16 Min Read
Sept. 10 (Reuters) - Some U.S. stocks to watch on Tuesday:
U.S. stocks rose as an alternative solution emerged to the Syrian crisis that could avert a possible Western military strike, buoying market sentiment. The Dow Jones industrial average was up 0.78 percent, the Standard & Poor's 500 Index was up 0.70 percent, and the Nasdaq Composite Index was up 0.59 percent.
** GOLDMAN SACHS GROUP INC, $164.24, up 2.9 pct (10:02 a.m. ET)
** VISA INC, $182.18, up 2 pct
** NIKE INC, $66.73, up 2 pct
** BANK OF AMERICA CORP, $14.61, up 0.8 pct
** HEWLETT-PACKARD CO, $22.16, down 0.8 pct
In the biggest shake-up of the Dow Jones industrial average in nearly a decade, investment bank Goldman Sachs, credit card payment processor Visa and apparel company Nike will join the blue-chip index, replacing three companies whose stock prices were considered too low, including Alcoa, which ends more than half a century of membership. The three companies will also replace Bank of America Corp and Hewlett-Packard in the 30-stock average, the index managers said Tuesday.
For a graphic (r.reuters.com/bah92v)
** CHEMOCENTRYX INC, $6.28, down 24 pct (12:22 p.m. ET)
The biopharmaceutical company's experimental drug for treating diabetic kidney disease showed mixed results in a mid-stage trial with a higher dose being less effective than a lower one.
** XENOPORT INC, $6.07, up 21 pct (2.47 pm ET)
The drugmaker on Monday said initial data from an early-stage clinical study of its experimental drug to treat relapsing-remitting multiple sclerosis and/or psoriasis supports further development of the compound.
** DELTA AIRLINES, $22.65, up 4 pct (11:56 a.m. ET)
The U.S. airline will join the S&P 500 index after the close of trading on Sept. 10, replacing BMC Software, Standard & Poor's said on Friday.
** ALAMOS GOLD INC, $15.59, down 4 pct (10:03 a.m. ET)
** GOLDCORP INC, $27.98, down 4 pct
** SEABRIDGE GOLD INC, $12.90, down 5 pct
** ENDEAVOUR SILVER, $4.62, down 6 pct
** YAMANA GOLD INC, $10.59, down 5 pct
** SILVER STANDARD RESOURCES, $7.78, down 3 pct (10:35 a.m. ET)
Gold prices fell further on Tuesday after Syria accepted a Russian proposal to give up chemical weapons and win a reprieve from U.S. strikes, while uncertainty over the timing and pace of U.S. monetary stimulus also weighed.
** APPLE INC, $495.91, down 2.04 pct (3:31 p.m. ET)
Apple introduced two new iPhones on Tuesday including the "iPhone 5C" that comes in five colors and starts at $99 with a contract, priced to bring one of the industry's costliest smartphones within reach of the masses in poorer emerging markets.
** ADVANCED SEMICONDUCTOR ENGINEERING INC, $4.73, up 1 pct (10:56 a.m. ET)
The chipmaker is supplying the fingerprint detection module for the iPhone 5S, DigiTimes said on Monday. (link.reuters.com/cyg92v)
** TE CONNECTIVITY LTD, $52.73, up 3 pct (1:41 p.m. ET)
** AMPHENOL CORP, $77.75, up 2 pct
The electronics parts makers' shares continued to rise after Koch Industries offered to buy smaller peer Molex Inc for about $7.2 billion on Monday. "We expect the take-out of (Molex) to be generally positive for larger peers, TE Connectivity and Amphenol Corp, given prospects for industry consolidation at reasonably healthy multiples and a more concentrated competitive landscape," UBS analysts Amitabh Passi and James Hillier said.
** TOWER FINANCIAL CORP, $23.00, up 47 pct (9:31 a.m. ET)
Old National Bancorp said it would buy Tower Financial in a stock-and-cash deal, valuing the bank holding company at about $107.7 million.
