer Energy Services Corp (NYSE: PES) and Ballard Power Systems Inc. (USA) (NASDAQ: BLDP).

In trading on Wednesday, healthcare shares rose by just 0.05 percent. Meanwhile, top losers in the sector included NewLink Genetics Corp (NASDAQ: NLNK), down 4 percent, and Idera Pharmaceuticals Inc (NASDAQ: IDRA), down 4 percent.

Top Headline

Walgreens Boots Alliance Inc (NASDAQ: WBA) reported in-line earnings for its second quarter, while sales missed estimates. Walgreens also announced a $1 billion buyback plan.

Walgreens reported Q2 adjusted earnings of $1.36 per share on revenue of $29.4 billion. Analysts expected earnings of $1.36 per share on revenue of $30.24 billion. The company also expects to close around 60 more stores.

Equities Trading UP

Plug Power Inc (NASDAQ: PLUG) shares shot up 65 percent to $2.14 following a deal with Amazon.com, Inc. (NASDAQ: AMZN). Plug Power signed a $70 million agreement with Amazon.

Shares of Neothetics Inc (NASDAQ: NEOT) got a boost, shooting up 36 percent to $2.10 after the company disclosed that the USPTO has issued eighth patent directed to LIPO-202 lead clinical asset.

Innocoll Holdings PLC (NASDAQ: INNL) shares were also up, gaining 24 percent to $2.26 after Gurnet Point L.P. agreed to acquire the company for $1.75 per share in cash and up to $4.90 in cash from CVR.

Equities Trading DOWN

Unilife Corp (NASDAQ: UNIS) shares dropped 73 percent to $0.339. Unilife reduced its workforce by 51 employees and expects to record charge of $0.6 million.

Shares of Quotient Ltd (NASDAQ: QTNT) were down around 9 percent to $6.05. Quotient priced its 7 million share offering at $6 per share.

OHR Pharmaceutical Inc (NASDAQ: OHRP) was down, falling around 13 percent to $0.674. Ohr Pharma reported an offering common stock & warrants.

Commodities

In commodity news, oil traded up 1.25 percent to $51.67 while gold traded down 0.65 percent to $1,250.20.

Silver traded down 0.45 percent Wednesday to $18.24, while copper rose 2.66 percent to $2.68.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.16 percent, the Spanish Ibex Index rose 0.62 percent, while Italy’s FTSE MIB Index rose 0.26 percent. Meanwhile the German DAX declined 0.31 percent, and the French CAC 40 climbed 0.16 percent while U.K. shares rose 0.33 percent.

Economics

Private-sector employers added 263,000 jobs in March, versus a revised 245,000 gain in February, ADP reported. However, economists were expecting an addition of 187,000 jobs.

USA Markit services PMI slipped to 52.80 in March, compared to prior reading of 52.90. Economists projected a reading of 53.10.

The ISM non-manufacturing index dropped to 55.20 in March, versus a prior reading of 57.60. Economists were expecting a reading of 57.00.

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

The Federal Open Market Committee will issue minutes of its latest meeting at 2:00 p.m. ET.

Dallas Federal Reserve Bank President Robert Kaplan is set to speak in Lawrence, Kansas at 8:00 p.m. ET.



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