Mid-Morning Market Update: Markets Recovering Losses, Zynga Gets a Boost From Bank of America Upgrade
Following the market opening Tuesday, the Dow traded up 0.83 percent to 13,995.56 while the NASDAQ rose 0.47 percent to 3,145.81. The S&P also rose, increasing 0.80 percent to 1,507.25.
Making headlines this morning was the Dell (NASDAQ: DELL) buyout. After months of speculation and rumour, it was finally announced that it would be taken private by Michael Dell and Silver Lake for $13.65 per share. Following the announcement, shares dropped a little over 2 percent before being halted.
Equities Trading UP
Zynga (NASDAQ: ZNGA) rose 9.28 percent to $2.80 in early trading Tuesday after Bank of America issued an upgrade to Buy ahead of the company's earnings report this afternoon. The upgrade is a risky move for such a large bank to make, and puts its reputation on the line, leading many traders to believe it has forward information about Zynga's earnings today.
Shares of BlackBerry (NASDAQ: BBRY) traded up another 5.39 percent to $15.79 following a report from All Things D that cited BB10 sales were off to a better start than those of the Lumia 920.
Marvell Technology (NASDAQ: MRVL) was also up, gaining 1.89 percent to $9.45 following an upgrade to Outperform at RBC Capital markets this morning.
Equities Trading DOWN
Yum! Brands (NYSE: YUM) fell 6.05 percent to $60.07 following an earnings beat but poor guidance.
The McGraw-Hill Companies (NYSE: MHP) traded down 7.92 percent to $46.31 after the US department of Justice filed a lawsuit alleging fraud over credit ratings.
Shares of Arch Coal (NYSE: ACI) traded down 7.65 percent to $6.40 after posting a loss for the fourth-quarter this morning.
In commodity news, oil traded up 0.81 percent to $96.95, while gold traded down 0.17 percent to $1,673.50.
Silver traded up 0.13 percent Tuesday to $31.85.
European markets were mostly higher this morning, riding an upward swing from the fall in US markets Monday. Leading the rise was the Spanish Ibex, up 1.02 percent while the French CAC rose 0.55 percent.
In economic news, the ISM non-manufacturing index came in at 55.20, very slightly beating projections of 55.00 while coming in slightly below the prior report of 55.70.
The IBD economic optimism index was reported as well, coming in at 47.30, matching expectations and beating the previous release of 46.50.
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