Mid-Morning Market Update: Markets Edge Lower; Halliburton To Acquire Baker Hughes For $34.6 Billion

Following the market opening Monday, the Dow traded down 0.06 percent to 17,624.79 while the NASDAQ declined 0.12 percent to 4,682.82. The S&P also fell, dropping 0.08 percent to 2,038.25.

Leading and Lagging Sectors

Healthcare shares jumped by 0.43 percent on Monday. Top gainers in the sector included Celldex Therapeutics CLDX, up 26.3 percent, and Amicus Therapeutics FOLD, up 15.5 percent.

In trading on Monday, telecommunications services shares were relative laggards, down on the day by about 0.83 percent. Top losers in the sector included B Communications BCOM, down 9.4 percent, and China Telecom Corp. Ltd. CHA, off 4 percent.

Top Headline

Halliburton Company HAL announced its plans to buy Baker Hughes BHI.

Under the terms of the deal, Halliburton will acquire all of the outstanding shares of Baker Hughes in a stock and cash transaction valued at $78.62 per Baker Hughes share, or $34.6 billion.

Equities Trading UP

Amicus Therapeutics FOLD shares shot up 15.29 percent to $6.56 after the company reported positive Phase 3 Data on cardiac and composite endpoints from Fabry Monotherapy Study.

Shares of Baker Hughes BHI got a boost, shooting up 10.42 percent to $66.13 after Halliburton HAL announced its plans to buy Baker Hughes for $34.6 billion in cash and stock.

Allergan AGN shares were also up, gaining 7.22 percent to $213.00 after the company agreed to be acquired by Actavis Plc ACT for $66 billion.

Equities Trading DOWN

Shares of DreamWorks Animation SKG DWA were down 15.26 percent to $22.05. The talks between Hasbro HAS and DreamWorks Animation have apparently stalled and are unlikely to resume, according to sources reported by WSJ.

Inovio Pharmaceuticals INO shares tumbled 9.91 percent to $9.91. Inovio Pharmaceuticals and Roche RHHBY have terminated their 2013 collaboration, option, and license agreement to co-develop INO-5150.

Denbury Resources DNR was down, falling 9.69 percent to $10.12. Denbury announced its plans to lower its 2015 capital spending by 50%. Credit Suisse downgraded Denbury Resources from Outperform to Neutral and lowered the price target from $19.00 to $16.00.

Commodities

In commodity news, oil traded down 1.06 percent to $75.02, while gold traded up 0.06 percent to $1,186.30.

Silver traded down 1.19 percent Monday to $16.12, while copper fell 0.36 percent to $3.03.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 dropped 0.03 percent, the Spanish Ibex Index surged 0.85 percent, while Italy’s FTSE MIB Index rose 0.57 percent. Meanwhile, the German DAX rose 0.07 percent and the French CAC 40 climbed 0.12 percent while UK shares slipped 0.04 percent.

Economics

The Empire State manufacturing index rose to 10.16 in November, versus a prior reading of 6.17. However, economists were expecting a reading of 12.00.

US industrial production slipped 0.10% in October, versus economists’ expectations for a 0.20% gain.

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