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Market Overview

Mid-Morning Market Update: Markets Open Higher; Delek to Acquire Outstanding Alon USA Shares

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Following the market opening Tuesday, the Dow traded up 0.80 percent to 19,921.39 while the NASDAQ climbed 1.22 percent to 5,448.66. The S&P also rose, gaining 1.03 percent to 2,261.96.

Leading and Lagging Sectors

Energy shares gained around 1.94 percent in trading on Tuesday. Meanwhile, top gainers in the sector included Alon USA Energy, Inc. (NYSE: ALJ), and Tidewater Inc. (NYSE: TDW).

In trading on Tuesday, utilities shares slipped by 0.37 percent. Meanwhile, top losers in the sector included Pure Cycle Corporation (NASDAQ: PCYO), down 7 percent, and Artesian Resources Corporation (NASDAQ: ARTNA), down 3 percent.

Top Headline

Delek US Holdings, Inc. (NYSE: DK) agreed to acquire remaining outstanding shares of Alon USA Energy, Inc. (NYSE: ALJ) for $464 million..

The implied price of $12.13 per share represents a 6.6 percent premium over Alon's closing price on Friday.

Equities Trading UP

Interpace Diagnostics Group Inc (NASDAQ: IDXG) shares shot up 67 percent to $7.36 as the company reported an agreement with the Blue Cross Blue Shield Association's "Center for Clinical Effectiveness" to support enhanced coverage.

Shares of First NBC Bank Holding Company (NASDAQ: FNBC) got a boost, shooting up 11 percent to $8.10. First NBC agreed to sell nine branches, and certain assets and liabilities to Whitney Bank. First NBC Bank also appointed Crowe Horwath LLP as its new independent auditor for the year ended December 31, 2016.

Alon USA Energy, Inc. (NYSE: ALJ) shares were also up, gaining 9 percent to $12.42. Delek US Holdings, Inc. (NYSE: DK) agreed to acquire remaining outstanding shares of Alon USA.


Equities Trading DOWN

Inotek Pharmaceuticals Corp (NASDAQ: ITEK) shares dropped 69 percent to $1.91 after the company disclosed that it did not achieve its primary endpoint in first Phase 3 trial of trabodenoson for glaucoma.

Shares of Sito Mobile Ltd (NASDAQ: SITO) were down around 25 percent to $2.77. SITO Mobile expects Q4 preliminary media placement revenue of $7.3 million to $7.6 million.

1347 Property Insurance Holdings Inc (NASDAQ: PIH) was down, falling around 13 percent to $6.80 after the company issued an update on strategic review process and announces changes to the board. The company announced the resignation of L. Christopher Saenger from its board and named D. Kyle Cerminara to the board.


Commodities


In commodity news, oil traded up 2.01 percent to $54.80 while gold traded down 0.10 percent to $1,150.50.

Silver traded up 0.32 percent Tuesday to $16.04, while copper rose 0.28 percent to $2.51.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.77 percent, the Spanish Ibex Index rose 0.60 percent, while Italy’s FTSE MIB Index gained 0.79 percent. Meanwhile the German DAX slipped 0.02 percent, and the French CAC 40 gained 0.43 percent while U.K. shares rose 0.51 percent.

Economics

The Markit manufacturing PMI rose to 54.30 for December, versus a prior reading of 54.20. Economists were expecting a reading of 54.20.

The ISM manufacturing index increased to 54.70 in December, versus a previous reading of 53.20. However, economists projected a reading of 53.50.

U.S. construction spending rose 0.90 percent for November, versus economists’ expectations for a 0.50 percent growth.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

The Treasury will also auction 4-and 52-week bills at 11:30 a.m. ET.

The Gallup's Economic Confidence Index for December is schedule for release at 2:00 p.m. ET.

 

Related Articles (ALJ + TDW)

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

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