Market Overview

Mid-Morning Market Update: Markets Mostly Flat; Alaska Air To Acquire Virgin America For $57/Share

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Following the market opening Monday, the Dow traded up 0.05 percent to 17,802.27 while the NASDAQ gained 0.04 percent to 4,916.67. The S&P also rose, gaining 0.04 percent to 2,073.66.

Leading and Lagging Sectors

On Monday, healthcare shares gained by 0.71 percent. Meanwhile, top gainers in the sector included Edwards Lifesciences Corp (NYSE: EW), up 15 percent, and MediciNova, Inc. (NASDAQ: MNOV), up 13 percent.

In trading on Monday, basic materials shares fell by 0.39 percent. Meanwhile, top losers in the sector included Allegheny Technologies Incorporated (NYSE: ATI), down 5 percent, and Endeavour Silver Corp (NYSE: EXK), down 3 percent.

Top Headline

Alaska Air Group, Inc. confirmed it has entered into an agreement to acquire Virgin America Inc for $57.00 per share in cash.

Alaska Air stated the transaction is expected to be accretive to its adjusted earnings per share in the first full year. The deal will increase its annual revenue by 27 percent to more than $7 billion, generate $225 million in total net synergies and "bolsters its platform for growth."

Equities Trading UP

Virgin America Inc (NASDAQ: VA) shares shot up 40 percent to $54.33 after Alaska Air Group, Inc. (NYSE: ALK) confirmed it has entered into an agreement to acquire the airline for $57.00 per share in cash.

Shares of Ruckus Wireless Inc (NASDAQ: RKUS) got a boost, shooting up 32 percent to $13.19 after Brocade Communications Systems announced plans to buy Ruckus Wireless in a $1.5 billion deal.

Zafgen Inc (NASDAQ: ZFGN) shares were also up, gaining 16 percent to $7.80 after the company announced positive data from a Phase 3 trial evaluating the safety and efficacy of beloranib.

Equities Trading DOWN

Iradimed Corp (NASDAQ: IRMD) shares dropped 15 percent to $16.50 following announcement of the FDA denial. Iradimed has been notified by the FDA that its 510(k) application was denied with a finding of non-substantial equivalence.

Shares of Smith & Wesson Holding Corp (NASDAQ: SWHC) were down 12 percent to $24.48. Cowen & Company downgraded Smith & Wesson from Outperform to Market Perform.

Brocade Communications Systems, Inc. (NASDAQ: BRCD) was down, falling around 14 percent to $9.19 as the company announced plans to buy Ruckus Wireless in a $1.5 billion deal.

Commodities

In commodity news, oil traded up 0.11 percent to $36.83, while gold traded down 0.08 percent to $1,222.50.

Silver traded down 0.17 percent Monday to $15.02, while copper fell 0.05 percent to $2.16.

Eurozone

European shares were mostly higher today. The eurozone's STOXX 600 gained 0.64 percent, the Spanish Ibex Index rose 0.22 percent, while Italy's FTSE MIB Index dropped 0.17 percent. Meanwhile, the German DAX climbed 0.63 percent, and the French CAC 40 gained 0.61 percent, while U.K. shares rose 0.53 percent.

Economics

U.S. factory orders declined 1.70 percent for February, versus economists ‘expectations for a 1.70 percent drop.

Posted-In: News Eurozone Commodities M&A Global Intraday Update Markets Movers

 

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