Mid-Afternoon Market Update: Navistar Climbs Following Earnings Beat; Biogen Shares Tumble

Toward the end of trading Tuesday, the Dow traded up 0.45 percent to 18,000.08 while the NASDAQ climbed 0.15 percent to 4,975.90. The S&P also rose, gaining 0.43 percent to 2,118.52. Leading and Lagging Sectors Tuesday afternoon, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Pacific Drilling SA (NYSE: PACD) and Baytex Energy Corp (USA) (NYSE: BTE). In trading on Tuesday, healthcare shares fell by 0.33 percent. Meanwhile, top losers in the sector included Valeant Pharmaceuticals Intl Inc (NYSE: VRX), down 14 percent, and Biogen Inc (NASDAQ: BIIB), down 12 percent. Top Headline Valeant Pharmaceuticals Intl Inc (NYSE: VRX) reported weaker-than-expected earnings for the first quarter and reduced its full year adjusted earnings outlook. Valeant posted a net loss of $373.7 million, or a loss of $1.08 per share in the first quarter of 2016 compared to net income of $97.7 million, or $0.28 per share in the first quarter of 2015. Excluding adjustments, it would have reported earnings of $1.27 per share, down sharply from 2.05 per share in the year-ago quarter. Street analysts expected the company to report earnings of $1.37 a share. The company delivered total revenue of $2.4 billion for the first quarter representing an increase of 9 percent over the previous year quarter. Street predicted $2.38 billion. Equities Trading UP Erickson Inc (NASDAQ: EAC) shares shot up 96 percent to $1.08 as the company reported Monday winning of two contracts with U.S. Navy Military Sealift Command, valued at around $70 million. Shares of Navistar International Corp (NYSE: NAV) got a boost, shooting up 20 percent to $14.61 as the company reported a surprise profit for the second quarter. Navistar posted adjusted earnings of $0.05 per share, versus analysts' expectations for a loss of $0.16 per share. LDR Holding Corp (NASDAQ: LDRH) shares were also up, gaining 64 percent to $36.93 as the company agreed to be acquired by Zimmer Biomet Holdings Inc (NYSE: ZBH) for $37 per share. Equities Trading DOWN DryShips Inc. (NASDAQ: DRYS) shares dropped 43 percent to $1.35 after the company announced that it has breached some financial covenants. The company also said that it has yet to make final balloon installments on three matured banking facilities and three lenders have declared event a default. Shares of Valeant Pharmaceuticals Intl Inc (NYSE: VRX) were down 14 percent to $24.84 after the company reported weaker-than-expected earnings for the first quarter and reduced its full year adjusted earnings outlook. Biogen Inc (NASDAQ: BIIB) was down, falling around 12 percent to $254.18 as results from a Phase 2 study of Opicinumab missed both primary and secondary endpoints. Commodities In commodity news, oil traded up 0.72 percent to $50.05 while gold traded down 0.04 percent to $1,246.90. Silver traded down 0.19 percent Tuesday to $16.42, while copper fell 3.21 percent to $2.05. Eurozone European shares closed higher today. The eurozone's STOXX 600 gained 1.12 percent, the Spanish Ibex Index gained 0.80 percent, while Italy's FTSE MIB Index climbed 1.99 percent. Meanwhile the German DAX gained 1.65 percent, and the French CAC 40 rose 1.19 percent, while U.K. shares rose 0.18 percent. Economics U.S. nonfarm productivity declined 0.6 percent in the first quarter, versus a prior reading of 1 percent drop. Unit-labor costs increased 4.5 percent in the quarter, versus a prior reading of 4.1 percent growth.