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Mid-Morning Market Update: Markets Open Higher; Siris Capital Group To Buy Polycom For $2 Billion

SID, TTOO, XEL, PSMT, PCG

 


Following the market opening Friday, the Dow traded up 0.82 percent to 18,043.09 while the NASDAQ climbed 0.96 percent to 4,923.46. The S&P also rose, gaining 0.86 percent to 2,116.03.

Leading and Lagging Sectors

On Friday, basic materials shares gained by 1.59 percent. Top gainers in the sector included Haynes International, Inc. (NASDAQ: HAYN) and Companhia Siderurgica Nacional (ADR) (NYSE: SID).

In trading on Friday, utilities shares fell by 0.41 percent. Meanwhile, top losers in the sector included Xcel Energy Inc (NYSE: XEL), down 1 percent, and PG&E Corporation (NYSE: PCG), down 1 percent.

Top Headline

Polycom, Inc. (NASDAQ: PLCM) revealed Friday that private equity firm, Siris Capital Group, LLC and its affiliates, have submitted a unilaterally binding offer to buy all outstanding shares for $12.50 per share in cash.

The company indicated that the all-cash transaction was valued at about $2.0 billion. That included outstanding debt. The current offer represented a premium of 13.6 percent to the existing value of Mitel's offer, based on Mitel's closing share price as of July 7.

Equities Trading UP

Eleven Biotherapeutics Inc (NASDAQ: EBIO) shares shot up 49 percent to $2.92 after the company reported the effectiveness of IND application for EBI-031.

Shares of Resolute Energy Corp (NYSE: REN) got a boost, shooting up 23 percent to $3.62 as the company agreed to sell Permain Basin mid-stream assets.

Mitel Networks Corporation (NASDAQ: MITL) shares were also up, gaining 18 percent to $7.10 after Polycom revealed that its board has approved the cancellation of its previously announced merger agreement with Mitel Networks. The company will have to pay a termination fee of about $60 million. Polycom said it received a unilaterally binding offer from Siris on July 7 to acquire all outstanding shares for $12.50 per share in cash.


Equities Trading DOWN

Juno Therapeutics Inc (NASDAQ: JUNO) shares dropped 26 percent to $30.01 after the company announced JCAR015's Phase 2 trial was put on hold after two patients died last week.

Shares of T2 Biosystems Inc (NASDAQ: TTOO) were down 23 percent to $5.88.’s T2 Biosystems extended timeline for the completion of the T2Bacteria trial. BTIG downgraded the rating on T2 Biosystems from Buy to Sell, while lowering the price target from $12 to $4.

PriceSmart, Inc. (NASDAQ: PSMT) was down, falling around 8 percent to $84.12 as the company posted weaker-than-expected results for the third quarter. The company’s same store sales declined 1.9 percent for June.


Commodities

In commodity news, oil traded up 0.86 percent to $45.53 while gold traded down 0.34 percent to $1,357.50.

Silver traded up 0.19 percent Friday to $19.88, while copper rose 0.19 percent to $2.13.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 gained 1.27 percent, the Spanish Ibex Index climbed 2.19 percent, while Italy’s FTSE MIB Index rose 3.19 percent. Meanwhile the German DAX gained 1.94 percent, and the French CAC 40 climbed 1.46 percent, while U.K. shares rose 0.49 percent.

Economics

The U.S. economy added 287,000 new jobs in June, while the unemployment rate increased to 4.9 percent from 4.7 percent. Economists were expecting a 175,000 rise in new nonfarm jobs.

Data on consumer credit for May will be released at 3:00 p.m. ET.