14 Min Read
(Corrects Oclaro item to say that II-VI has only acquired an exclusive option to buy Oclaro's optical amplifier and micro-optics business, not acquired the business. The error also appeared in four earlier versions.)
Sept 12 (Reuters) - Some U.S. stocks on the move on Thursday:
U.S. stocks fell in light volume, snapping seven straight gains by the S&P 500 index, as an incomplete report on the U.S. jobs market left traders with little to guide them about next week's Federal Reserve meeting. The Dow Jones industrial average fell 0.14 percent, the S&P 500 lost 0.28 percent, and the Nasdaq Composite dropped 0.12 percent.
** YAHOO INC, $30.03, up 3 pct (12:13 p.m. ET)
Chief Executive Marissa Mayer told TechCrunch that the company's monthly active users were up 20 percent at 800 million globally, including 350 million on mobile. She said those figures are increases since she took over as the chief executive in July last year. The numbers don't include Tumblr. (link.reuters.com/dyv92v)
** ENDEAVOUR SILVER CORP, $4.31, down 7 pct (10:04 a.m. ET)
** BARRICK GOLD CORP, $17.81, down 4.4 pct
** MCEWEN MINING, $2.41, down 8 pct
** ROYAL GOLD INC, $52.16, down 3 pct
** NEWMONT MINING CORP, $28.50, down 3 pct
** YAMANA GOLD INC, $10.30, down 4 pct
Gold prices fell nearly 3 percent ahead of a Federal Reserve meeting next week at which the central bank is widely tipped to announce it is curbing its bullion-friendly monetary stimulus measures. The Fed is expected to say at a two-day gathering starting on Sept. 17 that it is set to start reining in its $85 billion monthly bond-buying programme, possibly triggering new selling pressure on the metal.
** REALD INC, $6.92, down 8 pct (03:14 p.m. ET)
Analysts at brokerage house B.Riley & Co cut their price target on the licensor of 3D technology, saying only two 3D movies are slated for this month - "Battle of the Year" and "Cloudy with a Chance of Meatballs 2". The next major tests to gauge any change in 3D demand trends would not occur until the December quarter - with the releases of "Gravity", "Thor 2" and "The Hobbit 2", they said.
** SEAWORLD ENTERTAINMENT INC, $30.52, up 7 pct (3:30 p.m. ET)
The theme park operator on Wednesday evening said its preliminary year-to-date revenue and admissions rose on the back of strong demand at its flagship SeaWorld parks in Orlando and San Diego.
** OCLARO INC, $1.54, up 45 pct (09:33 a.m. ET)
The optical components maker, which has a market capitalization of about $98 million, said it sold its Zurich, Switzerland-based semiconductor laser business to II-VI Inc for about $115 million.
II-VI also acquired an exclusive option to buy Oclaro's optical amplifier and micro-optics business for $88 million in cash.
** EZCHIP SEMICONDUCTOR LTD , $24.22, down 21.7 pct (11:00 a.m. ET)
Cisco Systems Inc may replace EZchip processors in its routers with a new programmable network processor chip it unveiled on Thursday.
About 40 percent of EZchip's 2013 revenue is estimated to come from Cisco, Benchmark Co analyst Gary Mobley wrote in a note.
** NETSOL TECHNOLOGIES, $11.97, up 17 pct (9:48 a.m. ET)
The company, which provides software and IT services for financial, automotive leasing and healthcare industries, posted fourth-quarter results way ahead of Wall Street estimates as demand rose for its services. The company said its average deal size is increasing.
** VERTEX PHARMACEUTICALS INC, $81.63, up 2 pct (9:49 a.m. ET)
** AMETEK INC, $45.70, up 3 pct
** ADVANCED MICRO DEVICES INC, $3.77, down 1 pct
** SAIC INC, $14.55, down 1 pct
S&P Dow Jones Indices announced late Wednesday that Vertex Pharmaceuticals and Ametek will replace Advanced Micro Devices and SAIC in the S&P 500 after the close of trading on Sept. 20.
** LULULEMON ATHLETICA INC, $64.51, down 6.5 pct (9:48 a.m. ET)
The retailer , recovering from a setback after its see-through yoga pants were recalled earlier this year, trimmed its forecast. For the 2013 full fiscal year, the company expects net revenue in the range of $1.625 billion to $1.635 billion, down from $1.645 billion to $1.665 billion previously forecast.
** KEY ENERGY SERVICES, $7.36, down 7 pct (10:10 a.m. ET)
The oilfield services company said revenue from its U.S. operations is expected to dip 2 to 4 percent from the second quarter as it had to redeploy equipment to reflect changes in the customers' programs. The company said income margins for the operations may fall by 100 to 200 basis points. Key also said it expects its international operations to be flat quarter over quarter, lower than the 15 percent rise forecast earlier. (link.reuters.com/fev92v)
** ARATANA THERAPEUTICS INC, $12.03, up 17 pct (1:26 p.m. ET)
The development-stage company plans to launch three health products for cats and dogs by 2016, the company said at the Stifel Nicolaus Weisel Healthcare Conference on Wednesday.
