January 7, 2014 / 3:43 PM / 4 years ago

MARKET PULSE-Neurocrine, Convergys, Cray, Affymetrix, Plug Power

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U.S. stocks opened higher on Tuesday, rebounding after three days of losses, as a declining U.S. trade deficit and upbeat data on the German labor market set a positive tone. The Dow Jones industrial average was up 0.73 percent at 16,545.13, the S&P 500 was up 0.64 percent at 1,838.37 and the Nasdaq Composite was up 0.84 percent at 4,148.399.

** NETFLIX INC, $343.15, -4.57 pct

** AMAZON.COM INC, $396.52, +0.73 pct

Amazon is teaming up with Samsung Electronics Co Ltd and major media corporations including Warner Bros and Lionsgate to popularize “4K” ultra high-definition television. The company did not outline specifics on the collaboration.

Netflix shares fell as the company competes with Amazon’s Instant Video service that serves up thousands of movies and TV programs.

Brokerage Morgan Stanley on Tuesday downgraded Netflix to “underweight”, according to Benzinga.com.

** NEUROCRINE BIOSCIENCES INC, $17.8899, +83.30 pct

Shares of the company rose about 64 percent after the company said its movement disorder drug met the main goal of reducing symptoms in a mid-stage study.

Results from the study, known as Kinect 2, revived investor expectations from the drug, which failed a mid-stage study in September.

Analysts at MKM Partners and Roth raised their price targets on Neurocrine’s stock.

MKM Partners analyst Jon LeCroy said he earlier assumed the study would fail, based on the failure of a previous study. “...(We) view these results as a major positive for Neurocrine”, he wrote in a note to clients.

** EPIZYME INC, $33.601, +63.91 pct

The biopharmaceutical company said it reached a proof-of-concept milestone while studying its EPZ-5676 drug, triggering a $25 million payment from partner Celgene Corp . The drug is currently being studied in an early-stage trial as a potential treatment for blood cancer.

Epizyme said it also achieved a development candidate milestone in its collaboration with GlaxoSmithKline Plc, earning a $4 million payment.

Epizyme now expects 2013 end-of-year cash and account receivables position of about $145 million, compared to its previous view of more than $115 million.

** STEREOTAXIS INC, $4.66, +16.50 pct

The company said it completed a clinical trial required for the U.S. regulatory approval of its medical device for use in echocardiography procedures.

The device, called Vdrive with V-Loop system, is used for remotely controlling the advancement, retraction, rotation, tip deflection and loop size of a compatible catheter.

** CYAN INC, $3.73, -27.85 pct

The maker of software-defined network applications and equipment cut its fourth-quarter revenue estimate to a range of $20 million to $21 million from between $30 million and $33 million as revenue from its largest customer fell by about 88 percent.

Brokerage Jefferies cut its price target on Cyan’s stock to $4 from $6.

** CONVERGYS CORP, $22.67, +8.68 pct

The customer management services provider said it would buy rival Stream Global Services Inc from its private equity owners for $820 million in cash in its largest ever deal to expand its client base and international presence.

** GALENA BIOPHARMA, $5.385, +3.56 pct

The company said it enrolled the first patient in a mid-stage trial for its experimental cancer immunotherapy.

The main goal of the trial, which is testing the drug in ovarian and endometrial cancer patients, is to measure patients’ immune response.

** AFFYMETRIX INC, $8.61, +8.99 pct

The genetic analysis products maker said it expects fourth-quarter revenue of $91 million, including a one-time licensing payment of $5.3 million. Analysts are expecting revenue of $82.6 million, according to Thomson Reuters I/B/E/S.

Affymetrix also said it expects to report full-year revenue of $329 million, ahead of analysts’ estimates of $320.3 million.

** PLUG POWER INC, $3.35, +20.94 pct

The fuel cell maker said it would develop hydrogen fuel cell systems for 20 FedEx Express electric delivery trucks in a $3 million project, which is funded by the U.S. Department of Energy.

** VALEANT PHARMACEUTICALS INTERNATIONAL INC, $121.58, +3.75 pct

Valeant Pharmaceuticals, Canada’s largest listed drugmaker, on Tuesday forecast 2014 adjusted earnings of $8.25 to $8.75 per share and revenue of $8.2 billion to $8.6 billion, both up about 40 percent from the previous year.

Analysts on average were expecting 2014 adjusted earnings per share of $8.71 and revenue of $8.279 billion, according to Thomson Reuters I/B/E/S.

** SONIC CORP, $20.67, +7.38 pct

The drive-in restaurant chain’s first-quarter income jumped 34 percent, beating Wall Street estimates, as it attracted more customers and lower costs helped margins.

** PALO ALTO NETWORKS INC, $59.92, +3.60 pct

The security software maker on Monday said it would buy cybersecurity company Morta Security to add infrastructure protection and detection and prevention enhancing capabilities to its existing security products.

Terms of the deal were not disclosed.

** PHARMACYCLICS INC, $122.08, +16.20 pct

The company said its cancer drug, Imbruvica, met its main goal of increasing patients’ survival without their cancer worsening in a late-stage trial. Pharmacyclics said an independent safety committee recommended an early halt of the trial.

