Mid-Morning Market Update: Markets Open Higher; Dover Lowers Full-Year Forecast

Following the market opening Monday, the Dow traded up 0.74 percent to 18,376.27 while the NASDAQ climbed 0.87 percent to 5,338.41. The S&P also rose, gaining 0.68 percent to 2,168.39.

Leading and Lagging Sectors

Monday morning, energy shares climbed 1.70 percent. Meanwhile, top gainers in the sector included Evolution Petroleum Corp EPM, and Denbury Resources Inc. DNR.

In trading on Monday, telecommunications services shares rose by just 0.3 percent. Meanwhile, top losers in the sector included Telefonica Brasil SA (ADR) VIV, down 6 percent, and Mobil'nye Telesistemy PAO (ADR) MBT, down 3 percent.

Top Headline

Dover Corporation DOV provided EPS outlook for the third quarter that came in below the estimates. Similarly, the company slashed its full year EPS forecast that came lower than the Street analysts' expectations.

The company expects EPS to be $0.81-$0.83 for the third quarter, which is significantly below the Street estimates of $1.02 a share.

For the full year, Dover reduced its EPS guidance from $3.35-$3.45 to $3.00-$3.05 on revenue drop of 4–5 percent, which included estimate organic revenue fall of 7–8 percent. Previously, the company estimated revenue to fall 3–5 percent including organic revenue drop of 6–8 percent.

Equities Trading UP

Gas Natural Inc EGAS shares shot up 64 percent to $12.58 after First Reserve agreed to acquire all the outstanding shares of Gas Natural common stock for $13.10 per share.

Shares of IntelliPharmaCeutics Intl Inc (USA) IPCI got a boost, shooting up 25 percent to $2.97 as the company reported the FDA tentative approval for generic Seroquel XR on Friday.

TESARO Inc TSRO shares were also up, gaining 19 percent to $118.03. TESARO and ENGOT reported the presentation of successful niraparib Phase 3 ENGOT-OV16/NOVA trial results during the ESMO 2016. Bank of America upgraded TESARO from Neutral to Buy.

Equities Trading DOWN

Twitter Inc TWTR shares dropped 13 percent to $17.32 following a Bloomberg report which suggested the social media company is no longer being targeted for an acquisition. According to Bloomberg, potential bidders reportedly lost interest in acquiring Twitter due to pressure from their major investors. Companies such as salesforce.com, inc. CRM, Walt Disney Co DIS and Alphabet Inc GOOG GOOGL's Google unit all consulted with their respective financial advisers and bankers and the conclusion that was reached appears to be unfavorable for Twitter investors who were hoping a takeout would occur at a hefty premium.

Shares of Haverty Furniture Companies, Inc. HVT were down 11 percent to $17.53. Raymond James downgraded Haverty Furniture from Strong Buy to Market Perform.

Bristol-Myers Squibb Co BMY was down, falling around 10 percent to $50.12 as the company presented results from Phase 1 CheckMate -016 trial at the ESMO 2016.

Commodities

In commodity news, oil traded up 2.39 percent to $51.00 while gold traded up 0.89 percent to $1,263.00.

Silver traded up 2.10 percent Monday to $17.75, while copper rose 0.99 percent to $2.19
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Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 0.42 percent, the Spanish Ibex Index rose 0.67 percent, while Italy’s FTSE MIB Index gained 1.14 percent. Meanwhile the German DAX rose 1.05 percent, and the French CAC 40 gained 0.79 percent while U.K. shares rose 0.66 percent.

Economics

The TD Ameritrade Investor Movement Index for September is schedule for release at 12:30 p.m. ET.

Chicago Federal Reserve President Charles Evans is set speak at Australian Business Economists Luncheon in Sydney, Australia at 10:00 p.m. ET.