Market Overview

Mid-Morning Market Update: Markets Surge; Seagate To Acquire Xyratex For $374M

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Mid-Morning Market Update: Markets Surge; Seagate To Acquire Xyratex For $374M

Following the market opening Monday, the Dow traded up 0.34 percent to 16,275.47 while the NASDAQ surged 0.58 percent to 4,128.51. The S&P also rose, gaining 0.35 percent to 1,824.75.

Top Headline

Seagate Technology Plc (NASDAQ: STX) announced its plans to buy Xyratex (NASDAQ: XRTX) for around $374 million in cash.

Seagate will offer $13.25 per share to acquire Xyratex, representing a 27% premium to its closing price on Friday.

Equities Trading UP

United Therapeutics (NASDAQ: UTHR) shot up 20.25 percent to $105.63 as the company announced the FDA approval of Orenitram Extended-Release Tablets for the treatment of pulmonary arterial hypertension. JP Morgan upgraded the stock from Underweight to Neutral and raised the target price from $62 to $90.

Shares of Eagle Rock Energy Partners LP (NASDAQ: EROC) got a boost, shooting up 5.89 percent to $5.57 after Regency Energy announced its plans to acquire Eagle Rock Energy's midstream business for $1.3 billion.

Meritor (NYSE: MTOR) was also up, gaining 16.42 percent to $9.50. Morgan Stanley analyst Ravi Shanker reiterated an Overweight rating on Meritor.

Equities Trading DOWN

Shares of Tesaro (NASDAQ: TSRO) were down 20.50 percent to $29.97. Tesaro's Rolapitant achieved primary endpoint in each of two Phase 3 trials for the prevention of CINV.

Marketo (NASDAQ: MKTO) shares tumbled 2.81 percent to $35.59 after the company filed for a 427.8 million share offering by selling stockholders.

Micron Technology (NASDAQ: MU) was down, falling 3.79 percent to $21.33 after analysts at Bank of America downgraded the stock from Neutral to Underperform and lowered the target price from $20.50 to $19.50.

Commodities

In commodity news, oil traded down 0.33 percent to $98.99, while gold traded down 0.30 percent to $1,200.10.

Silver traded down 0.02 percent Monday to $19.45, while copper fell 0.12 percent to $3.30.

Eurozone

European shares were higher today. The Spanish Ibex Index gained 0.35 percent, while Italy's FTSE MIB Index climbed 0.40 percent. Meanwhile, the German DAX surged 0.69 percent and the French CAC 40 jumped 0.16 percent while U.K. shares gained 0.84 percent.

Economics

U.S. consumer spending climbed 0.5% in November, while personal income surged 0.2% in the month. However, economists were estimating a 0.5% rise in spending and a 0.4% rise in personal income. The Chicago Fed National Activity Index rose to 0.60 in November, versus economists' expectations for a reading of 0.30.

The final reading of the Reuter's/University of Michigan's consumer sentiment index came in at 82.50 in December, versus a prior reading of 82.50. However, economists were expecting a reading of 83.00.

The Treasury is set to auction 3-and 6-month bills.

Posted-In: Analyst Color Earnings News Bonds Guidance Emerging Markets Eurozone Futures

 

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