Market Overview

Mid-Morning Market Update: Markets Open Lower; Microsoft To Acquire Game Maker ZeniMax For $7.5B

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Following the market opening Monday, the Dow traded down 2.67% to 26,914.08 while the NASDAQ fell 1.66% to 10,613.60. The S&P also fell, dropping 2.27% to 3,244.17.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 6,811,690 cases with around 199,510 deaths. India confirmed a total of at least 5,487,580 confirmed cases and 87,880 deaths, while Brazil reported over 4,544,620 COVID-19 cases with 136,890 deaths. In total, there were at least 31,079,040 cases of COVID-19 worldwide with over 960,990 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Information technology shares slipped by just 1.2% on Monday. Meanwhile, top gainers in the sector included CleanSpark, Inc. (NASDAQ: CLSK), up 8%, and MicroVision, Inc. (NASDAQ: MVIS), up 4%.

In trading on Monday, energy shares tumbled 4.2%.

Top Headline

Microsoft Corporation (NASDAQ: MSFT) announced its plan to acquire video gaming company ZeniMax Media for $7.5 billion in cash.

ZeniMax Media creates and publishes interactive entertainment content for consoles, PCs, and handheld/wireless devices. ZeniMax Media is also the parent company of Bethesda Softworks the creators of the gaming franchisesThe Elder Scrolls and Fallout.

 

Equities Trading UP

Cubic Corporation (NYSE: CUB) shares shot up 25% to $55.57 after the company reported the adoption of a limited-duration shareholder rights plan.

Shares of VivoPower International PLC (NASDAQ: VVPR) got a boost, shooting 23% to $10.78 after the company reported non-binding letter of intent to buy 51% of Tembo 4x4 for $4.7 million.

Cardiff Oncology, Inc. (NASDAQ: CRDF) shares were also up, gaining 22% to $10.64. Cardiff Oncology, last week, highlighted its presentation of its data at the ESMO confirming its efficacy of the Onvansertib and durability in response to KRAS-Mutated metastatic colorectal cancer.

Equities Trading DOWN

Aceto Corporation (NASDAQ: ACET) shares tumbled 26% to $15.78 after the company reported a proposed 4.5 million share public offering of common stock.

Shares of iCAD, Inc. (NASDAQ: ICAD) were down 18% to $9.47. iCAD responded to CMS' finalized radiation oncology alternative payment model.

Legend Biotech Corporation (NASDAQ: LEGN) was down, falling 18% to $26.39 after China's Customs Anti-Smuggling Department inspected places of business of Legend's majority shareholder and placed Legend's CEO under residential surveillance. Legend Biotech also names current Chief Financial Officer, Ying Huang, as interim CEO.

Commodities

In commodity news, oil traded down 2.5% to $40.08, while gold traded down 1.4% to $1,934.80.

Silver traded down 2.8% Monday to $26.365 while copper fell 1% to $3.0845.

Euro zone

European shares were lower today. The eurozone’s STOXX 600 fell 2.8%, the Spanish Ibex Index fell 3.2%, while Italy’s FTSE MIB Index dropped 3.3%. Meanwhile, the German DAX 30 declined 3.3%, French CAC 40 dropped 3.2% and London’s FTSE 100 fell 3.5%.

Spain reported a narrower trade deficit for July, with the trade gap shrinking to EUR 0.31 billion in July versus EUR 2.49 billion in the year-ago month.

Economics

The Chicago Fed National Activity Index fell to 0.79 in August versus a revised reading of 2.54 in the prior month.

The Treasury is set to auction 3-and 6-month bills at 11:30 a.m. ET.

Federal Reserve Bank of New York President John Williams will speak at 6:00 p.m. ET.

Dallas Fed President Robert Kaplan is set to speak at 6:00 p.m. ET.

 

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