18 Min Read
April 23 (Reuters) - Some U.S. stocks on the move on Tuesday:
Stocks climbed as strong earnings from Travelers and others put shares on track for a third straight day of gains, though worries about the strength of the global economy were not far from investors' minds. The Dow Jones industrial average gained 143.61 points, or 0.99 percent, to 14,713.70. The Standard & Poor's 500 Index rose 15.89 points, or 1.02 percent, to 1,578.39. The Nasdaq Composite Index climbed 39.29 points, or 1.22 percent, to 3,272.84.
** SUPERCONDUCTOR TECHNOLOGIES INC, $5.15, up 125 pct (1214 ET)
The maker of high temperature superconducting materials said it recently received orders for one of its wires, used for power applications such as smart grids. It expected backlog to exhaust its production capacity until at least the third quarter of 2013.
** MEMSIC INC, $4.05, up 49.4 pct (1215 ET)
The chip component maker said it will be acquired by IDG-Accel China Capital II for about $88.5 million, or $4.225 per share. IDG's affiliates currently own about 19.5 percent of Memsic's shares.
** CELSION CORP, $0.90, up 17 pct (1215 ET)
The cancer therapy developer said it would cut about one-third of its workforce to cut costs and conserve capital, and engaged Cantor Fitzgerald & Co to conduct a review of strategic options including a sale of the company and acquiring other firms with promising drug candidates.
The announcement comes after Celsion said in January that its experimental liver cancer treatment ThermoDox failed to meet the main goal of increasing patients' survival without worsening their cancer.
** CAESARS ENTERTAINMENT CORP, $16.32, up 30.7 pct (1217 ET)
The casino operator said it would split itself into two companies, with private-equity firms Apollo Management and TPG Capital investing a total of $500 million in a new subsidiary that would pursue growth opportunities.
** NETFLIX INC, $219.05, up 25.6 pct (1219 ET)
The video subscription service impressed investors on Monday with solid subscriber growth and better-than-expected profits in the first quarter.
At least two brokerages raised their price target on the stock on Tuesday.
** DELTA AIR LINES INC, $16.47, up 8.7 pct (1152 ET)
The Atlanta-based airline reported a higher-than-expected profit and said declining oil prices are likely to offset near-term revenue weakness caused by lighter demand from leisure travelers.
** METLIFE INC, $37.96, up 6 pct (1153 ET)
The largest U.S. life insurer raised its quarterly common stock dividend to 27.5 cents per share from 18.5 cents per share, payable on June 13, 2013 to shareholders. By 1153 ET about 1.38 million shares of the company had exchanged hands.
** HEALTHSTREAM INC, $23.60, up 16.4 pct (1200 ET)
The company, which provides IT solutions to healthcare organizations, reported adjusted first-quarter net income of 8 cents per share, handily beating analysts' estimates by 2 cents, according to Thomson Reuters I/B/E/S. Revenue from the company's learning and talent management business rose 30 percent.
** ARCA BIOPHARMA INC, $2.47, down 14.8 pct (1210 ET)
The company's stock fell as much as 16.5 percent, a day after it jumped almost 82 percent on the news that it entered into an agreement with Medtronic Inc to conduct a substudy to continuously monitor cardiac rhythms of 200 patients enrolled in a mid-stage study of its lead drug candidate Gencaro. The drug, which aims to prevent a type of arrhythmia in patients with heart failure.
** TRAVELERS COMPANIES INC, $87.12, up 3 pct (0937 ET)
** CHUBB CORP, $89.59, up 2.2 pct (0956 ET)
** ACE LTD, $91.15, up 2.1 pct (0957 ET)
** WR BERKLEY CORP, $44.63, up 1 pct (0958 ET)
The U.S. insurer posted a record quarterly operating profit that easily surpassed Wall Street estimates as catastrophe losses declined and the insurer charged higher premiums from businesses and individual customers.
The acceleration of business insurance rate increases bodes well for peers, in particular for the shares of Chubb, ACE and WR Berkley, UBS analyst Brian Meredith said in a note to clients.
** DUPONT, $52.03, up 3.2 PCT (1233 ET)
The chemical maker's quarterly profit more than doubled as the worst dry spell in decades encouraged U.S. farmers to buy its drought-hardy seeds and crop-protection products to boost yields. The company forecast similar sales for the second quarter as well.
** BANK OF AMERICA CORP, $11.98, up 2.2 pct (0936 ET)
Morgan Stanley raised its rating on the stock to "overweight" from "equalweight," according to StreetIndsider.com. (link.reuters.com/cyw57t)
** MORGAN STANLEY, $21.30, up 2.8 pct (0953 ET)
Suntrust raised its rating on the stock to "buy" from "neutral", according to theflyonthewall.com.