Aratana can be profitable by 2016, Lazard Capital Markets wrote in a note, reiterating its "buy" rating on the stock.
** WALGREEN CO, $52.91, up 4 pct (1:03 p.m. ET)
Goldman Sachs upgraded the biggest U.S. drugstore chain's stock to "conviction buy" from "buy," according to Streetinsider.com.
** WENDY'S CO, $8.54, up 3.5 pct (10:06 a.m. ET)
Argus Research Co upgraded the second-largest U.S. hamburger chain's stock to "buy" from "hold" as it expects restaurant remodeling and improved menus to boost the company's sales over the next few years.
** ALCATEL LUCENT SA, $3.53, up 4 pct (11:13 a.m. ET)
Brokerage MKM Partners raised its price target on the telecom network equipment maker's stock to $3.75 from $2.60, saying the management could prove that its restructuring plans are achievable. Goldman Sachs also raised its price target on Alcatel Lucent's Paris-listed shares.
** ZUOAN FASHION LTD, $2.06, down 14 pct (11:07 a.m. ET)
The Chinese menswear retailer said it expects challenging market conditions in the later half of the year due to distributors canceling orders, falling wholesale prices and higher advertising costs. The company forecast third-quarter earnings of 18-20 cents per American depositary share (ADS), much lower than 53 cents per ADS reported a year earlier.
** MEN'S WEARHOUSE INC, $35.55, down 8 pct (9:46 a.m. ET)
The retailer reported lower-than-expected results for the second quarter and lowered its full-year earnings forecast, citing difficult trends in the apparel industry.
** JONES GROUP, $15.50, up 3 pct (10:14 a.m. ET)
Private equity firms KKR & Co LP and Sycamore Partners are considering a joint bid for the fashion and footwear company that owns retail chains Nine West and Jones New York, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.
** RF INDUSTRIES $6.87, up 5.5 pct (11:42 a.m. ET)
The company, which makes interconnect products and systems and electronic specialty cables, said revenue rose 31 percent to $9.6 million in the third quarter.
** MFRI INC, $11.47, up 8 pct (11:17 a.m. ET)
The piping systems and filtration products maker reported a profit for the second quarter as higher piping sales boosted gross profit margins.
** UNIVERSAL DISPLAY CORP, $32.11, down 9 pct (11:30 a.m. ET)
Sony Corp's Sony Computer Entertainment (SCE) has replaced Universal Display's OLED panels with a 5-inch LCD panel in its new model of the PlayStation Vita, according to Japanese technology blog Tech On!. (link.reuters.com/xuv92v)
** NEOSTEM INC, $8.95, up 4 pct (10:09 a.m. ET)
The cellular therapy company said it received a grant of $147,765 from the National Institutes of Health to fund preclinical studies testing the potential of its stem cell technology to treat wounds associated with scleroderma. NeoStem said it may qualify for an additional $1.5 million grant based on the results of the study. Scleroderma is a tissue disease that causes the skin and connective tissues to harden and tighten.
** CASH AMERICA INTERNATIONAL INC, $43.87, up 3 pct (10:08 a.m. ET)
JMP Securities upgraded the pawn lender's stock to "market outperform" from "market perform," saying that its recent addition of 34 pawn lending locations in Georgia and North Carolina, government campaign against unregulated payday lenders and recent low volatility in gold prices would boost the company's growth.
** BRADY CORP, $30.38, down 7 pct (10:47 a.m. ET)
The identification products maker forecast 2014 earnings below analysts' expectations and said it expects organic sales to either contract slightly or grow in low single digit. Brady reported a 15 percent jump in fourth-quarter revenue but organic sales fell 2.3 percent.
** ROSETTA GENOMICS LTD, $3.50, up 8 pct (9:35 a.m. ET)
The molecular diagnostics company said it received a patent allowance in the United States for its method of determining the risk of a blood pressure-related complication in pregnant women and the development of a treatment based on the expression of certain genes.
** KROGER CO, $38.84, up 3 pct (10:27 a.m. ET)
The biggest U.S. supermarket operator reported a 14 percent jump in its second-quarter profit as it capped costs and drove sales higher with programs for loyal shoppers.
** EXTREME NETWORKS INC, $4.46, up 11 pct (9:45 a.m. ET)
The network-gear maker said it would buy privately held wired and wireless network hardware and software company Enterasys Networks Inc for $180 million in cash. Extreme Networks expects the deal to add to earnings immediately.
