Mid-Afternoon Market Update: Real Goods Solar Surges After Licensing Deal With Dow Chemical; Sequans Communications Shares Drop

10/04/17 02:30 PM EDT

Toward the end of trading Wednesday, the Dow traded up 0.14 percent to 22,672.72 while the NASDAQ declined 0.07 percent to 6,527.14. The S&P also rose, gaining 0.11 percent to 2,537.31.

Leading and Lagging Sectors

Wednesday afternoon, the non-cyclical consumer goods & services shares surged 1.06 percent.

In trading on Wednesday, energy shares fell 0.36 percent. Meanwhile, top losers in the sector included Flotek Industries Inc (NYSE: FTK), down 8 percent, and TETRA Technologies, Inc. (NYSE: TTI) down 6 percent.

Top Headline

PepsiCo, Inc. (NYSE: PEP) reported better-than-expected profit for its third quarter, while sales missed estimates.

Pepsico reported Q3 adjusted earnings of $1.48 per share on sales of $16.24 billion. However, analysts were expecting earnings of $1.44 per share on sales of $16.31 billion.

Equities Trading UP

Real Goods Solar, Inc. (NASDAQ: RGSE) shares shot up 260 percent to $2.95 after the company disclosed that it has entered into a new license agreement with The Dow Chemical Company related to its Powerhouse solar shingles system, a system developed by Dow Chemical Company that has already been deployed to more than 1,000 homes.

Shares of Mylan N.V. (NASDAQ: MYL) got a boost, shooting up 19 percent to $38.60 after the company reported the FDA approval of first generic for Copaxone 40 mg/mL 3-times-a-week.

Motif Bio plc - ADR (NASDAQ: MTFB) shares were also up, gaining 17 percent to $11.84 after the company disclosed that Iclaprim achieved primary endpoint of non-inferiority vs vancomycin in REVIVE-2 Phase 3 study.

Equities Trading DOWN

Sequans Communications SA ADR (NYSE: SQNS) shares dropped 38 percent to $1.89 after the company lowered its guidance for the third quarter.

Shares of Strongbridge Biopharma plc (NASDAQ: SBBP) were down 18 percent to $6.18. Stronebridge Biopharma priced offering of 4 million shares at $6.25 per share.

Root9B Holdings Inc (NASDAQ: RTNB) was down, falling around 41 percent to $1.19 following a Nasdaq halt on Tuesday. In a new 8-K filing, Root9B disclosed that it has received a Staff Determination from the Nasdaq that it has been determined no longer be an operating business and is currently a “public shell.”

Commodities

In commodity news, oil traded down 0.93 percent to $49.95 while gold traded up 0.12 percent to $1,276.10.

Silver traded up 0.06 percent Wednesday to $16.66, while copper fell 0.10 percent to $2.9605.

Eurozone

European shares closed mostly lower today. The eurozone’s STOXX 600 declined 0.08 percent, the Spanish Ibex Index fell 2.85 percent, while Italy’s FTSE MIB Index fell 1.44 percent. Meanwhile the German DAX gained 0.53 percent, and the French CAC 40 slipped 0.08 percent while U.K. shares fell 0.01 percent.

Economics

Private-sector employers added 135,000 jobs in September, ADP reported. Economists were expecting a gain of 125,000 jobs.

The IHS Markit services index declined to 55.3 in September, versus prior reading of 56.

The ISM non-manufacturing index rose to 59.80 in September, versus prior reading of 55.30. Economists expected a reading of 55.50.

Domestic crude supplies dropped 6.02 million barrels for the week ended September 29, the U.S. Energy Information Administration reported. However, analysts expected a fall of 756 thousand barrels. Gasoline stockpiles rose 1.64 million barrels, while distillate stockpiles slipped 2.61 million barrels for the week.

St. Louis Federal Reserve Bank President James Bullard is set to speak in St. Louis at 3:00 p.m. ET.

Federal Reserve Chair Janet Yellen will speak in St. Louis at 3:15 p.m. ET.