Mid-Morning Market Update: Markets Drop; Smith & Nephew To Acquire ArthroCare For $48.25/Share
Following the market opening Monday, the Dow traded down 0.53 percent to 15,616.00 while the NASDAQ tumbled 0.65 percent to 4,077.25. The S&P also fell, dropping 0.52 percent to 1,773.41.
Smith & Nephew PLC (NYSE: SNN) announced its plans to buy ArthroCare (NASDAQ: ARTC) for $1.7 billion in cash. Smith & Nephew will pay $48.25 per share in cash to acquire ArthroCare, representing a 6.3% premium to ArthroCare's closing price on January 31.
Equities Trading UP
Kratos Defense & Security Solutions (NASDAQ: KTOS) shot up 26.28 percent to $9.13 after the company reported that it has been awarded a five-year seaport-e contract.
Equities Trading DOWN
Shares of Jos. A Bank Clothiers (NASDAQ: JOSB) were down 4.20 percent to $53.86. Jos. A. Bank is said to be in talks with Eddie Bauer to acquire the clothing chain, according to reports from several sources, including Reuters and the Wall Street Journal.
Mattel (NASDAQ: MAT) was down, falling 2.76 percent to $36.80 after B. Riley & Co downgraded the stock from Buy to Neutral and lowered the target price from $55 to $41.
In commodity news, oil traded up 0.10 percent to $97.59, while gold traded up 0.55 percent to $1,246.60.
Silver traded up 0.63 percent Monday to $19.24, while copper fell 0.09 percent to $3.19.
European shares were lower today.
The Spanish Ibex Index fell 0.56 percent, while Italy's FTSE MIB Index declined 1.09 percent.
Meanwhile, the German DAX tumbled 0.23 percent and the French CAC 40 slipped 0.37 percent while U.K. shares fell 0.23 percent.
The final reading of the Markit PMI manufacturing index came in at 53.7 in January, versus a reading of 55.00 in December.
The ISM manufacturing composite index fell to 51.30 in January, versus economists' expectations for a reading of 56.00.
U.S. construction spending rose 0.10% to an annual rate $930.5 billion in December, versus economists' estimates of a 0.00% gain.
The Treasury is set to auction 3-and 6-month bills.
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