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Mid-Morning Market Update: Markets Open Lower; CVS Health To Acquire Target's Pharmacy Business for $1.9B

Mid-Morning Market Update: Markets Open Lower; CVS Health To Acquire Target's Pharmacy Business for $1.9B

Following the market opening Monday, the Dow traded down 0.83 percent to 17,750.77 while the NASDAQ declined 1.01 percent to 5,000.24. The S&P also fell, dropping 0.81 percent to 2,077.25.

Top Headline

  • CVS Health Corp (NYSE: CVS) announced its plans to acquire Target Corp's (NYSE: TGT) pharmacy and clinics businesses for around $1.9 billion.

The deal will lower 2016 adjusted EPS by around $0.06 per share, CVS reported.

Equities Trading UP

  • DealerTrack Technologies Inc (NASDAQ: TRAK) shares shot up 58 percent to $62.78 after the company agreed to be acquired at $4 billion, or $63.25 per share in an all-cash transaction valued.
  • Shares of Standard Pacific Corp. (NYSE: SPF) got a boost, shooting up 4 percent to $8.72. Standard Pacific and Ryland Group Inc (NYSE: RYL) agreed to merge in an all-stock transaction.
  • Idera Pharmaceuticals Inc (NASDAQ: IDRA) shares were also up, gaining 6 percent to $3.77. JP Morgan initiated coverage on Idera Pharmaceuticals with a Overweight rating.

Equities Trading DOWN

  • AirMedia Group Inc (ADR) (NASDAQ: AMCN) shares tumbled 17 percent to $6.01 after the company reported that it has reached a definitive agreement to sell 75 percent of its advertising business for RMB 2.1 billion.
  • Shares of iDreamSky Technology Ltd (ADR) (NASDAQ: DSKY) were down 11 percent to $12.97 after the company reported the receipt of preliminary non-binding bid at $3.50 per share.
  • Micron Technology, Inc. (NASDAQ: MU) was down, falling 5 percent to $23.84. Morgan Stanley downgraded Micron Technology from Equal-weight to Underweight and lowered the price target from $30.00 to $21.00.


In commodity news, oil traded down 1.87 percent to $58.84, while gold traded down 0.09 percent to $1,178.10.

Silver traded up 0.57 percent Monday to $15.92, while copper fell 1.21 percent to $2.65.


European shares were lower today. The eurozone’s STOXX 600 declined 1.49 percent, the Spanish Ibex Index slipped 2.08 percent, while Italy’s FTSE MIB Index fell 2.31 percent. Meanwhile, the German DAX dropped 1.98 percent, and the French CAC 40 fell 1.76 percent while UK shares fell 0.88 percent.


The Empire State manufacturing declined to negative 1.98 in June, versus 3.09 in May. However, economists were expecting a reading of 6.00.

The NAHB housing market index gained 5 points to 59 in June. Economists were projecting a reading of 56.


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