Mid-Afternoon Market Update: Markets Head Further Downwards, BlackBerry Shows Further Strength
Midway through trading Monday, the Dow was down 0.88 percent to 13,886.18 while the NASDAQ fell 1.41 percent to 3,134.18. The S&P also fell, declining 1.04 percent to 1,497.25.
Making headlines this morning was Oracle's (NASDAQ: ORCL) acquisition of Acme Packet (NASDAQ: APKT) for $29.25 per share, or roughly $1.7 billion. Following the news, Acme Packet shares shot up over 22 percent, above the purchase price. Adding to the rally was an earnings beat by Acme Packet this morning, giving traders another reason to get bullish on the stock, but the acquisition price has kept a ceiling on shares.
Equities Trading Up
Sonus Networks (NASDAQ: SONS) gained an impressive 19.08 percent to $2.72 in early trading as the company got a boost from the Acme Packet acquisition news.
Cyberonics (NASDAQ: CYBX) was also up, gaining 5.50 percent to $46.79 after releasing an update on the Hagerty lawsuit it was involved in, saying that it was voluntarily dismissed on February 1st.
BlackBerry (NASDAQ: BBRY) traded up 14.10 percent to $14.86 on its first day of trading since changing its ticker symbol from RIMM. The boost was attributed to the company's commercial debut of BB10 during Super Bowl Sunday and some strong sales data coming from the UK and UAE.
Equities Trading Down
Mercury General Corporation (NYSE: MCY) traded down 5.75 percent to $38.02 following its fourth quarter earnings report earlier in the day.
Gannett (NYSE: GCI) was also down, falling 5.97 percent to $18.66 after the company released a disappointing earnings release Monday morning.
Sohu.com (NASDAQ: SOHU) fell 4.93 percent to $46.79 after the company posted a beat on earnings but worse than expected guidance Monday morning.
In commodity news, oil traded down 1.48 percent to $96.32, while gold traded up 0.36 percent to $1,676.40.
Silver traded down 0.24 percent Monday to $31.72.
In the Eurozone this morning, markets fell lower, lead downward by Italian shares as regulators began a formal investigation into Banca Monte dei paschi di Siena following its bailout request. The Spanish Ibex was down 0.89 percent while the Italian MIB index was down a painful 1.75 percent.
In economic news for Monday, factory orders came in at 1.80 percent for December, mising the projected 2.30 percent but beating the prior report of 0.00 percent by a long shot.
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