Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Mid-Day Market Update: Apple Falls On Lowered Sales Guidance; Kitov Pharma Shares Jum

AAPL, BTAI, PPBT

Midway through trading Thursday, the Dow traded down 2.43 percent to 22,778.53 while the NASDAQ declined 2.17 percent to 6,521.29. The S&P also fell, dropping 1.93 percent to 2,461.45.

Leading and Lagging Sectors

On Thursday, the real estate shares climbed 0.8 percent. Meanwhile, top gainers in the sector included CBL & Associates Properties, Inc. (NYSE: CBL) up 6 percent, and Investors Real Estate Trust REIT (NYSE: IRET) up 3 percent.

In trading on Thursday, information technology shares fell 4.5 percent.

Top Headline

Bristol-Myers Squibb Co (NYSE: BMY) on Thursday announced an agreement to buy Celgene Corporation (NASDAQ: CELG) in a cash and stock deal, with an equity valuation of $74 billion.

Celgene shareholders will receive one Bristol-Myers Squibb share and $50 in cash for each share they hold in Celgene. Additionally, Celgene shareholders also stands to receive one tradable contingent value right, or CVR, for each Celgene share, entitling them to receive a payment for achievement of future regulatory milestones.

The terms value each of Celgene shares at $102.43 and one CVR. The cash and stock consideration alone represents a 54 percent premium to Celgene's closing price Jan. 2. The boards of both companies approved the transaction.

 

Equities Trading UP

OHR Pharmaceutical, Inc. (NASDAQ: OHRP) shares got a boost, shooting up 66 percent to $0.1826 after announcing a merger with NeuBase. Ohr shareholders will own 20 percent of the combined company.

Shares of Kitov Pharma Ltd (NASDAQ: KTOV) shot up 59 percent to $1.19 after announcing a marketing and distribution agreement with Coeptis Pharma. Kitov will receive $3.5 million of milestone payments.

BioXcel Therapeutics, Inc. (NASDAQ: BTAI) shares were also up, gaining 28 percent to $4.60 after the company announced it met its primary endpoint for its phase 1 trial.

Equities Trading DOWN

Bristol-Myers Squibb Company (NYSE: BMY) shares dropped 12 percent to $45.55 after the company announced plans to buy Celgene at $50 per share in cash in a $74 billion deal.

Shares of Aevi Genomic Medicine, Inc. (NASDAQ: GNMX) were down 76 percent to $0.1866 after the company announced its top-line results from its placebo-controlled ASCEND trial of AEVI-001 in children with ADHD did not achieve statistical significance on primary endpoint.

Apple Inc. (NASDAQ: AAPL) was down, falling around 9 percent to $143.18 after the company slashed its previously issued first-quarter sales guidance Wednesday from a range of $89 billion to $93 billion to $84 billion — $7.5 billion less than the Street's expectations of $91.5 billion in sales.

Commodities

In commodity news, oil traded down 1.48 percent to $45.85 while gold traded up 0.57 percent to $1,291.40.

Silver traded up 0.26 percent Thursday to $15.69, while copper fell 2.8 percent to $2.5495.

 

Eurozone

European shares were lower today. The eurozone’s STOXX 600 dropped 1 percent, the Spanish Ibex Index fell 0.23 percent, while Italy’s FTSE MIB Index declined 0.68 percent. Meanwhile the German DAX dropped 1.55 percent, and the French CAC 40 dipped 1.62 percent while U.K. shares fell 0.53 percent.

Economics

Private-sector employers added 271,000 jobs in December, Automatic Data Processing Inc. reported. However, economists projected a gain of 179,000 jobs.

Initial jobless claims rose 10,000 to 231,000 in the latest week. However, economists were expecting a 218,000 reading.

The ISM manufacturing index declined to 54.1 in December, versus prior reading of 59.3.

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