Mid-Afternoon Market Update: Markets Rally As INSYS Therapeutics Drops On Fraud Headline
Toward the end of trading Monday, the Dow traded up 0.67 percent to 16,694.95 while the NASDAQ jumped 1.74 percent to 4,143.89. The S&P also rose, gaining 0.91 percent to 1,895.06.
Leading and Lagging Sectors
Basic materials shares jumped about 1.72 percent in Monday's trading. Leading the sector was strength from Century Aluminum Co (NASDAQ: CENX) and Horsehead Holding (NASDAQ: ZINC). In trading on Monday, utilities shares dropped by 0.13 percent.
Hillshire Brands Co (NYSE: HSH) announced its plans to buy Pinnacle Foods (NYSE: PF) for around $6.6 billion including debt. Hillshire will offer $18.00 in cash and 0.50 shares of its common stock for each Pinnacle share.
Equities Trading UP
Tesaro (NASDAQ: TSRO) shares shot up 20.78 percent to $29.00 after the company reported successful primary and secondary endpoints in final Phase 3 trial for rolapitant.
Shares of Pinnacle Foods (NYSE: PF) got a boost, shooting up 12.28 percent to $34.18 after Hillshire Brands Co (NYSE: HSH) announced its plans to buy Pinnacle Foods for around $6.6 billion including debt.
Iridium Communications (NASDAQ: IRDM) was also up, gaining 10.72 percent to $7.54 after the company caught an upgrade to Outperform from Neutral at Macquarie Monday morning.
Equities Trading DOWN
Shares of Core Laboratories NV (NYSE: CLB) were 16.38 percent to $158.05 after the company lowered its forecast for the second quarter and FY14.
INSYS Therapeutics (NASDAQ: INSY) was also down, falling 15.14 percent to $27.73 after news broke that a doctor had fraudulently prescribed its drug Subsys.
The Hillshire Brands Company (NYSE: HSH) was down, falling 4.85 percent to $35.20 after the company announced its plans to buy Pinnacle Foods.
In commodity news, oil traded up 0.63 percent to $100.62, while gold traded up 0.68 percent to $1,296.40.
Silver traded up 2.03 percent Monday to $19.56, while copper rose 2.01 percent to $3.14.
European shares were higher today.
The eurozone's STOXX 600 gained 0.71 percent, the Spanish Ibex Index rose 0.76 percent, while Italy's FTSE MIB Index climbed 0.48 percent.
Meanwhile, the German DAX jumped 1.26 percent and the French CAC 40 surged 0.37 percent while UK shares rose 0.55 percent.
The U.S. Treasury monthly budget report for April will be released at 2:00 p.m. ET.
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