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Mid-Morning Market Update: Markets Mostly Higher; Gilead Sciences To Buy Kite Pharma

ZNOG, EXPE, GILD, LFUS, PACB, MBUU

Following the market opening Monday, the Dow traded down 0.04 percent to 21,805.94 while the NASDAQ climbed 0.22 percent to 6,279.30. The S&P also rose, gaining 0.08 percent to 2,445.03.

Leading and Lagging Sectors

Monday morning, the healthcare shares climbed by 0.40 percent. Meanwhile, top gainers in the sector included Pacific Biosciences of California (NASDAQ: PACB), up 7 percent, and Immunomedics, Inc. (NASDAQ: IMMU), up 9 percent.

In trading on Monday, energy shares fell 0.26 percent. Meanwhile, top losers in the sector included CGG SA (ADR) (NYSE: CGG), down 6 percent, and Zion Oil & Gas, Inc. (NASDAQ: ZN) down 3 percent.

Top Headline

Gilead Sciences, Inc. (NASDAQ: GILD) announced plans to buy Kite Pharma Inc (NASDAQ: KITE) for around $11.9 billion in cash.

The deal provides for Gilead buying Kite at $180 per share in cash. The transaction value represents a 29.4 percent premium over Kite Pharma's closing price of $139.10 last Friday.

Equities Trading UP

MaxPoint Interactive Inc (NASDAQ: MXPT) shares shot up 149 percent to $13.67 after the company agreed to be acquired by Valassis for $13.86 per share in cash.

Shares of IXYS Corporation (NASDAQ: IXYS) got a boost, shooting up 36 percent to $21.67 after the company agreed to be acquired by Littelfuse, Inc. (NASDAQ: LFUS) for around $750 million.

Kite Pharma Inc (NASDAQ: KITE) shares were also up, gaining 29 percent to $179.19. Gilead Sciences, Inc. (NASDAQ: GILD) announced plans to buy Kite Pharma for around $11.9 billion.

Equities Trading DOWN

Uni-Pixel Inc (NASDAQ: UNXL) shares dropped 73 percent to $0.0698. Uni-Pixel announced plans to file for Chapter 11 bankruptcy in the next one to two business days.

Shares of Expedia Inc (NASDAQ: EXPE) were down 5 percent to $142.91. Uber Technologies Inc.’s board has voted to appoint Expedia Chief Executive Dara Khosrowshahi as its new CEO.

Malibu Boats Inc (NASDAQ: MBUU) was down, falling around 7 percent to $25.52. B. Riley downgraded Malibu Boats from Buy to Neutral.

Commodities

In commodity news, oil traded down 0.92 percent to $47.43 while gold traded up 0.47 percent to $1,304.00.

Silver traded up 1.04 percent Monday to $17.31, while copper rose 1.39 percent to $3.099.

Eurozone

European shares were mostly lower today. The eurozone’s STOXX 600 declined 0.14 percent, the Spanish Ibex Index rose 0.05 percent, while Italy’s FTSE MIB Index rose 0.12 percent. Meanwhile the German DAX declined 0.09 percent, and the French CAC 40 slipped 0.02 percent while U.K. shares fell 0.08 percent.

Economics

The advanced trade deficit in goods increased 1.78 percent to $65.1 billion in July. However, economists were expecting a trade deficit of $64.5 billion. Wholesale inventories rose 0.4 percent in July.

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

The Treasury is set to auction 6-month bills and 2-year notes at 11:30 a.m. ET.

The Treasury will auction 3-month bills and 5-year notes at 1:00 p.m. ET.



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