Mid-day market update: Dow falls 40 points, Aprea Therapeutics shares surge

Midway through trading Wednesday, the Dow traded down 0.12% to 34,259.48 while the NASDAQ rose 0.20% to 14,100.31. The S&P also fell, dropping 0.05% to 4,244.41.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 33,486,910 cases with around 600,280 deaths. India confirmed a total of at least 29,633,100 cases and 379,570 deaths, while Brazil reported over 17,533,220 COVID-19 cases with 490,690 deaths. In total, there were at least 176,682,210 cases of COVID-19 worldwide with more than 3,823,780 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Health care shares climbed 0.4% on Wednesday. Meanwhile, top gainers in the sector included Kindred Biosciences, Inc. KIN 45.15%, up 45%, and Opthea Limited OPT 20.96%, up 45%.

In trading on Wednesday, financial shares fell 0.7%.

Top Headline

Elanco Animal Health Incorporated ELAN 3.71% agreed to acquire Kindred Biosciences Inc KIN 45.15% for $9.25 per share, or approximately $440 million.

The price represents a premium of 52% based on the 30-day average.

Equities Trading UP

Kindred Biosciences, Inc. KIN 45.15% shares shot up 45% to $9.19 after Elanco announced an agreement to acquire the company for $9.25 per share.

Shares of Aprea Therapeutics, Inc. APRE 20.02% got a boost, shooting 39% to $6.76 after the company announced that the Phase 1/2 trial evaluating eprenetapopt in acute myeloid leukemia (AML) has met the pre-specified primary efficacy endpoint of complete remission (CR) rate.

BriaCell Therapeutics Corp. BCTX 11.44% shares were also up, gaining 16% to $7.01 after the company announced it is expanding its breast cancer platform into prostate, melanoma and lung cancers.

Equities Trading DOWN

Paratek Pharmaceuticals, Inc. PRTK 12.46% shares tumbled 14% to $8.80. Paratek Pharmaceuticals initiated Phase 2b trial evaluating Nuzyra (omadacycline) for Nontuberculous Mycobacterial (NTM) Pulmonary Disease caused by Mycobacterium abscessus complex (MABc).

Shares of Inhibikase Therapeutics, Inc. IKT 26.64% were down 24% to $3.08 after the company priced an underwritten public offering of 15 million shares at $3/share for gross proceeds of approximately $45 million.

Blue Apron Holdings, Inc. APRN 20.89% was down, falling 19% to $4.4750 after the company priced public offering of 4.706 million shares of Class A common stock at $4.25 per share.

Commodities

In commodity news, oil traded up 0.4% to $72.44, while gold traded up 0.2% to $1,860.

Silver traded up 0.8% Wednesday to $27.91 while copper rose 1.4% to $4.3915.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 gained 0.19%, the Spanish Ibex Index fell 0.28% and the German DAX 30 fell 0.13%. Meanwhile, the London’s FTSE 100 gained 0.14%, French CAC 40 climbed 0.05% and Italy’s FTSE MIB rose 0.05%.

UK’s producer prices rose 4.6% year-on-year in May, while consumer price inflation rate increased to 2.1% year-over-year.

Economics

Housing starts rose 3.6% to an annualized rate of 1.572 million in May, while building permits fell 3.0% to a 1.681 million rate.

US import prices increased 1.1% in May, while prices for exports climbed 2.2%.

US crude-oil inventories dropped 7.4 million barrels last week, the Energy Information Administration said.

The Federal Reserve will announce its policy decision at 2:00 p.m. ET.

The Fed Chairman Jerome Powell will hold a press conference at 2:30 p.m. ET.