Mid-Morning Market Update: Markets Open Higher, Apollo Tyres To Acquire Cooper Tire For $2.5B
Following the market opening Wednesday, the Dow traded up 0.60 percent to 15,212.06 while the NASDAQ gained 0.46 percent to 3,452.90. The S&P also rose, surging 0.54 percent to 1,634.95.
India's Apollo Tyres announced its plans to acquire Cooper Tire & Rubber Co (NYSE: CTB) for about $2.5 billion.
Shareholders of Cooper Tire will receive $35 per share in cash, representing a 42% premium to Cooper Tire's closing stock price on Tuesday. The transaction is likely to close in the second half of this year.
Equities Trading UP
Cooper Tire & Rubber Co (NYSE: CTB) shot up 41.12 percent to $34.66 after India's Apollo Tyres announced its plans to acquire the company for about $2.5 billion.
Shares of Spectra Energy (NYSE: SE) got a boost, shooting up 10.70 percent to $33.56 after Morgan Stanley upgraded the stock from “equal-weight” to “overweight.”
Ulta Salon, Cosmetics & Fragrance (NASDAQ: ULTA) was also up, gaining 14.53 percent to $96.35 after the company reported upbeat first-quarter earnings.
Equities Trading DOWN
Icahn Enterprises LP (NASDAQ: IEP) was down, falling 6.14 percent to $74.64 after the company priced its registered public offering of 1.6 million depositary units.
Shares of First Solar (NASDAQ: FSLR) were down 3.81 percent to $50.30 after the company announced a public offering of 8.5 million shares of common stock.
Take-Two Interactive Software (NASDAQ: TTWO) shares tumbled 5.28 percent to $15.92 after the company announced a proposed offering of $250 million of convertible senior notes.
In commodity news, oil traded up 0.41 percent to $95.77, while gold traded down 0.21 percent to $1,374.10.
Silver traded up 0.06 percent Wednesday to $21.66, while copper rose 0.50 percent to $3.21.
European shares were mostly higher on the back of some better than expected economic data. Industrial production in the eurozone rose faster than expected in April. Industrial production rose 0.4 percent in April vs. an expected drop of 0.2 percent however March's figure was revised slightly lower to +0.9 percent from +1.0 percent. On an annualized basis, industrial production fell 0.6 percent vs. a 1.2 percent expected drop.
The Spanish Ibex Index rose 1.72 percent and the Italian FTSE MIB Index dropped 0.28 percent. Meanwhile, the German DAX dropped 0.01 percent and the French CAC 40 surged 0.61 percent while U.K. shares gained 0.15 percent.
The Mortgage Bankers Association index of mortgage application activity surged 5% in the week ended June 7, versus an 11.5% drop in the previous week.
The U.S. Treasury monthly budget report for May will be released at 2:00 p.m. ET.
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