Mid-Day Market Update: Crude Oil Down 2.5%; TeamHealth Shares Surge On Acquisition News

Midway through trading Monday, the Dow traded up 0.10 percent to 18,180.19 while the NASDAQ gained 0.23 percent to 5,202.26. The S&P also rose, gaining 0.29 percent to 2,132.52.

Leading and Lagging Sectors

On Monday, utilities shares gained by 1.67 percent. Meanwhile, top gainers in the sector included NRG Energy Inc (NYSE: NRG ), and Atmos Energy Corporation (NYSE: ATO ).

In trading on Monday, energy shares fell by 0.71 percent. Meanwhile, top losers in the sector included Contango Oil & Gas Company (NYSE: MCF ), down 11 percent, and Ferrellgas Partners, L.P. (NYSE: FGP ), down 10 percent.

Top Headline

General Electric Company (NYSE: GE ) confirmed on Monday that it has entered into an agreement in which its oil and gas business will combine with Baker Hughes Incorporated (NYSE: BHI ) to create a world-leading oilfield technology provider.

As part of the agreement, Baker Hughes shareholders will receive a one-time cash dividend of $17.50 per share and will also own 37.5 percent of the new entity.

The combined company will boast operations in more than 120 countries and become a leading equipment, technology and services provider in the oil and gas industry with a combined revenue base of $32 billion. Moreover, the combined entity would be better positioned for growth when the oil and gas industry rebounds.

Equities Trading UP

Intersections Inc. (NASDAQ: INTX ) shares shot up 26 percent to $2.21 after the company disclosed that its board has received a proposal from Loeb Holding to acquire the company's Pet Health Monitoring Segment.

Shares of TeamHealth Holdings Inc (NYSE: TMH ) got a boost, shooting up 16 percent to $42.75 after the company agreed be purchased by Blackstone Group LP (NYSE: BX ) at $43.50 per share in cash.

INC Research Holdings Inc (NASDAQ: INCR ) shares were also up, gaining 12 percent to $46.30 after the company reported better-than-expected quarterly earnings.

Equities Trading DOWN

Memorial Production Partners LP (NASDAQ: MEMP ) shares dropped 50 percent to $0.546 as the company announced Friday that it will suspend quarterly cash distribution. Stifel Nicolaus downgraded Memorial Production Partners from Hold to Sell.

Shares of Zimmer Biomet Holdings Inc (NYSE: ZBH ) were down 13 percent to $106.49. Zimmer Biomet reported Q3 adjusted earnings of $1.79 per share on sales of $1.83 billion. The company also lowered the high end of previously issued FY16 earnings outlook.

Invacare Corporation (NYSE: IVC ) was down, falling around 7 percent to $9.15 after the company reported a wider-than-expected quarterly loss.


In commodity news, oil traded down 2.57 percent to $47.45 while gold traded down 0.22 percent to $1,274.00.

Silver traded up 0.02 percent Monday to $17.80, while copper rose 0.64 percent to $2.21.


European shares were lower today. The eurozone's STOXX 600 slipped 0.42 percent, the Spanish Ibex Index fell 0.47 percent, while Italy's FTSE MIB Index dropped 1.02 percent. Meanwhile the German DAX slipped 0.18 percent, and the French CAC 40 dropped 0.66 percent while U.K. shares fell 0.37 percent.


U.S. consumer spending rose 0.50 percent for September, versus economists' expectations for a 0.50 percent growth. Personal income increased 0.30 percent, versus estimates of a 0.40 percent gain.

The Chicago PMI dropped to 50.60 in October, versus a prior reading of 54.20. Economists were expecting a reading of 54.00.

The Dallas Fed manufacturing business index rose to -1.50 in October, versus a prior reading of -3.70. Economists expected a reading of 2.00.

Data on farm prices for October will be released at 3:00 p.m. ET.

© 2016 Benzinga does not provide investment advice. All rights reserved.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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