Mid-Day Market Update: SteadyMed Climbs Following Acquisition News; Cooper Tire & Rubber Shares Slide

Midway through trading Monday, the Dow traded up 0.11 percent to 24,338.67 while the NASDAQ declined 0.48 percent to 7,085.43. The S&P also fell, dropping 0.25 percent to 2,663.13.

Leading and Lagging Sectors

On Monday, the energy shares gained 0.26 percent. Meanwhile, top gainers in the sector included Fortem Resources Inc. FTMR, up 15 percent, and Andeavor ANDV up 14 percent.

In trading on Monday, telecommunication services shares tumbled 1.3 percent.

Top Headline

T-Mobile Us Inc TMUS and Sprint Corp S agreed to combine in a $26 billion all-stock deal in which T-Mobile will pay Sprint investors 0.10256 shares of T-Mobile for each one share of Sprint stock owned.

The companies believe a combination into one entity could generate $6 billion in annual synergies, or $43 billion based on net present value.

Equities Trading UP

SteadyMed Ltd. STDY shares shot up 78 percent to $4.725 after United Therapeutics Corporation UTHR agreed to acquire SteadyMed.

Shares of First Data Corporation FDC got a boost, shooting up 15 percent to $17.56. The commerce-enabling technology and solutions company said it earned 29 cents per share in the first quarter on revenue of $2.08 billion versus expectations of 26 cents per share and $1.86 billion.

Andeavor ANDV shares were also up, gaining 14 percent to $139.24. Marathon Petroleum Corporation MPC announced plans to acquire Andeavor for $152.27 per share in cash.

Equities Trading DOWN

Arconic Inc. ARNC shares dropped 17 percent to $18.71. Arconic posted upbeat Q1 results, but issued weak earnings outlook for FY18.

Shares of Cooper Tire & Rubber Company CTB were down 13 percent to $23.50 after the company reported weaker-than-expected Q1 earnings.

Sprint Corporation S was down, falling around 15 percent to $5.51. T-Mobile Us Inc TMUS and Sprint agreed to combine in a $26 billion all-stock deal.

Commodities

In commodity news, oil traded up 0.35 percent to $68.34 while gold traded down 0.42 percent to $1,317.90.

Silver traded down 0.65 percent Monday to $16.39, while copper fell 0.11 percent to $3.066.

Eurozone

European shares were mostly higher today. The eurozone’s STOXX 600 gained 0.18 percent, the Spanish Ibex Index rose 0.56 percent, while Italy’s FTSE MIB Index rose 0.22 percent. Meanwhile the German DAX rose 0.25 percent, and the French CAC 40 climbed 0.68 percent while U.K. shares rose 0.09 percent.

Economics

The core PCE index rose to 1.9 percent in March, versus 1.6 percent in the previous month.

The Chicago PMI rose to 57.60 in April, versus prior reading of 57.40. Economists projected a reading of 58.20.

The pending-home sales index rose 0.4 percent to a reading of 107.6 in March.