Mid-Morning Market Update: Markets Open Higher; Constellation Brands Q1 Profit Tops Views

Following the market opening Wednesday, the Dow traded up 0.98 percent to 17,792.68 while the NASDAQ climbed 0.97 percent to 5,035.21. The S&P also rose, gaining 0.85 percent to 2,080.65.

Leading and Lagging Sectors
Financial shares jumped by 1.26 percent on Wednesday. Meanwhile, top gainers in the sector included Chubb Corp CB, up 32 percent, and J.W. Mays Inc MAYS, up 7 percent.
In trading on Wednesday, energy shares slipped by 0.22 percent. Meanwhile, top losers in the sector included Comstock Resources Inc CRK, down 6 percent, and Cloud Peak Energy Inc. CLD, off 5 percent.

Top Headline
Constellation Brands, Inc. STZ reported upbeat results for its first quarter and announced its plans to buy the Meiomi wine brand for around $315 million.
The Victor, New York-based company posted quarterly net income of $238.6 million, or $1.18 per share, compared to $206.7 million, or $1.03 per share, in the year-ago period. Excluding items, the company earned $1.26 per share.
Its net sales climbed around 7 percent to $1.63 billion However, analysts were expecting earnings of $1.24 per share on revenue of $1.62 billion.
Equities Trading UP
Chubb Corp CB shares shot up 33 percent to $126.40 after ACE Limited announced its plans to buy Chubb for $28.3 billion.
Shares of ACE Limited ACE got a boost, shooting up 6 percent to $108.10 after the company agreed to buy Chubb for $28.3 billion.
Tetralogic Pharmaceuticals Corp TLOG shares were also up, gaining 52 percent to $3.55. The company issued preliminary data after the bell from a Phase 2A study of its treatment for a group of cancers called myelodysplastic syndromes.

Equities Trading DOWN
Ballard Power Systems Inc. (USA) BLDP shares tumbled 19 percent to $1.70 after the company priced 8.125 million shares at $1.60 per share. Ballard expected Q2 sales of $10.6 million to $11.5 million.
Shares of Peabody Energy Corporation BTU were down 16 percent to $1.84. Peabody Energy expected adjusted EPS to be below the original targeted range.
McCormick & Company, Incorporated MKC was down, falling 3 percent to $78.28. McCormick reported stronger-than-expected earnings for its fiscal second quarter, but the company’s revenue missed analysts’ expectations.

Commodities
In commodity news, oil traded down 1.87 percent to $58.36, while gold traded down 0.24 percent to $1,169.00.
Silver traded up 0.06 percent Wednesday to $15.59, while copper fell 0.10 percent to $2.61.
Euro zone
European shares were higher today. The eurozone’s STOXX 600 rose 1.87 percent, the Spanish Ibex Index jumped 1.87 percent, while Italy’s FTSE MIB Index climbed 2.65 percent. Meanwhile, the German DAX rose 2.62 percent, and the French CAC 40 gained 2.43 percent while UK shares climbed 1.43 percent.
Economics
The MBA reported that its index of mortgage application activity fell 4.7 percent in the week ended June 26, 2015.
Private-sector employers added 237,000 jobs in June, ADP said. However, economists were projecting an addition of 218,000 jobs, versus an originally reported gain of 201,000 in May.
The Markit manufacturing PMI rose to 53.60 in June, versus a prior reading of 53.40. However, economists were expecting a reading of 53.40.
The ISM manufacturing composite index climbed to 53.50 in June, versus a prior reading of 52.80. Economists projected a reading of 53.10.
US construction spending rose 0.80 percent in May, versus economists’ expectations for a 0.50 percent growth.