Mid-Day Market Update: Lufkin Surges On Acquisition News, Rio Alto Declines

Midway through trading Monday, the Dow traded down 0.35 percent to 14,514.98 while the NASDAQ dropped 0.14 percent to 3,199.44. The S&P also fell, declining 0.11 percent to 1,551.51.

The S&P 500 found support at the 1,540 level on Friday, closing around the 1,550 resistance area, while 1,560 will act as resistance above that. The Dow is holding support at 14,425 and closing in on its 14,550 resitance, while 14,600 will act as resistance further up. The Russell closed Friday about its daily 50 EMA at 920.55, with 940 resistance above. Finally, the NASDAQ looks to be showing resistance at 3,240, while displaying support around the 3,170 level.

General Electric Co

announced its plans to buy Lufkin Industries

for $3.3 billion in cash. Lufkin shareholders will receive $88.50 in cash for each Lufkin share.

Lufkin Industries

shot up 37.65 percent to $88.00 after General Electric Co

announced its plans to buy the company for $3.3 billion in cash. Shares of Gol Linhas Aereas Inteligentes

got a boost, shooting up 9.21 percent to $5.81 after the company reported that SMILES has formed partnerships with Polishop and Cybelar. Himax Technologies

was also up, gaining 7.42 percent to $5.79 after Bank of America raised the price target on the stock from $3.80 to $8.00.

Rio Alto Mining

was also down, falling 4.19 percent to $4.35 after the company reported that its La Arena Gold Mine poured 36,355 ounces of gold in the first quarter. Shares of Cincinnati Bell

were down 3.50 percent to $3.31 after TheStreet Ratings downgraded the stock from “hold” to “sell”. Swift Transportation Company

shares tumbled 3.83 percent to $13.20.

In commodity news, oil traded up 0.11 percent to $92.80, while gold traded down 0.27 percent to $1,571.70. Silver traded down 0.22 percent Monday to $27.16, while copper rose 0.66 percent to $3.37.

European shares were mixed today. The Spanish Ibex Index fell 0.14% while the Italian FTSE MIB Index dropped 0.05 percent. Meanwhile, the German DAX rose 0.05 percent and the French CAC gained 0.09 percent and U.K. shares gained 0.43 percent.

The TD Ameritrade Investor Movement Index is expected to be released today. Fed Chairman Ben Bernanke is expected to speak at 7:15 pm.