Stock Market News for April 28, 2015 – Zacks Investment Research

Stock Market News for April 28, 2015 – Zacks Investment Research

Benchmarks ended the first trading session of the week in the red led by losses in biotech shares. Meanwhile, investors refrained from placing big bets ahead of the Federal Reserve meeting, which begins today. Investors also kept an eye on first quarter earnings results.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article

The Dow Jones Industrial Average (DJI) declined 0.2% to close at 18,037.97. The Standard & Poor’s 500 (S&P 500) decreased 0.4% to 2,108.92. The tech-laden Nasdaq Composite Index closed at 5,060.25; declining 0.6%. The fear-gauge CBOE Volatility Index (VIX) climbed 6.8% to settle at 13.12. A total of about 6.8 billion shares were traded on Monday, more than the month to date average of 6.2 billion. Decliners outpaced advancing stocks on the NYSE. For 61% stocks that declined, 36% advanced.

Decline in biotech stocks had a negative impact on broader markets. Shares of Biogen Inc. (BIIBAnalyst Report) dropped 3.1% after safety concerns compelled patients to reconsider using its multiple-sclerosis drug. This adversely affected the revenue generated from the drug. Amgen Inc. (AMGNAnalyst Report) shares dropped 3.3% after the U.S. Food and Drug Administration staff reviewers declared that the company’s skin cancer immunotherapy won’t be considered for an accelerated review at this time. Shares of Celladon Corporation (CLDNSnapshot Report) nosedived 80.7% after the company’s experimental gene therapy for heart failure missed its primary and secondary endpoints.

In deal news, shares of Celgene Corporation (CELGAnalyst Report) fell 3.4% after it agreed to acquire Quanticel Pharmaceuticals Inc. for an upfront payment of $100 million to boost its pipeline of cancer therapies. Among other healthcare deal news, Mylan N.V. (MYLAnalyst Report) rejected Teva Pharmaceutical Industries Limited’s (TEVAAnalyst Report) takeover bid of $40 billion, citing it to be grossly undervalued. Shares of Mylan and Teva Pharmaceutical decreased 5.7% and 4.3%, respectively.

While, the iShares Nasdaq Biotechnology (IBB) declined 4.2% and added to the underperformance of the Nasdaq, the broader Health Care Select Sector SPDR (XLV) declined 1.8%, the highest among the S&P 500 sectors. Key stocks from the healthcare sector including Johnson & Johnson (JNJAnalyst Report), Pfizer Inc. (PFEAnalyst Report), Merck & Co. Inc. (MRKAnalyst Report), Gilead Sciences Inc. (GILDAnalyst Report) and UnitedHealth Group Incorporated (UNHAnalyst Report) decreased 0.5%, 1.9%, 0.9%, 0.7% and 2.1%, respectively.

The SPDR S&P Homebuilders ETF (XHB) dropped 1.2% and was the second biggest loser among the S&P 500 sectors. Key holdings including KB Home (KBH), Beazer Homes USA Inc. (BZH), Ryland Group Inc. (RYL), Toll Brothers Inc. (TOL) and The Home Depot, Inc. (HD) decreased 0.8%, 0.7%, 1.7%, 0.2% and 2%, respectively. Overall, 8 out of 10 sectors of the S&P 500 ended in the red.

Meanwhile, investors remained cautious ahead of the Federal Reserve meeting, scheduled to begin today. Investors are looking for clues on the timing of rate hike. Federal Open Market Committee’s (FOMC) meeting on Mar 17-18 showed officials were divided on the timing of raising interest rates. While “several” officials favored a rate hike in June, others had opined a rate hike isn’t necessary until later this year as strong dollar and drop in oil prices will keep inflation rate lower.

Investors also continued to focus on quarterly results. Among major quarterly release, shares of Restaurant Brands International Inc. (QSRSnapshot Report) declined 2.4% after the company reported first quarter revenues of $932 million that missed the Zacks Consensus Estimate of $937 million. However, earnings per share for the quarter came in at 18 cents, more than the Zacks Consensus Estimate of 14 cents.

About 203 S&P 500 members have reported first quarter earnings results so far. Among the 203 members, first quarter earnings are up 8.7% on essentially flat revenues, with 68.6% beating earnings per share estimates and 45.6% coming ahead of top-line expectations.

Original post:

Stock Market News for April 28, 2015 – Zacks Investment Research

Share this post