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Sept 18 Some U.S. stocks on the move on
WALL ST DRIFTS LOWER AS FED DECISION LOOMS
U.S. stocks dipped on Wednesday ahead of an announcement by
the Federal Reserve on the future of an economic stimulus
program that has been a main reason for Wall Street to hit
record highs. The Dow Jones industrial average fell 55.35
points or 0.36 percent, the S&P 500 lost 4 points or 0.23
percent, and the Nasdaq Composite dropped 7.137 points
or 0.19 percent.
** APPLE INC, $462.35, up 1.5 pct (12:38 p.m. ET)
The fingerprint reader on Apple's top-end iPhone 5S received
an early thumbs up for ease of use from two influential
reviewers, helping dispel concerns about the scanning technology
which has been notoriously unreliable in other cellphones.
** VOLARIS, $13.92, up 16 pct (12:39 p.m. ET)
Shares of Mexico's low-cost airline Volaris rose
in their U.S. debut on Wednesday after the company raised about
$350 million through an initial public offering.
** WI-LAN INC, $4.08, up 13 pct (12:18 p.m. ET)
The Canadian patent licensing company granted
licenses to HTC Corp to use its patents for mobile
handsets and tablets sold in the United States.
Wi-Lan also said all five pending litigations with HTC will
be resolved as a part of the agreement.
** SEARS HOLDINGS CORP, $59.60, down 4 pct (12:28
The retailer set price guidance on its new $1 billion term
loan earmarked to pay down revolver borrowings at the company,
sources told Thompson Reuters LPC. The new first-lien term loan
is guided at LIB+450-475 basis points, with a 1 percent Libor
floor and a 99 original issue discount.
** EXPRESS SCRIPTS HOLDING CO, $63.50, down 4 pct
(12:59 p.m. ET)
** CATAMARAN CORP, $52.90, down 4 pct (12:59 p.m.
Shares of the pharmacy benefits managers fell after the
largest U.S. drugstore, Walgreen Co, moved 120,000
employees to a private health insurace exchange where they can
choose a plan from multiple insurers.
Express Scripts and Catamaran, which are in the business of
managing pharmacy benefits for large employers, administer drug
benefits and health plans for employers.
** NEW RESIDENTIAL INVESTMENT CORP, $6.70, up 4.8
pct (12:29 p.m ET)
The real estate investment trust declared a third-quarter
dividend of 17.5 cents per share. This is the company's first
dividend since spinning off from Newcastle Investment Corp
in the second quarter.
** NOKIA, $6.58, up 5 pct (12:39 p.m. ET)
Brokerage Credit Suisse upgraded the Finnish mobile phone
maker's Helsinki-listed shares to "outperform" from "neutral",
saying its transformative deal with Microsoft Corp
allows it to drive significant value creation from its vast
** BENEFITFOCUS INC, $48.57, up 83 pct (12:40 p.m.
The software maker's shares rose as much as 62 percent in
their debut as investors continued to show confidence in
cloud-based service providers. The company, backed by Goldman
Sachs Group Inc and private equity firm Oak Investment
Partners LP, priced its initial public offering at $26.50 per
** DRAGONWAVE INC, $2.06, down 16.5 pct (12:40 p.m.
The telecom network equipment maker priced its public
offering at $2.10 per unit, a 14 percent discount to its
Tuesday's closing price on the Nasdaq.
DragonWave said it intends to use net proceeds from the $25
million offering for funding working capital and general
** TOWER GROUP INTERNATIONAL LTD, $10.19, down 26
pct (12:43 p.m. ET)
FBR cut its rating on the property and casualty insurer's
stock to "market perform" from "outperform" after the company
further delayed its second-quarter results announcement till the
first week of October. FBR said that higher reserves in the
second quarter could put the insurer in a weaker capital
** 8X8 INC, $10.40, up 6.8 pct (12:43 p.m. ET)
The internet telephone company appointed Ian Potter to its
board, effective Sept 17. [ID: nBw5P3WNja]
Potter previously served as Managing Director at Morgan
Stanley & Co in Singapore from 1994. Potter is "very strategic",
William Blair & Co analyst Dmitry Netis said, adding that his
banking experience makes him well positioned to take the company
forward. Netis also said the planned IPO by the company's rival
RingCentral has also been driving 8X8's shares up.
