Market Overview

Mid-Morning Market Update: Markets Open Lower; Sysco Terminates Merger With US Foods

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Following the market opening Monday, the Dow traded down 0.73 percent to 17,816.03 while the NASDAQ slipped 0.86 percent to 5,036.67. The S&P also fell, dropping 0.71 percent to 2,086.64.

Leading and Lagging Sectors

Utilities shares rose by 0.26 percent on Monday. Meanwhile, top gainers in the sector included Huaneng Power International Inc (ADR) (NYSE: HNP), up 3 percent, and Consolidated Water Co. Ltd. (NASDAQ: CWCO), up 2 percent.

In trading on Monday, financial shares slipped by 1.22 percent. Meanwhile, top losers in the sector included MBIA Inc. (NYSE: MBI), down 14 percent, and Bancorp Inc (NASDAQ: TBBK), off 13 percent.

Top Headline

SYSCO Corporation (NYSE: SYY) reported that it has terminated a merger agreement with US Foods. Sysco will pay $300 million in breakup fee to US Foods and another $12.5 million to Performance Foods Group.

Sysco announced its plans to buy back up to $3 billion of stock.

Equities Trading UP

Aratana Therapeutics Inc (NASDAQ: PETX) shares shot up 12 percent to $14.99 after the company reported positive pivotal results for AT-002.

Shares of MYR Group Inc (NASDAQ: MYRG) got a boost, shooting up 6 percent to $30.96. MYR Group will replace Molina Healthcare, Inc. (NYSE: MOH) in the S&P SmallCap 600 after the close of trading on June 30.

KongZhong Corporation (ADR) (NASDAQ: KZ) shares were also up, gaining 5 percent to $7.40 after the company announced the receipt of 'going private' offer from group led by Chairman and CEO for $8.56 per share.

Equities Trading DOWN

MBIA Inc. (NYSE: MBI) shares tumbled 14 percent to $7.16. BTIG Research downgraded MBIA from Buy to Neutral.

Shares of Vitae Pharmaceuticals Inc (NASDAQ: VTAE) were down 18 percent to $12.54. Vitae Pharmaceuticals announced the initiation of Phase 1 autoimmune study and reported top-line results from metformin arm of ongoing Phase 2 clinical trial of BI187004/VTP-34072 in overweight type 2 diabetics.

Assured Guaranty Ltd. (NYSE: AGO) was down, falling 10 percent to $24.75. BTIG Research downgraded Assured Guaranty from Buy to Neutral.

Commodities

In commodity news, oil traded down 1.68 percent to $58.63, while gold traded up 0.19 percent to $1,175.40.

Silver traded up 0.11 percent Monday to $15.79, while copper rose 0.11 percent to $2.64.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 fell 1.45 percent, the Spanish Ibex Index slipped 3.31 percent, while Italy’s FTSE MIB Index declined 3.32 percent. Meanwhile, the German DAX fell 1.94 percent, and the French CAC 40 dropped 2.45 percent while UK shares slipped 0.94 percent.

Economics

The pending home sales index increased 0.9 percent in May, the National Association of Realtors reported. Economists were expecting a 1.2 percent growth.

The Dallas Fed general activity index for June will be released today.

Data on farm prices for June will be released at 3:00 p.m. ET.

Posted-In: Earnings M&A News Eurozone Futures Commodities FDA Econ #s

 

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