10 Min Read
(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s)
U.S. stocks were down on Monday on disappointment from investors that weekend talks did not resolve an impasse that threatens a possible U.S. default that looms three days away.
The Dow Jones industrial average was down 0.46 percent. The Standard & Poor's 500 Index was down 0.43 percent while the Nasdaq Composite Index was down 0.28 percent.
** FACEBOOK INC, $48.28, down 1.7 pct (9:31 a.m. ET)
The social networking company will buy Israel's Onavo, which makes data compression software and smartphone applications, the Israeli firm said on its website, without giving any details of the deal. Facebook is paying between $150 million and $200 million, the Calcalist financial news website reported, making it the social media company's biggest acquisition in Israel.
** NETFLIX INC, $309.35, up 2.8 pct (9:31 a.m. ET)
The company is in talks with several U.S. cable television companies including Comcast Corp and Suddenlink Communications to make its streaming video service available through their set-top boxes, the Wall Street Journal reported on Sunday, citing people familiar with the matter.
** CORONADO BIOSCIENCES INC, $1.81, down 69 pct (9:41 a.m. ET)
The company said its treatment for Crohn's disease, a type of inflammatory bowel disease, failed the main goal of improving patients' response to the disease in a mid-stage study.
** WHIRLPOOL CORP, $132.45, down 5.7 pct (10:58 a.m. ET)
Belus Capital Advisors analyst Brian Sozzi said the stock of the household goods maker was falling due to a note from Cleveland Research pointing to softening demand for appliances.
The Cleveland note said that appliance shipments were up just 5-7 percent in September compared with 15 percent in August, investment website StreetInsider.com reported. (link.reuters.com/guw73v)
** CHINA LODGING GROUP LTD, $21.49, up 5 pct (10:50 a.m. ET)
The hotel chain operator late on Sunday released its estimates for third-quarter operating results, showing an improvement in revenue per available room.
** MERCK & CO INC, $46.92, down 0.8 pct (9:31 a.m. ET)
The German drugs and healthcare group is in talks with external investors including private equity firms to share the cost of some clinical trials, the Financial Times reported, citing a senior manager at the company.
** ADVANCED MICRO DEVICES, $4.02, up 5 pct (10:53 a.m. ET)
Brokerage Wedbush Securities upgraded the chipmaker's stock to "outperform" from "neutral," saying AMD will benefit from the launch of gaming consoles in the near term. The brokerage also expects the company to gain market share in servers. Wedbush raised its price target on the stock to $5.00 from $4.50.
** HARSCO CORP, $26.12, up 3.6 pct (11:11 a.m. ET)
BB&T Capital Markets raised its rating on the industrial equipment supplier's stock to "buy" from "hold," according to Theflyonthewall.com.
** NUVASIVE INC, $25.71, down 2 pct (11:37 a.m. ET)
Goldman Sachs downgraded the medical device company's stock to "sell" from "neutral," according to Theflyonthewall.com.
** NEWMONT MINING CORP, $25.90, up 1 pct (9:32 a.m. ET)
HSBC Securities raised its price target on the gold miner's stock to $37.30 from $36.50, maintaining its "overweight" rating.
Spot gold prices rose 0.7 percent to $1,281.96 an ounce by 1135 GMT on Monday as the U.S. fiscal impasse remained unresolved.
** ARCELORMITTAL SA, $15.22, up 2 pct (9:32 a.m. ET)
Analysts at Macquarie Equities Research raised their rating on the world's largest steelmaker's stock to "outperform" from "neutral," according to Theflyonthewall.com.
** TEVA PHARMACEUTICAL INDUSTRIES LTD, $40.52, down 1.3 pct (11:32 a.m. ET)
Oppenheimer analysts initiated coverage on the Israeli company's stock with a "perform" rating, saying a generic threat to its multiple sclerosis injection, Copaxone, could reach the market as early as mid-2014. Teva's development of oral multiple sclerosis therapy, Laquinimod, has also disappointed, the analysts said in a note.
** EXPEDIA INC, $49.25, down 5 pct (9:33 a.m. ET)
Deutsche Bank cut its rating on the online travel agency's stock to "hold" from "buy," according to Theflyonthewall.com.
** BENEFITFOCUS INC, $44.19, up 5.6 pct (10:33 a.m. ET)
A host of brokerages, including Goldman Sachs and Jefferies, started covering the healthcare and insurance benefits software maker's stock with a "buy" rating.
The company went public last month.
