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Mid-Afternoon Market Update: NASDAQ Down Over 100 Points; Bassett Shares Spike Higher

BSET, EMKR, FORTY, AYI, VTOL, GMS, HLX, SEAL.PR.A, WATT, WBA

Toward the end of trading Thursday, the Dow traded down 0.72 percent to 21,299.52 while the NASDAQ declined 1.68 percent to 6,129.49. The S&P also fell, dropping 0.84 percent to 2,420.28.

Leading and Lagging Sectors

Energy shares rose by 0.23 percent in the US market on Thursday. Top gainers in the sector included Helix Energy Solutions Group Inc (NYSE: HLX), Bristow Group Inc (NYSE: BRS), and Teekay LNG Partners L.P. (NYSE: TGP).

In trading on Thursday, technology shares fell by 2.09 percent. Meanwhile, top losers in the sector included Formula Systems (1985) Ltd. (ADR) (NASDAQ: FORTY), down 10 percent, and EMCORE Corporation (NASDAQ: EMKR), down 8 percent.

Top Headline

Rite Aid Corporation (NYSE: RAD) confirmed a finalized asset purchase agreement with rival Walgreens Boots Alliance Inc (NASDAQ: WBA).

Walgreens has attempted to acquire the entirety of Rite Aid since 2015, but instead Rite Aid will now sell 2,186 of its stores, related distribution assets and inventory for an all-cash purchase price of $5.175 billion. The stores are mostly located in the Northeast, Mid-Atlantic and Southeastern regions of the U.S..

The agreement gives Rite Aid the option to buy generic drugs that are sourced through an affiliate of Walgreens at cost for 10 years. In return, Rite Aid will provide certain transition services for up to three years after the transaction is expected to close within six months.

Equities Trading UP

Acuity Brands, Inc. (NYSE: AYI) shares shot up 8 percent to $193.87 after the company posted better-than-expected Q3 results.

Shares of Bassett Furniture Industries Inc. (NASDAQ: BSET) got a boost, shooting up 13 percent to $36.96 as the company reported upbeat Q2 results.

Energous Corp (NASDAQ: WATT) shares were also up, gaining 9 percent to $16.70 after the company disclosed that Dialog Semiconductor is investing an additional $15 million in the company.

 

Equities Trading DOWN

Rite Aid Corporation (NYSE: RAD) shares dropped 29 percent to $2.78. Rite Aid Corporation confirmed a finalized asset purchase agreement with rival Walgreens. Walgreens has attempted to acquire the entirety of Rite Aid since 2015, but instead Rite Aid will now sell 2,186 of its stores, related distribution assets and inventory for an all-cash purchase price of $5.175 billion. Walgreens also posted upbeat quarterly earnings.

Shares of Fred's, Inc. (NASDAQ: FRED) were down 19 percent to $9.92 after RiteAid and Walgreens announced termination of original divestiture agreement. Fred's confirmed in a press release that all asset purchase agreements has been terminated and it will receive $25 million as reimbursement for expenses associated with the termination.

GMS Inc (NYSE: GMS) was down, falling around 10 percent to $28.49. GMS reported Q4 adjusted earnings of $0.48 per share on revenue of $615 million.

Commodities

In commodity news, oil traded up 0.49 percent to $44.96 while gold traded down 0.34 percent to $1,244.90.

Silver traded down 0.63 percent Thursday to $16.685, while copper rose 0.80 percent to $2.6975.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 declined 1.34 percent, the Spanish Ibex Index fell 1.60 percent, while Italy’s FTSE MIB Index dropped 1.63 percent. Meanwhile the German DAX declined 1.83 percent, and the French CAC 40 slipped 1.88 percent while U.K. shares fell 0.51 percent.

Economics

Gross domestic product expanded at an annual pace of 1.4 percent in the first quarter. Economists were expecting a growth of 1.2 percent.

Initial jobless claims increased 2,000 to 244,000 in the latest week. However, economists projected jobless claims to reach 240,000 in the week.

Domestic supplies of natural gas increased 46 billion cubic feet for the week ended June 23, the U.S. Energy Information Administration Thursday reported. Analysts were expecting a gain of 52 billion cubic feet.

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

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



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