Mid-Morning Market Update: Markets Tumble, Cynosure To Acquire Palomar
Following the market opening Monday, the Dow traded down 0.35 percent to 14,463.74 while the NASDAQ dropped 0.65 percent to 3,228.06. The S&P also fell, declining 0.63 percent to 1,550.92.
The S&P looks set to lose its 1,556 support today, with lower support set at 1,540.
The Dow seems to be breaking down this morning, falling under 14,410, while holding lower support at 14,200.
The Russell is also heading lower, testing its 938 support, with 920 acting as support below that.
Finally, the NASDAQ loses its 3,230 support and rests in the 3,215 support area.
Palomar shareholders will receive $6.825 per share in cash and $6.825 in stock. The transaction price represents an 8% premium to Palomar's closing price on Friday. The deal is likely to close in the third quarter of 2013.
Equities Trading UP
STMicroelectronics NV (NYSE: STM) shot up 3.80 percent to $7.93. Ericsson and STMicroelectronics announced an agreement on the way forward for the joint venture ST-Ericsson.
Shares of Constellation Brands (NYSE: STZ) got a boost, shooting up 2.30 percent to $46.80.
J. C. Penney Company (NYSE: JCP) was also up, gaining 6.07 percent to $16.42.
Equities Trading DOWN Incyte (NASDAQ: INCY) shares tumbled 9.43 percent to $22.50 after the company disclosed that it was informed of a case of PML in a male patient treated with ruxolitinib.
Advent Software (NASDAQ: ADVS) was also down, falling 9.88 percent to $26.00 after the company's board remained committed to continue as an independent company after completing a review of its strategic alternatives.
Shares of ING Groep NV (NYSE: ING) were down 5.26 percent to $7.92.
In commodity news, oil traded down 1.35 percent to $92.19, while gold traded up 0.85 percent to $1,606.10.
Silver traded up 0.29 percent Monday to $28.94, while copper fell 2.47 percent to $3.43.
European shares traded lower but off of session lows as financials led stocks lower following the bailout of Cyprus. The Spanish Ibex Index tumbled 2.06 percent and the Italian FTSE MIB Index fell 1.89 percent. The STOXX Europe 600 Index fell 0.58 percent, London's FTSE 100 Index declined 0.54 percent, French CAC 40 Index dipped 1.32 percent and German DAX 30 index dropped 0.97 percent.
The NAHB builder-confidence index fell to 44 in March, versus 46 in February. However, analysts were expecting the index to rise to 47 in March.
The Treasury is set to auction 3- and 6-month bills.
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