** POTBELLY CORP, $25.98, down 6.5 pct (10:35 a.m ET)
The sandwich chain's vice presidents, Morlock John and Segal Aaron, sold 24,731 shares for about $346,000, according to a filing on Friday. The company's shares had more than doubled in their debut on Oct. 4.
** AMARIN CORP, $4.74, down 6.5 pct (10:40 a.m. ET)
Oppenheimer cut its price target on the drugmaker's stock to $6 from $7, saying Amarin may not get the U.S. health regulator's approval to market Vascepa, a drug that lowers blood fat levels, to a broader patient population even if the advisory committee discussing the issue recommends its approval on Wednesday.
Amarin seeks to market the drug to patients who have blood fat abnormalities that make them susceptible to coronary heart disease and are already taking a statin, such as Pfizer Inc's Lipitor, to reduce cholesterol.
** PEABODY ENERGY CORP, $17.31, down 0.5 pct (9:33 a.m. ET)
The company said it had temporarily shut down operations at its Metropolitan coal mine in Queensland, Australia, pre-empting a planned strike by workers after a stand-off over a new employment contract.
** GENERAL MOTORS CO, $34.99, down 1 pct (9:34 a.m. ET)
** TESLA MOTORS INC, $176.12, down 1 pct
General Motors will go head to head with electric car maker Tesla Motors starting in January, when a plug-in version of its luxury Cadillac brand will go on sale. GM said its 2014 Cadillac ELR plug-in coupe will have a starting price of almost $76,000 including delivery fees - putting it in competition with the similarly priced Tesla Model S.
** SUPERIOR ENERGY SERVICES INC, $25.59, down 1 pct (9:35 a.m. ET)
The oilfield services company said it expected third-quarter earnings to fall to between 39 cents and 41 cents per share from 59 cents a year earlier due to a slowdown in land drilling in the United States. Superior Energy also said its board authorized a share buyback program of up to $400 million.
** MANNKIND CORP, $5.23, up 2 pct (9:35 a.m. ET)
The drugmaker resubmitted the application for approval to its insulin therapy, Afrezza, to the U.S. health regulator based on clinical development data, including the results of two recent late-stage trials in patients with type 1 and type 2 diabetes, respectively.
The drug device, designed to improve glycemic control, comprises the Afrezza inhalation powder and an inhaler to administer it.
** ARATANA THERAPEUTICS INC, $24.99, up 6 pct (9:36 a.m. ET)
The pet medication products maker said it would buy privately-held Vet Therapeutics Inc in cash and stock to expand in products to treat lymphoma in dogs. The company will pay $30 million in cash and issue about 625,000 shares to buy Vet Therapeutics.
** ARIAD PHARMACEUTICALS INC, $4.07, down 4 pct (9:37 a.m. ET)
The U.S. Food and Drug Administration said it is investigating an increasing number of reports of serious and life-threatening adverse events in patients taking the company's leukemia drug, Iclusig.
** ERICSSON, $12.74, down 3 pct (10:15 a.m. ET)
Barclays Capital downgraded the mobile network gear maker's Stockholm-listed stock to "underweight" from "equal weight," saying improvement in demand from Europe was insufficient to drive growth. Network growth, and so demand for telecom infrastructure, is peaking in regions where Ericsson has high market share such as the United States, Western Europe and Japan, and is shifting to China, where the company has lower market share, Barclays Capital analyst Andrew Gardiner wrote in a note.
** ANTARES PHARMA INC, $4.89, up 8 pct (10:28 a.m. ET)
The drugmaker said the U.S. health regulator approved its severe active rheumatoid arthritis treatment, Otrexup, for adults who have not responded to prior therapy or are intolerant to it and for children with a particular form of rheumatoid arthritis. The injection also received approval to control the symptoms of a form of psoriasis that does not respond to conventional treatment.
** LIBERTY INTERACTIVE CORP, $25.60, up 3.6 pct (10:30 a.m. ET)
Wells Fargo raised its rating on the stock to "outperform" from "market perform," saying the new tracking stock structure that the company announced last week will "unlock" more value. Liberty, controlled by John Malone, said on Thursday it would split into two tracking stocks, one for its cable shopping business QVC and the other for its e-commerce holdings including digital invitation site, Evite.
** MATTSON TECHNOLOGY INC, $2.73, up 3.8 pct (10:44 a.m. ET)
Brokerage B. Riley and Co raised the stock of the company, which supplies rapid thermal processing equipment, to "buy" from "neutral," according to Theflyonthewall.com. (Compiled by Sneha Banerjee in Bangalore; Editing by Kirti Pandey)