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Mid-Morning Market Update: Markets Open Lower; Westlake Chemical To Purchase Axiall For $33/Share

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Following the market opening Friday, the Dow traded down 0.72 percent to 17,854.93 while the NASDAQ declined 1.03 percent to 4,907.73. The S&P also fell, dropping 0.82 percent to 2,098.18.

Leading and Lagging Sectors

On Friday, utilities shares slipped by just 0.3 percent. Top gainers in the sector included Korea Electric Power Corporation (ADR) (NYSE: KEP) and MGE Energy, Inc. (NASDAQ: MGEE).

In trading on Friday, financial shares tumbled by 1.4 percent. Meanwhile, top losers in the sector included Genworth Financial Inc (NYSE: GNW), down 5 percent, and Walter Investment Management Corp (NYSE: WAC), down 6 percent.

Top Headline

Westlake Chemical Corporation announced plans to acquire Axiall Corp for $33.00 per share in all-cash transaction.

The transaction is likely to complete by the fourth quarter of 2016.

Equities Trading UP

Sophiris Bio Inc (NASDAQ: SPHS) shares shot up 142 percent to $2.83 after the company reported successful results from Phase 2a trial of topsalvsin in localized prostate cancer.

Shares of Axiall Corp (NYSE: AXLL) got a boost, shooting up 25 percent to $32.33 after Westlake Chemical Corporation (NYSE: WLK) announced plans to acquire Axiall for $33.00 per share in all-cash transaction.

Organovo Holdings Inc (NYSE: ONVO) shares were also up, gaining 11 percent to $3.17 following Q4 results. Organovo reported a Q4 loss of $0.09 per share on revenue of $0.5 million.

Equities Trading DOWN

GigPeak Inc (NYSE: GIG) shares dropped 18 percent to $2.14. GigPeak priced offering of 11.32 million shares of common stock at $2 per share.

Shares of Mattress Firm Holding Corp (NASDAQ: MFRM) were down 17 percent to $27.85 as the company reported a wider-than-expected loss for its first quarter and lowered its annual outlook.

Gevo, Inc. (NASDAQ: GEVO) was down, falling around 33 percent to $0.470. Gevo priced 21.08 million shares at $0.45 per share.

Commodities

In commodity news, oil traded down 1.80 percent to $49.65 while gold traded up 0.15 percent to $1,274.60.

Silver traded up 0.39 percent Friday to $17.34, while copper fell 0.17 percent to $2.04.

Eurozone

European shares were lower today. The eurozone's STOXX 600 fell 2.28 percent, the Spanish Ibex Index dropped 2.64 percent, while Italy's FTSE MIB Index slipped 2.82 percent. Meanwhile the German DAX declined 2.47 percent, and the French CAC 40 fell 2.09 percent, while U.K. shares fell 2.04 percent.

Economics

The University of Michigan consumer sentiment index slipped to 94.30 in June, versus a prior reading of 94.70. Economists were expecting a reading of 94.00.

The Federal Budget report for May will be released at 2:00 p.m. ET.

Posted-In: Earnings News Eurozone Commodities Offerings M&A Global Intraday Update

 

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