Mid-Morning Market Update: Markets Edge Higher; Roche To Acquire GenMark Diagnostics In $1.8B Deal

Following the market opening Monday, the Dow traded up 0.02% to 32,783.87 while the NASDAQ rose 0.28% to 13,357.04. However, the S&P fell 0.04% to 3,941.74.

The U.S. has the highest number of coronavirus cases and deaths in the world, reporting a total of 29,439,270 cases with around 534,890 deaths. Brazil reported over 11,483,370 COVID-19 cases with 278,220 deaths, while India confirmed a total of at least 11,385,330 cases and 158,720 deaths. In total, there were at least 119,956,950 cases of COVID-19 worldwide with more than 2,655,280 deaths, according to data compiled by Johns Hopkins University.

Leading and Lagging Sectors

Utilities shares rose 0.7% on Monday. Meanwhile, top gainers in the sector included Companhia Paranaense de Energia - COPEL ELP, up 6%, and Azure Power Global Limited AZRE, up 5%.

In trading on Monday, energy shares fell 1.5%.

Top Headline

Roche Holding AG RHHBY announced a big-ticket acquisition that would boost its presence in the diagnostics market.
Roche said it has entered into a definitive agreement to acquire GenMark Diagnostics GNMK for $24.05 per share in cash, or about $1.8 billion, on a fully diluted basis. The per-share value of the deal represents a 30% premium from the $18.50 per share at which GenMark's shares closed Friday, and a 43% premium over the stock's closing price on Feb .10, when a media report broke out regarding a possible transaction.

 

Equities Trading UP

Rubius Therapeutics, Inc. RUBY shares shot up 111% to $34.81 after the company reported initial clinical data from ongoing Phase 1/2 trial of RTX-240 in patients with advanced solid tumors.

Shares of Sigma Labs, Inc. SGLB got a boost, shooting 88% to $6.29 after the company secured a contract for an initial system of its PrintRite3D in-process quality assurance solution by Lockheed Martin’s Space Additive Design & Manufacturing Center based in Sunnyvale, California.

Shaw Communications Inc. SJR shares were also up, gaining 33% to $25.41 after the company announced it would be acquired by Rogers Communications in a CAD $26 billion deal.

Check out these big movers of the day

Equities Trading DOWN

Torchlight Energy Resources, Inc. TRCH shares tumbled 13% to $2.50. Torchlight Energy Resources said it is continuing to work towards regulatory requirements related to its business combination with Metamaterial.

Shares of Entera Bio Ltd. ENTX were down 15% to $5.89. Entera Bio, on March 11th, announced its Phase 2 clinical trial of EB613 met its primary endpoint.

HighPoint Resources Corporation HPR was down, falling 13% to $7.00 after the company announced that it commenced voluntary Chapter 11.

 

Commodities

In commodity news, oil traded down 0.8% to $65.12, while gold traded up 0.5% to $1,729.10.

Silver traded up 1% Monday to $26.165 while copper rose 0.1% to $4.1410.

Euro zone

European shares were mostly higher today. The eurozone’s STOXX 600 rose 0.3%, the Spanish Ibex Index rose 0.4% and the German DAX 30 dropped 0.1%. Meanwhile, the French CAC 40 rose 0.1%, London’s FTSE 100 rose 0.1% and Italy’s FTSE MIB rose 0.5%.

Wholesale prices in Germany rose 2.3% year-on-year in February following a flat reading in the previous month.

 

Economics

The New York Empire State Manufacturing Index climbed to 17.4 in March from 12.1 in February.

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

The Treasury International Capital report for January will be released at 4:00 p.m. ET.

Check out the full economic calendar here