** COLUMBIA LABORATORIES INC, down 12 pct, $7.32 (9:37 a.m. ET)
The drugmaker said it will buy privately held Molecular Profiles Ltd for about $25 million to gain access to the UK company's clinical manufacturing services. Columbia Labs said the deal will immediately add to its earnings.
** STERLING FINANCIAL CORP, $28.43, up 7 pct (9:54 a.m. ET)
** UMPQUA HOLDINGS CORP, $16.27, down 4 pct
Umpqua has agreed to buy private equity-backed Sterling Financial in a $2 billion cash-and-stock deal, the companies said on Wednesday.
** PANDORA MEDIA INC, $23.43, up 9 pct (9:37 a.m. ET)
The online streaming music company named former Microsoft Corp executive and venture capitalist Brian McAndrews as president, chairman and CEO on Wednesday. McAndrews, 54, replaces Joe Kennedy who announced in March he was leaving Pandora.
** SUNSHINE HEART INC, $11.73, up 8 pct (10:17 a.m. ET)
Sunshine Heart said it enrolled its first patient in a pivotal study of its C-Pulse heart device in the United States. The implantable device will be tested in patients with moderate to severe heart faliure.
** SYNTA PHARMACEUTICALS CORP, $6.99, up 4 pct (9:44 a.m. ET)
The company said the U.S. Food and Drug Administration granted fast-track status to its lead experimental drug ganetespib as a treatment for non-small cell lung cancer. A fast-track designation expedites regulatory review of drugs that aim to treat serious diseases and fill unmet medical needs.
** DOMINION RESOURCES INC $60.95, up 4 pct (9:44 a.m. ET)
The Obama administration on Wednesday authorized natural gas exports from a fourth U.S. facility -- Dominion Resource's Cove Point terminal on Maryland's Chesapeake Bay -- unexpectedly accelerating a review process that would-be gas exporters and their allies in Congress had criticized as too slow.
** WEATHERFORD INTERNATIONAL LTD, $14.77, down 6 pct (9:43 a.m. ET)
Brokerage Raymond James downgraded the oilfield services company's stock to "market perform" from "outperform", citing its "overly optimistic" full-year forecast and the management uncertainty following the departure of Chief Financial Officer John Briscoe.
** ARCH COAL INC, $5.01, down 2 pct (9:41 a.m. ET)
** ALPHA NATURAL RESOURCES INC, $6.52, down 2 pct
** JAMES RIVER COAL CO, $2.21, down 4 pct
** WALTER ENERGY INC, $14.88, down 3 pct
The Obama administration plans to block the construction of new coal-fired power plants unless they are built with novel and expensive technology to capture greenhouse gases, the Wall Street Journal reported. (link.reuters.com/kyr92v)
China unveiled comprehensive new measures to tackle air pollution, with plans to slash coal consumption and close polluting mills, factories and smelters, but experts said implementing the bold targets would be a major challenge.
** CLIFF NATURAL RESOURCES, $22.71, down 4 pct (9:40 a.m. ET)
The miner has lost a key land dispute at a Canadian tribunal that could cause more problems for its already troubled Black Thor chromite project in northern Ontario's mineral-rich Ring of Fire.
** VERA BRADLEY INC, $19.82, down 2 pct (9:47 a.m. ET)
The women's handbag and accessories retailer forecast third-quarter results below Wall Street estimates as it expects its gross margin to decline due to increased promotional activity. The company also lowered its full-year profit and revenue forecasts.
** GLU MOBILE INC, $2.26, down 6 pct (9:39 a.m. ET)
The mobile game maker reaffirmed its forecast for the third quarter, which were largely below analysts' expectations. The company had forecast an adjusted loss of 10 cents to 11 cents on revenue of $19.6 million to $21 million. Analysts were expecting a loss of 10 cents on revenue of $20.3 million.
** ZYNGA INC, $3.11, up 4 pct (9:39 a.m. ET)
Brokerage Evercore Partners upgraded the game publisher's stock to "equal weight" from "underweight" as it expects Zynga to launch a game to compete with King's "Candy Crush Saga".
** HALCON RESOURCES CORP, $5.03, up 2 pct (9:39 a.m. ET)
The oil and gas company said it would sell some non-core assets in the United States for about $302 million. The company said the assets produce about 4,500 barrels of oil equivalent per day.
** URS CORP, $51.35, up 2 pct (10:20 a.m. ET)
The engineering company said it would use its free cash flow to return at least $500 million to its shareholders by the end of 2015 by issuing dividends and buying shares. The remaining cash would be used to pay debt and fund growth. URS does not expect to look for any "significant acquisitions" during the period, the company said. (Compiled by Varun Aggarwal; Editing by Don Sebastian)