Mid-Morning Market Update: Markets Open Higher; Northrop Grumman To Acquire Orbital ATK

Following the market opening Monday, the Dow traded up 0.29 percent to 22,332.27 while the NASDAQ climbed 0.41 percent to 6,474.87. The S&P also rose, gaining 0.29 percent to 2,507.50.

Leading and Lagging Sectors

Monday morning, the basic materials shares surged 0.62 percent. Meanwhile, top gainers in the sector included CF Industries Holdings, Inc. CF, up 9 percent, and Intrepid Potash, Inc. IPI, up 7 percent.

In trading on Monday, utilities shares fell 0.03 percent. Meanwhile, top losers in the sector included Empresa Distribuidora y Cmrz Nrt SA(ADR) EDN, down 2 percent, and South Jersey Industries Inc SJI down 2 percent.

Top Headline

Defense giant Northrop Grumman Corporation NOC confirmed Monday it will buy Orbital ATK Inc OA, the maker of the Pegasus rocket and a vast array of other aerospace and defense systems, in a $9.2 billion deal.

Orbital holders will receive $134.50 a share in cash, the companies said in a statement Monday. The price is 22 percent above the stock’s closing level Friday. Northrop also will assume $1.4 billion in net debt.

Equities Trading UP

Nabriva Therapeutics plc NBRV shares shot up 86 percent to $12.73 after the company disclosed that its Phase 3 trial evaluating IV and oral lefamulin met all primary FDA and EMA endpoints.

Shares of Silver Spring Networks Inc SSNI got a boost, shooting up 24 percent to $16.07. Itron, Inc. ITRI announced plans to acquire Silver Spring Networks for $16.25 per share.

Orbital ATK Inc OA shares were also up, gaining 20 percent to $132.40. Northrop Grumman announced plans to buy Orbital ATK in a $9.2 billion deal.

Equities Trading DOWN

Helios and Matheson Analytics Inc HMNY shares dropped 13 percent to $3.21 after climbing 39.54 percent on Friday.

Shares of Neos Therapeutics Inc NEOS were down 6 percent to $8.65. Neos Therapeutics disclosed that it has received the FDA approval for Adzenys ER.

Teladoc Inc TDOC was down, falling around 5 percent to $34.30. First Baird downgraded Teladoc from Outperform to Neutral.

Commodities

In commodity news, oil traded down 0.64 percent to $49.57 while gold traded down 0.70 percent to $1,315.90.

Silver traded down 1.50 percent Monday to $17.435, while copper rose 0.81 percent to $2.973.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 surged 0.34 percent, the Spanish Ibex Index rose 0.50 percent, while Italy’s FTSE MIB Index surged 0.56 percent. Meanwhile the German DAX climbed 0.27 percent, and the French CAC 40 gained 0.23 percent while U.K. shares rose 0.41 percent.

Economics

The NAHB Housing Market Index slipped to 64.00 for September, versus prior reading of 68.00. However, economists were expecting a reading of 67.00.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The Treasury International Capital data for July will be released at 4:00 p.m. ET.