Mid-Morning Market Update: Markets Open Higher; Forest Labs To Acquire Furiex For $1.1B In Cash
Following the market opening Monday, the Dow traded up 0.56 percent to 16,452.82 while the NASDAQ surged 0.34 percent to 4,089.31. The S&P also rose, gaining 0.35 percent to 1,869.99.
Leading and Lagging Sectors
Healthcare shares gained around 1.19 percent in the US market on Monday. Top gainers in the sector included Furiex Pharmaceuticals (NASDAQ: FURX), AstraZeneca PLC (NYSE: AZN), and Galena Biopharma (NASDAQ: GALE). In trading on Monday, basic materials shares were relative laggards, down on the day by about 0.65 percent.
Forest Laboratories (NYSE: FRX) announced its plans to buy Furiex Pharmaceuticals (NASDAQ: FURX) for up to $1.46 billion. Forest will pay around $95 per share, or around $1.1 billion in cash. Forest Labs will also pay up to $30 per share, or around $360 million in a contingent value right. The deal is projected to close in the second or third quarter of 2014.
Equities Trading UP
Susser Holdings (NYSE: SUSS) shares shot up 38.77 percent to $79.14 after Energy Transfer Partners LP (NYSE: ETP) announced its plans to acquire Susser Holdings in a deal valued at around $1.8 billion.
Equities Trading DOWN
Shares of New Oriental Education & Technology Group (NYSE: EDU) were 11.39 percent to $23.02 after the company reported FQ3 results. New Oriental's quarterly net income surged 50.2% y/y to US$42.1 million versus US$28.0 million.
In commodity news, oil traded up 0.54 percent to $101.14, while gold traded up 0.15 percent to $1,302.70.
Silver traded down 0.29 percent Monday to $19.66, while copper fell 0.15 percent to $3.09.
European shares were mostly higher today.
The Spanish Ibex Index dropped 0.43 percent, while Italy's FTSE MIB Index rose 0.04 percent.
Meanwhile, the German DAX surged 0.22 percent and the French CAC 40 rose 0.27 percent while U.K. shares gained 0.09 percent.
The pending home sales index increased 3.4% to a reading of 97.4 in March from 94.2 in February, the National Association of Realtors said. However, economists were expecting a 1% gain.
The Treasury is set to auction 3-and 6-month bills.
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