Mid-Morning Market Update: Markets Fall; Cognizant To Acquire TriZetto For $2.7B

Following the market opening Monday, the Dow traded down 0.10 percent to 16,970.55 while the NASDAQ declined 0.86 percent to 4,528.40. The S&P also fell, dropping 0.28 percent to 1,980.06.

Leading and Lagging Sectors

Non-cyclical consumer goods & services shares rose 0.51 percent in trading on Monday. Top gainers in the sector included Molson Coors Brewing Company TAP, up 6.7 percent, and Anheuser-Busch InBev SA/NV BUD, up 3.3 percent.

In trading on Monday, energy shares were relative laggards, down on the day by about 0.57 percent. Meanwhile, top decliners in the sector included Parker Drilling Co PKD, down 5.1 percent, and China Petroleum & Chemical SNP, off 5.6 percent.

Top Headline

Cognizant Technology Solutions CTSH announced its plans to buy TriZetto for $2.7 billion in cash.

The deal is expected to close in the fourth quarter and immediately add to Cognizant's adjusted earnings.

Equities Trading UP

Avanir Pharmaceuticals AVNR shares shot up 57.27 percent to $10.60 after the company reported positive Phase II trial results for AVP-923 in treatment of agitation in patients with Alzheimer's disease.

Shares of Alere ALR got a boost, shooting up 14.04 percent to $41.75 following the proposed $46 per share offer from Ron Zwanziger.

Molson Coors Brewing Company TAP shares were also up, gaining 6.24 percent to $76.28 on a report that Anheuser-Busch InBev BUD has funding lined up for SABMiller deal.

Equities Trading DOWN

Shares of Bankrate RATE were down 12.45 percent to $12.10 after the company named Steven Barnhart as interim Chief Financial Officer and announced the SEC investigation relating to 2012 financial reporting.

NPS Pharmaceuticals NPSP shares tumbled 13.61 percent to $28.25. The FDA has voted 8-5 in favor of NPS Pharmaceuticals' Natpara.

Terex TEX was down, falling 6.51 percent to $32.44 after the company lowered its 2014 earnings forecast.

Commodities

In commodity news, oil traded down 0.91 percent to $91.43, while gold traded up 0.25 percent to $1,234.60.

Silver traded down 0.01 percent Monday to $18.61, while copper fell 0.80 percent to $3.08.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 rose 0.02 percent, the Spanish Ibex Index declined 0.35 percent, while Italy’s FTSE MIB Index slipped 0.98 percent. Meanwhile, the German DAX rose 0.12 percent and the French CAC 40 fell 0.22 percent while UK shares dropped 0.01 percent.

Economics

The Empire State manufacturing index surged to 27.54 in September, versus a prior reading of 14.69. However, economists were expecting a reading of 15.95.

US industrial production fell 0.10% in August, versus economists’ expectations for a 0.30% growth.

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

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Posted In: EarningsNewsGuidanceEurozoneFuturesCommoditiesFDAMarkets
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