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Mid-Day Market Update: Crude Oil Down Over 2%; Vitae Pharmaceuticals Shares Surge Following Allergan Buyout

LFVN, SRPT, BAYRY, EXTR, RLGT, MMYT

 


Midway through trading Wednesday, the Dow traded up 0.31 percent to 18,122.70 while the NASDAQ gained 0.72 percent to 5,192.17. The S&P also rose, gaining 0.34 percent to 2,134.61.

Leading and Lagging Sectors

On Wednesday, technology shares gained 0.93 percent. Meanwhile, top gainers in the sector included MakeMyTrip Limited (NASDAQ: MMYT), and Extreme Networks, Inc (NASDAQ: EXTR).

In trading on Wednesday, energy shares tumbled 0.41 percent. Meanwhile, top losers in the sector included SunPower Corporation (NASDAQ: SPWR), down 10 percent, and Oasis Petroleum Inc. (NYSE: OAS), down 5 percent.

Top Headline

Bayer AG (ADR) (OTC: BAYRY) confirmed a deal to acquire Monsanto Company (NYSE: MON) for $128 per share.

The $128 per share or $66 billion acquisition deal has been finalized and the deal is expected to close by the end of 2017. As part of the agreement, Bayer will pay Monsanto $2 billion if the transaction does not obtain the necessary regulatory approval.


Equities Trading UP

Vitae Pharmaceuticals Inc (NASDAQ: VTAE) shares shot up 158 percent to $20.88. Allergan plc (NYSE: AGN) and Vitae Pharmaceuticals reached an agreement by which the former would buy the latter for $21.00 a share in cash.

Shares of Sarepta Therapeutics Inc (NASDAQ: SRPT) got a boost, shooting up 24 percent to $31.77. Dr. Ron Farkas has left the U.S. Food & Drug Administration, people familiar with the matter told Benzinga. Farkas was the most vocal critic of Sarepta's eteplirsen, although there were other FDA members who agreed there was little efficacy for the drug.

Morgans Hotel Group Co. (NASDAQ: MHGC) shares were also up, gaining 21 percent to $2.15 as the company disclosed that it has received a revised takeover proposal of $2.75 per share.


Equities Trading DOWN

LifeVantage Corp (NASDAQ: LFVN) shares dropped 20 percent to $8.29 after announcing a delay in the release of its Q4 and FY 2016 financial results and form 10-K filing.

Shares of Venaxis Inc (NASDAQ: APPY) were down 10 percent to $3.82 after the company reported plans to acquire BiOptix Diagnostics.

Radiant Logistics Inc (NYSE: RLGT) was down, falling around 14 percent to $2.57. On Tuesday, Radiant Logistics reported a Q4 loss of $0.01 per share on revenue of $183.6 million. Its adjusted net income for the quarter came in at $2.8 million.


Commodities


In commodity news, oil traded down 2.18 percent to $44.49 while gold traded up 0.23 percent to $1,326.80.

Silver traded up 0.53 percent Wednesday to $19.08, while copper rose 2.45 percent to $2.15.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.09 percent, the Spanish Ibex Index fell 0.25 percent, while Italy’s FTSE MIB Index declined 0.05 percent. Meanwhile the German DAX declined 0.08 percent, and the French CAC 40 slipped 0.39 percent while U.K. shares rose 0.12 percent.

Economics

The MBA’s index of mortgage application activity rose 4.2 percent for the week ended September 9.
The import price index declined 0.2 percent in August, while export prices dropped 0.8 percent in August.

Crude supplies declined 600,000 barrels for the week ended September 9, the U.S. Energy Information Administration reported. However, analysts were expecting a gain of 3.3 million barrels. Gasoline supplies increased 600,000 barrels, while distillate stockpiles rose 4.6 million barrels.