Wall Street was set for a flat open on Tuesday after a four-session rally on the S&P 500 as investors focused on developments in the budget talks and a batch of corporate earnings including Citigroup.
S&P 500 futures lost 0.8 points and were in line with fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures added 7 points while Nasdaq 100 futures added 6.25 points.
** CITIGROUP INC, Monday close $49.60, down 0.2 pct premarket
The company reported a marginal fall in adjusted quarterly profit from ongoing businesses after the Federal Reserve’s decision to continue its bond-buying program for longer than expected slowed trading by clients.
** SAVIENT PHARMACEUTICALS INC, Monday close $0.57, down 84 pct premarket
The U.S. biotech firm filed for Chapter 11 bankruptcy protection in a Delaware court on Monday and said it has agreed to sell most of its assets to Sloan Holdings CV for about $55 million. The agreement with Sloan, a unit of US WorldMeds LLC, would serve as a “stalking horse” bid in a court-supervised auction of Savient’s assets, the company said.
** JOHNSON & JOHNSON, Monday close $89.80, up 1.7 pct premarket
The company reported better-than-expected quarterly results due to strong growth for its prescription drugs, including new treatments for cancer and medication to prevent blood clots. Johnson & Johnson slightly raised its full-year profit forecast.
** CHARLES SCHWAB CORP, Monday close $22.01, up 2.3 pct premarket
The brokerage firm said it expected fiscal 2013 revenue growth to outpace expenses by about 100 to 200 basis points, helping it achieve a pre-tax profit margin of at least 30 percent and earnings per share in the mid-70 cents area.
Analysts were expecting the company to report earnings per share of 74 cents for fiscal 2013, according to Thomson Reuters I/B/E/S.
** XENOPORT INC, Monday close $5.69, up 17 pct premarket
Shareholder Clinton Group Inc urged the biopharmaceutical company to hire a new chief executive and asked for a change in capital allocation. In a letter, the Clinton Group said it believed “Xenoport’s assets are worth substantially more than the current stock price implies.”
The group said it owned more than 1.3 million shares of Xenoport’s common stock. The company had 47.7 million outstanding shares as of July 15.
** TERADATA CORP, Monday close $52.58, down 15 pct premarket
The data analytics firm cut its full-year earnings forecast by about 10 percent on Monday after preliminary third-quarter results missed estimates on the back of sliding revenue.
** COCA-COLA CO, Monday close $37.91, up 2 pct premarket
** PEPSICO INC, Monday close $81.09, up 4 pct premarket
Coca-Cola Co reported higher quarterly earnings and a lower revenue on Tuesday, helped by strong global sales of its Coca-Cola brand products but challenged by volatility in some parts of Europe.
** FEDEX CORP, Monday close $115.37, up 1 pct premarket
The world’s No. 2 packaging company said it has authorized a share repurchase program of up to 32 million of its outstanding shares of common stock. The company bought back 2.8 million shares during the quarter ended August. It had 317 million common shares outstanding as on Sept. 30.
** DOMINO‘S PIZZA INC, Monday close $68.85, down 2 pct premarket
The second-largest U.S. pizza chain missed analysts’ estimates on its adjusted earnings by a cent, reporting 51 cents per share as general and administrative expenses rose about 8 percent to $53.8 million.
** COLDWATER CREEK CO, Monday close $1.26, down 34 pct premarket
The women’s apparel and accessories retailer said it was exploring strategic alternatives, including a sale of the company. The company discontinued its quarterly guidance after struggling with declining sales.
** ARENA PHARMACEUTICALS INC, Monday close $4.34, up 4 pct premarket
Japan’s Eisai Inc, Arena’s marketing partner for its obesity drug Belviq, said it would add over 200 contract sales representatives focusing on educating healthcare providers in the United States about the drug. Eisai plans to increase its sales force to about 400 by December, double the number when Belviq became available in June.
** MICROSOFT CORP, Monday close $34.45, up 1 pct premarket
Jefferies upgraded the company’s stock to “buy” from “hold” and raised its price target to $42 from $33 citing faster growth, higher margins from sales of Windows operating system licenses, and growing recurring revenue from subscription sales of Office productivity software, servers, and Azure cloud service to enterprise customers.
The brokerage also expects the company to benefit from patent licensing agreements with makers of smartphones and tablets running Google Inc’s Android operating system.
** OMNICOM GROUP INC, Monday close $63.95, up 1 pct premarket
The company reported a 2.5 percent rise in quarterly revenue due to an increase in advertising income from its biggest market, the United States. The company reported net income of $196 million, or 74 cents per share, in the three months ended September, compared with $203.9 million, or 74 cents per share, a year earlier.
** MOLYCORP INC, Monday close $7.10, down 18 pct premarket
The U.S. rare earths company said its cash cushion dwindled to insufficient levels and it expected to report negative cash flow for the third quarter due to lower production, demand and prices.
** ALCATEL-LUCENT, Monday $3.80, down 3 pct premarket
The telecoms company’s future is at risk after it missed key technological shifts and has been in the red since 2006, Chief Executive Michel Combes warned as workers prepared to protest against job cuts. The Franco-American group last week unveiled plans to slash 10,000 jobs worldwide, arguing the cuts were its last chance to stem years of losses and turn the company around.
