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Mid-Morning Market Update: Markets Mostly Higher; Discovery Communications To Acquire Scripps Networks Interactive

CRNT, DVAX, FORTY, V.SNI.PR.A

Following the market opening Monday, the Dow traded up 0.30 percent to 21,895.09 while the NASDAQ declined 0.15 percent to 6,365.38. The S&P also rose, gaining 0.04 percent to 2,473.05.

Leading and Lagging Sectors

Basic materials shares climbed by 0.37 percent in the US market on Monday. Top gainers in the sector included Cliffs Natural Resources Inc (NYSE: CLF), and Aluminum Corp. of China Limited (ADR) (NYSE: ACH).

In trading on Monday, technology shares fell 0.23 percent. Meanwhile, top losers in the sector included Ceragon Networks Ltd (NASDAQ: CRNT), down 5 percent, and Formula Systems (1985) Ltd. (ADR) (NASDAQ: FORTY), down 4 percent.

Top Headline

Discovery Communications Inc. (NASDAQ: DISCA) announced plans to acquire Scripps Networks Interactive, Inc. (NYSE: SNI) for $14.6 billion.

Discovery will pay $90 per share in cash and stock to buy Scripps. The transaction is projected to close by early 2018.

Equities Trading UP

Dynavax Technologies Corporation (NASDAQ: DVAX) shares shot up 72 percent to $15.95 as the company announced that the Vaccines and Related Biological Products Advisory Committee of the U.S. Food and Drug Administration voted 12-1 in support of the company’s Hepatitis B vaccine, HEPLISAV-B. RBC Capital upgraded Dynavax from Sector Perform to Outperform.

Shares of CDI Corp. (NYSE: CDI) got a boost, shooting up 32 percent to $8.20 as the company agreed to be acquired by AE Industrial Partners for $8.25 per share in cash.

Alliance Holdings GP, L.P. (NASDAQ: AHGP) shares were also up, gaining 14 percent to $28.90 as the company reported quarterly financial results and raised its quarterly distribution by 32.7 percent.

Equities Trading DOWN

Invivo Therapeutics Holdings Corp (NASDAQ: NVIV) shares dropped 26 percent to $1.83 as the company issued an update on the INSPRE study. InVivo Therapeutics has implemented a temporary enrollment halt on the trial due to patient who passed away suddenly at a rehab facility following discharge from hospital.

Shares of Navigant Consulting, Inc. (NYSE: NCI) were down 15 percent to $16.78 after the company posted downbeat quarterly results.

Intercept Pharmaceuticals Inc (NASDAQ: ICPT) was down, falling around 9 percent to $122.62. Intercept posted a narrower-than-expected Q2 loss and reported that its Phase 2 AESOP trial met primary endpoint of ALP reduction.

Commodities

In commodity news, oil traded down 0.46 percent to $49.48 while gold traded down 0.19 percent to $1,272.90.

Silver traded up 0.60 percent Monday to $16.795, while copper rose 0.52 percent to $2.89.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.30 percent, the Spanish Ibex Index rose 0.25 percent, while Italy’s FTSE MIB Index gained 0.55 percent. Meanwhile the German DAX gained 0.13 percent, and the French CAC 40 slipped 0.06 percent while U.K. shares rose 0.54 percent.

Economics

The Chicago PMI declined to 58.90 in July, versus prior reading of 65.70. However, economists were expecting a reading of 60.00.

The pending home sales index increased 1.5 percent to 110.2 in June. However, economists projected a 0.7 percent rise in the index.

The Dallas Fed manufacturing index for July is schedule for release at 10:30 a.m. ET.

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

Data on farm prices for June will be released at 3:00 p.m. ET.



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