Market Overview

Markets Open Lower; Merck KGaA To Acquire Sigma-Aldrich For $17 Billion

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Markets Open Lower; Merck KGaA To Acquire Sigma-Aldrich For $17 Billion

Following the market opening Monday, the Dow traded down 0.14 percent to 17,255.56 while the NASDAQ dropped 0.56 percent to 4,554.24. The S&P also fell, declining 0.35 percent to 2,003.34.

Leading and Lagging Sectors

In trading on Monday, non-cyclical consumer goods & services shares dropped by just 0.15 percent. Top gainers in the sector included The Clorox Company (NYSE: CLX), up 7.8 percent, and Monster Beverage (NASDAQ: MNST), up 2.3 percent.

Energy sector was the top decliner on Monday. Top losers in the sector included CARBO Ceramics (NYSE: CRR), down 17 percent, and Walter Energy (NYSE: WLT), off 7.9 percent.

Top Headline

Germany’s Merck KGaA (OTC: MKGAY) announced its plans to acquire Sigma-Aldrich (NASDAQ: SIAL) for $17 billion in cash.

The offer price of $140 per share represents a 37% premium to Sigma-Aldrich’s closing price of $102.37 on September 19.

Equities Trading UP

Sigma-Aldrich (NASDAQ: SIAL) shares shot up 34.73 percent to $137.92 after Germany's Merck KGaA (OTC: MKGAY) announced its plans to acquire Sigma-Aldrich for $140 per share in cash.

Shares of Viasystems Group (NASDAQ: VIAS) got a boost, shooting up 37.15 percent to $16.05 after TTM Technologies (NASDAQ: TTMI) announced its plans to buy Viasystems for a total value of $16.46 per share.

Epiq Systems (NASDAQ: EPIQ) shares were also up, gaining 10.18 percent to $19.05 after P2 Capital Partners confirmed the EPIQ's rejection of take-private proposal.

Equities Trading DOWN

Shares of TriMas (NASDAQ: TRS) were down 14.61 percent to $25.23 after the company cut its full-year profit outlook.

CARBO Ceramics (NYSE: CRR) shares tumbled 17 percent to $70.15 after the company provided an update concerning marketplace conditions and related impact to sales volumes.

Yahoo! (NASDAQ: YHOO) was down, falling 2.44 percent to $39.93 after Bank of America downgraded the stock from Buy to Neutral.

Commodities

In commodity news, oil traded down 0.22 percent to $92.21, while gold traded down 0.17 percent to $1,214.50.

Silver traded down 0.86 percent Monday to $17.69, while copper fell 1.65 percent to $3.04.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.31 percent, the Spanish Ibex Index fell 0.07 percent, while Italy’s FTSE MIB Index declined 0.71 percent. Meanwhile, the German DAX fell 0.16 percent and the French CAC 40 fell 0.20 percent while UK shares dropped 0.48 percent.

Economics

The Chicago Fed National Activity Index declined to negative 0.21 in August, versus positive 0.26 in July.

Sales of existing homes fell 1.8% to an annual rate of 5.05 million in August. However, economists were estimating the sales rate to rise to 5.2 million.

Posted-In: Earnings News Guidance Eurozone Futures Commodities M&A Markets

 

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