Market Overview

Mid-Morning Market Update: Markets Open Lower; Roche To Acquire Rest Of Foundation Medicine


Following the market opening Tuesday, the Dow traded down 1.52 percent to 24,606.47 while the NASDAQ declined 1.09 percent to 7,662.88. The S&P also fell, dropping 0.96 percent to 2,747.11.

Leading and Lagging Sectors

Tuesday morning, the utilities shares surged 0.67 percent. Meanwhile, top gainers in the sector included Atlantic Power Corporation (NYSE: AT) up 4 percent, and New Jersey Resources Corporation (NYSE: NJR) up 2 percent.

In trading on Tuesday, materials shares fell 2.33 percent.

Top Headline

Roche announced plans to acquire outstanding shares of Foundation Medicine, Inc. (NASDAQ: FMI) for $2.4 billion.

The offer price of $137 per share represents a 29 percent premium over FMI's closing price on Monday.


Equities Trading UP

Gevo, Inc. (NASDAQ: GEVO) shares shot up 39 percent to $17.6508. Gevo shares surged around 262 percent on Monday after the EPA announced it has approved up to a 16 percent blend of isobutanol for use in automobiles.

Shares of Foundation Medicine, Inc. (NASDAQ: FMI) got a boost, shooting up 28 percent to $136.7173 after Roche announced plans to acquire outstanding shares of FMI for $137 per share in cash.

Neptune Technologies & Bioressources Inc. (NASDAQ: NEPT) shares were also up, gaining 28 percent to $3.1314 after the company reported a multi-year deal with Canopy Growth for supplementing of Canopy's extraction, refinement, and extract product formulation capacity.

Equities Trading DOWN

PagSeguro Digital Ltd. (NYSE: PAGS) shares dropped 13 percent to $27.83 after reporting a follow-on offering. Credit Suisse downgraded PagSeguro Digital from Neutral to Underperform.

Shares of Tellurian Inc. (NASDAQ: TELL) were down 10 percent to $9.77. Tellurian priced its 12 million share offering of common stock for gross proceeds of $118.8 million.

Commercial Metals Company (NYSE: CMC) was down, falling around 6 percent to $22.705. Bank of America downgraded Commercial Metals from Neutral to Underperform.


In commodity news, oil traded down 1.41 percent to $64.92 while gold traded down 0.34 percent to $1,275.80.

Silver traded down 1.06 percent Tuesday to $16.265, while copper fell 1.95 to $3.068.


European shares were lower today. The eurozone’s STOXX 600 dropped 0.73 percent, the Spanish Ibex Index fell 0.48 percent, while Italy’s FTSE MIB Index dipped 0.39 percent. Meanwhile the German DAX dropped 1.25 percent, and the French CAC 40 fell 1.16 percent while U.K. shares fell 0.50 percent.


The Treasury is set to auction 4-and 52-week bills at 11:30 a.m. ET.

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


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