Stocks soared at the open following news that a tariff “truce” between the U.S. and China had been reached at the G20 meeting this weekend. The U.S. has reportedly set a 90-day deadline to make progress, but few details have emerged beyond that. The market saw its highs shortly after the open and since then has been drifting lower, paring its gains. Oil prices have maintained their opening gains and are trading around $52.50 a barrel amid reports that Qatar plans to leave OPEC.
ECONOMIC EVENTS: In the U.S., Markit's manufacturing index fell to 55.3 in the final November reading, down from 55.7 in October and a 55.4 preliminary figure. The ISM manufacturing index rebounded 1.6 points to 59.3 in November, which was better than forecast. In energy news, oil prices have rebounded on the trade news, Russia confirming its cooperation with the Saudis to manage output, and Qatar indicating it will withdraw from OPEC at the start of the year.
COMPANY NEWS: GlaxoSmithKline (GSK) announced an agreement to acquire Tesaro (TSRO) for $5.1B in cash, or $75 per share. The proposed transaction "significantly strengthens" GSK's pharmaceutical business, accelerating the build of GSK's pipeline and commercial capability in oncology, the company stated. Shares of Tesaro are up 58% near noon following the deal announcment, whilc Glaxo shares trading in New York are down 8%.
In other M&A news, Nexstar Media Group (NXST) announced an agreement to acquire all outstanding shares of Tribune Media (TRCO) for $46.50 per share in a cash transaction that is valued at $6.4B including the assumption of Tribune's outstanding debt. Perry Sook, Chairman and CEO of Nexstar, said the companies "have thoughtfully structured the transaction in a manner that positions the combined entity to better compete in today's rapidly transforming industry landscape and better serve the local communities, consumers and businesses where we operate." Sook also said Nexstar has developed "a comprehensive regulatory compliance plan and believe we have a clear path to closing." Nexstar shares have risen 2% in reaction to the deal, while Tribune's stock is up about 10%.
MAJOR MOVERS: Among the noteworthy gainers was Global Blood Therapeutics (GBT), which rose 44% after it announced FDA acceptance of its voxelotor proposal. Also higher was New Age Beverages (NBEV), which gained 10% after it announced the signing of an agreement to acquire Morinda Holdings for $85M.
Among the notable losers was Agios Pharmaceuticals (AGIO), which slid 10% after it presented data from a Phase 1 study evaluating ivosidenib or enasidenib in combination with standard induction and consolidation chemotherapy in certain patients with newly diagnosed acute myeloid leukemia. Also lower was ArQule (ARQL), which fell 10% after it presented preliminary results from the company's Phase 1 dose escalation study for ARQ 531.
INDEXES: Near midday, the Dow was up 170.13, or 0.67%, to 25,708.59, the Nasdaq was up 75.01, or 1.02%, to 7,405.54, and the S&P 500 was up 17.45, or 0.63%, to 2,777.62.
