Stocks opened sharply higher on the heels of comments from Treasury Secretary Mnuchin that trade talks with China were progressing well. The averages remain in positive ground, but off their best levels as renewed selling in shares of Facebook (FB) is creating a drag on other Internet stocks as well as the broader market. ECONOMIC EVENTS: In the U.S., the Chicago Fed National Activity index surged to 0.88 in February after falling to 0.02 in January. The Dallas Fed manufacturing index fell back to 21.4 in March following a rise to a reading of 37.2 in February. COMPANY NEWS: Shares in Facebook are lower again and dragging on both the tech sector and the broader S&P as fallout from its data practices scandal continues. In the latest turn, the Acting Director of the Federal Trade Commission’s Bureau of Consumer Protection, Tom Pahl, confirmed that the FTC has an open non-public investigation into the privacy practices of the social media giant. Near noon, Facebook shares have sunk 3%, worsening the stock’s recent decline… Sneaker retailer Finish Line (FINL) has seen its stock jump 30% after the company announced an agreement to be acquired by JD Sports Fashion at a price of $13.50 per share in cash, representing an aggregate deal value of approximately $558M. MAJOR MOVERS: Among the noteworthy gainers was USG Corporation (USG), which surged 19% after shareholder Berkshire Hathaway (BRK.A) disclosed that Germany’s Knauf offered to acquire the company for $42 per share. USG’s board unanimously rejected the proposal, which they judge as undervaluing USG’s shares. Also higher was Travelport (TVPT), which gained 11% after shareholder Elliott Management urged the company to explore its strategic alternatives, including a possible sale. A report from Reuters, which cites sources, added that the investment firm has spoken with banks about possible financing for making its own bid to buy the company. Among the notable losers was Protagonist Therapeutics (PTGX), which plunged 58% after it said it is discontinuing the Phase 2b PROPEL study of PTG-100. Also lower was Biohaven Pharmaceutical (BHVN), which slid 23% after reporting top-line results from two Phase 3 clinical trials of potential migraine treatment rimegepant. INDEXES: Near midday, the Dow was up 315.18, or 1.34%, to 23,848.38, the Nasdaq was up 73.48, or 1.05%, to 7,066.15, and the S&P 500 was up 27.14, or 1.05%, to 2,615.40.
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