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Mid-Morning Market Update: Markets Open Higher; Tech Data To Buy Technology Solutions From Avnet

CZR, GURE, X, AVT, FRTX, UTMD, OSUR

 


Following the market opening Monday, the Dow traded up 0.69 percent to 18,248.74 while the NASDAQ climbed 0.66 percent to 5,279.09. The S&P also rose, gaining 0.65 percent to 2,153.03.

Leading and Lagging Sectors

Monday morning, basic materials shares gained 1.31 percent. Meanwhile, top gainers in the sector included Gulf Resources, Inc. (NASDAQ: GURE), and United States Steel Corporation (NYSE: X).

In trading on Monday, healthcare shares rose by just 0.3 percent. Meanwhile, top losers in the sector included OraSure Technologies, Inc. (NASDAQ: OSUR), down 3 percent, and Utah Medical Products, Inc. (NASDAQ: UTMD), down 2 percent.

Top Headline

Tech Data Corporation (NASDAQ: TECD) reached a deal with Avnet, Inc. (NYSE: AVT) enabling it to buy the latter's Technology Solutions business. The transaction comprises cash component of $2.4 billion and 2.785 million shares of Tech Data resulting in a total value of about $2.6 billion.

Tech Data expects the transaction to be accretive to its adjusted EPS significantly in the first full year of operations.


Equities Trading UP

Isle of Capri Casinos (NASDAQ: ISLE) shares shot up 31 percent to $22.21. Eldorado Resorts, Inc. (NYSE: ERI) and Isle of Capri Casinos, Inc. struck a merger deal through which the former would buy the latter for $23 a share in cash or 1.638 shares.

Shares of Tech Data Corp (NASDAQ: TECD) got a boost, shooting up 19 percent to $82.73 as the company reached a deal with Avnet enabling it to buy the latter's Technology Solutions business.

Infoblox Inc (NYSE: BLOX) shares were also up, gaining 15 percent to $26.27 as the company announced its acquisition by Vista Equity Partners for $26.50 per share in cash.


Equities Trading DOWN

Vical Incorporated (NASDAQ: VICL) shares dropped 25 percent to $2.88 after the company disclosed that its Phase 2 trial did not meet primary endpoint.

Shares of CVR Refining LP (NYSE: CVRR) were down 14 percent to $9.66. Velocity Midstream Partners and CVR Refining disclosed the execution of agreements related to the construction of a crude oil pipeline from the SCOOP play in Central Oklahoma to CVR's Wynnewood refinery.

MGT Capital Investments Inc. (NYSE: MGT) was down, falling around 8 percent to $2.99 as the company reported that it has received a subpoena from the Securities and Exchange Commission. MGT Capital said there is no indication that ‘the company is or will be the subject of any enforcement proceedings.’


Commodities


In commodity news, oil traded up 0.83 percent to $43.98 while gold traded up 0.69 percent to $1,319.20.

Silver traded up 2.38 percent Monday to $19.31, while copper fell 0.16 percent to $2.16.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 rose 0.94 percent, the Spanish Ibex Index gained 0.89 percent, while Italy’s FTSE MIB Index surged 1.52 percent. Meanwhile the German DAX gained 0.76 percent, and the French CAC 40 climbed 1.23 percent while U.K. shares rose 1.30 percent.

Economics

The NAHB housing market index rose to 65.00 for September, versus a prior reading of 60.00. However, economists were expecting a reading of 60.00.

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



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