** VEECO INSTRUMENTS INC, $31.30, up 15.7 pct (0939 ET)
The company, which makes equipment critical for LED production, said it was booking rush orders from some of its LED customers that would help reduce excess supply.
** LEXMARK INTERNATIONAL INC, $29.04, up 14.2 pct (0946 ET)
The printer maker's first-quarter revenue beat expectations and the company forecast second-quarter revenue largely above estimates, sending its shares up 12 percent.
** SANMINA CORP, $12.25, up 13 pct (1049 ET)
Brokerage Needham & Co raised its target price on the company's stock to $13 from $11 after the provider of components and logistics to defense, aerospace, and automotive industries, reported second-quarter adjusted profit above analysts' expectations late on Monday.
** ILLUMINA INC, $61.96, up 12.5 pct (0943 ET)
The gene sequencing products maker's first-quarter adjusted profit beat analysts' expectations on Monday as its product sales rose 21 percent.
Credit Suisse raised its price target on the stock, which rose to its highest in more than a year and a half in early trading.
** II-VI INC, $15.07, down 11 pct (1021 ET)
The maker of engineered materials and opto-electronic components reported a lower-than-expected profit and said expenses increased on write-downs of its tellurium and selenium inventory during the quarter. The company also forecast 2013 earnings and revenue below the analysts' estimates.
The stock fell to its lowest in 33 months in morning trade.
** COACH INC, $56.05, up 10.7 pct (0938 ET)
The upscale leather goods maker and retailer reported better-than-expected third-quarter results and raised its annual dividend.
The stock crosses its 10-day moving average volume in heavy early trading.
** ARM HOLDINGS , $43.31, up 7.5 pct (0940 ET)
The British chip designer easily beat first-quarter profit forecasts, helped by the strength of the dollar and buoyant demand for smartphones and tablets that use its processor technology.
** BEAZER HOMES USA INC, $24.91, up 18.6 pct (1107 ET)
** D.R. HORTON INC, $23.79, up 6 pct (1026 ET)
** PULTEGROUP INC, $19.50, up 6 pct (1026 ET)
** TOLL BROTHERS INC, $34.11, up 9 pct (1026 ET)
** LENNAR CORP, $41.33, up 6 pct (1026 ET)
** KB HOME, $22.02, up 5 pct (1026 ET)
** MERITAGE HOMES CORP, $45.03, up 6 pct (1026 ET)
** RYLAND GROUP INC, $40.30, up 5 pct (1026 ET)
Sales of new single-family homes rose in the United States in March, indicating the housing market recovery was on track. Sales increased 1.5 percent to a seasonally adjusted annual rate of 417,000 units, the Commerce Department said. Last month's rise followed a 7.6 percent drop in February.
Barclays Capital upgraded Lennar, Meritage Homes, PulteGroup and Toll Brothers to "overweight" and Ryland Group to "equal weight," saying it expects home prices to overshoot equilibrium levels in the near term, before a likely correction by 2015.
** STMICROELECTRONICS , $7.91, up 8.8 pct
The European chipmaker said signs of market recovery and new products, such as motion sensor chips for video games consoles, should drive a pick up in sales in the second half of this year.
** PENTAIR LTD, $53.49, up 7 pct (1017 ET)
The company, which makes water treatment systems and thermal controls, reported a quarterly profit above analysts' expectations as strong demand from the North American residential market more than offset declines in western Europe. Pentair also raised its quarterly dividend to 25 cents per share from 23 cents.
** SUCAMPO PHARMACEUTICALS, $7.20, up 6 pct (0935ET)
The drugmaker said U.S. health regulators approved its drug Amitiza for a new indication - to treat constipation caused by opioids in patients with chronic, non-cancer pain. Amitiza is already approved in the U.S. for the treatment of chronic idiopathic constipation in adults and irritable bowel syndrome with constipation in adult women. [ID: nBw89dywxa]
** RENT-A-CENTER INC, $33.80, down 5.9 percent (0943 ET)
The rent-to-own operator of furniture and electronic items reported quarterly results that widely missed Wall Street forecasts, as demand dropped due to delayed issuance of federal income tax refunds, rising fuel prices and higher payroll taxes.
** TECK RESOURCES LTD , $23.88, down 5.8 pct (0945 ET)
Canada's largest diversified miner reported a 40 percent fall in first-quarter adjusted profit due to lower coal prices, and said economic uncertainty may affect prices and shipments.