** TUESDAY MORNING CORP, $14.17, up 11.5 pct (11:22 a.m. ET)
The home decor retailer appointed retail industry veteran Jeffrey Boyer as chief financial officer on Monday. Boyer was with 24 Hour Fitness Worldwide.
** SINCLAIR BROADCAST GROUP INC, $28.82, up 7 pct (13:52 a.m. ET)
Benchmark Co raised its price target on the TV broadcaster's shares to $42, saying 2014 broadcast revenue could reach $1.9 billion due to increased political advertising and strong growth in retransmission and digital revenues.
** CROCS INC, $13.09, down 4 pct (9:55 a.m. ET)
The maker of colorful clogs cut its revenue and profit forecasts for the quarter ending Sept. 30, citing weakness in its Americas business.
** TATA MOTORS LTD, $26.66, up 6 pct (10:40 a.m. ET)
Jaguar, part of the Jaguar Land Rover (JLR) group owned by India's Tata Motors, said it would invest $2.4 billion in a new range of lightweight aluminum sports sedans and crossover SUVs aimed at the mass market, creating 1,700 jobs in a British economy showing signs of resilience. The luxury carmaker said the investment could create a further 24,000 supply chain jobs.
** CHRISTOPHER & BANKS CORP, $6.34, up 7.6 pct (10:19 a.m. ET)
The women's apparel retailer reported a smaller-than-expected quarterly loss, boosted by stronger margins and a 7.7 percent rise in same-store sales. The company reported a loss of 1 cent per share. Analysts on average were expecting a loss of 2 cents per share, according to Thomson Reuters I/B/E/S.
** SPROUTS FARMERS MARKET, $37.58, down 4 pct (10:23 a.m. ET)
BoFa Merrill Lynch initiated coverage on the organic grocer's stock with an "underperform" rating, while at least three other brokerages initiated coverage with a "neutral" rating, TheFlyOnTheWall.com reported.
** PARAGON SHIPPING INC, $8.39, down 8 pct (1:28 a.m. ET)
The drybulk shipper said in a regulatory filing that it was offering $25 million of its shares. The company said it would use the proceeds to partially fund the acquisition of two new drybulk carriers. (link.reuters.com/ceh92v)
** DRYSHIPS INC, $3.12, up 1 pct (10.31 a.m. ET)
** GENCO SHIPPING AND TRADING LTD, $4.81, up 2 pct
The Baltic Exchange's main sea freight index climbed for the seventh consecutive day on Tuesday on higher activity on bigger vessels. The overall index, which factors in the average daily earnings of capesize, panamax, supramax and handysize, rose 63 points, or 4.26 percent, to 1,541 points.
** MOLYCORP INC, $6.87, up 4 pct (1032 ET)
Shares of the U.S. rare earths company rose after a Chinese official newspaper said China, the world's top producer and exporter of rare earths, plans to buy 10,000 tonnes of rare earths from local producers to add to stockpiles built up by the country's State Reserves Bureau.
** PROSPECT GLOBAL RESOURCES INC, $5.18, up 19 pct (10:11 a.m. ET)
The potash miner said in a regulatory filing that it had got an extension for a $1.2 million debt payment due Tuesday. The company said it had until Sept. 13 to make the payment and was in discussions with the lender to revise the terms of the debt.
** INERGY MIDSTREAM LP, $22.20, down 6 pct (10:15 a.m. ET)
The oil and gas pipeline company said a public offering of its 11 million units were priced at $22.50 each, a 4 percent discount to the stock's Monday closing price of $23.32.
** REAL GOODS SOLAR INC, $2.15, up 10.3 pct (10:09 am ET)
The solar company expects to be EBITDA positive for the second half of 2013 and post a profit in the fourth quarter, it said in a regulatory filing. (r.reuters.com/mug92v)
The company has posted losses for six straight quarters.
** SOLARCITY CORP, $33.51, up 12 pct (11:05 a.m. ET)
The solar company said it has joined with energy services provider Direct Energy to create an investment fund capable of financing up to $124 million in solar projects for Direct Energy's commercial and industrial customers.