** NETFLIX INC, Monday close $324.36, up 1 pct premarket
The company, in discussions to expand its footprint with U.S. cable television operators, has entered into its first series production deal with a major Hollywood studio. The company, which streamed political thriller “House of Cards,” said it has ordered a new psychological thriller series from Sony Pictures Television and the creators of the FX legal drama “Damages.”
** RIO TINTO, Monday close $50.02, up 2 pct premarket
The global miner boosted its 2013 copper output forecast after a better-than-expected recovery at its landslide-hit U.S. Kennecott mine, and posted record iron ore and coal output in the third quarter. Copper production was also buoyed by a ramp-up at the Oyu Tolgoi mine in Mongolia.
** PACKAGING CORP OF AMERICA, Monday close $57.60, up 2 pct after market
The maker of containerboard and corrugated packaging products reported on Monday third-quarter results that beat analysts’ estimates as corrugated products shipments rose 7.8 percent. The company also forecast fourth-quarter earnings of 84 cents per share, excluding items. Analysts on average were expecting 83 cents, according to Thomson Reuters I/B/E/S.
** ASTRAZENECA PLC, Monday close $51.24
The British drugmaker said its MedImmune unit would buy biotech company Spirogen for up to $440 million to bolster its research and development pipeline in oncology.
** KKR & CO LP, Monday close $20.80
The private equity firm and its co-investors, which took First Data Corp private for $29 billion in 2007, are making a new $300 million investment in the world’s largest payment processing company to help it refinance its debt. KKR and other small shareholders will receive new convertible preferred equity in First Data in return for their $300 million cash investment, First Data said on Monday.
** BOEING CO, Monday close $119.46
The aircraft maker on Monday rebutted a Pentagon inspector general report that said the company overcharged the U.S. Army by up to $16.6 million on a $4.4 billion helicopter contract and said it was still waiting to receive the final report under a Freedom of Information Act request.
** DIAGEO, Monday close $126.06
The world’s biggest spirits group Diageo said it should see sales growth in Africa accelerate as it expands into new markets such as Ethiopia and Angola and rising incomes enable traditional beer drinkers to try spirits.
** WAL-MART STORES INC, Monday close $74.68
** XEROX CORP, Monday close $10.66
Wal-mart and Xerox Corp blamed each other on Monday after Louisiana food stamp recipients stripped bare the shelves of some Walmart stores when a computer glitch left their debit cards with no limits. Managers of Walmart stores in the small, north Louisiana towns of Springhill and Mansfield alerted police on Saturday night that throngs of shoppers had flooded into the stores and were buying groceries using electronic benefit cards that contained no credit limits.
** MACY‘S INC, Monday $42.58
The retailer said on Monday that most of its stores would open on the U.S. Thanksgiving Day holiday for the first time in its history, in a sign of how competitive the holiday season is shaping up. Macy’s will open the doors at most of its 800 namesake department stores, at 8 p.m. on Thursday, Nov. 28.
** BLACKBERRY LTD, Monday close $8.14
The Canadian smartphone maker sought on Monday to reassure its restive customers and partners that it was financially stable and “here to stay,” even though it announced massive layoffs and sources say it is in talks to sell all or part of the company. In an open letter published in 30 news outlets across nine countries, the company stressed that its customers could continue to count on BlackBerry and its products, despite the challenges it is facing and the changes it is undergoing.
** AT&T INC, Monday close $33.92
Al Jazeera must unseal its lawsuit against AT&T Inc within five business days after a Delaware judge sided on Monday with news organizations that objected to secrecy in the case. The dispute stems from AT&T’s refusal to carry the U.S. news network that was launched by the Qatar-based Al Jazeera in August.
** CANADIAN NATIONAL RAILWAY CO, Monday close $105.18
Talks between the railroad workers’ union and Canadian National Railway Co have broken down, raising the possibility of a strike or a lockout by Oct. 28 at Canada’s largest railroad operator, the union said on Monday.
** YANDEX, Monday close $38.36
The Russian internet group said it had acquired KinoPoisk, the largest Russian-language website dedicated to movies, in a move to further enhance its search. Search services are the essence of Yandex, which in Russia leads the world’s top search engine Google with a market share of more than 60 percent and derives the bulk of its revenues from text-based advertising.
** AMEREN CORP, Monday close $35.53
U.S. federal energy regulators approved the power company’s plan to sell five coal-fired power plants in Illinois to power generator Dynegy, the companies said. Ameren is selling its merchant power plants to focus on its regulated utilities in Missouri and Illinois.
** EMULEX CORP, Monday close $7.83
The company has held talks with a few private equity firms, including Francisco Partners, Thoma Bravo and Thomas H. Lee Partners about selling itself, but a deal remains uncertain for the struggling chip maker, according to several people familiar with the matter.
** WI-LAN INC, Monday close $4.14
** HEWLETT PACKARD CO, Monday close $22.9
** NOVATEL WIRELESS INC, Monday close $2.83
Patent licensing company Wi-Lan said it entered a patent license agreement with Hewlett-Packard and settled all pending patent litigation. Under the agreement, Hewlett-Packard was granted a license related to some WiLAN patents and HP wireless products. Financial terms were not disclosed.
Wi-LAN also said it settled all pending litigation with Novatel Wireless, granting the company license to certain WiLAN products. (Compiled by Sneha Banerjee in Bangalore; Editing by Kirti Pandey)