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Mid-Day Market Update: Dow Rises Over 1%; Cadence Pharma Shares Gain On Acquisition News
Midway through trading Tuesday, the Dow traded up 1.21 percent to 15,993.00 while the NASDAQ surged 0.98 percent to 4,188.74. The S&P also rose, gaining 1.03 percent to 1,818.31.
Leading and Lagging Sectors On Tuesday, the basic materials sector proved to be a source of strength for the US market after Yellen statement. Huntsman (NYSE: HUN ) shares surged 3.2 percent after reporting strong quarterly earnings, while China Gerui Advanced Materials Group (NASDAQ: CHOP ) gained around 2.5 percent. Consumer goods stocks were underperformers in Tuesday's trading, up on the day by just 0.5% compared to S&P's 1.03 percent gain. Among the consumer goods stocks, shares of Star Scientific (NASDAQ: STSI ) were down by more than 1 percent.
Top Headline Sprint (NYSE: S ) reported a narrower fourth-quarter net loss. Sprint posted a quarterly loss of $1.04 billion, or $0.26 per share, versus a year-ago loss of $1.32 billion, or $0.44 per share. It posted an operating loss of $576 million, compared to a year--earlier loss of $738 million. Its net operating revenue surged to $9.14 billion versus $9.01 billion. However, analysts were estimating a loss of $0.35 per share on revenue of $8.98 billion. Sprint added 58,000 postpaid subscribers and 322,000 prepaid subscribers.Equities Trading UP Cadence Pharmaceuticals (NASDAQ: CADX ) shot up 26.38 percent to $13.99 after Mallinckrodt plc (NYSE: MNK ) announced its plans to acquire Cadence Pharma for $14.00 per share in cash.
Shares of Demandware (NYSE: DWRE ) got a boost, shooting up 10.32 percent to $69.95 after the company reported upbeat Q4 results.
Mallinckrodt plc (NYSE: MNK ) was also up, gaining 10.12 percent to $65.31 after the company announced its plans to buy Cadence Pharma for $1.3 billion.
Equities Trading DOWN
Shares of Infoblox (NYSE: BLOX ) were down 46.66 percent to $17.68 after the company lowered its FY14 revenue forecast. Wedbush downgraded the stock from Outperform to Neutral and cut the price target from $36.00 to $25.00.
Qualys (NASDAQ: QLYS ) shares tumbled 4.22 percent to $27.48 after the company issued a weak earnings guidance. Pacific Crest downgraded the stock from Outperform to Sector Perform.
Rackspace Hosting (NYSE: RAX ) was down, falling 16.03 percent to $33.89 after the company reported a drop in its fourth-quarter net income and announced the retirement of its Chief Executive Lanham Napier.
Commodities In commodity news, oil traded down 0.02 percent to $100.04, while gold traded up 1.16 percent to $1,289.50. Silver traded up 0.41 percent Tuesday to $20.20, while copper fell 0.31 percent to $3.21.
Eurozone European shares were higher today. The Spanish Ibex Index rose 1.09 percent, while Italy's FTSE MIB Index climbed 1.04 percent. Meanwhile, the German DAX surged 2.03 percent and the French CAC 40 gained 1.09 percent while U.K. shares rose 1.23 percent.
Economics The ICSC-Goldman same-store sales index fell 0.3% in the week ended Saturday versus the earlier week. The NFIB Small Business Optimism Index rose to 94.10 in January, versus a prior reading of 93.90. However, economists were expecting a reading of 93.60. The Redbook Chain Store Sales came in with a gain of 2.8 percent y/y, compared to a gain of 2.7 percent last week. U.S. wholesale inventories rose 0.30% in December, versus economists' expectations for a 0.50% gain.
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