Global bonds continued faltering Thursday, a scenario that pressured U.S. equities, but the dollar rose. With the greenback approaching its best levels of the year, that could be a sign markets are betting on a rate hike by the Federal Reserve by the end of the year.
The S&P 500 Index lost 0.3% while the Dow Jones Industrial Average slumped 0.16%. The Nasdaq Composite finished lower by 0.65%.
Celgene Corporation (CELG)
Shares of biotechnology giant Celgene Corporation gained 6.4% on volume that was more than double the daily average after the company reported better-than-expected third-quarter results while raising its full-year guidance.
CELG said it earned $1.58 per share in third quarter, ahead of the consensus estimate of $1.48 a share. CELG reported sales of $2.97 billion, also topping the estimate of $2.83 billion.
Celgene said it expects to earn $5.88 to $5.92 per share, up from previous guidance of $5.70 to $5.75. Analysts were expecting earnings of $5.10 a share. CELG forecast sales of $11.2 billion, up from previous guidance of $11 billion.
For 2017, Celgene forecast EPS of $6.75 to $7 per share. Analysts were expecting $6.41. The company said it expects sales at the high end of the $12.7 billion to $13 billion range previously forecast.
Centurylink Inc (CTL)
Telecom provider Centurylink Inc surged 9.7% on more than seven times the usual volume on reports L-3 Communications Holdings, Inc. (NYSE:LLL) is in talks to acquire CTL.
Citing sources close to the matter, some media outlets deemed the talks between CTL and L-3 as in “advanced” stages.
A combined L-3 and CTL “would create an enterprise telecommunications player worth more than $50 billion, including debt,” according to Reuters.
A deal could be announced next week.
Qualcomm, Inc. (QCOM)
Semiconductor giant Qualcomm, Inc. climbed 2.7% on nearly triple the usual turnover after revealing it will acquire rival NXP Semiconductors NV (NASDAQ:NXPI).
California-based QCOM will acquire NXP in what amounts to the largest deal in the history of the semiconductor space. The deal gives QCOM a footprint in the rapidly growing market for chips used in automobiles and related products.
Qualcomm is offering $110 per share for NXP, a premium of 11.5% to where the stock closed yesterday. Including debt, the deal value is about $47 billion.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.