Mid-Day Market Update: Clayton Williams Energy Surges On Acquisition News; Christopher & Banks Shares Slide

Midway through trading Tuesday, the Dow traded down 0.27 percent to 19,831.39 while the NASDAQ declined 0.54 percent to 5,543.93. The S&P also fell, dropping 0.29 percent to 2,268.01.

Leading and Lagging Sectors

Non-cyclical consumer goods & services shares gained around 1.07 percent in trading on Tuesday.

In trading on Tuesday, healthcare shares fell by 0.82 percent. Meanwhile, top losers in the sector included Sucampo Pharmaceuticals, Inc. SCMP, down 7 percent, and Amicus Therapeutics, Inc. FOLD, down 9 percent.

Top Headline

Morgan Stanley MS reported better-than-expected fourth quarter earnings and revenue, driven by strong performance at its sales, trading and M&A businesses.

Morgan Stanley reported fourth quarter EPS of $0.81 on revenue of $9 billion, topping Street view of $0.65 and $8.5 billion, respectively.

Equities Trading UP

Benitec Biopharma Ltd (ADR) BNTC shares shot up 77 percent to $3.27 after the company disclosed that it has received Orphan Drug Designation in the European Union for BB-301 for the treatment of oculopharyngeal muscular dystrophy.

Shares of Forward Pharma A/S FWP got a boost, shooting up 51 percent to $27.70 after Biogen Inc. BIIB disclosed that it has entered into a settlement and license agreement with Forward Pharma.

Clayton Williams Energy, Inc. CWEI shares were also up, gaining 38 percent to $142.98. Noble Energy, Inc. NBL announced plans to acquire Clayton Williams Energy for $2.7 billion in cash and stock.

Equities Trading DOWN

Alcobra Ltd ADHD shares dropped 53 percent to $0.891 after the company disclosed that its Phase 3 trial for MDX has missed the primary endpoint.

Shares of Progress Software Corporation PRGS were down around 15 percent to $27.58. Progress Software reported a Q4 loss of $73.8 million on revenue of $117.7 million. For the current quarter, Progress Software projects earnings of $0.25 to $0.27 per share, on revenue of $85.8 million to $88.8 million.

Christopher & Banks Corporation CBK was down, falling around 34 percent to $1.40 after the company issued a weak Q4 sales forecast and reported the departure of President & CEO LuAnn Via. The company named Joel Waller as interim President and CEO.

Commodities

In commodity news, oil traded up 0.53 percent to $53.43 while gold traded up 1.45 percent to $1,213.60.

Silver traded up 2.42 percent Tuesday to $17.17, while copper fell 1.62 percent to $2.65.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.06 percent, the Spanish Ibex Index rose 0.02 percent, while Italy’s FTSE MIB Index climbed 0.53 percent. Meanwhile the German DAX gained 0.14 percent, and the French CAC 40 fell 0.17 percent while U.K. shares fell 1.26 percent.

Economics

The Empire State manufacturing index dropped to 6.5 in January, versus a revised reading of 7.6 for December. Economists were expecting a reading of 8.5.

San Francisco Federal Reserve Bank President John C. Williams is set to speak at Sacramento State University in Calif. at 6:00 p.m. ET.