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Mid-Morning Market Update: Markets Mostly Higher; Siemens To Acquire Mentor Graphics For $4.5B

DVAX, CRBP, CRNG, PAM

 

Following the market opening Monday, the Dow traded up 0.22 percent to 18,890.02 while the NASDAQ declined 0.03 percent to 5,235.48. The S&P also rose, gaining 0.09 percent to 2,166.30.

Leading and Lagging Sectors

Monday morning, financial shares gained by 0.48 percent. Meanwhile, top gainers in the sector included Corenergy Infrastructure Trust Inc (NYSE: CORR), and NewStar Financial Inc (NASDAQ: NEWS).

In trading on Monday, utilities shares fell by 0.80 percent. Meanwhile, top losers in the sector included National Grid plc (ADR) (NYSE: NGG), down 4 percent, and Pampa Energia S.A. (ADR) (NYSE: PAM), down 3 percent.

Top Headline

Siemens announced plans to acquire Mentor Graphics Corp (NASDAQ: MENT) in a $4.5 billion deal.

The offer price of $37.25 per share represents a 21 percent premium over Mentor Graphics’ closing price on Friday.


Equities Trading UP

Corbus Pharmaceuticals Holdings Inc (NASDAQ: CRBP) shares shot up 62 percent to $9.45 after the company reported positive top line results from its second stage trial of Resunab (JBT-101) for systemic sclerosis treatment.

Shares of Harman International Industries Inc (NYSE: HAR) got a boost, shooting up 26 percent to $110.00 after Samsung Electronics announced plans to buy the company in an $8 billion deal.

Ocean Bio-Chem, Inc. (NASDAQ: OBCI) shares were also up, gaining 18 percent to $3.40. Ocean Bio-Chem reported Q3 earnings of $0.17 per share on revenue of $12.207 million.


Equities Trading DOWN

Dynavax Technologies Corporation (NASDAQ: DVAX) shares dropped 63 percent to $4.25 after the disclosure of a Complete Response Letter (CRL) from the FDA on its Biologics License Application for HEPLISAV-B. The drug candidate is meant for immunization of adults 18 years and older affected by hepatitis B infection.

Shares of Resource Capital Corp. (NYSE: RSO) were down 36 percent to $7.78. Resource Capital reported Q3 funds from operations of $12.9 million, or $42 per share.

Turtle Beach Corp (NASDAQ: HEAR) was down, falling around 19 percent to $1.58. B. Riley downgraded Turtle Beach from Buy to Neutral.


Commodities


In commodity news, oil traded down 1.13 percent to $43.65 while gold traded down 0.28 percent to $1,220.90.

Silver traded down 1.45 percent Monday to $17.13, while copper rose 1.18 percent to $2.54.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 climbed 0.33 percent, the Spanish Ibex Index rose 0.28 percent, while Italy’s FTSE MIB Index fell 0.41 percent. Meanwhile the German DAX rose 0.68 percent, and the French CAC 40 climbed 0.61 percent while U.K. shares rose 0.42 percent.

Economics

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

Dallas Federal Reserve Bank President Robert Kaplan will speak at the Wichita Falls Annual Economic Forum in Wichita Falls, Texas at 1:20 p.m. ET.

Richmond Fed President Jeffrey Lacker is set to speak at Washington College in Chestertown, Maryland at 4:30 p.m. ET.

San Francisco Federal Reserve Bank President John Williams will speak at the Bay Area Council in San Francisco at 6:30 p.m. ET.



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