Market Overview

Mid-Morning Market Update: Markets Rise; Renesas To Acquire Integrated Device Technology For $6.7B

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Following the market opening Tuesday, the Dow traded up 0.05 percent to 25,870.96 while the NASDAQ climbed 0.26 percent to 7,945.03. The S&P also rose, gaining 0.06 percent to 2,878.78.

Leading and Lagging Sectors

Tuesday morning, the telecommunication services shares rose 0.37 percent. Meanwhile, top gainers in the sector included CenturyLink, Inc. (NYSE: CTL) up 3 percent, and SK Telecom Co., Ltd. (NYSE: SKM) up 3 percent.

In trading on Tuesday, materials shares fell 0.52 percent.

Top Headline

Renesas Electronics Corporation (OTC: RNECY) announced plans to acquire Integrated Device Technology (NASDAQ: IDTI) for $6.7 billion.

Renesas will pay $49 per share in cash to buy Integrated Device Technology, representing a 16 percent premium over its closing price on Monday.

Equities Trading UP

Invuity, Inc. (NASDAQ: IVTY) shares shot up 28 percent to $7.35 after the company agreed to be acquired by Stryker Corporation (NYSE: SYK) for $7.40 per share in cash.

Shares of IZEA Worldwide, Inc. (NASDAQ: IZEA) got a boost, shooting up 23 percent to $1.8499 after the company late Monday reported a deal with a top 50 US retailer. Separately, the company issued Q3 guidance and said it expects Q3 to see the largest bookings in company history.

Integrated Device Technology, Inc. (NASDAQ: IDTI) shares were also up, gaining 11 percent to $46.84 after Renesas Electronics Corporation (OTC: RNECY) announced plans to acquire Integrated Device Technology for $49 per share in cash.

Equities Trading DOWN

Francesca's Holdings Corporation (NASDAQ: FRAN) shares dropped 32 percent to $4.015 after the company posted downbeat Q2 results and issued weak Q3 forecast.

Shares of USA Technologies, Inc. (NASDAQ: USAT) were down 32 percent to $10.475. The company earlier announced it will delay the filing of its 10-K for 2018 until an audit committee completes internal investigation of prior period matters.

Sonos, Inc. (NASDAQ: SONO) was down, falling around 17 percent to $17.6553 after the company reported downbeat earnings for its third quarter. The company said it will not provide quarterly guidance going forward.

Commodities

In commodity news, oil traded up 0.21 percent to $67.68 while gold traded down 0.14 percent to $1,198.10.

Silver traded down 0.22 percent Tuesday to $14.15, while copper fell 0.42 to $2.617.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 0.44 percent, the Spanish Ibex Index fell 0.47 percent, while Italy’s FTSE MIB Index declined 0.61 percent. Meanwhile the German DAX declined 0.64 percent, and the French CAC 40 fell 0.41 percent while U.K. shares fell 0.59 percent.

Economics

The NFIB small business optimism index increased rose 0.9 points to a reading of 108.8 for August.

The Johnson Redbook Retail Sales Index rose 0.8 percent during the first week of September versus August.

U.S. job openings rose to 6.9 million in July, according to the Labor Department.

U.S. wholesale inventories rose 0.6 percent for July, versus economists’ expectations for a 0.7 percent increase.

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

The Treasury will auction 3-year notes at 1:00 p.m. ET.

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

 

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