Mid-Morning Market Update: Markets Fall, Tenet Healthcare To Acquire Vanguard Health
Following the market opening Monday, the Dow traded down 1.12 percent to 14,634.38 while the NASDAQ declined 1.36 percent to 3,311.49. The S&P fell, dropping 1.39 percent to 1,570.37.
The offer price of $21 per share represents a 70% premium over Vanguard's closing price on Friday. The deal also includes the assumption of $2.5 billion in Vanguard debt.
The transaction is projected to close by the end of the year.
Shares of Isis Pharmaceuticals (NASDAQ: ISIS) got a boost, shooting up 12.64 percent to $24.77 after the company reported Phase 2 data on ISIS-APOCIII Rx.
Tenet Healthcare (NYSE: THC) was also up, gaining 8.76 percent to $45.08 after the company announced its plans to acquire Vanguard Health.
Equities Trading DOWN
Shares of Solazyme (NASDAQ: SZYM) were down 11.25 percent to $11.20 after the company agreed with Roquette Frères to dissolve their joint venture, Solazyme Roquette Nutritionals LLC.
Deere & Company (NYSE: DE) was down, falling 2.92 percent to $79.80 after JP Morgan downgraded the stock from “neutral” to “underweight.”
In commodity news, oil traded down 0.33 percent to $93.38, while gold traded down 0.33 percent to $1,287.80.
Silver traded down 1 percent Monday to $19.76, while copper fell 2.19 percent to $3.03.
European shares were lower today. The Spanish Ibex Index fell 1.92 percent and the Italian FTSE MIB Index declined 0.77 percent. Meanwhile, the German DAX fell 1.10 percent and the French CAC 40 declined 1.60 percent while U.K. shares tumbled 1.91 percent.
The Chicago Fed National Activity Index rose to -0.30 in May, from -0.52 in the earlier month.
The Dallas Fed general business activity index for June will be released today.
Fed President Richard Fisher is set to speak today.
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