** JINKOSOLAR HOLDING CO, $19.70, up 1.4 pct (9:38 a.m. ET)
The Chinese company said it would supply about 247 megawatt peak of solar modules to a renewable energy company Acciona SA for projects in South Africa and Australia.
** JA SOLAR HOLDINGS CO LTD, $9.54, up 2 pct (9:40 a.m. ET)
The Chinese company said it would supply 96 megawatt of solar panels for two projects in China.
** SUNEDISON INC, $8.02, up 2.6 pct (9:37 a.m. ET)
The solar company said it closed a $212.5 million financing arrangement with IFC, a World Bank Group member, and the Overseas Private Investment Corp, the U.S. government's development finance institution, to build a 100 megawatt peak plant in Chile.
** ALON USA ENERGY INC, $11.24, down 7 pct (10:16 a.m. ET)
The refiner said on Monday it plans to offer about $130 million of senior notes due 2018 and use the proceeds to repay debt.
** NUSTAR ENERGY LP, $39.85, down 3 pct (10:22 a.m. ET)
Simmons & Co cut its rating on the midstream company's stock to "underweight" from "neutral", citing lower storage contract renewal rates and continued weakness in the company's fuels marketing business and asphalt joint venture.
** YANZHOU COAL MINING, $10.40, up 9 pct (10:26 a.m. ET)
Analysts at Jefferies & Co said the rally in the stock was probably caused by the coal miner's attempts to control share price by pushing out short sellers. "Today's price surge was exacerbated by stock lenders recalling shares ... We believe share prices are unsustainable," the analysts said in a note to clients.
** ENBRIDGE ENERGY MANAGEMENT LLC, $28.39, down 5 pct (10:23 a.m. ET)
The company said it expects to raise about $232 million from an offering of about 8 million shares. The company has 54.16 million shares outstanding, according to Thomson Reuters data.
** CONAGRA FOODS INC, $31.75, down 5 pct (10:06 a.m. ET)
The company estimated its first-quarter profit below analysts' expectations due to weak sales in its consumer foods business, which includes Chef Boyardee canned pasta, Hunt's sauces and Slim Jim beef jerky.
** AMICUS THERAPEUTICS, $2.81, up 10 pct (10:01 a.m. ET)
The biotechnology company said it has entered into a collaboration with Biogen Idec to develop and commercialize novel small molecules for the treatment of Parkinson's disease. The collaboration includes funding by Biogen.
** NANOSTRING TECHNOLOGIES INC, up 22 pct (10 a.m. ET)
Medical device maker NanoString Technologies Inc said the U.S. Food and Drug Administration approved its breast-cancer test, Prosigna, to assess the risk of the cancer relapsing. Prosigna testing services are expected to be available through qualified U.S. clinical laboratories in the first quarter of 2014, the company said.
** MODEL N INC, $9.87, down 33 pct (12:36 p.m. ET)
The revenue management software maker forecast revenue for the year ending September 2014 below analysts' estimates on Monday. Raymond James, Stifel Nicolaus and JP Morgan cut their ratings on the stock on Tuesday.
Analysts at Stifel said the company did not clearly articulate a plan to cut expenses. Raymond James analysts said a return to revenue growth could be delayed well into 2015 unless the company quickly improved sales execution.
** NEUROCRINE BIOSCIENCES INC, $11.44, down 31 pct (9:54 a.m. ET)
The company said on Monday that a lower dose of its experimental drug to treat a rare movement disorder did not meet the main goal of a mid-stage clinical study. Cowen and Co cut its price target on the stock to $19 from $20 while MKM Partners cut its target to $13.50 from $17.00 and Oppenheimer to $15 from $19.
** URBAN OUTFITTERS INC, $38.25, down 10 pct (9:57 a.m. ET)
The teen apparel chain said in a regulatory filing on Monday that percentage growth in its same-store net sales, including online sales, was trending in the mid-single digit in the current quarter. This forecast missed analysts' estimates. Janney Capital Markets analyst Adrienne Tennant cut the price target on the stock to $46 from $52, saying she expected the 9 percent growth of the second quarter to continue into this quarter.
