Market Overview

Mid-Morning Market Update: Markets Edge Higher; Centene To Acquire Health Net For $6.3B


Following the market opening Thursday, the Dow traded up 0.20 percent to 17,793.98 while the NASDAQ climbed 0.01 percent to 5,013.63. The S&P also rose, gaining 0.18 percent to 2,081.25.

Leading and Lagging Sectors

Energy shares jumped by 1.26 percent on Thursday. Meanwhile, top gainers in the sector included BP plc (ADR) (NYSE: BP), up 5 percent, and Seadrill Ltd (NYSE: SDRL), up 4 percent.

In trading on Thursday, healthcare shares slipped by 0.10 percent. Meanwhile, top losers in the sector included Integra Lifesciences Holdings Corp (NASDAQ: IART), down 7 percent, and Zogenix, Inc. (NASDAQ: ZGNX), off 7 percent.

Top Headline

Centene Corp (NYSE: CNC) announced its plans to acquire Health Net, Inc. (NYSE: HNT) Health Net, Inc. in a cash and stock deal valued at around $6.8 billion, including the assumption of $500 million in debt.

As per the agreement, Health Net shareholders will receive 0.622 shares of Centene common stock and $28.25 in cash for each HNT stock, representing a premium of around 21 percent over Health Net's closing stock price on July 1, 2015.

Equities Trading UP

Xoom Corp (NASDAQ: XOOM) shares shot up 22 percent to $25.25 after the company agreed to be acquired by Paypal for $890 million, or $25 per share.

Shares of Applied Genetic Technologies Corp (NASDAQ: AGTC) got a boost, shooting up 21 percent to $19.72. Biogen Inc (NASDAQ: BIIB) and AGTC announced entering into a collaboration related to the development of gene therapies in ophthalmology.

Health Net, Inc. (NYSE: HNT) shares were also up, gaining 13 percent to $73.51 after Centene Corp (NYSE: CNC) announced its plans to acquire Health Net.

Equities Trading DOWN

Franklin Covey Co. (NYSE: FC) shares tumbled 13 percent to $17.55 on Q3 results. Franklin Covey reported FQ3 net income of $1.2 million.

Shares of Peabody Energy Corporation (NYSE: BTU) were down 8 percent to $1.64. Peabody Energy named Amy Schwetz as Chief Financial Officer.

Cognizant Technology Solutions Corp (NASDAQ: CTSH) was down, falling 5 percent to $58.95. Cognizant issued an update on Health Net relationship and reaffirmed 2015 guidance.


In commodity news, oil traded up 0.65 percent to $57.33, while gold traded down 0.44 percent to $1,164.10.

Silver traded up 0.15 percent Thursday to $15.60, while copper rose 0.02 percent to $2.63.


European shares were mixed today. The eurozone’s STOXX 600 rose 0.06 percent, the Spanish Ibex Index dropped 0.04 percent, while Italy’s FTSE MIB Index declined 0.46 percent. Meanwhile, the German DAX rose 2.29 percent, and the French CAC 40 slipped 0.05 percent while UK shares climbed 0.41 percent.


US jobless claims rose 10,000 to 281,000 in the week ended June 27. However, economists were projecting claims to total 275,000.

The US economy added 223,000 new jobs in June, versus economists’ expectations for a 225,000 gain. The unemployment rate shrank to 5.3 percent from 5.5 percent.

US factory orders declined 1.00 percent in May, versus economists’ expectations for a 0.50 percent drop.

Posted-In: Earnings M&A News Eurozone Futures Commodities FDA Management


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