** YINGLI GREEN ENERGY HOLDING CO LTD, $7.13, +9.19 pct

The Chinese solar panel manufacturer said it would construct solar projects of 500 megawatts across China in a joint venture with a unit of state-run nuclear company China National Nuclear Corp. Financial details of the deal, which Yingli said was inked several months ago, were not disclosed.

** PBF ENERGY INC ; $28.14, -5.92 pct

The refiner announced late on Monday a secondary offering of 15 million Class A common stock by funds affiliated with First Reserve Management LP and Blackstone Group LP. The selling stockholders will receive all the proceeds.

** CRAY INC, $31.31, +15.28 pct

The supercomputer maker said it expects to be profitable in 2013 after posting losses in the first, second and third quarters. Analysts are expecting the company to post a profit of 64 cents for the full year, according to Thomson Reuters I/B/E/S. Cray maintained its forecast for 2014.

** CREDIT SUISSE AG, $31.56, +1.64 pct

Credit Suisse is stepping up efforts to scale back riskier fixed income areas squeezed by strict new regulation, it said on Tuesday.

** HONEYWELL INTERNATIONAL INC, $90.96, +3.75 pct

** FEDERAL-MOGUL CORP, $20.94, +8.39 pct

Honeywell said it would sell its friction materials business that makes disc brake pads and braking system components to auto parts maker Federal-Mogul for about $155 million.

** COMMUNITY HEALTH SYSTEMS INC, $43.56, +3.94 pct

The company, which awaits a shareholder vote this week on its proposed takeover of smaller hospital operator Health Management Associates Inc, said it expects the new U.S. healthcare law to provide a slight boost to 2014 earnings.

** A SCHULMAN INC, $35.44, +4.54 pct

The specialty chemical maker reported a better-than-expected first-quarter profit, helped by a recovery in the automotive market in Europe and greater demand for its custom color business in Asia and Europe.

The company also raised its 2014 adjusted earnings forecast to $2.13-2.18 per share from $2.08-$2.13 per share.

** MICRON TECHNOLOGY INC, $21.33, +3.19 pct

The memory chipmaker, which reports first-quarter results on Tuesday, has benefited in recent quarters from a rebound in memory chip prices that has helped mask ongoing slow demand for DRAM used in PCs.

Analysts will be looking for signs of whether rising memory chip prices are likely to keep buoying the company’s profits.

** MATTEL INC, $46.07, -1.18 pct

Goldman Sachs cut its rating on the world’s largest toymaker’s stock to “sell” from “neutral” as it anticipates the magnitude of U.S retail slowdown would hurt the company’s profit.

** DURECT CORP, $1.855, +4.21 pct

** IMPAX LABORATORIES INC, $25.04, -0.71 pct

The specialty pharmaceutical companies said they entered into an agreement that granted Impax worldwide rights to develop and market one of Durect’s pain patches.

Impax will pay Durect $2 million upfront and control and fund the development of the patch, which is intended to treat pain caused by postherpetic neuralgia, a complication of shingles.

Durect will be eligible for milestone payments of up to $61 million, as well as royalty from product sales, if the patch, named Eladur, is approved.

** HANWHA SOLARONE CO LTD,$3.441, +5.23 pct

The Chinese solar company said it would sell 50 megawatts of solar panels to privately held solar services provider OneRoof Energy.

* ROUSE PROPERTIES INC, $20.84, -3.87 pct

The real estate investment trust said late on Monday it planned to sell 7 million shares of its common stock. The company did not specify the offer price.

** KENNEDY-WILSON HOLDINGS INC, $21.67, -1.90 pct

The real estate investment and services firm said it planned to sell 8 million shares of its common stock at $21.45 per share, a discount to the stock’s Monday close of $22.09.

** COMMERCIAL METALS CO,$20.82, +5.26 pct

The steelmaker posted a quarterly profit that beat analysts’ expectations, helped by its Americas Mills and International Mills businesses. The company reported first-quarter profit of 39 cents per share. Analysts on average expected a profit of 24 cents per share, according to Thomson Reuters I/B/E/S.

** IROBOT CORP, $36.184, +7.21 pct

The robot maker said late on Monday it was launching a new consumer robot that cleans floors. The iRobot Scooba 450 will be available in North America from Tuesday, the company said.

** NEW YORK MORTGAGE TRUST INC, $6.79, -3.55 pct

The real estate investment trust late on Monday announced a public offering of 10 million shares. The company said it intends to use the proceeds to acquire distressed residential loans and to invest in multi-family CMBS among other things.

** OREXIGEN THERAPEUTICS INC, $5.6, -1.23 pct

The obesity drug maker said the U.S. Food and Drug Administration will announce its decision on the approval of Orexigen’s diet pill Contrave by June 10.

If approved, Orexigen expects its North American partner, Takeda Pharmaceuticals, to launch Contrave in the second half of 2014.

** PARKWAY PROPERTIES INC, $18.14, -4.32 pct

The real estate investment trust late on Monday announced a public offer of 10.5 million common shares. The company said it would use the proceeds to fund acquisitions.

Compiled by Rohit T.K. in Bangalore; Editing by Sriraj Kalluvila

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