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Market Wrap For Wednesday, September 4: Markets Increase Slightly As M&As Continue To Rise

Market Wrap For Wednesday, September 4: Markets Increase Slightly As M&As Continue To Rise

Staying on course for yesterday's acquisition frenzy, several mergers and acquisitions were announced on Wednesday, September 4.

Major Averages

The Dow Jones Industrial Average increased by 96.91 points, or 0.65 percent, to 14,930.87.

The S&P 500 rose 13.31 points, or 0.81 percent, to 1,653.08.

The Nasdaq improved upon yesterday's gains after rising 36.43 points, or 1.01 percent, to 3,649.04.

The Russell 3000 continued to rise as well, gaining 7.99 points, or 0.81 percent, to 988.84.

Acquisitions And Purchases

Shortly after the market close, Louisiana-Pacific Corporation (NYSE: LPX) announced that it will acquire all of the outstanding common shares of Ainsworth Lumber Co. Ltd. for a total consideration that equates to C$3.76 per Ainsworth common share. This is based on the closing price of Louisiana-Pacific's common shares on September 3, 2013.

Meritage Homes Corporation (NYSE: MTH) announced that it will enter the Nashville, Tennessee market after acquiring the assets and operations of Phillips Builders.

Wheeler Real Estate Investment Trust (NASDAQ: WHLR) revealed its plans to acquire Tampa Festival and Forrest Gallery for $23.4 million.

Newcastle Investment Corp. (NYSE: NCT) announced today that it has acquired the Dow Jones Local Media Group from News Corp. (NASDAQ: NWS) for $87 million.

Independence Holding Company (NYSE: IHC) announced that it has commenced a tender offer to purchase as many as 762,640 shares of the common stock of American Independence Corp. (NASDAQ: AMIC). The deal could provide American Independence with $10 cash per share.

MGT Interactive, a subsidiary of MGT Capital Investments, Inc. (NYSE: MGT), acquired some assets from Gioia Systems LLC. No terms were disclosed.

Arthur J. Gallagher & Co. (NYSE: AJG) will acquire the Giles Group of companies headquartered in London, England for an undisclosed sum.

Rochester Medical Corporation (NASDAQ: ROCM) announced that it has entered into a definitive merger agreement with C. R. Bard, Inc. (NYSE: BCR). The deal is worth approximately $262 million or $20 per share.

Broadcom Corporation (NASDAQ: BRCM) will acquire LTE-related assets from affiliates of Renesas Electronics Corporation (OTC: RNECY) for $164 million.

Spreadtrum Communications, Inc. (NASDAQ: SPRD) received shareholder approval to be acquired by Tsinghua Unigroup.

Biggest Stock Gainers

Ciena (NASDAQ: CIEN) gained 13.83 percent and closed at $23.54 after posting a positive third-quarter profit.

E*TRADE Financial (NASDAQ: ETFC) closed at $15.71 -- an 8.05 percent gain -- after E*TRADE Bank (a subsidiary) received regulatory approval to dividend capital to the parent company.

Micron Technology (NASDAQ: MU) rose 5.3 percent to $14.75 after Sterne Agee's Vijay Rakesh made some bullish comments on the stock.

Last but not least, SouFun Holdings (NASDAQ: SFUN) soared 6.26 percent to $50.07.

Biggest Stock Losers

Francesca's Holdings (NASDAQ: FRAN) lost more than 25 percent of its value and closed at $17.79 after reporting disappointing earnings results.

SAIC (NYSE: SAI) dropped 4.88 percent to $14.41, also due to poor earnings and a reduced forecast.

Ryanair Holdings (NASDAQ: RYAAY) closed at $44.51 -- an 8.9 percent decline -- after the firm warned that full-year profits could fall short of expectations.

Volume And Volatility

SPDR S&P 500 ETF (NYSE: SPY) trading volume came in at roughly 97.1 million shares today -- a bit lower than the 131.5 million shares that were traded Tuesday and the 126.8 million average traded over the last three months.

Meanwhile, the VIX index plummeted 4.39 percent to 15.88.


Gold futures dropped 0.62 percent to $1,401.80. Silver futures dropped 4.26 percent to $23.33. Platinum plummeted 2.74 percent to $1,496.00.

Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.

Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ


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