Mid-Afternoon Market Update: Dow Falls Over 500 Points; Imperva Shares Surge

Toward the end of trading Wednesday, the Dow traded down 1.95 percent to 25,916.44 while the NASDAQ declined 2.37 percent to 7,554.45. The S&P also fell, dropping 1.96 percent to 2,823.97.

Leading and Lagging Sectors

Wednesday afternoon, the utilities shares rose 0.5 percent. Meanwhile, top gainers in the sector included National Grid plc NGG up 3 percent, and Ferrellgas Partners, L.P. FGP up 3 percent.

In trading on Wednesday, information technology shares fell 2.9 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

Imperva, Inc. IMPV shares shot up 28 percent to $55.10 after the company agreed Wednesday morning to sell itself to private equity firm Thoma Bravo for an approximate 30-percent premium. The deal prices Imperva at $55.75 per share.

Shares of IDT Corporation IDT got a boost, shooting up 33 percent to $7.0405 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.

Esterline Technologies Corporation ESL shares were also up, gaining 30 percent to $115.00. TransDigm Group Incorporated TDG confirmed Wednesday it entered an agreement to buy aerospace and defense supplier Esterline for a near 40-percent premium. TransDigm reached an agreement to acquire Esterline for $122.50 per share in cash in a deal which values the company at around $4 billion, the companies said in a press release.

Equities Trading DOWN

One Horizon Group Inc OHGI shares dropped 25 percent to $0.2920 after the company filed for an 8.5 million share offering.

Shares of Trinseo S.A. TSE were down 19 percent to $61.955 as the company lowered its guidance for the third quarter.

Sears Holdings Corporation SHLD was down, falling around 29 percent to $0.4160 after the Wall Street Journal reported the company hired M-III partners to prepare a bankruptcy filing.

Commodities

In commodity news, oil traded down 2.23 percent to $73.29 while gold traded up 0.19 percent to $1,193.80.

Silver traded down 0.59 percent Wednesday to $14.315, while copper fell 1.41 to $2.767.

Eurozone

European shares closed lower today. The eurozone’s STOXX 600 declined 1.61 percent, the Spanish Ibex Index fell 1.05 percent, while Italy’s FTSE MIB Index slipped 1.71 percent. Meanwhile the German DAX dropped 2.21 percent, and the French CAC 40 fell 2.11 percent while U.K. shares fell 1.27 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.

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