** COGNIZANT TECHNOLOGY SOLUTIONS CORP, $82.82, up
2 pct (12:44 p.m. ET)
Brokerage Barclays Capital upgraded the IT services
provider's stock to "overweight" from "equal weight" as it sees
growth in the company's business in consulting and outsourcing
in Europe. It also expects strong growth in its health care
business. Barclays raised its price target on the company's
stock to $97 from $80. Brokerage Evercore Partners also raised
its price target late on Tuesday.
** LINN ENERGY LLC, $27.03, down 3 pct (12:45 p.m.
In a filing with the U.S. Securities and Exchange
Commission, the oil and gas producer made changes to the way it
defines and calculates cash flow. Raymond James analyst Kevin
Smith said the rewiring does not change Linn's underlying cash
"Meaning there is a lot of heartache going on but no change
in the company's ability to pay its distribution or how much
cash flow Linn actually generates," he said. (r.reuters.com/nyz23v)
The SEC is investigating Linn's accounting and its offer to
buy Berry Petroleum Co.
** NRG ENERGY INC, $27.28, down 2.3 pct (12.45 p.m.
Brokerage Goldman Sachs downgraded the U.S. power company to
"neutral" from "conviction buy" on expectations that the
company's earnings in 2015 would be below estimates due to a
fall in power prices.
** ATOSSA GENETICS INC, $6.45, up 30 pct (12:46
The medical device maker said it had entered into a
distribution agreement with a unit of McKesson Corp to
sell the company's device used to collect breast fluid.
** CAESARS ENTERTAINMENT CORP, $22.30, down 14 pct
(12:46 p.m. ET)
The casino operator said it has begun a refinancing process
for its outstanding mortgage loans under the second amended and
restated loan agreement.
RBC Capital Markets analyst John Kempf said the share
movement is a sell-off on the news as the stock was running up
in anticipation of the announcement.
** FEDEX CORP, $113.84, up 2.8 pct (12:47 p.m. ET)
FedEx posted a bigger quarterly profit as the courier
company cut costs and its lower-priced ground shipping business
** KINDER MORGAN INC, $35.67, up 2.7 pct (12:47 p.m.
The oil and gas pipeline and processing company detailed
their capital spending for the El Paso project at an investor
conference on Wednesday after a research note on Sept 4 spooked
investors and shaved $4 billion off its market value.
Kevin Kaiser, an analyst at Hedgeye Risk Management, shot an
an email to his clients which said Kinder Morgan and its
associated companies "is a house of cards, completely
misunderstood and mispriced".
"I would suggest that investors should prefer to rely on
expertise rather than the opinion of one analyst looking at a
number of financial reports," said Chief Executive Richard
Kinder on the call.
** ADOBE SYSTEMS INC, $51.64, up 7.3 pct (12:47
The company, known for its Photoshop and Acrobat software,
expects subscriber growth to top the 331,000 it added in the
third quarter due to strong demand from corporate customers.
** HEAT BIOLOGICS INC, $13.09, up 7.4 pct (12:49
Aegis Capital Corp began coverage of the biotechnology
company with a "buy" rating, saying preliminary data of its
bladder and lung cancer study could be out later in the year and
positive outcomes could make it a prime acquisition candidate.
The company's Heat Biologics platform, called Immune Pan
Antigen Cytotoxic Therapy, delivers modified human cells into
the body to activate a cancer patient's immune system and kill
** COMBIMATRIX CORP, $2.79, down 6 pct (12:48 p.m.
The molecular diagnostics company said on Tuesday it would
offer $10 million of Class A and Class B units.
** AVG TECHNOLOGIES NV, $24.98, up 2.2 pct (12:48
Brokerage Nomura Equity Research initiated coverage on the
PC and mobile anti-virus software maker's stock with a "buy"
rating and a $29 price target, citing the "optimistic view" on
the company's ability to monetize its mobile installed base in
2014 and its continued diversification of platform search
** FRANK'S INTERNATIONAL NV, $29.00, up 3.2 pct
(12:49 p.m. ET)
Brokerage Barclays Capital started its coverage of the oil
services company with an "overweight" rating and target price of
$35, citing the benefits from the surging deepwater drilling
activity, a strong balance sheet and high margins.
