Mid-Morning Market Update: Markets Open Lower; TransDigm To Buy Esterline

Following the market opening Wednesday, the Dow traded down 1.07 percent to 26,147.02 while the NASDAQ declined 1.62 percent to 7,612.95. The S&P also fell, dropping 1.04 percent to 2,850.46.

Leading and Lagging Sectors

Wednesday morning, the utilities shares rose 0.32 percent. Meanwhile, top gainers in the sector included National Grid plc NGG up 3 percent, and Genie Energy Ltd GNE up 3 percent.

In trading on Wednesday, information technology shares fell 1.9 percent.

Top Headline

TransDigm Group Incorporated TDG announced plans to buy Esterline Technologies Corporation in a $4 billion transaction. TransDigm will pay $122.50 per share for Esterline.

Equities Trading UP

Neovasc Inc. NVCN shares shot up 38 percent to $3.36 after the company disclosed that the U.S. FDA has granted Breakthrough Device designation to the Neovasc Reducer™.

Shares of IDT Corporation IDT got a boost, shooting up 29 percent to $6.82 after the company reported Q4 earnings of $0.33 per share, versus a year-ago loss of $0.41 per share. Its adjusted earnings came in at $0.40 per share. Revenue declined to $392.6 million from $395 million.

Astrotech Corporation ASTC shares were also up, gaining 28 percent to $2.99 after announcing an investment from CEO and current shareholder.

Equities Trading DOWN

Arbutus Biopharma Corporation ABUS shares dropped 16 percent to $5.04 after falling 33.99 percent on Tuesday.

Shares of Trinseo S.A. TSE were down 17 percent to $63.42 as the company lowered its guidance for the third quarter.

Sears Holdings Corporation SHLD was down, falling around 34 percent to $0.385 after the Wall Street Journal reported the company hired M-III partners to prepare a bankruptcy filing.

Commodities

In commodity news, oil traded down 0.35 percent to $74.70 while gold traded down 0.23 percent to $1,188.80.

Silver traded down 0.52 percent Wednesday to $14.325, while copper fell 0.57 to $2.7905.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.45 percent, the Spanish Ibex Index fell 0.25 percent, while Italy’s FTSE MIB Index slipped 0.06 percent. Meanwhile the German DAX dropped 0.80 percent, and the French CAC 40 fell 0.90 percent while U.K. shares fell 0.25 percent.

Economics

The Producer Price Index rose 0.2 percent for September, versus economists’ expectations for a 0.2 percent gain.

U.S. wholesale inventories rose 0.1 percent for August.

The Treasury is set to auction 3-year notes at 11:30 a.m. ET.

Chicago Federal Reserve Bank President Charles Evans is set to speak in Flint, Michigan at 12:15 p.m. ET.

The Treasury will auction 10-year notes at 1:00 p.m. ET.

Atlanta Federal Reserve Bank President Raphael Bostic will speak in Atlanta, Georgia at 6:00 p.m. ET.