Mid-Afternoon Market Update: US Stocks Reverse Earlier Loses; Fusion-io Shares Jump On SanDisk Buyout

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Nearing the final hour of trading Monday, the Dow reversed loses and is currently up 0.10 percent to 16,938.05 while the NASDAQ gained 0.21 percent to 4,319.59. The S&P is up 0.09 percent to 1,937.96.

Leading and Lagging Sectors

Utilities shares gained around 0.83 percent in today’s trading. Meanwhile, top gainers in the sector included Consolidated Water Co (NASDAQ: CWCO), up 4.5 percent, CenterPoint Energy (NYSE: CNP), up 2.4 percent.

In trading on Monday, telecommunications services shares were relative laggards, down on the day by about 0.48 percent. Top losers in the sector included Telecom Argentina SA (NYSE: TEO), down 6.57 percent, and NQ Mobile (NYSE: NQ), off 6.69 percent.

Top Headline

A NY judge ruled that JC Penney (NYSE: JCP) interfered with Macy's (NYSE: M) pact with Martha Stewart's Onmimedia (NYSE: MSO).  JC Penney trading was volatile around the release whereas Macy's gained slightly along with the thinly traded shares of Onmimedia.  The judge further state that macy's failed to prove it's entitlement to punitive damages.

Equities Trading UP

Bluebird Bio (NASDAQ: BLUE) shares shot up 34.74 percent to $35.15 following the presentation of positive data on LentiGlobin BB305 at the European Hematology Association (EHA).

Shares of Covidien plc (NYSE: COV) got a boost, shooting up 21.08 percent to $87.20 after Medtronic (NYSE: MDT) announced its plans to buy Covidien for $42.9 billion in cash and stock.

Fusion-io (NYSE: FIO) shares were also up, gaining 22..90 percent to $11.40 after SanDisk (NASDAQ: SNDK) announced its plans to buy Fusion-io for $11.25 per share in cash.

TW Telecom (NASDAQ: TWTC) jumped 8.5 percent to $38.43 after the company agreed to be acquired by Level 3 Communications (NYSE: LVLT) in a stock-and-cash transaction valued at $40.86 per share.

Equities Trading DOWN

Shares of Karyopharm Therapeutics (NASDAQ: KPTI) were down 15.05 percent to $40.03 after the company announced that the FDA has found the effectiveness and safety for KPT-335.

Yahoo! (NASDAQ: YHOO) shares tumbled roughly 5 percent to $35.06. Alibaba reported revenue for the year ending March 31 of $8.47 billion and reported Yahoo stake in Alibaba of 22.5% versus 22.6% as of December 31, 2013.

DreamWorks Animation SKG (NASDAQ: DWA) was down, falling 10.77 percent to $24.41 after the company announced the launch on YouTube.

Commodities

In commodity news, oil traded down 0.09 percent to $106.81, while gold traded flate at $1,274.20

Silver traded flat Monday to $19.65, while copper rose 0.58 percent to $3.047.

Eurozone

European shares were lower today.

The eurozone’s STOXX 600 tumbled 0.37 percent, the Spanish IBEX Index dropped 0.95 percent, while Italy’s FTSE MIB Index fell 0.86 percent.

Meanwhile, the German DAX dropped 0.29 percent and the French CAC 40 fell 0.58 percent while UK shares dropped 0.73 percent.

Economics

The Empire State manufacturing index rose to 19.28 in June, versus a prior reading of 19.01. However, economists were expecting a reading of 15.00.

Industrial production rose 0.6% in May, after dropping 0.3% in April. However, economists were projecting a 0.5% growth in May.

The NAHB housing market index surged to 49.00 in June, versus a prior reading of 45.00. However, economists were expecting a reading of 47.00.

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