|16:27 EDT||ITMN, LOCK, CPB, BRCM, TXN, MU, NVDA, AZN, PFE, DTV, T||On The Fly: Closing Wrap|
Stocks on Wall Street were higher following a trading day marked by light volume, a quiet economic calendar and two headline making M&A announcements. The averages began the day slightly below the flat line, but within minutes the Nasdaq and S&P 500 made it into positive ground. The Dow followed by the end of the morning, but the averages moved in a narrow range from there. Despite the range-bound trading, the market internals pointed to a pretty broad based move higher, with advancers ahead of declining stocks by almost 2 to 1. ECONOMIC EVENTS: In the U.S., no major domestic economic data was reported. COMPANY NEWS: AT&T (T) shares slid 36c, or 0.98%, to $36.38 after the company confirmed over the weekend that it has agreed to acquire DirecTV (DTV) for $95.00 per share, including $28.50 per share in cash and $66.50 per share in AT&T stock. After the announcement, analysts at Raymond James upgraded AT&T to Buy from Market Perform, noting that they do not expect another buyer to emerge for DirecTV. Meanwhile, DirecTV shares were downgraded to Equal Weight from Overweight at Evercore and to Hold from Buy at Wunderlich. Shares of DirecTV fell $1.53, or 1.77%, to $84.65 after the deal, which has been widely speculated about in the media in recent weeks, was confirmed... Also over the weekend, Pfizer (PFE) raised its bid for AstraZeneca (AZN), but the U.K. drugmaker again rejected this "final" takeover proposal. Shares of Pfizer rose 16c, or 0.55%, to $29.28 after the rejection, while shares of AstraZeneca trading in New York dropped $9.64, or 12.01%, to $70.64. MAJOR MOVERS: Among the notable gainers was InterMune (ITMN), which gained $4.61, or 13.44%, to $38.92 after reporting results from a study evaluating pirfenidone and having its shares upgraded to Outperform at Leerink. Also higher was NVIDIA (NVDA), which rose 58c, or 3.23%, to $18.54 after it was one of several semiconductor stock, along with Micron (MU), Texas Instruments (TXN), and Broadcom (BRCM), that were upgraded to Outperform from Sector Perform by RBC Capital in a note to investors earlier today. Among the noteworthy losers was LifeLock (LOCK), which fell $2.28, or 17.57%, to $10.70 after disclosing that the company is going to temporarily suspend its Wallet mobile application since it is not fully compliant with applicable payment card industry security standards. Also lower were shares of Campbell Soup (CPB), which dropped $1.06, or 2.35%, to $44.06 after the company reported mixed third quarter results and lowered its fiscal 2014 outlook. INDEXES: The Dow was up 20.55, or 0.12%, to 16,511.86, the Nasdaq was up 35.23, or 0.86%, to 4,125.81, and the S&P 500 was up 7.22, or 0.38%, to 1,885.08.