Mid-Morning Market Update: Markets Open Higher; Burger King In Talks To Buy Tim Hortons

Following the market opening Monday, the Dow traded up 0.62 percent to 17,106.28 while the NASDAQ surged 0.59 percent to 4,565.08. The S&P also rose, gaining 0.56 percent to 1,999.52.

Leading and Lagging Sectors

Monday morning, the healthcare sector proved to be a source of strength for the market. Leading the sector was strength from InterMune ITMN and Infinity Pharmaceuticals INFI.

In trading on Monday, basic materials shares gained by just 0.10 percent. Meanwhile, top decliners in the sector included Greif GEF, down 5.7 percent, and Noranda Aluminum Holding NOR, off 2.1 percent.

Top Headline

Burger King Worldwide BKW is in talks to acquire Canadian doughnut chain Tim Hortons THI.

A potential deal would create the third-largest fast food chain in the world. The new company would be headquartered in Canada

Equities Trading UP

InterMune ITMN shares shot up 35.78 percent to $73.05 after Roche RHHBY announced its plans to acquire InterMune for $74.00 per share in cash.

Shares of Burger King Worldwide BKW got a boost, shooting up 14.46 percent to $31.03. Burger King BKW is in talks to acquire Tim Hortons THI.

Tim Hortons THI shares were also up, gaining 17.97 percent to $74.13 following the confirmation of merger talks.

Equities Trading DOWN

Shares of Qihoo 360 Technology Co QIHU were down 7.90 percent to $93.71 after the company reported Q2 results. Qihoo 360 reported Q2 adjusted EPADS of $0.50 on revenue of $317.90 million.

Greif GEF shares tumbled 5.49 percent to $47.54 after the company cut its FY14 earnings forecast.

Leju Holdings LEJU was down, falling 6.82 percent to $17.16 after surging around 36.2% in the previous month.

Commodities

In commodity news, oil traded up 0.06 percent to $93.71, while gold traded down 0.11 percent to $1,278.80.

Silver traded down 0.12 percent Friday to $19.44, while copper rose 0.19 percent to $3.23.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 gained 0.75 percent, the Spanish Ibex Index climbed 1.21 percent, while Italy’s FTSE MIB Index surged 1.47 percent. Meanwhile, the German DAX rose 1.16 percent and the French CAC 40 surged 1.27 percent while UK shares dropped 0.04 percent.

Economics

The Chicago Fed National Activity Index rose to 0.39 in July, versus economists’ expectations for a reading of 0.20.

The preliminary reading of the Markit services PMI fell to 58.50 in August, versus a prior reading of 60.80. However, economists were expecting a reading of 58.00.

Sales of new US homes declined 2.4% to an annual rate of 412,000 in July. However, economists were expecting a sales rate of 430,000 in July.

The Treasury is set to auction 3-and 6-month bills.

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Posted In: EarningsNewsGuidanceEurozoneFuturesCommoditiesM&AMarketsMovers
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