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MARKET PULSE-J.C. Penney, Lumber Liquidators, Nektar, Violin, Enduro
September 27, 2013 / 2:19 PM / 4 years ago

MARKET PULSE-J.C. Penney, Lumber Liquidators, Nektar, Violin, Enduro

(For more market insights, including options activity, click on ; for the Day Ahead newsletter the Morning News Call newsletter U.S. stocks fell at the open on Friday, with the S&P 500 and Dow poised to drop for the first week in four, as concerns grew over a lack of compromise in debt and budget negotiations by congressional lawmakers in Washington. The Dow Jones industrial average was down 0.27 percent, the S&P 500 was down 0.33 percent and the Nasdaq Composite was down 0.48 percent.

** J.C. PENNEY CO INC, $9.40, down 10 pct (9:53 a.m. ET)

The struggling department store operator expects to raise up to $932 million from a share sale, leaving it with about $2.2 billion in cash at the end of the year. Penney, whose shares have been hit by concerns it doesn’t have enough cash to fund operations going into the holiday shopping season, said on Friday that without the offering it would have about $1.3 billion in cash by the end of the year - about $200 million less than it had forecast on Aug. 19.

** LUMBER LIQUIDATORS HOLDINGS INC, $101.46, down 10 pct (10:15 a.m. ET)

Federal authorities executed a search warrant at the retailer’s headquarters and another location, the Associated Press reported. Representatives for Lumber Liquidators did not immediately respond to requests for comment on Friday. In a statement provided to AP, the retailer said it is cooperating to provide information and documentation to “answer questions relating to the importation of certain products”.

** NEKTAR THERAPEUTICS, $10.68, down 22 pct (9:51 a.m. ET)

The drugmaker said its experimental drug to treat chronic pain in patients with arthritis of the knee failed to meet its main goal in a mid-stage clinical trial.

** RDA MICROELECTRONICS INC, $15.18, up 9 pct (10:01 a.m. ET)

The radio frequency chipmaker said China’s state-owned Shanghai Pudong Science and Technology Investment Co Ltd offered to buy the rest of its shares at $15.50 per American depositary share, valuing the at about $750 million.

** YAHOO INC, $33.76, up 3 pct (9:53 a.m. ET)

The U.S. Internet company joined Japan’s SoftBank Corp in backing Alibaba Group Holding Ltd’s planned partnership structure. Yahoo, which owns 24 percent of Alibaba, stands to reap huge windfalls from an IPO as Alibaba’s market valuation would add billions of dollars to the two companies’ assets. Yahoo is also keen to sell part of its stake.

** BLACKBERRY LTD, $8.04, up 1 pct (9:54 a.m. ET)

The company reported a quarterly loss of nearly $1 billion on Friday, in line with last week’s warning, days after accepting its largest shareholder’s tentative $4.7 billion bid to take it out of the public eye.

** TRINA SOLAR LTD, $14.12, up 10 pct premarket (9:50 a.m. ET)


Deutsche Bank raised its ratings on the Chinese solar panel makers to “buy” from “hold”, saying demand is growing a lot faster than expected since China announced in mid 2013 incentives for the sector and initiatives to curb pollution. “Companies with scale, international brand recognition and deep-rooted China relationships stand to emerge as long-term winners,” the brokerage said in a note.

** ACCENTURE PLC, $73.32, down 3 pct (9:51 a.m. ET)

The outsourcing and consulting services provider said it was too early to say if the fourth-quarter growth in its consulting business was sustainable, and forecast quarterly revenue below analysts’ estimates.

** VIOLIN MEMORY, $7.72, down 14 pct (9:59 a.m. ET)

Shares of the flash storage provider, backed by Toshiba Corp , fell as much as 20 percent in their market debut. Violin Memory priced its offering of 18 million shares at $9 each, the mid-point of its proposed price range, raising $162 million.

** NIKE INC, $74.30, up 5 pct (9:48 a.m. ET)

** FOOT LOCKER, $33.87, up 3 pct

Nike enjoyed big sales in gains in North America and Europe last quarter and benefited from fewer markdowns, helping the maker of sports clothes and shoes report a stronger-than-expected quarterly profit.

At least six brokerages raised their price targets on the stock on Friday. Brokerage Sterne Agee & Leach upgraded the stock to “buy” from “neutral,” according to

Shares of athletic shoes retailer Foot Locker also rose on the news.

** AZZ INC, $38.94, down 9.6 pct (10:01 a.m. ET)

The electrical equipment maker reported second-quarter earnings below analysts’ estimates. The company also forecast 2014 revenue well below analysts expectations as construction of domestic and international nuclear power projects are delayed.

** FINISH LINE INC, $24.13, up 8 pct (9:47 a.m. ET)

The athletic footwear retailer reported second-quarter results that beat analysts’ estimates, helped by growth in comparable-store sales.

** ZOLTEK COS INC, $16.50, down 11 pct (9:46 a.m. ET)

Japan’s Toray Industries Inc said it has agreed to buy U.S.-based Zoltek for $584 million in order to increase its share of the worldwide carbon fibre market. The offer of $16.75 per share is at a premium of 2 percent to the stock’s Thursday closing price. The stock went up 12 percent after the offer on Thrusday.

** ENDURO ROYALTY TRUST, $12.83, down 14 pct (9:46 a.m. ET)

The trust formed by oil and gas company Enduro Resource Partners LLC said on Thursday that its offering of 11.2 million trust units was priced at $13.85 per unit.

** ENTROPIC COMMUNICATIONS INC, $4.46, up 3 pct (9:45 a.m. ET)

The company, which designs chipsets for video and broadband multimedia applications, announced a $30 million stock repurchase program on Thursday.

** INTERNATIONAL GAME TECHNOLOGY, $19.94, down 3.5 pct (9:48 a.m. ET)

Deutsche Bank cut its rating on the slot-machine maker’s stock to “hold” from “buy”, warning that full-year earnings may remain flat as challenges in the gaming industry increases. (Compiled by Aditi Shrivastava; Editing by Don Sebastian)

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