** FIRST MAJESTIC SILVER CORP, $10.87, down 5.23 pct (1047 ET)
** ENDEAVOUR SILVER CORP, $4.53, down 4.83 pct (1046 ET)
** NEWMONT MINING CORPORATION, $31.98, down 4.25 pct (1046 ET)
** HARMONY GOLD MINING CO. LTD., $4.65, down 4.32 pct (1045 ET)
** ELDORADO GOLD CORP, $7.16, down 3.37 pct (1045 ET)
** SEABRIDGE GOLD, INC, $10.11, down 3.81 pct (1043 ET)
** SILVER WHEATON CORP, $22.31, down 2.53 pct (1042 ET)
** GOLDCORP INC, $27.70, down 3 pct (1041 ET)
Gold prices fell after the outflow from the biggest gold exchange-traded fund (ETF) accelerated, indicating that confidence in the precious metal among investors was weakening, and as a stronger dollar put pressure on prices. Gold fell 1.1 percent to a session low of $1,409.54 an ounce early in the day. It trimmed some losses but remained down 0.3 percent at $1,421.50 by 1206 GMT. Among other precious metals, silver fell 1.8 percent to $22.96 an ounce.
** ARCH COAL INC, $4.62, down 5.32 pct (1133 ET)
** ALPHA NATURAL RESOURCES INC, $6.99, down 1.96 pct (1133 ET)
Arch Coal, the second-largest U.S. coal producer, reported a loss in the first quarter due to lower prices and sales volumes. Weak prices for metallurgical and thermal coal have weighed on U.S. coal producers, especially on companies that sell thermal coal to domestic customers.
** IRONWOOD PHARMACEUTICALS INC, $17.06, down 5 pct (1101 ET)
The company reported a wider-than-expected quarterly loss as sales of its constipation drug, Linzess, missed market estimates.
The drug's net first-quarter sales of $4.5 million was "significantly below expectations" of $10.9 million, said Wallachbeth Capital analyst Difei Yang. The drug was approved by the U.S. Food and Drug Administration in August to treat chronic constipation and irritable bowel syndrome with constipation in adults.
** BRINKER INTERNATIONAL INC, $37.14, down 4.38 pct (1204 ET)
Soft sales at the company's mainstay Chili's restaurants pushed down shares despite a quarterly profit that topped Wall Street's expectations on cost controls and a lower-than-expected tax rate.
** ACACIA RESEARCH CORP, $23.44, up 4.8 pct (1103 ET)
The company, which develops and licenses patents, said its board of directors has approved the adoption of an annual cash dividend policy of 50 cents per share and the payment of an initial quarterly dividend.
The company also extended its previously announced $100 million share repurchase plan from May 15 until Aug. 15.
** IDEXX LABORATORIES INC, $85.91, down 4.5 pct (0946 ET)
The veterinary products maker's quarterly profit missed analysts' estimates after it incurred a charge resulting from a third-party service provider's bankruptcy.
** CENTENE CORP, $47.27, up 4.3 pct (0946 ET)
The health insurer reported a better-than-expected quarterly profit as new contracts and expansion of existing contracts boosted revenue by 53 percent.
** XOOM CORP, $20.41, up 4.2 pct (0944 ET)
The online money transfer provider posted a surprise profit as more people transferred money using its digital platform. The company which, went public in February, said active customers grew by 46 percent to about 841,819 for the quarter ended March 31,2013. Revenue rose 43 percent to $24.3 million
** MOLEX INC, $26.33, down 4 pct (1110 ET)
The electronic components maker reported third-quarter results below analysts' estimates, hurt by a fall in demand for its products, and forecast fourth-quarter results way below expectations.
The stock, trading nearly one-and-a-half times its average 10-day volume, was one of the top percentage losers on the Nasdaq at 1114 ET.
** YINGLI GREEN ENERGY HOLDING CO LTD, $2.07, up 3 pct (0945 ET)
** TRINA SOLAR LTD, $4.29, up 9 pct (1223 ET)
** JINKOSOLAR HOLDING CO LTD, $5.67, up 5 pct (1223 ET)
** FIRST SOLAR INC, $40.53, up 4.5 pct (1223 ET)
** CANADIAN SOLAR INC, $4.38, up 7 pct (1223 ET)
** YINGLI GREEN ENERGY HOLDING CO, $2.28, up 13 pct (1223 ET)
Yingli, one of China's largest solar equipment makers, said it has signed two loan agreements with China Development Bank (CDB) with an aggregate of $165 million. CDB will provide the company with a one-year loan of $110 million and a three-year loan of $55 million.
