Mid-Morning Market Update: Markets Open Higher; Koch Industries To Acquire Molex For $38.50/Share
Following the market opening Monday, the Dow traded up 0.67 percent to 15,023.05 while the NASDAQ surged 0.71 percent to 3,686.15. The S&P also rose, gaining 0.63 percent to 1,665.66.
Koch Industries announced its plans to acquire Molex (NASDAQ: MOLX) for $7.2 billion in cash.
Koch Industries will pay $38.50 per share to Molex's shareholders, representing a 31% premium to the company's common stock price of $29.34 on Friday.
For the fiscal year ended June 30, Molex posted sales of $3.6 billion.
Shares of Isis Pharmaceuticals (NASDAQ: ISIS) got a boost, shooting up 8.31 percent to $30.24 after the company and Biogen Idec (NASDAQ: BIIB) announced a strategic collaboration to develop new treatments for neurological disorders.
Apple (NASDAQ: AAPL) was also up, gaining 1.40 percent to $505.20. Apple is scheduled to launch a new version of the iPhone tomorrow. FBN Securities lifted the price target on the stock from $575.00 to $600.00.
Sanchez Energy (NYSE: SN) shares tumbled 4.88 percent to $22.60 after the company announced a private offering of $150 million in senior notes. The company also announced its plans to purchase assets in the Eagle Ford Shale for $220 million.
Community Health Systems (NYSE: CYH) was down, falling 2.34 percent to $38.75 after Citigroup downgraded the stock from Buy to Neutral.
In commodity news, oil traded down 0.61 percent to $109.86, while gold traded up 0.15 percent to $1,388.60.
Silver traded down 0.74 percent Monday to $23.72, while copper rose 0.61 percent to $3.28.
European shares were mostly lower today. The Spanish Ibex Index dropped 0.40 percent, while Italy's FTSE MIB Index rose 0.55 percent. Meanwhile, the German DAX declined 0.03 percent and the French CAC 40 tumbled 0.50 percent while U.K. shares fell 0.19 percent.
The Treasury is set to auction 3-and 6 month bills.
Data on consumer credit for July will be released at 3:00 p.m. ET.
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