Mid-Morning Market Update: Markets Surge; Packaging Corp To Acquire Boise For $1.28B
Following the market opening Monday, the Dow traded up 0.87 percent to 15,509.11 while the NASDAQ surged 0.42 percent to 3,737.83. The S&P also rose, gaining 0.76 percent to 1,700.74.
The offer price of $12.55 per share represents a 26% premium to Boise's closing price of $9.96 on Friday.
The total transaction value is $1.995 billion, including Boise debt. The deal is likely to close in the fourth quarter.
Shares of Avanir Pharmaceuticals (NASDAQ: AVNR) got a boost, shooting up 5.60 percent to $4.31 on Piper Jaffray comments.
Packaging Corporation of America (NYSE: PKG) was also up, gaining 7.28 percent to $58.52 after the company announced its plans to acquire Boise for $12.55 per share.
Equities Trading DOWN
Shares of Qihoo 360 Technology Co (NYSE: QIHU) were down 4.06 percent to $84.29 after Sohu.com's subsidiary reached a deal with Tencent.
Silver Standard Resources (NASDAQ: SSRI) shares tumbled 3.77 percent to $6.89. Silver futures surged 1.75% to trade at $22.10 an ounce.
Apple (NASDAQ: AAPL) down, falling 2.04 percent to $455.43. Apple shares have dropped 33.56% over the past 52 weeks.
In commodity news, oil traded down 1.82 percent to $106.24, while gold traded up 0.47 percent to $1,314.80.
Silver traded up 1.75 percent Monday to $22.10, while copper rose 0.64 percent to $3.22.
European shares were higher today. The Spanish Ibex Index surged 0.54 percent, while Italy's FTSE MIB Index rose 0.83 percent. Meanwhile, the German DAX gained 1.24 percent and the French CAC 40 climbed 0.97 percent while U.K. shares rose 0.71 percent.
The Empire State manufacturing index fell to 6.29 in September, versus a prior reading of 8.24. However, economists were expecting a reading of 9.10.
Industrial production increased 0.4% in August, versus economists' expectations for a 0.5% rise.
The Treasury is set to auction 3-and 6-month bills.</href>
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