Markets Open Lower; Encana To Acquire Athlon Energy For $5.93 Billion

Following the market opening Monday, the Dow traded down 0.73 percent to 16,988.07 while the NASDAQ declined 0.68 percent to 4,481.67. The S&P also fell, dropping 0.70 percent to 1,969.02.

Leading and Lagging Sectors

Utilities shares fell by just 0.46 percent. Top gainers in the sector included NiSource NI, up 3.1 percent, and Energy Transfer Partners, L.P. ETP, up 1.1 percent.

In trading on Monday, energy shares were relative laggards, down on the day by about 1.55 percent. Top losers in the sector included Petróleo Brasileiro SA PBR, down 11 percent, and Ultrapar Holdings UGP, off 3.6 percent.

Top Headline

Encana ECA announced its plans to buy Athlon Energy ATHL for $5.93 billion in cash.

The offer price of $58.50 per share represents a 25% premium to Athlon's closing price on Friday.

Equities Trading UP

Athlon Energy ATHL shares shot up 24.70 percent to $58.27 after Encana ECA announced its plans to buy Athlon Energy for $5.93 billion.

Shares of TIBCO Software TIBX got a boost, shooting up 20.91 percent to $23.59 after the company agreed to be acquired by Vista Equity Partners for $4.3 billion.

DreamWorks Animation SKG DWA shares were also up, gaining 17.62 percent to $26.30 on rumor of Softbank SFTBY $32.00 per share bid.

Equities Trading DOWN

Shares of Civeo CVEO were down 47.74 percent to $13.31 after the company issued a weak revenue forecast. The company reported that it will continue as a C Corp and will redomicile to Canada.

Endologix ELGX shares tumbled 17.18 percent to $10.99 after the company lowered its FY14 earnings guidance.

Karyopharm Therapeutics KPTI was down, falling 8.86 percent to $38.37 after the company announced clinical data for Selinexor (KPT-330) in advanced solid tumors.

Commodities

In commodity news, oil traded down 0.24 percent to $93.32, while gold traded up 0.34 percent to $1,219.50.

Silver traded down 0.07 percent Monday to $17.53, while copper fell 0.03 percent to $3.03.

Eurozone

European shares were lower today. The eurozone’s STOXX 600 declined 0.31 percent, the Spanish Ibex Index fell 0.95 percent, while Italy’s FTSE MIB Index slipped 0.91 percent. Meanwhile, the German DAX dropped 0.41 percent and the French CAC 40 declined 0.45 percent while UK shares fell 0.19 percent.

Economics

US consumer spending rose 0.5% in August, while income gained 0.3%. However, economists were expecting a 0.4% rise in spending and a 0.3% rise in income.

The pending home sales index for August dropped 1% to 104.7 in August, from 105.8 in July.

The Dallas Fed general business activity index will be released today.

The Treasury is set to auction 3-and 6-month bills.

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