HEADLINE STOCKS-Some U.S. stocks on the move on July 2

(Updates to after the open, adds Xilinx, Walgreen, FCStone/International Assets Holding)

NEW YORK, July 2 (Reuters) - Some U.S. stocks on the move on Friday:

ELAN CORP (ELN.N)

JOHNSON & JOHNSON (JNJ.N)

J&J will take over most of Elan's Alzheimer's research and invest $1 billion in new Elan equity in exchange for an 18.4 percent stake in the drugmaker. [ID:nL2891369]

U.S.-listed shares of Elan surged 17 percent to $8.20 while J&J, a Dow component, was down 0.9 percent to $56.58.

EXELON CORP (EXC.N)

NRG ENERGY INC (NRG.N)

Exelon raised its hostile takeover bid for NRG to $7.45 billion, citing newly identified cost savings and NRG'sjn recent acquisition of Reliant Energy's retail business. [ID:nBNG512453]

Shares of Exelon fell 1.5 percent to $50.79 while NRG fell 3.7 percent to $25.08 after rising in premarket.

FCSTONE GROUP INC FCSX.O

INTERNATIONAL ASSETS HOLDING CORP (IAAC.O)

International Assets agreed to buy FCStone in an all-stock deal valued at about $130 million. [ID:nBNG513528]

Shares of FCStone rose 1.2 percent to $4.20 while International Assets fell 9.6 percent to $14.22.

WALGREEN CO (WAG.N)

Shares of the drug store chain fell 1.1 percent to $29.01 after it reported its June sales data. [ID:nN02514194]

XILINX INC (XLNX.O)

The chip maker lowered its quarterly sales outlook, citing supply constraints on some Virtex-5 devices. [ID:nN02544300]

Shares fell 3.3 percent to $19.88.

U.S. BANCORP (USB.N)

The bank is eyeing expansion in the western United States, as it prepares to soon extinguish the government warrants to buy its stock, Chief Executive Richard Davis said. [ID:nN01528998]

Shares fell 0.8 percent to $17.44.

UNITEDHEALTH GROUP (UNH.N)

A U.S. federal judge granted UnitedHealth final approval for the settlement of a 2007 shareholder lawsuit related to past stock options practices, court documents show. [ID:nBNG484252]

Shares fell 4.5 percent to $24.07.

ACURA PHARMACEUTICALS INC (ACUR.O)

KING PHARMACEUTICALS INC (KG.N)

The Food and Drug Administration denied approval to Acura's and King's pain drug Acurox, raising questions on the potential abuse deterrent benefits of the drug. [ID:nBNG178744]

Shares of Acura sank 2 percent to $5.78 while King was down 1.5 percent to $9.67.

FLAGSTONE REINSURANCE LIMITED (FSR.N)

IPC RE IPCR.O

VALIDUS HOLDINGS LTD (VR.N)

Flagstone late Wednesday made a $1.88 billion competing offer for IPC, a reinsurance company fending off an unsolicited bid from Validus. [ID:nN01530558]

Shares of Flagstone sank 10 percent to $9.55 while IPC gained 4.1 percent to $28.90 and Validus rose 1.8 percent to $22.75.

LEAR CORP (LEA.N)

The auto seating supplier late Wednesday said it would file for Chapter 11 in a reorganization supported by key secured lenders and bondholders. It also said it had obtained $500 million in bankruptcy financing. [ID:nN01525902]

Shares closed Wednesday at 48 cents.

WELLS FARGO & CO (WFC.N)

KBW wrote that the bank could post strong second-quarter results, driven by continued high mortgage revenue. The firm raised its second-quarter and full-year earnings estimate on the company. [ID:nBNG475608]

Wells Fargo shares fell 1.6 percent to $23.76.

PHILIP MORRIS INTERNATIONAL INC (PM.N)

Swedish Match (SWMA.ST) agreed to sell its South African operations to Philip Morris for $224.7 million. [ID:nL2546432]

Shares of Philip Morris fell 1.2 percent to $43.55.

MSCI INC (MXB.N)

The company reported a rise in its second-quarter earnings but warned that its client retention rate remained under pressure. [ID:nBNG145934]

Shares rose 1.9 percent to $24.52.

MSC INDUSTRIAL DIRECT CO INC (MSM.N)

The company reported its third-quarter results and gave a fourth-quarter outlook. [ID:nBNG19415]

Shares closed Wednesday at $36.27.

MANHATTAN ASSOCIATES INC (MANH.O)

The company cut its second-quarter earnings outlook to below expectations. [ID:nWNAB3989]

Shares sank 11 percent to $16.20.

SUCAMPO PHARMACEUTICALS INC (SCMP.O)

The company reported promising top-line results from a mid-stage study of its experimental ulcer drug, cobiprostone. [ID:nBNG507292]

Shares rose 1.1 percent to $6.37.

PARAGON SHIPPING INC (PRGN.O)

The shipping transportation company entered into new charter agreements for two of its panamax vessels, which will boost revenue and result in higher 2010 and 2011 fixed-revenue days. [ID:nBNG517273]

Shares fell 1.1 percent to $3.63 after rising in after-hours trading on Wednesday.

ILLUMINA INC (ILMN.O)

The life sciences tools maker reported lower-than-expected second-quarter revenue and cut its 2009 revenue outlook. [ID:nBNG454880]

Shares fell 14 percent to $32.94.

DISCOVERY LABORATORIES INC (DSCO.O)

The company's lung drug, surfaxin, is not likely to get approval in the near term as regulators have applied a newly defined standard. [ID:nBNG518514]

Shares of the company fell 48 percent to 54 cents.

DEMANDTEC INC (DMAN.O)

The software company posted better-than-expected first-quarter results but lowered its fiscal 2010 revenue growth forecast. [ID:nBNG499577]

Shares fell 9 percent to $8.11.

(Reporting by Ryan Vlastelica, Editing by Chizu Nomiyama)