On the first day of the fourth quarter, stocks traded in mixed fashion, closing strongly after being moderately lower throughout the afternoon, as traders were wary of oil prices declining once again, although price drops were less than 1%. Economic measures were mixed.
In economic news, the September ISM manufacturing index declined to 50.2, its lowest level since May 2013, and a substantial drop from the 51.1 reading from August. In addition, the Labor Department reported that initial jobless claims reported had a small increase to 277,000. The analysts’ estimate was for 270,000.
An increase in September auto sales to 18.17 million was also reported by several of the major automobile manufacturers.
The Dow Jones Industrial Average was just below flat on the day, while the S&P 500 was up 0.2% and the Nasdaq was higher by 0.2%. Sectors were about 50-50 positive to negative, with utilities the weakest on the day, and energy among the strongest.
At the same time, there were some interesting news reports propelling some stocks higher. Sherwin-Williams Co (NYSE:SHW), Dave & Buster’s Entertainment, Inc. (NASDAQ:PLAY) and Sarepta Therapeutics Inc (NASDAQ:SRPT) were three who rose nicely on unusual news. Here’s the full story.
Sherwin-Williams Co (SHW)
Anticipation of a good earnings report among traders vaulted SHW stock 4% higher today. The company announced that it will release third quarter earnings results prior to the opening bell on Thursday, Oct. 29.
However, SHW could have some unexpected difficulties. The U.S. Environmental Protection Agency (EPA) has been investigating a Superfund site in Gibbsboro, N.J. that was previously used as a SHW paint manufacturing plant.
The plant has been found to be contaminated with lead, arsenic and other toxic compounds.
Dave & Buster’s Entertainment, Inc. (PLAY)
Dave & Buster’s was a winner today after announcing the pricing of 6 million shares of common stock in a secondary public offering at a price of $37 per share. The secondary offering are shares owned by “certain of the Company’s stockholders,” and they have granted the underwriters an option to buy up to 900,000 additional shares of stock at the offering price.
The closing of the offering will occur on or about Oct. 6, 2015. The sale is being conducted through Jefferies Group LLC (NYSE:JEF) and Piper Jaffray Companies (NYSE:PJC).
PLAY stock rose by 3% today on the news. The stock has recently pulled back from $43 to $38.
Sarepta Therapeutics Inc (SRPT)
SRPT stock soared 22% today after the company released a positive report on its eteplirsen trial for Duchenne muscular dystrophy (DMD), a severe illness with no current cure that inhibits motor skills in those who have the disease.
The results of the phase two study was that patients were able to walk further by 151 meters over the course of a six-minute walking test.
Earlier this week, the U.S. Patent Trial and Appel Board ruled in favor of competitor BioMarin (NASDAQ:BMRN) in their exon-skipping approach for the treatment of DMD.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
