Mid-Morning Market Update: Markets Open Lower; United Technologies To Buy Rockwell Collins For $30 Billion

Following the market opening Tuesday, the Dow traded down 0.47 percent to 21,884.11 while the NASDAQ declined 0.19 percent to 6,422.95. The S&P also fell, dropping 0.25 percent to 2,470.26.

Leading and Lagging Sectors

Tuesday morning, the energy shares climbed by 0.60 percent. Meanwhile, top gainers in the sector included Tidewater Inc. TDW, up 5 percent, and Superior Energy Services, Inc. SPN, up 6 percent.

In trading on Tuesday, financial shares fell 0.75 percent. Meanwhile, top losers in the sector included KB Financial Group, Inc. (ADR) KB, down 9 percent, and United Insurance Holdings Corp UIHC down 9 percent.

Top Headline

United Technologies Corporation UTX will acquire Rockwell Collins, Inc. COL in a deal worth $30 billion , forging an aerospace behemoth producing virtually all types of avionics systems for commercial and defense aircraft.

The purchase price includes $23 billion and the acquisition of $7 billion in Rockwell Collins debt, the two companies said in a statement.

Word of the imminent merger had been circulating in recent days. UTC was down 2.18 percent at $117.92 in premarket trading and Rockwell Collins was up 1.37 percent at $130.61. UTC is paying $140.00 per share, in cash and UTC stock.

Equities Trading UP

Insmed Incorporated INSM shares shot up 122 percent to $27.27 after the company disclosed that its Phase 3 CONVERT study met its primary endpoint.

Shares of Cellect Biotechnology Ltd. APOP got a boost, shooting up 12 percent to $10.24 after the company disclosed that its ApoGraft for acute and chronic GvHD has been granted orphan drug status by the FDA.

Energous Corp WATT shares were also up, gaining 10 percent to $11.14. Energous reported a new, high-power, Near Field WattUp charging solution for electronic devices.

Equities Trading DOWN

Cellectis SA (ADR) CLLS shares dropped 23 percent to $24.73 after announcing FDA clinical hold of UCART123 studies.

Shares of Heritage Insurance Holdings Inc HRTG were down 14 percent to $9.69.

Calumet Specialty Products Partners, L.P CLMT was down, falling around 4 percent to $8.09. Janney Capital downgraded Calumet Specialty from Buy to Neutral.

Commodities

In commodity news, oil traded up 1.40 percent to $47.95 while gold traded up 0.51 percent to $1,337.20.

Silver traded up 1.17 percent Tuesday to $18.025, while copper rose 1.23 percent to $3.1565.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 rose 0.05 percent, the Spanish Ibex Index declined 0.35 percent, while Italy’s FTSE MIB Index slipped 0.23 percent. Meanwhile the German DAX climbed 0.49 percent, and the French CAC 40 fell 0.11 percent while U.K. shares fell 0.08 percent.

Economics

U.S. factory orders dropped 3.3 percent in July, versus economists’ expectations for a 3.4 percent fall.

The Treasury is set to auction 4-week bills at 11:30 a.m. ET.

The Treasury will auction 3-and 6-months bills at 11:30 a.m. ET.

The TD Ameritrade Investor Movement Index for August is schedule for release at 12:30 p.m. ET.

Minneapolis Federal Reserve Bank President Neel Kashkari will speak in Minneapolis at 1:10 p.m. ET.

Dallas Federal Reserve Bank President Robert Kaplan is set to speak in Dallas at 7:00 p.m. ET.