Mid-Day Market Update: Crude Oil Down 3%; FleetMatics Group Shares Rise Following Acquisition News

 

Midway through trading Monday, the Dow traded up 0.09 percent to 18,449.30 while the NASDAQ gained 0.64 percent to 5,195.23. The S&P also rose, gaining 0.11 percent to 2,176.00.

Leading and Lagging Sectors

On Monday, healthcare shares climbed by 0.92 percent. Top gainers in the sector included Amarin Corporation plc (ADR) (NASDAQ: AMRN) and Haemonetics Corporation (NYSE: HAE).

In trading on Monday, energy shares fell by 2.5 percent. Meanwhile, top losers in the sector included Whiting Petroleum Corp (NYSE: WLL), down 12 percent, and Unit Corporation (NYSE: UNT), down 9 percent.

Top Headline

Tesla Motors Inc (NASDAQ: TSLA) announced plans to acquire SolarCity Corp (NASDAQ: SCTY) for $2.6 billion in stock, or $25.83 a share.

SolarCity's shareholders will receive 0.11 shares of Tesla's stock for each one share of SolarCity they own.

Equities Trading UP

FleetMatics Group PLC (NYSE: FLTX) shares shot up 39 percent to $59.60 after Verizon Communications Inc. (NYSE: VZ) announced plans to buy Fleetmatics at $60 per share in cash.

Shares of Trina Solar Limited (ADR) (NYSE: TSL) got a boost, shooting up 25 percent to $10.34 after the company reported that it has entered into an agreement to be taken private in a $1.1 billion deal.

Ionis Pharmaceuticals Inc (NASDAQ: IONS) shares were also up, gaining 36 percent to $39.61. Biogen Inc (NASDAQ: BIIB) and Ionis Pharmaceuticals evealed that nusinersen, their investigational treatment for spinal muscular atrophy (SMA), met the primary endpoint at interim analysis of the final stage of ENDEAR trial.

Equities Trading DOWN

ADMA Biologics Inc (NASDAQ: ADMA) shares dropped 18 percent to $6.43 after the company reported that it has received a CRL from the FDA for its pending Biologics License Application.

Shares of Keryx Biopharmaceuticals (NASDAQ: KERX) were down 29 percent to $5.21 after the company revealed that there is an imminent supply interruption of Auryxia (ferric citrate) tablets due to a production-related issue converting active pharmaceutical ingredient (API) to finished drug product. As a result, the company also withdrew the outlook for the current year. The company also reported second quarter results incurring a net loss of $44.7 million, or $0.42 loss per share, wider than a net loss of $26.9 million, or $0.26 loss per share, for the comparable period in 2015.

Inotek Pharmaceuticals Corp (NASDAQ: ITEK) was down, falling around 27 percent to $6.91 as the company reported a proposed public offering of $50 million of Convertible Senior Notes due 2021.

Commodities

In commodity news, oil traded down 3.05 percent to $40.33 while gold traded up 0.02 percent to $1,357.80.

Silver traded up 1.15 percent Monday to $20.58, while copper fell 0.32 percent to $2.21.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 fell 0.45 percent, the Spanish Ibex Index fell 0.64 percent, while Italy’s FTSE MIB Index declined 1.34 percent. Meanwhile the German DAX rose 0.09 percent, and the French CAC 40 declined 0.46 percent, while U.K. shares fell 0.45 percent.

Economics

The final reading of Markit manufacturing PMI rose to 52.9 in July, versus a June reading of 51.3.

The ISM manufacturing index slipped to 52.60 in July, versus a prior reading of 53.20. However, economists were expecting a reading of 53.00.

U.S. construction spending declined 0.6 percent for June.