Mid-Morning Market Update: Caribou Bought Out; Clearwire Plummets
Following the market opening Monday, the Dow traded up 0.41 percent to 13,188.69 while the NASDAQ rose 0.57 percent to 2,988.36. The S&P also rose, increasing 0.63 percent to 1,422.54.
Caribou Coffee (NASDAQ: CBOU) announced that it would enter a merger agreement and be acquired by Joh. A. Benckiser for $16 per share in cash Monday morning. The acquisition represented a 23 percent premium on Caribou's closing price Friday.
Equities Trading Up
Vivus (NASDAQ: VVUS) was among the morning's top gainers rising 11.85 percent to $12.84 after an announcement that drug prescriptions had risen significantly over the last few months.
Tronox (NYSE: TROX) also rose, trading up 7.72 percent to $16.99 possibly on technicals.
Shares of Lexicon Pharmaceuticals (NASDAQ: LXRX) were also up, gaining 6.95 percent to $2.00 following an FDA fast track designation for one of its drugs.
Equities Trading Down
Clearwire (NASDAQ: CLWR) was among the morning's top losers, falling 13.80 percent to $2.91 as the traders pulled back from a strong rally last week.
Smith & Wesson (NASDAQ: SWHC) fell sharply at the market open, dropping 4.16 percent to $8.75 as traders worried about the coming talks of increased gun control.
Shares of Sequenom (NASDAQ: SQNM) traded down 3.33 percent to $4.65 after USPTO withdrew its issuance of a patent for the company.
In commodity news, oil traded up 0.73 percent to $87.36, while gold traded up 0.16 percent to $1,698.50.
Silver traded down 0.14 percent Monday to $32.08.
European markets were down early this morning on continuing global fears.
In economic news Monday, the New York empire state manufacturing index came in at -8.1, far below the expected -1.0 and below the prior report of -5.22.
Overall net capital flow came in at -56.70 billion, far below the prior release of 4.30 billion, while TIC net long-term transactions were reported at 1.30 billion, well below the anticipated 25.0 billion and the previous report of 3.2 billion.
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