Mid-Morning Market Update: Markets Edge Higher; Morgan Stanley To Buy E*Trade Financial For $13 Billion

Following the market opening Thursday, the Dow traded up 0.03% to 29,357.18 while the NASDAQ rose 0.02% to 9819.38. The S&P also rose, gaining 0.07% to 3388.51.

Leading and Lagging Sectors

Material shares climbed 0.8% on Thursday. Meanwhile, top gainers in the sector included Constellium SE CSTM, up 16%, and Platinum Group Metals Ltd. PLG, up 6%.

In trading on Thursday, health care shares fell 0.2%.

Top Headline

Morgan Stanley MS is buying E*Trade Financial Corp. ETFC in an all-stock $13 billion deal with the aim to reshape the investment bank..

The bank aims to take on Charles Schwab and Fidelity.

Equities Trading UP

Adesto Technologies Corporation IOTS shares shot up 55% to $12.36 after the company announced it will be acquired by Dialog Semiconductor for $12.55 per share in cash.

Shares of Stamps.com Inc. STMP got a boost, shooting 54% to $146.55 after the company reported better-than-expected Q4 results and issued FY20 guidance above estimates.

Consolidated Communications Holdings, Inc. CNSL shares were also up, gaining 27% to $7.00 after the company reported better-than-expected Q4 results.

Equities Trading DOWN

Tivity Health, Inc. TVTY shares tumbled 42% to $13.35 after the company reported worse-than-expected Q4 results. The company also issued FY20 sales guidance below analyst estimates.

Shares of MEDNAX, Inc. MD were down 18% to $21.70 despite of reporting upbeat quarterly results.

ViacomCBS Inc. VIAC was down, falling 16% to $29.87 after the company reported Q4 EPS and sales results down from last year.

Commodities


In commodity news, oil traded up 0.3% to $53.45, while gold traded up 0.5% to $1,619.90.

Silver traded up 0.4% Thursday to $18.375, while copper fell 0.4% to $2.596.

Euro zone

European shares were mostly lower today. The eurozone’s STOXX 600 dropped 0.4% the Spanish Ibex Index declined 0.9%, while Italy’s FTSE MIB Index dipped 0.8% Meanwhile, the German DAX dropped 0.2%, and the French CAC 40 fell 0.2% while UK shares rose 0.1%.

Economics

Initial jobless claims rose by 4,000 to 210,000 in the week ended Feb. 15. However, economists were expecting a 210,000 reading.

The Philadelphia Fed manufacturing index rose to 36.7 in February, versus prior reading of 17. However, analysts were expecting a reading of 12.

The index of leading economic indicators increased 0.8% for January.

The Energy Information Administration’s weekly report on natural gas stocks in underground storage is scheduled for release at 10:30 a.m. ET.

The Energy Information Administration’s weekly report on petroleum inventories in the U.S. will be released at 11:00 a.m. ET.

The Treasury is set to auction 4-and 8-week bills at 11:30 a.m. ET.

Federal Reserve Bank of Richmond President Thomas Barkin is set to speak at 1:20 p.m. ET.

Data on money supply for the recent week will be released at 4:30 p.m. ET.