Market Overview

Mid-Afternoon Market Update: Bioverativ Climbs Following $105/Share Offer From Sanofi; Recon Technology Shares Drop

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Toward the end of trading Monday, the Dow traded up 0.17 percent to 26,115.51 while the NASDAQ gained 0.60 percent to 7,380.30. The S&P also rose, gaining 0.39 percent to 2,821.31.

Leading and Lagging Sectors

Monday afternoon, the energy sector proved to be a source of strength for the market. Leading the sector was strength from Halliburton Company (NYSE: HAL) and Resolute Energy Corp (NYSE: REN).

In trading on Monday, basic materials shares fell 0.33 percent. Meanwhile, top losers in the sector included AK Steel Holding Corporation (NYSE: AKS), down 4 percent, and OMNOVA Solutions Inc. (NYSE: OMN) down 3 percent.

Top Headline

Halliburton Company (NYSE: HAL) posted stronger-than-expected results for its fourth quarter.

Halliburton posted adjusted earnings of $0.53 per share in the quarter on revenue of $5.94 billion which exceeded Wall Street's expectations for $0.46 per share and $5.63 billion.

Equities Trading UP

Bioverativ Inc (NASDAQ: BIVV) shares shot up 62 percent to $103.64. Sanofi SA (ADR) (NYSE: SNY) announced plans to acquire Bioverativ for $11.6 billion, or $105 per share in cash.

Shares of Validus Holdings, Ltd. (NYSE: VR) got a boost, shooting up 44 percent to $67.36 after American International Group Inc (NYSE: AIG) announced plans to acquire Validus for $68 per share in cash.

Juno Therapeutics Inc (NASDAQ: JUNO) shares were also up, gaining 27 percent to $85.85 as the company agreed to be acquired for $87 per share in cash by Celgene Corporation (NASDAQ: CELG).

Equities Trading DOWN

Sanmina Corp (NASDAQ: SANM) shares dropped 24 percent to $27.00 after the company lowered its forecast for the first quarter and also issued a weak outlook for the second quarter.

Shares of Recon Technology, Ltd. (NASDAQ: RCON) were down 23 percent to $2.01. Recon Technology priced its 3.96 million share registered direct offering at $1.66 per share.

Idera Pharmaceuticals Inc (NASDAQ: IDRA) was down, falling around 18 percent to $2.09. BioCryst Pharma and Idera Pharma announced plans to merge.

Commodities

In commodity news, oil traded up 0.17 percent to $63.48 while gold traded down 0.09 percent to $1,331.90.

Silver traded down 0.30 percent Monday to $16.985, while copper rose 0.47 percent to $3.2025.

Eurozone

European shares closed higher today. The eurozone’s STOXX 600 rose 0.31 percent, the Spanish Ibex Index climbed 1 percent, while Italy’s FTSE MIB Index gained 0.59 percent. Meanwhile the German DAX gained 0.22 percent, and the French CAC 40 rose 0.28 percent while U.K. shares fell 0.20 percent.

Economics

USA Chicago Fed National Activity Index rose to 0.27 for December, versus prior reading of 0.15. However, economists were expecting a reading of 0.44.

Posted-In: Mid-Afternoon Market UpdateNews Eurozone Commodities Global Intraday Update Markets

 

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