Mid-Morning Market Update: Markets Open Lower; Hitachi To Acquire ABB's Power-Grid Unit

Following the market opening Monday, the Dow traded down 0.66 percent to 23,942.72 while the NASDAQ declined 0.37 percent to 6,885.19. The S&P also fell, dropping 0.53 percent to 2,586.31.

Leading and Lagging Sectors

Monday morning, the financial shares rose by 0.02 percent. Meanwhile, top gainers in the sector included Fidelity Southern Corporation LION up 22 percent, and KCAP Financial Inc KCAP up 8 percent.

In trading on Monday, consumer discretionary shares fell 1.3 percent.

Top Headline

Hitachi agreed to acquire the power grid division of ABB Ltd ABB. Hitachi will acquire 80.1 percent of the power-grid unit with an enterprise value of $11 billion.

 

Equities Trading UP

Evofem Biosciences, Inc. EVFM shares got a boost, shooting up 23 percent to $4.30 after the company disclosed that its Phase 3 study evaluating amphora for hormone-free birth control met primary endpoint.

Shares of Fidelity Southern Corporation LION shot up 20 percent to $25.81 after the company and Ameris Bancorp ABCB agreed to merge.

Proteostasis Therapeutics, Inc. PTI shares were also up, gaining 11 percent to $5.36 after reporting a global license agreement with Genentech.

 

Equities Trading DOWN

Sophiris Bio, Inc. SPHS shares dropped 38 percent to $ 1.2801 after announcing the company's phase 2b prostate cancer trial showed no additional benefit to patients.

Shares of Dova Pharmaceuticals, Inc. DOVA were down 24 percent to $11.29. Dova Pharmaceuticals appointed David Zaccardelli as President and CEO. The company expects Q4 net poduct sales of $2.4 million to $2.7 million for DOPTELET.

Innovate Biopharmaceuticals, Inc. INNT was down, falling around 10 percent to $2.54. Innovate Biopharmaceuticals announced plans to commence its Phase 3 registration trial in celiac disease in 1H 2019 and announce top-line NASH data with drug combinations by EASL 2019.

Commodities

In commodity news, oil traded up 0.35 percent to $51.38 while gold traded up 0.22 percent to $1,244.10.

Silver traded up 0.29 percent Monday to $14.68, while copper fell 0.89 percent to $2.738.

 

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 0.74 percent, the Spanish Ibex Index declined 0.18 percent, while Italy’s FTSE MIB Index fell 0.47 percent. Meanwhile the German DAX dropped 0.68 percent, and the French CAC 40 fell 0.73 percent while U.K. shares fell 0.67 percent.

Economics

The Empire State manufacturing index dropped 12.4 points to 10.9 for December. However, economists were projecting a reading of 20.1.

The housing market index declined 4 points to a reading of 56 in December.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The Treasury International Capital report for October is schedule for release at 4:00 p.m. ET.