(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks rose modestly on Friday, after a better-than-expected reading on the housing market, with the S&P on track to set a new record closing high. The Dow Jones industrial average was up 0.32 percent at 16,595.89, the S&P 500 was up 0.35 percent at 1,899.09 and the Nasdaq Composite was up 0.55 percent at 4,177.05.
** AEROPOSTALE INC, $3.419, -24.36 pct
The teen apparel retailer could raise going concern doubts as soon as next year as the struggling teen apparel retailer burns up cash amid mounting losses, Morgan Stanley analysts warned on Friday.
** HEWLETT-PACKARD CO, $33.89, +6.64 pct
The information technology company’s shares rose on Friday, a day after the personal computer maker said it would cut as many as 16,000 more jobs and forecast strong free cash flow for the year.
** PTC THERAPEUTICS INC, $23.66, +54.44 pct
** PROSENA HOLDINGS, $8.14, +22.96 pct
** SAREPTA THERAPEUTICS, $34.235, +5.18 pct
Shares in U.S. biotech company PTC Therapeutics more than doubled in premarket dealings on Friday after European regulators recommended a conditional marketing authorization for Translarna, its drug for Duchenne muscular dystrophy.
Senior columnist at TheStreet, Adam Feuerstein, said the positive approval of PTC Therapeutics’ drug for conditional marketing could prompt European approval for Prosena and Sarepta’s experimental drugs in treating Duchenne muscular dystrophy.
** PARSLEY ENERGY INC, $22.25, +20.27 pct
The oil and natural gas producer’s shares rose as much as 21.5 percent in their U.S. market debut, valuing the company at about $2.51 billion.
** GAMESTOP CORP, $38.2, +3.58 pct
The video game retailer reported a 7 percent rise in quarterly revenue, driven by growth in its mobile business and demand for new games consoles made by Sony Corp and Microsoft Corp.
** YOUKU TUDOU INC, $19.21, -5.83 pct
China’s biggest online video company reported lower-than-expected quarterly revenue on Thursday and also forecast current-quarter revenue below analysts’ average estimate.
“Long-form content is the main magnet attracting viewers ... Lack of long-form content offerings will likely reduce Youku’s commercial competitiveness to attract users and ad dollars,” Maxim Group analyst Echo He wrote in a note, cutting her price target on the stock to $16 from $18.
** VALEANT PHARMACEUTICALS INTERNATIONAL INC , $133.35, +1.93 pct
** ALLERGAN INC, $166.625, +1.66 pct
When the Canadian drugmaker raises its offer for American peer Allergan next week as it has indicated it will, it needs to hit the range of $180 to $200 per share, according to a JPMorgan survey of investors.
** ARUBA NETWORKS INC, $17.47, -12.91 pct
Brokerage BMO Capital Markets cut its price target on the network-equipment maker’s stock, saying gross margins in the third quarter were hurt by the company going after some lower-end deals and aggressively pricing a high-end product. At least three other brokerages also cut their price targets on Aruba’s stock.
** ITT EDUCATIONAL SERVICES INC, $19.11, -6.78 pct
Deutsche Bank cuts its target price for the for-profit college operator to $18 from $30, and maintained a “hold” rating, citing weaker student enrollment trends.
** ST JOE CO, $23.19, +7.41 pct
Raymond James raised its rating on the real-estate developer’s stock to “outperform” from “market perform”, citing the company’s new land use plan - the Bay-Walton Sector Plan - which is aimed at creating the “world’s largest retirement community destination, branded WaterSound,” in Florida.
“... it appears that St. Joe clearly aims to market this community as the new Florida retirement destination of choice for migrating baby boomers,” Raymond James analyst Buck Horne wrote in a note.
** RUBICON TECHNOLOGY INC, $7.88, +5.21 pct
Brokerage Oppenheimer and Co Inc raised its rating on the stock of the maker of sapphire cores and wafers to “perform” from “underperform”, citing the company’s new customer wins and expectations of investor interest once sapphire cover speculation builds for Apple Inc’s new products.
** NORDSON CORP, $80.74, +7.83 pct
The maker of products used in dispensing and processing adhesives and coatings, on Thursday, reported better-than-expected second-quarter results, helped by an 18 percent rise in sales volume at its larger adhesive dispensing systems business.