Other solar stocks also gained on the news.
** JA SOLAR HOLDINGS CO LTD, $4.32, up 3.8 pct (1217 ET) The Chinese solar company said it has begun mass production of metal wrap-through (MWT) solar cells with increased conversion efficiency. The cells, which require no welding, lose less power and suffer lower cell-breakage rate while being assembled into modules. "MWT is at the core of the next generation of module technology, and represents a significant breakthrough in terms of power output and conversion efficiency," JA Solar Chief Technology Officer Yong Liu.
** ATLANTIC COAST FINANCIAL CORP, $4.94, up 8.8 pct (1221 ET)
The company said it has amended merger agreement with community-oriented bank Bond Street Holdings Inc. Atlantic Coast Financial's stockholders will receive $5 per share in cash for each common share owned. The amendment eliminates the transaction's $2 per share contingency consideration.
** U.S. AIRWAYS GROUP, $15.96, up 2.8 pct (0952 ET)
US Airways Group Inc LCC.N reported a lower quarterly profit on Tuesday as expenses for salaries went up.
Net income came to $44 million, or 26 cents a share, compared with $48 million, or 28 cents a share, a year earlier.
** ENCANA CORP , $19.20, up 2.2 pct (0946 ET)
Canada's No.1 natural gas producer, reported a 25 percent fall in first-quarter operating profit due to hedging losses.
** CELESTICA INC , $7.82, up 2.2 pct (0947 ET)
The contract electronics manufacturer reported a 76 percent fall in first-quarter profit, hit by the loss of contracts from its once-biggest customer, Blackberry .
** VOLTERRA SEMICONDUCTOR CORP, $12.79, down 2 pct (1115 ET)
The chipmaker reported first-quarter results below analysts' estimates, prompting at least two brokerages to cut their price target on the company's stock.
** REGIONS FINANCIAL CORP, $7.87, up 1.8 pct (0952 ET)
The southeastern U.S. bank reported a better-than-expected quarterly profit on lowered expenses and as it set aside lesser money to cover soured loans. The bank reported earnings of 23 cents per share for the quarter, above analyst expectations of 20 cents per share, according to Thomson Reuters I/B/E/S.
** LOCKHEED MARTIN CORP, $97.57, up 1.8 pct (0950 ET)
The largest U.S. defense contractor expects across-the-board U.S. budget cuts to have a bigger impact on the company's results in the second and third quarters of 2013, Chief Financial Officer Bruce Tanner told reporters on Tuesday. [ID;nL2N0DA0MC]
** CIT GROUP INC, $40.83, down 1.5 pct (0947 ET)
The small-business lender, which is operating under Federal Reserve supervision since emerging from bankruptcy, reported a lower-than-expected quarterly profit due to a 17 percent drop in its interest income.
** TEXAS INSTRUMENTS INC, $35.35, up 1.6 pct (0939 ET)
The chipmaker posted first-quarter results slightly ahead of Wall Street expectations on Monday and it forecast growth for the current quarter on improving demand for its chips.
Three brokerages raised their price targets on the stock on Tuesday.
** CIT GROUP INC, $40.81, down 1.5 pct (0945 ET)
The small-business lender operating under Federal Reserve supervision since emerging from bankruptcy, reported a lower-than-expected quarterly profit due to a 17 percent drop in its interest income.
** TRANSALTA CORP , $13.51, down 1.3 pct (0948 ET)
Canadian power generation company reported a first-quarter loss, hurt in part by a one-time charge related to pension funding obligations. L3N0DAGNS
** BANKRATE INC, $13.15, down 1 pct (1014 ET)
Goldman Sachs downgraded the online financial data provider to "sell" from "neutral," citing deteriorating traffic trends, a difficult market for financial advertising, and increasing competition. The brokerage said that Bankrate has under invested in business, particularly in its mobile segment.
** INGERSOLL-RAND PLC, $54.31, down 0.5 pct (0950 ET)
The maker of Trane air conditioners, Schlage locks and Thermo King mobile refrigeration units, reported a 7 percent decline in earnings due to weak demand for its commercial heating and cooling systems and industrial products.
** WELLS FARGO & CO, $36.94, up 0.5 pct (0954 ET)
The fourth-largest U.S. bank by assets will hold its annual shareholder meeting. Last year's gathering was disrupted by demonstrators angered over foreclosure practices and other issues.
Compiled by Sruthi Ramakrishnan in Bangalore,