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Mid-Morning Market Update: Markets Open Higher; General Dynamics To Buy CSRA For $40.75/Share

SPNS, VIRDY

Following the market opening Monday, the Dow traded up 0.67 percent to 24,353.61 while the NASDAQ climbed 0.41 percent to 6,902.33. The S&P also rose, gaining 0.32 percent to 2,627.93.

Leading and Lagging Sectors

Monday morning, the energy shares climbed 1.26 percent. Meanwhile, top gainers in the sector included CGG SA (ADR) (NYSE: CGG), up 41 percent, and Hornbeck Offshore Services, Inc. (NYSE: HOS), up 8 percent.

In trading on Monday, utilities shares fell 0.19 percent. Meanwhile, top losers in the sector included Connecticut Water Service Inc (NASDAQ: CTWS), down 4 percent, and SCANA Corporation (NYSE: SCG) down 4 percent.

Top Headline

General Dynamics Corporation (NYSE: GD) announced plans to buy CSRA Inc (NYSE: CSRA) for about $6.8 billion.
General Dynamics said it will buy CSRA in a deal that values the stock at $40.75 per share, which marks a premium of more than 30 percent from Friday's closing price of $30.82.

Equities Trading UP

CSRA Inc (NYSE: CSRA) shares shot up 31 percent to $40.47 after the company agreed to be acquired by General Dynamics Corporation (NYSE: GD) for $40.75 per share in cash.

Shares of Jamba, Inc. (NASDAQ: JMBA) got a boost, shooting up 14 percent to $8.30. Jamba reported a 5.3 percent gain in system-wide comp. store sales. The company expects FY18 sales of $68 million to $70 million and adjusted EBITDA of $15 million to $16 million. Jamba disclosed that it is in process of completing financial statements for FY ended January 2, 2018.

Ceragon Networks Ltd (NASDAQ: CRNT) shares were also up, gaining 11 percent to $2.33 after the company posted upbeat quarterly results.

Equities Trading DOWN

Sapiens International Corporation N.V. (NASDAQ: SPNS) shares dropped 16 percent to $9.87. Sapiens Intl narrowed its FY2017 sales guidance and issued a weak FY18 sales forecast.

Shares of Qumu Corp (NASDAQ: QUMU) were down 11 percent to $1.99 as the company issued a weak forecast for the fourth quarter and FY 2017.

Chromadex Corp (NASDAQ: CDXC) was down, falling around 7 percent to $4.72. ChromaDex projects to report Q4 net revenue of around $7.5 million and operating of $8.5 million to $9.5 million.

Commodities

In commodity news, oil traded up 1.86 percent to $60.30 while gold traded up 0.36 percent to $1,320.50.

Silver traded up 1.4 percent Monday to $16.365, while copper rose 1.27 percent to $3.072.

Eurozone

European shares were higher today. The eurozone’s STOXX 600 surged 1.42 percent, the Spanish Ibex Index gained 1.48 percent, while Italy’s FTSE MIB Index rose 0.82 percent. Meanwhile the German DAX climbed 1.77 percent, and the French CAC 40 rose 1.47 percent while U.K. shares rose 1.23 percent.

Economics

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

The Treasury budget report for January is schedule for release at 2:00 p.m. ET.



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