** ISIS PHARMACEUTICALS INC, $27.36, +9.66 pct
The drugmaker’s stock continued its gains a day after Isis said its experimental blood thinner was more effective than a commonly prescribed anticoagulant in patients undergoing total knee replacement surgery.
Piper Jaffray analyst Joshua Schimmer said on Friday that Isis’ wholly owned and partnered drugs in development represented the most attractive and undervalued pipeline in the biotechnology sector. “The systematic undervaluation of the pipeline could be corrected by a new management attitude, a new management team, or a company acquisition,” Schimmer wrote in a note.
** ZIOPHARM ONCOLOGY INC $3.38, +8.33 pct
The biotechnology company said on Thursday that its experimental cancer drug, Ad-RTS-IL-12, reduced tumor mass and prolonged survival compared with existing treatment standards, when tested as a treatment for a type of brain tumor in a preclinical study. ZIOPHARM also said the drug reduced brain cancer stem cells, which play a role in the recurrence and spread of the cancer. The data was presented at the 17th Annual Meeting of the American Society of Gene and Cell Therapy in Washington DC. (r.reuters.com/dyv59v)
** LIVEDEAL INC, $4.73, +98.82 pct
The internet marketing company has a current cash position of almost $10 million, which should enable it to grow through acquisitions, an article by content company Stock Market Media Group said.
While LiveDeal said it had not endorsed or compensated Stock Market Media for the article, the content company said it had been paid $50,880 by a third party.
** RENEWABLE ENERGY GROUP INC, $11.11, +7.76 pct
Wedbush Securities’ analyst Craig Irwin said the U.S. biodiesel producer’s positive stock movement on Friday was a delayed response to investors understanding the dynamics of the Tyson Food deal that happened on Wednesday.
Renewable Energy agreed to buy Tyson Foods’ 50 percent ownership in Dynamic Fuels LLC for about $18 million in cash on May 21.
** COVISINT CORP, $5.94, -16.18 pct
The provider of cloud-based systems for integrating business information and processes recorded a bigger fourth-quarter loss, hurt by a fall in service revenue and higher operating expenses.
Brokerage Pacific Crest Securities Inc cut its rating on Covisint’s stock to “sector perform” from “outperform”. Two other brokerages cut their price targets on the stock after the results.
** SHOE CARNIVAL INC, $19.05, -11.93 pct
The footwear retailer, on Thursday, reported lower-than-expected first-quarter results, hurt by a 1.7 percent fall in comparable store sales. The company also forecast current-quarter results below analysts’ average estimate.
Brokerage Susquehanna cut its price target on the company’s stock to $25 from $29 on Friday.
** YOU ON DEMAND HOLDINGS INC, $3.5, +62.04 pct
The Chinese video-on-demand provider said on Thursday that Xuechu He, who ranked 38th on Forbes’ 2010 richest Chinese list, bought a stake in the company from C Media Ltd.
** FOOT LOCKER INC, $48.87, +1.45 pct
The specialty sportswear’s retailer first-quarter results beat analysts’ average estimate, helped by a 7.6 percent rise in comparable store sales.
** NORANDA ALUMINUM HOLDING CORP, $3.395, +12.42 pct
** ALCOA INC, $13.48, +1.89 pct
** CENTURY ALUMINUM CO, $13.82, +3.52 pct
Chinese buying pushed LME aluminum through its 200-day moving average, triggering fresh buying. Aluminum was the strongest gainer on the LME on Friday, rising 1.3 percent to $1,819.50 a tonne.
** NOW INC, $31.99, +2.37 pct
Analysts at Stephens Inc began coverage of the oil and gas distributor’s stock with an “overweight” rating, according to theflyonthewall.com.
** HERITAGE INSURANCE HOLDINGS INC, $11.6, +5.45 pct
Shares of the provider of personal residential insurance for homeowners in Florida rose as much as 7.7 percent in their market debut. The IPO raised $66 million from the sale of 6 million shares, priced at $11 per share.
** RTI INTERNATIONAL METALS INC, $26.76, +10.08 pct
Analysts at JPMorgan Securities upgraded the titanium product maker’s stock to “overweight” from “neutral”, citing higher demand for titanium mill products from the company’s primary customer, Airbus Group NV. The analysts also raised their price target on the stock to $34 from $32.