** TRIUMPH GROUP INC, $70.96, down 9.7 pct (12.50
The maker of aircraft components said it expects to record
pretax additional program costs of $68 million, or 83 cents per
share, associated with the 747-8 program. The company expects a
charge of about $44 million, or 53 cents per share, to be
included in the second-quarter results, while $11.0 million, or
14 cents per share, would be reflected in the third-quarter
** SANGAMO BIOSCIENCES INC, $11.01, up 4 pct (12:50
The drugmaker said its common stock offering of 6.1 million
shares is priced at $10.58 per share, the closing price of its
stock on Tuesday, and which will fetch $65 million in gross
** VISHOP HOLDINGS LTD, $53.60, up 9.4 pct (12:51
Deutsche Bank upgraded its rating on the Chinese online
discount retailer's stock to "buy" from "hold," according to
** REPOROS THERAPEUTICS INC, $25.70, up 7.8 pct
(12:51 p.m. ET)
Ladenburg Thalmann raised the price target of the
drugmaker's stock to $35 from $25 and reiterated a "buy" rating
after the company's experimental drug Androxal met the main
goals of a key study on men with low testosterone levels.
** CRACKER BARREL OLD COUNTRY STORE INC, $102.50,
down 4 pct (12:51 p.m. ET)
The restaurant operator forecast current-quarter profit
below analysts' estimates due to higher commodity costs and
** SERVICENOW INC, $51.16, up 3.7 pct (12:52 p.m.
Brokerage Morgan Stanley upgraded the cloud computing
company's stock to "overweight" from "equal weight", according
** ALLIANCE FIBER OPTIC PRODUCTS INC, $22.34, up
10.4 pct (12:52 p.m. ET)
The supplier of fiber optic components raised its revenue
expectations for the current quarter due to a recovery in
spending by telecom equipment makers.
Brokerage B. Riley on Wednesday raised its price target on
the company's stock to $19 from $15.60.
** EAGLE BULK SHIPPING INC, $5.52, up 9 pct (12:53
** DRYSHIPS INC, $3.22, up 4.3 pct
The Baltic Exchange's main sea freight index, which
reflects the cost of shipping commodities such as iron ore,
cement, grain, coal and fertiliser, was up about 5 percent for
the second consecutive day.
In recent weeks, rates for capesize ships, one of the
largest dry bulk vessels hauling industrial commodities like
coal and iron ore, have spiked to their highest levels since
December 2011, reaching more than $32,000 a day, helped by an
iron ore import push by China.
** SOHU.COM INC, $74.30, up 9.6 pct (12:53 p.m. ET)
The Chinese internet portal on Wednesday said its
majority-owned search unit Sogou Inc paid a special dividend
amounting to $300.9 million to the holders of Series A preferred
shares of Sogou.
** MAXWELL TECHNOLOGIES, $9.63, up 3 pct (12:54
Piper Jaffray raised its rating on the stock of the maker of
energy storage and power delivery-related products to
"overweight" from "neutral", according to theflyonthewall.com.
** FLEETMATICS GROUP PLC, $45.17, down 6 pct (12:54
The company, which sells web-based fleet-tracking software,
announced the pricing of about 6 million of its ordinary shares
at a price of $46.79 per share in a follow-on offering.
** CHEMOCENTRYX INC, $6.13, down 4.5 pct (12:55
Chemocentryx said that GlaxoSmithKline Plc returned
the rights to its most advanced drug in development for
inflammatory bowel disease.
** RESPONSYS INC, $15.98, up 7.2 pct (12:55 p.m.
Morgan Stanley raised its rating to "overweight" from "equal
weight" on the marketing software and online services provider's
stock, according to the website theflyonthewall.com.
** BIOTA PHARMACEUTICALS INC, $4.15, down 5.3 pct
(12:56 p.m. ET)
The drugmaker said it had received no royalty for its flu
drug Relenza from GlaxoSmithKline in the fourth quarter
due to tepid demand for the drug.
The company expects to earn an equal or lesser amount from
the drug in royalty revenue in 2014 compared to 2013.
** DOLLAR TREE INC, $57.01, up 2.1 pct (12:56 p.m.
The value retailer on Tuesday announced a $2 billion share
repurchase program. The company also said it had entered into
agreements to repurchase $1 billion of its common shares under a
variable maturity accelerated share repurchase program.
** FIVE BELOW INC, $45.60, down 6 pct (12:56 p.m.
The specialty value retailer on Tuesday announced a
secondary offering by its shareholders. The company said
shareholders have agreed to sell 7.1 million shares of its
common stock, of which 7 million shares would be sold by funds
affiliated with Advent International and 100,000 shares will be
sold by Five Below's executive chairman.
(Compiled by Varun Aggarwal)