Mid-Day Market Update: Novavax Tumbles Following Failed Trial; Depomed Shares Surge

Midway through trading Friday, the Dow traded down 0.33 percent to 18,152.35 while the NASDAQ declined 0.18 percent to 5,240.36. The S&P also fell, dropping 0.37 percent to 2,139.26.

Leading and Lagging Sectors

On Friday, utilities shares slipped by just 0.01 percent. Meanwhile, top gainers in the sector included Artesian Resources Corporation ARTNA, and Atlantic Power Corp AT.

In trading on Friday, telecommunications services shares tumbled by 1.01 percent. Meanwhile, top losers in the sector included Frontier Communications Corp FTR, down 5 percent, and PLDT Inc (ADR) PHI, down 3 percent.

Top Headline

Intel Corporation INTC lifted its revenue outlook for the third quarter on Friday.

The company now projects Q3 revenue to be between $15.3 billion to $15.9 billion, versus its earlier range of $14.4 billion to $15.4 billion.

Equities Trading UP

GenMark Diagnostics, Inc GNMK shares shot up 18 percent to $10.42. Cowen & Co. upgraded GenMark Diagnostics from Market Perform to Outperform.

Shares of Depomed Inc DEPO got a boost, shooting up 13 percent to $24.00. Depomed is preparing to put itself up for sale, following calls from activist investor Starboard Value LP to explore such a move, just a year after it fought off a hostile acquisition bid, people familiar with the matter told Reuters.

Mad Catz Interactive, Inc. (USA) MCZ shares were also up, gaining 17 percent to $0.224 as the company disclosed that it has sold its Saitek simulation product line to Logitech International SA (USA) LOGI for $13 million in cash.

Equities Trading DOWN

Novavax, Inc. NVAX shares dropped 84 percent to $1.37 after reporting disappointing results from two Phase 3 vaccine trials that had previously done well in the Phase 2 trial. According to the company, data from the Resolve Phase 3 trial for its vaccine for a potentially deadly respiratory virus didn't meet the efficacy objectives it had set. Novavax shares dipped 79.86 percent to $1.68 in pre-market trading.

Shares of Roka Bioscience Inc ROKA were down 35 percent to $0.760. Roka Bioscience priced private placement of preferred stock and warrants.

Towerstream Corporation TWER was down, falling around 16 percent to $1.54. Towerstream priced its 2,962,963 shares offering at $1.35 per share.

Commodities

In commodity news, oil traded down 1.71 percent to $43.76 while gold traded down 0.52 percent to $1,311.20.

Silver traded down 1.19 percent Friday to $18.82, while copper rose 0.19 percent to $2.16.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 0.74 percent, the Spanish Ibex Index dropped 1 percent, while Italy’s FTSE MIB Index dipped 2.43 percent. Meanwhile the German DAX declined 1.49 percent, and the French CAC 40 slipped 0.93 percent while U.K. shares fell 0.30 percent.

Economics

U.S. consumer prices rose 0.2 percent for August, versus economists’ expectations for a 0.1 percent growth.

The University of Michigan's consumer sentiment index was unchanged at 89.80 for September, versus a prior reading of 89.80. Economists expected a reading of 90.80.