Mid-Day Market Update: Dow Edges Lower; Platinum Underwriters Shares Jump On Acquisition News

Midway through trading Monday, the Dow traded down 0.06 percent to 17,799.34 while the NASDAQ gained 0.67 percent to 4,744.32. The S&P also rose, gaining 0.18 percent to 2,067.27.

Leading and Lagging Sectors

In trading on Monday, technology shares were relative leaders, up on the day by about 0.61 percent. Top gainers in the sector included Tower Semiconductor TSEM, up 6.7 percent, and 3D Systems DDD, up 5.8 percent.

Basic materials sector was the top decliner in the US market on Monday. Top losers in the sector included Potash Corp. of Saskatchewan POT, Pan American Silver PAAS, and Braskem S.A. BAK.

Top Headline

BioMarin Pharmaceutical BMRN announced its plans to acquire Prosensa Holding NV RNA for around $840 million, including milestone payments.

BioMarin will buy Prosensa for $17.75 per share, representing a 55% premium over Prosensa’s closing price of $11.44 on Friday.

Equities Trading UP

Prosensa Holding N.V. RNA shares shot up 62.98 percent to $18.65 after BioMarin Pharmaceutical BMRN announced its plans to acquire Prosensa for $17.75 per share.

Shares of Platinum Underwriters Holdings PTP got a boost, shooting up 20.45 percent to $73.80 after the company agreed to be acquired by RenaissanceRe Holdings RNR for $76 per share.

Tetraphase Pharmaceuticals TTPH shares were also up, gaining 12.27 percent to $24.80. According to Bloomberg, Tetraphase Pharma is exploring sale options after being approached by potential buyers, people familiar with the matter said.

Equities Trading DOWN

Shares of Trina Solar TSL were down 6.59 percent to $10.21 on Q3 results. Trina Solar reported a rise in its profit for the third quarter and narrowed its full-year shipment forecast.

Chicago Bridge & Iron Company N.V. CBI shares tumbled 5.54 percent to $53.93 after analysts at Goldman Sachs downgraded the stock from Neutral to Sell and lowered the price target from $61 to $46.

Cash America International CSH was down, falling 2.70 percent to $24.52. Analysts at JMP Securities downgraded the stock from Market Outperform to Market Perform.

Commodities

In commodity news, oil traded down 0.27 percent to $76.72, while gold traded down 0.26 percent to $1,195.30.

Silver traded down 0.21 percent Monday to $16.43, while copper fell 0.59 percent to $3.01.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 climbed 0.14 percent, the Spanish Ibex Index gained 1.16 percent, while Italy’s FTSE MIB Index fell 0.14 percent. Meanwhile, the German DAX rose 0.54 percent and the French CAC 40 jumped 0.49 percent while UK shares fell 0.31 percent.

Economics

The Chicago Fed National Activity Index slipped to 0.14 in October, versus 0.29 in September. However, economists were expecting a reading of 0.33.

The preliminary reading of Markit Services PMI fell to 56.30 in November, versus a prior reading of 57.10. However, economists were expecting a reading of 57.30.<

The Dallas Fed general business activity index came in at 10.50 in November, versus a prior reading of 10.50. However, economists were expecting a reading of 9.00.