Wealth Manager - the site for professional investment managers

Register to get unlimited access to Citywire’s fund manager database. Registration is free and only takes a minute.

Overnight Markets: US stocks rise amid merger activity

Overnight Markets: US stocks rise amid merger activity

Wall Street gained on Monday, with the Dow Jones and S&P 500 ending at record highs again, as small-cap shares rallied with more deal news raising enthusiasm for stocks.

The Dow Jones industrial average rose 19 points or 0.11%, to 16,943. The S&P 500 gained two points or 0.09%, to 1,951. The Nasdaq Composite added 15 points or 0.34%, to 4,336. It was a fourth straight record closing high for the S&P 500 and a third for the Dow.

Monday's merger activity prompted investors to buy some stocks. Merck & Co (MRK.N) said it has agreed to buy Idenix Pharmaceuticals Inc (IDIX.O) in a deal valued at about $3.85 billion.

In other deal news, Analog Devices Inc (ADI.O) said it would buy Hittite Microwave Corp (HITT.O) in a deal valued at $2 billion.

Tyson Foods Inc (TSN.N) prevailed over Pilgrim's Pride Corp (PPC.O) in a bidding war over Hillshire Brands Co (HSH.N), offering to buy the maker of Jimmy Dean sausages for $8.55 billion, including debt.

Shares of Idenix, which has three drugs in development to treat hepatitis C, soared 229% on heavy volume. In contrast, Gilead Sciences (GILD.O) the maker of the market-leading hepatitis C treatment, Sovaldi, fell 4.1%.

Hittite shot up 28.6%, while Hillshire added 5.3%. Merck, a Dow component, edged up 0.2%. Analog gained 5% and Tyson slid 6.5%.

International Game Technology (IGT.N) shares surged late in the session after Reuters reported the slot machine maker is working with Morgan Stanley to explore a sale. The stock jumped 14.4%.

Apple Inc (AAPL.O) was the Nasdaq's most-active stock, rising 1.6% in heavy volume.

In Asia, shares advanced on Tuesday in morning trade after US shares climbed to a fresh record and China reported inflation quickened last month.

The MSCI Asia Pacific Index rose 0.1 percent to 143.67 as of 9:57 a.m. in Hong Kong. South Korea’s Kospi index advanced 0.4% and Australia’s S&P/ASX 200 Index rose 0.3%. Japan’s Topix index fluctuated between gains and losses, while China’s Shanghai Composite Index, New Zealand’s NZX 50 Index and Hong Kong’s Hang Seng Index slid 0.1%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play HSBC's Stephen King warns of 'enormous' Brexit deficit danger

HSBC's Stephen King warns of 'enormous' Brexit deficit danger

Brexit will weaken the economy, fail to boost exports and lessen the country's ability to fund its 'enormous' deficit, according to HSBC's senior economic adviser Stephen King.

Play Premier's Smith: electricity and water can be a good mix

Premier's Smith: electricity and water can be a good mix

Exposing your person to electricity and water simultaneously is ill-advised, but what about your portfolio?

Play Citywire 10k: video highlights

Citywire 10k: video highlights

Citywire held its sixth annual charity run last week, which hosted over 200 people and raised £14,000. Here are the video highlights.

Your Business: Cover Star Club

Profile: gearing up for the shift from consolidation to start-ups

Profile: gearing up for the shift from consolidation to start-ups

‘I think the industry is evolving rapidly, but not necessarily as a whole,’ says the head of recently launched Charles Nicholson AM

Wealth Manager on Twitter