Market Overview

Mid-Morning Market Update: Markets Open Lower; Hostess Brands To Buy Voortman Cookies

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Following the market opening Monday, the Dow traded down 0.41% to 27937.69 while the NASDAQ fell 0.94% to 8,583.76. The S&P also fell, dropping 0.52% to 3,124.63.

Leading and Lagging Sectors

Energy shares climbed 1% on Monday. Meanwhile, top gainers in the sector included The Nextier Oilfield Solutions Inc (NYSE: NEX), up 6%, and McDermott International Inc (NYSE: MDR), up 6%.

In trading on Monday, real estate shares fell 1.3%.

Top Headline

Hostess Brands Inc (NASDAQ: TWNK) will acquire Voortman Cookies, a manufacturer of branded wafers and sugar-free specialty cookies, from Swander Pace Capital for approximately $320 million in cash. The transaction is expected to close in early January.

The company plans to finance the $320 million transaction by using cash on its balance sheet, along with secured financing commitments from Credit Suisse and Citi.

Equities Trading UP

Kodiak Sciences Inc. (NASDAQ: KOD) shares shot up 131% to $68.24 after the company reported the sale of future royalties on KSI-301 for $225 million to Baker Bros. Advisors.

Shares of ASLAN Pharmaceuticals Limited (NASDAQ: ASLN) got a boost, shooting up 68% to $6.40 after the company reported positive data from its proof-of-concept study of ASLAN004.

NF Energy Saving Corporation (NASDAQ: BIMI) shares were also up, gaining 23% to $3.2398 after the company announced it would acquire Chongqing Guanzan Technology for RMB 100 million.

Equities Trading DOWN

Paringa Resources Limited (NASDAQ: PNRL) shares tumbled 17% to $1.82 after dropping 57.9% on Friday.

Shares of Cancer Genetics, Inc. (NASDAQ: CGIX) were down 17% to $7.28 after climbing 58.2% on Friday.

Just Energy Group Inc. (NYSE: JE) was down, falling 16% to $2.29 after the company announced it would suspend its dividend on its Series A preferred stock.

Commodities

In commodity news, oil traded up 2.4% to $56.51, while gold traded down 0.6% to $1,463.90.

Silver traded down 0.9% Monday to $16.955, while copper fell 0.1% to $2.6595.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 rose 0.1%, the Spanish Ibex Index fell 0.5%, while Italy’s FTSE MIB Index declined 0.6%. Meanwhile, the German DAX gained 0.1%, and the French CAC 40 fell 0.2% while UK shares rose 0.1%.

Economics

The IHS Markit manufacturing PMI rose to 52.6 in November, compared to a preliminary reading of 52.2 and versus 51.3 in October.

The ISM manufacturing PMI declined to 48.1 in November, compared to 48.3 in October.

Construction spending fell 0.8% in October 2019, versus a revised 0.3% decline in the prior month.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

 

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

 

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