Monday September 18, 2017 – Friday September 22, 2017
On Monday, the housing market index for September fell 3 points to 64, showing decreasing optimism by home builders. The Dow Industrials closed at a record high for the fifth straight business day and the VIX, the volatility index, dropped below 10 before closing at 10.15.
On Tuesday, import prices for August rose .6% while export prices also rose .6% and housing starts for August held almost steady at an annualized 1.18 million units. Markets remained calm after President Trump spoke before the United Nations, attempting to increase pressure on North Korea. The Dow Industrials, S&P 500, and Nasdaq composite gained slightly and ended at record highs.
On Wednesday, existing home sales for August fell 1.7% to an annualized 5.35 million units and the EIA petroleum status report for the week ending September 15th saw crude oil inventories increasing 4.6 million barrels. The consumer price index for August rose .4%. The Federal Reserve concluded their meeting and kept the federal funds rate unchanged in the range of 1 to 1.25%. However, the Fed decided to start divesting its $4.5 trillion portfolio starting in October. At first $10 billion will roll off monthly, then increasing every quarter by $10 billion until reaching $50 billion a month late next year. The Fed also predicted one more rate hike this year and three more next. The Dow Industrials and S&P 500 closed slightly higher and at new records. Yields on 10-year Treasuries increased to 2.27%.
On Thursday, jobless claims for the week ending September 16th fell 23,000 to 259,000, continuing its volatility due to displaced workers from states hit by hurricanes. Markets fell modestly as investors became a bit nervous over the prospect of more rate hikes.
On Friday markets opened lower as North Korea said they may test a hydrogen bomb in the Pacific Ocean. Now let’s take a look at some stocks.
Northrop Grumman Corp. announced on Monday that it will acquire Orbital ATK Inc. (NYSE: OA) for $7.8 billion in cash, as well the assumption of $1.4 billion in debt. Both company boards have unanimously approved the deal and Orbital shareholders will received $134.50 per share. The acquisition will expand Northrop’s offerings in the defense sector.
Supernus Pharmaceuticals Inc. (NASDAQ: SUPN) reported an update on its Phase 3 clinical trial of its SPN-810 treatment. The treatment is intended for patients in the age range of 6-12 who suffer from impulsive aggression and ADHD. The trials determined that a higher dose for patients will provide the best chance for optimal outcomes. Share value fell below $37 Wednesday after the announcement.
Alnylam Pharmaceuticals Inc. (NASDAQ: ALNY) and Sanofi Genzyme announced on Wednesday positive results from their Phase 3 study of Hereditary ATTR Amyloidosis patients with Polyneuropathy. The company said it met all primary efficacy endpoints and secondary endpoints, causing shares to jump over 30%, reaching a new 52-week high of $117.24.
Bed Bath & Beyond Inc. (NASDAQ: BBBY) shares tumbled over 15% Wednesday as the company reported quarterly revenue and earnings that missed analysts’ estimates. The home goods retailer reported second-quarter sales fell 1.7% to $2.9 billion. The company earned $0.67 per share in the second quarter, down from $1.11 per share a year earlier. The company is struggling as the competition in the home goods industry continues to increase.
Calgon Carbon Corporation (NYSE: CCC) shares spiked over 60% after the company announced on Thursday that it will be acquired by Kuraray Co., Ltd. for $21.50 per share in cash. The transaction, including assumption of debt, exceeds $1.3 billion.