** CYTORI THERAPEUTICS INC, $2.49, up 5 pct (9:56 a.m. ET)
Roth Capital Partners reinstated its "buy" rating on the medical device maker's stock with a $10 price target, saying positive data from the trials on Cytori's cell therapy for chronic ischemic heart failure would boost its U.S. profile.
** MARVELL TECHNOLOGY GROUP LTD, $12.94, up 3 pct (9:53 a.m. ET)
J.P. Morgan Securities upgraded the chipmaker's stock to "overweight" from "neutral", saying the company's product development and execution over the last 18 months has spurred growth in its mobile/wireless and storage markets. The brokerage, expecting the company to control costs, raised its price target on the stock to $16 from $14.
** POLYCOM INC, $9.94, down 5.4 pct (3:01 p.m. ET)
Ron Myers, the company's senior vice president of Global Channels, has left the videoconferencing company to pursue an outside opportunity, Wells Fargo Securities analyst Jess Lubert said in a note.
"We are disappointed by Mr. Myers' departure, as we believe he built a strong channel organization and was well respected by the company's partners," Lubert wrote.
Polycom's Chief Executive Andrew Miller stepped down in July after irregularities were found in his expense submissions.
** PALO ALTO NETWORKS INC, $48.47, up 3.3 pct (9:52 a.m. ET)
The security software maker on Monday reported better-than-expected revenue for the fourth quarter, citing a rise in demand for its appliances and contributions from more recurring subscription and maintenance services. At least four brokerages raised their price targets on the stock.
** HD SUPPLY HOLDINGS INC, $22.14, down 10.5 pct (9:51 a.m. ET)
The construction products supplier reported a wider quarterly loss for the second quarter due to expenses associated with debt restructuring. The company also forecast fiscal 2013 results below analysts' estimates.
** STARWOOD PROPERTY TRUST INC, $24.19, down 3 pct (9:50 a.m. ET)
The company, which finances and manages commercial mortgage loans, said it was offering 25 million shares in an underwritten public offering.
** L&L ENERGY INC, $3.06, up 5.5 pct (9:50 a.m. ET)
The coal miner's first-quarter profit more than doubled as production was boosted by the acquisition of two mines in China in November. Production rose 54 percent to 228,000 tons in the quarter.
** FIVE BELOW INC, $47.12, up 15 pct (9:49 a.m. ET)
The specialty value retailer reported better-than-expected results for the second quarter due to a 6.6 percent increase in same-store sales. The company also raised its full-year earnings and revenue forecast.
** PVH CORP, $126.17, down 4.4 pct (9:48 a.m. ET)
The maker of Calvin Klein and Tommy Hilfiger clothes gave a third-quarter sales and profit forecast that was below analysts' estimates. The company characterized the global environment as "challenging".
** BLACKBERRY LTD, $11.01, down 4 pct (9:47 a.m. ET)
The Canadian company's biggest shareholder has approached several large Canadian investment funds about forging a deal to take the smartphone maker private, but the proposal is still "an airy-fairy, 'what if' kind of thing," according to a source with direct knowledge of the situation.
** MICROSOFT CORP, $32.05, up 1 pct (9:47 a.m. ET)
At least three of the top 20 investors in the company want a turnaround expert to succeed Steve Ballmer as chief executive. They have urged the technology giant's board to consider Ford Motor Co Chief Executive Alan Mulally and Computer Sciences Corp Chief Executive Mike Lawrie for the job, several sources familiar with the matter said.
** ADVANCED MICRO DEVICES INC, $3.81, up 3 pct (9:41 a.m. ET)
The chipmaker, targeting new markets as personal computer sales decline, unveiled chips designed to run slot machines, factory robots, airport signs, medical equipment and other devices.
** GULFPORT ENERGY CORP, $61.61, down 4 pct (10:05 a.m. ET)
The oil and gas producer cut its third-quarter production forecast to 12,250-12,750 barrels of oil equivalent per day (boepd) from 14,000-15,000 boepd, citing pipeline infrastructure delays and higher-than-anticipated downtime. (Compiled by Varun Aggarwal; Editing by Don Sebastian)