Markets

Mid-Morning Market Update: Markets Open Higher; Elliott To Acquire Barnes & Noble For $683M

Following the market opening Friday, the Dow traded up 0.93 percent to 25960 while the NASDAQ rose 1.36 percent to 7719. The S&P also rose, gaining 1 percent to 2872.

Leading and Lagging Sectors

Information technology shares rose 1.5 percent on Friday. Meanwhile, top gainers in the sector included Zoom Video Communications, Inc. (NASDAQ: ZM), up 21 percent, and CooTek (Cayman) Inc. (NYSE: CTK), up 9 percent.

In trading on Friday, financial shares rose by just 0.1 percent.

Top Headline

Barnes & Noble, Inc. (NYSE: BKS) has officially entered into a definitive agreement to be acquired by hedge fund Elliott Management for $6.50 per share in an all-cash transaction valued at approximately $683 million.

Following the close of the transaction, Elliott will own both Barnes & Noble and Waterstones, and each bookseller will operate independently but share a common CEO. James Daunt, CEO of Waterstones, will assume the role of CEO of Barnes & Noble following the completion of the transaction and will be based in New York.

The $6.50 per share purchase price represents a 43 percent premium to the 10-day volume weighted average closing share price of Barnes & Noble’s common stock ended June 5, 2019, the day before rumors of a potential transaction were reported in the media.

Equities Trading UP

Stewardship Financial Corporation (NASDAQ: SSFN) shares shot up 73 percent to $15.39. Columbia Financial Inc (NASDAQ: CLBK) announced plans to buy Stewardship Financial for $15.75 per share in cash.

Shares of Beyond Meat, Inc. (NASDAQ: BYND) got a boost, shooting up 27 percent to $126.00 after the company reported stronger-than-expected results for its first quarter on Thursday.

FTD Companies, Inc. (NASDAQ: FTD) shares were also up, gaining 114 percent to $0.3013 after Diamond Investment Group reported a 12 percent stake in the company. FTD 50 LLC also disclosed a 12 percent stake in the company.

Equities Trading DOWN

Domo, Inc. (NASDAQ: DOMO) shares tumbled 19 percent to $25.70 after the company issued Q2 sales guidance below analyst estimates.

Shares of Charles & Colvard, Ltd. (NASDAQ: CTHR) were down 18 percent to $1.67. Charles & Colvard priced its 6.25 million share common stock offering at $1.60 per share.

DocuSign, Inc. (NASDAQ: DOCU) was down, falling 13 percent to $47.43 after the company reported a quarter-over-quarter decline in subscription growth, offsetting strong Q1 earnings and upbeat Q2 guidance.

Commodities

In commodity news, oil traded up 1.2 percent to $53.20, while gold traded down 0.2 percent to $1,339.70.

Silver traded down 0.1 percent Friday to $14.90, while copper fell 1 percent to $2.624.

Euro zone

European shares were higher today. The eurozone’s STOXX 600 rose 0.8 percent, the Spanish Ibex Index rose 0.8 percent, while Italy’s FTSE MIB Index rose 1 percent. Meanwhile, the German DAX climbed 0.6 percent, and the French CAC 40 rose 1.4 percent while UK shares rose 0.8 percent.

Economics

The U.S. economy added 75,000 new jobs in May. However, economists were expecting a gain of 185,000 jobs. The unemployment rate remained at 3.6 percent in May.

U.S. wholesale inventories rose 0.8 percent for April.

The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

Data on consumer credit for April will be released at 3:00 p.m. ET.

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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CTHR SSFN DOMO DOCU CLBK CTK BYND ZM