Market Snapshot August 31, 2009, 4:35PM EST

U.S. Stocks Finish Lower

(page 2 of 2)

Story Tools

In economic news Monday, the Chicago Fed's manufacturing index rose to an even 50.0 in August, from 43.4 in July. That's a third consecutive monthly increase, and brings the figure back to the 50.0 neutral line, with improvement broadbased as the "cash for clunkers" helped spur regional activity, notes Action Economics. The headline index, now at its highest since 55.9 last September, is now well off the 31.4 mark from March, which was the lowest reading since July 1980, as this region was severely hurt by the demise of the auto sector.

The employment component rose to 38.7 from 35.3 (39.2 a year ago), but still remains in contractionary territory, says Action Economics. New orders climbed to 52.5 from 48.0 (60.2 last August). Prices paid rose to 50.0 from 35.0 (80.6 a year ago).

Traders were awaiting reports Tuesday on the ISM manufacturing index, construction spending, and pending home sales for further guidance on the status of economic recovery.

In company news Monday, shares of Marvel Entertainment (MVL) surged after the company agreed to be acquired by Walt Disney Co. (DIS) in a stock and cash transaction valued at about $4 billion. Terms of the deal call for Marvel holders to get a total of $30 per share in cash plus about 0.745 Disney share for each Marvel share held. Based on the closing price of Disney stock on Friday, the transaction value is $50 per Marvel share.

BJ Services (BJS) agreed to be acquired by Baker Hughes (BHI) in a $5.5 billion deal. Terms of the deal call for BJ Services shareholders to receive 0.40035 Baker Hughes share and $2.69 cash for each BJS share.

Roche Holding (RHHBY) said the FDA has approved Valcyte for the prevention of cytomegalovirus (CMV) disease in pediatric kidney and heart transplant patients (4 months to 16 years of age) at high risk of developing CMV disease. The company said the FDA also approved a new pediatric oral solution formulation for Valcyte, which will allow easier administration to pediatric patients 4 months to 16 years of age.

Astrazeneca (AZN) announced results from a Phase III head to head trial which demonstrated that ticagrelor has achieved greater efficacy in the primary endpoint, reduction of cardiovascular events (CV death, myocardial infarction, stroke) over clopidogrel (Plavix/Iscover), without an increase in major bleeding. This efficacy endpoint was driven by a statistically significant reduction in both CV death and heart attacks with no difference in stroke.

Pacer International (PACR) announced that it has successfully entered into an amended and restated credit agreement with a syndicate of lenders providing for an asset-based, revolving credit facility of up to $125 million, subject to borrowing base availability, with an "accordion" feature that offers an increase of up to $50 million in the credit facility subject to certain conditions.