** PAPA MURPHY‘S HOLDINGS INC, $9.33, +3.09 pct
The operator of the Take 'N' Bake pizza chain in the United States reported a 28 percent jump in first-quarter revenue, helped by a 3.3 percent rise in domestic comparable store sales. (link.reuters.com/xat59v)
** FRESH MARKET INC, $29.64, +3.28 pct
The specialty grocery retailer, on Thursday, reported better-than-expected first-quarter sales, helped by a 2.5 percent rise in comparable store sales.
** TIVO INC, $12.305, +3.14 pct
The digital video recorder maker said it expected a boost to subscriptions for its set-top boxes from the provider of on-demand internet streaming media Netflix’s deal with U.S. cable operators, after strong growth at European cable partners pushed up its quarterly revenue by 30 percent.
** D.R. HORTON INC, $23.16, +2.25 pct
** PULTEGROUP INC, $19.46, +1.25 pct
** LENNAR CORP, $40.13, +2.92 pct
** TOLL BROTHERS INC, $35.4, +1.32 pct
** KB HOME, $16.51, +1.79 pct
Shares of U.S. homebuilders were up on Friday, as sales of new U.S. single-family homes rose more than expected in April, according to data from the Commerce Department. Sales increased 6.4 percent to a seasonally adjusted annual rate of 433,000 units, ending two straight months of declines.
For a graphic on new U.S. home sales: link.reuters.com/qer34t
** ZUMIEZ INC, $28.71, +5.47 pct
The retailer of sports apparel and footwear, on Thursday, reported better-than-expected first-quarter results, helped by a 1.8 percent increase in comparable-store sales.
Brokerage D.A. Davidson raised its price target on the company’s stock to $32 from $31.
** OXIGENE INC, $2.72, -8.72 pct
The cancer drug maker said it reached an agreement with institutional investors, who will purchase about $16 million of Oxigene common shares in a direct offering, at $2.96 per share.
The company plans to use the proceeds from the offering for research and development.
** DRYSHIPS INC, $3, -1.96 pct
The dry bulk carrier posted a first-quarter loss, hurt by higher operating expenses. Excluding items, the company reported a loss of 4 cents per share. Analysts on average were expecting the company to break even, according to Thomson Reuters I/B/E/S. (r.reuters.com/fuv59v)
** ENDEAVOUR INTERNATIONAL CORP, $2.15, +3.37 pct
The oil and gas company’s stock continued to rise after the company said on Thursday that production had resumed at the West Rochelle W1 well.
The company also reported that its shareholders had elected all of its board’s director nominees.
** RUCKUS WIRELESS, $10.17, +3.78 pct
** GOOGLE INC, $560.87, +0.98 pct
Search giant Google Inc is working with the Wi-Fi equipment maker to build a large-scale Wi-Fi network, tech blog Gigaom reported on Thursday. (r.reuters.com/rut59v)
Google plans to offer Wi-Fi network hardware and software at a discount to small and medium-sized businesses, tech blog The Information reported on Wednesday, citing a confidential document it accessed and a person who was briefed on the project.
** FIREEYE INC, $32.988, +2.16 pct
Barclays upgraded the network security software maker’s stock to “overweight” from “equal weight”.
“We believe the recent pullback among high valuation stocks has created a more compelling buying opportunity for long-term investors ... but (we are) taking a more conservative approach with our price target and lowering to $40 (from $50),” analyst Raimo Lenschow said in a note.
** MATADOR RESOURCES CO, $24.6, -6.00 pct
Analysts at Wunderlich Securities cut their price target on the oil and gas producer’s stock to $31 from $32, after the company said on Thursday that it commenced an underwritten public offering of 7.5 million shares of its common stock.
** CHINA SUNERGY CO LTD, $3.72, -2.87 pct
The solar company, on Thursday, filed for a shelf offering of $45 million.
** 21VIANET GROUP INC, $25.51, -5.24 pct
The China-based internet hosting and interconnectivity services provider, on Thursday, reported a lower-than-expected first-quarter adjusted profit, as its operating expenses more than tripled in the quarter. (Compiled by Ankit Ajmera in Bangalore; Editing by Simon Jennings)