Market Overview

Mid-Morning Market Update: Markets Edge Higher; Tyson Wins Bidding Battle To Buy Hillshire Brands For $63/Share

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Following the market opening Monday, the Dow traded up 0.06 percent to 16,933.52 while the NASDAQ surged 0.14 percent to 4,327.58. The S&P also rose, gaining 0.09 percent to 1,951.15.

Leading and Lagging Sectors

Technology shares surged around 0.33 percent in today’s trading. Top gainers in the sector included Hittite Microwave (NASDAQ: HITT), up 28.3 percent, and Analog Devices (NASDAQ: ADI), up 6.2 percent.

In trading on Monday, healthcare shares were relative laggards, down on the day by about 0.21 percent. Top losers in the sector included China Biologic Products (NASDAQ: CBPO), and Gilead Sciences (NASDAQ: GILD).

Top Headline

Tyson Foods (NYSE: TSN) announced it has submitted a unilaterally binding offer to buy The Hillshire Brands Company (NYSE: HSH) for $63 per share in cash.

The deal is valued at around $8.55 billion, including net debt. Tyson had earlier offered $50 per share for Hillshire. However, Pilgrim's Pride (NASDAQ: PPC) had offered $55 per share for Hillshire.

Equities Trading UP

Idenix Pharmaceuticals (NASDAQ: IDIX) shares shot up 231.67 percent to $23.98 after Merck (NYSE: MRK) announced its plans to acquire Idenix for $24.50 per share in cash.

Shares of Hittite Microwave (NASDAQ: HITT) got a boost, shooting up 28.40 percent to $77.76 after Analog Devices (NASDAQ: ADI) announced its  plans to buy Hittite Microwave for $78 per share in cash.

Family Dollar Stores (NYSE: FDO) shares were also up, gaining 15.41 percent to $69.86 after  Carl Icahn disclosed a brand-new 9.39% stake in the company.

Equities Trading DOWN

Shares of Comverse (NASDAQ: CNSI) were 8.53 percent to $22.83 on Q1 results. The company reported a Q1 loss of $0.72 per share on revenue of $119.0 million.  

Pilgrim's Pride (NASDAQ: PPC) shares tumbled 5.60 percent to $24.80 after Tyson Foods (NYSE: TSN) outbid Pilgrim's Pride for Hillshire Brands (NYSE: HSH).

Ferrellgas Partners LP (NYSE: FGP) was down, falling 1.52 percent to $26.31 after the company reported weaker-than-expected fiscal third-quarter earnings.

Commodities

In commodity news, oil traded up 0.71 percent to $103.39, while gold traded up 0.18 percent to $1,254.80.

Silver traded up 0.63 percent Monday to $19.11, while copper fell 0.61 percent to $3.03.

Eurozone

European shares were mostly higher today.

The eurozone’s STOXX 600 gained 0.13 percent, the Spanish Ibex Index surged 0.04 percent, while Italy’s FTSE MIB Index jumped 0.04 percent.

Meanwhile, the German DAX rose 0.04 percent and the French CAC 40 fell 0.22 percent while UK shares gained 0.16 percent.

Economics

The TD Ameritrade Investor Movement Index for May will be released at 12:30 p.m. ET.

The Treasury is set to auction 3-and 6-month bills.

Posted-In: Earnings News Guidance Eurozone Commodities Legal M&A Economics

 

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