2017-10-18 12:30:48 | On The Fly: Top stock stories at middayStocks opened sharply higher thanks to IBM (IBM) shares which were up roughly 7.0% at the open. The Dow shot past 23,100 for the first time ever and the Nasdaq and S&P hit new all-time highs at the open too. The averages have moved in a narrow trading range since the open but the Dow has stretched its upper limit while the Nasdaq has lagged and struggled to stay above the flat line. Oil prices are little changed despite the weekly DEO Inventory report which showed a larger than expected draw in supply. ECONOMIC NEWS: In the U.S., the MBA mortgage market index rose 3.6%, accompanied by a 4.2% gain in the purchase index and a 3.0% increase in the refinancing index for the week ended October 13. U.S. housing starts plunged 4.7% to 1.127M in September after falling 0.2% to 1.183 M in August. COMPANY NEWS: The Dow's sharp gains today were led by IBM, whose shares surged 9.3% after the company reported better than expected results for the third quarter, including a 20% year-over-year boost in Cloud revenues. In addition, the company reaffirmed its adjusted earnings guidance for fiscal 2017 and said it continues to expect free cash flow in FY17 to be relatively flat year to year... Also higher after reporting earnings was Abbott (ABT), which was up 1.7% at midday after its Q3 adjusted earnings and revenue beat consensus estimates... Shares of Anthem (ANTM) rose 3.6% after the company said it is establishing a new pharmacy benefits manager to be named IngenioRx, which will begin offering a full suite of PBM solutions starting in 2020. Following the announcement, CVS Health (CVS) said that it signed a five-year agremeent with Anthem to provide services to support IngenioRx. MAJOR MOVERS: Among the notable gainers was (CREE), jumping 15% after JMP Securities analyst Joseph Osha raised the company's price target to $41 from $29 citing "considerable value" to be unlocked in the stock. Also higher was Ignyta (RXDX), rising 12.8% after the STARTRK-2 trial, of entrectinib demonstrated a 78% confirmed objective response rate, or ORR, and a 69% confirmed ORR in 32 patients with locally advanced or metastatic non-small cell lung cancer. Allergan (AGN) was among the noteworthy losers, dipping 4.6% after Wells Fargo analyst David Maris lowered his price target for the company's shares to $258 from $276 after a federal judge on Monday invalidated several patents covering the company's dry-eye therapy Restasis. Also lower was Supervalu (SVU), dropping 9.7% after reporting quarterly earnings and after it agreed to acquire Associated Grocers of Florida in a $180M deal. INDEXES: Near midday, the Dow was up 142.56, or 0.62%, to 23,140.00, the Nasdaq was up 3.35, or 0.05%, to 6,627.01, and the S&P 500 was up 2.20, or 0.09%, to 2,561.56. | |
---|