8 Min Read
(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for more market insights, including options activity, ; for the Day Ahead newsletter, link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) Shares of McDonald's Corp are lower in premarket trading on Tuesday, in the wake of the fast food giant's August sales data. Dow Jones industrial average e-mini futures were down 0.08 percent at 17,087, S&P 500 futures were down 0.04 percent at 1,999.75 and Nasdaq 100 futures were up 0.05 percent at 4,095.25.
** MCDONALD'S CORP, Monday close $92.5, -0.54 pct premarket
McDonald's sales at established restaurants fell in every region in August, hurt by a recent meat scandal in China and higher competition in the United States.
** GENERAL MILLS INC, Monday close $53.51, -0.93 pct premarket
** ANNIE'S INC, Monday close $33.51, +37.21 pct premarket
General Mills Inc, the maker of Cheerios cereal and Betty Crocker cake mixes, said it would acquire organic food producer Annie's for about $820 million to expand its presence in the fast-growing U.S. natural foods market.
** NETFLIX INC, Monday close $479.33, +1.43 pct premarket
RBC Capital Markets raised its price target on the video streaming company's stock to $600 from $530 late on Monday. The analysts said Netflix's growth and profitability was not yet factored into the stock price. Analysts expect the company's foray into Europe to boost growth.
** THRESHOLD PHARMACEUTICALS INC, Monday close $4.61, +14.75 pct premarket
Cantor Fitzgerald initiated coverage on the drug developer's stock with a "buy" rating and a $14 price target, based on the potential of its experimental cancer drug, codenamed TH-302. The brokerage expects peak revenue of $2 billion in 2025 for the drug in pancreatic cancer and soft tissue sarcoma indications. TH-302 is currently in late-stage trials.
** HAIN CELESTIAL GROUP INC, Monday close $97.79, +3.86 pct premarket
** WHITEWAVE FOODS CO, Monday close $35.72, +4.84 pct premarket
J.P. Morgan Securities raised its price targets on the shares of organic products company Hain and dairy products producer WhiteWave.
The brokerage raised its price target on Hain stock to $113 from $102, citing an increased focus on healthy eating to push demand for Hain's better-for-you products such as Earth's Best and Sensible Portions.
Analysts also raised WhiteWave's price target to $39 from $35, citing expected M&A activity.
** VERIFONE SYSTEMS INC, Monday close $34.42, +1.45 pct premarket
Apple Inc is reportedly going to include a special communication chip in its latest iPhone, expected to be introduced on Tuesday, that will let users make payments wirelessly.
VeriFone, a credit card swipe device maker, sells payment devices that can accept wireless payments using near field communication (NFC) technology.
** FUELCELL ENERGY INC, Monday close $2.67, -10.11 pct premarket
The fuel cell maker's third-quarter loss to common shareholders increased to $7.8 million from $6.4 million a year ago, hurt by higher operating costs. The company's revenue declined nearly 20 percent to $43.2 million.
** ENDOCYTE INC, Monday close $6.87, +6.84 pct premarket
Cantor Fitzgerald on Monday initiated coverage on the drug developer's stock with "buy" rating and $21 price target. The brokerage cited the market opportunity for Endocyte's experimental cancer drug, codenamed EC1456, for the initiation.
** BROOKDALE SENIOR LIVING INC, Monday close $34.5, -1.45 pct premarket
The retirement-home operator made a common stock offering of about 9 million shares priced at $33.50 per share, a discount of 3 percent to the stock's Monday close. The offering represents about 5 percent of total outstanding shares and expects to fetch about $287 million in net proceeds.
** LOCKHEED MARTIN CORP, Monday close $174.77, +0.76 pct premarket
** ALLIANT TECHSYSTEMS INC, Monday close $126.42, +2.61 pct premarket
CNBC's Jim Cramer said investors should buy defense stocks on his show, Mad Money. (reut.rs/1onsGwF)
"With the new mess in the Middle East, not to mention the dramatic rise in tensions with Russia, our military spending is going to have to start increasing again," Cramer said. Most defense contractors have lagged the market this year and are much cheaper than the average stock on the S&P 500 index, Cramer said.
** GLAXOSMITHKLINE PLC, Monday close $46.78, -0.68 pct premarket
A U.S. anti-bribery probe into GlaxoSmithKline touched on the firm's Chinese consumer healthcare business in 2012, internal documents show, suggesting the drugmaker's compliance problems in China could go wider than previously revealed.
** ROCKET FUEL INC, Monday close $16.04, -2.43 pct premarket
The web-based video advertising provider said on Monday that CFO Peter Bardwick had resigned.
BMO Capital Markets on Tuesday cut its price target on the company's stock to $17 from $25. The brokerage said an earlier-than-expected close of [x+1] acquisition could lead to a revenue loss of $3 million-$4 million for the company in the September quarter.
** HANWHA SOLARONE CO LTD, Monday close $2.68, +2.61 pct premarket
The solar panel maker said it would supply 50 megawatts (MW) of panels to Baotou Shansheng New Energy Co Ltd.
The company said the Chinese government's target to install 13 GW target of solar power this year and the country's support for distributed generation would lift demand.
** PEP BOYS-MANNY MOE AND JACK, Monday close $11.41, -6.57 pct premarket
The auto parts retailer reported a second-quarter loss of $273,000, compared with a year-ago profit of $5.4 million, hurt by fall in comparable merchandise sales.
** MERRIMACK PHARMACEUTICALS INC, Monday close $6.87, +3.49 pct premarket
Brokerage Cantor Fitzgerald began covering the cancer drug developer with a "buy" rating. Analyst Daniel Brims said he expects Merrimack to launch its pancreatic cancer drug next year and rake in global peak sales of $800 million in 2025. Brims has a price target of $16 on the stock.
Up to Monday's close, the stock had gained about 56 percent since May, when the company said its lead drug, MM-398, improved overall survival rates in metastatic pancreatic cancer patients when used as a combination therapy.
** RIO TINTO PLC, Monday close $51.86, +0.44 pct premarket
The global miner called on Tuesday for governments and the industry to step up efforts to find ways to cut emissions from coal generation, because coal will remain the biggest source of power globally for decades to come.
** HOME DEPOT INC, Monday close $90.82, -0.63 pct premarket
Home Depot confirmed on Monday that its payment security systems had been breached, a data theft analysts warn could rival Target Corp's massive breach last year.
** MORGAN STANLEY, Monday close $34.86, -0.32 pct premarket
The Wall Street bank has agreed to pay $95 million to resolve a lawsuit accusing it of misleading investors in mortgage-backed securities in the run up to the 2008 financial crisis.
** BGC PARTNERS INC, Monday close $7.41
** GFI GROUP INC, Monday close $5.03, +7.16 pct premarket
BGC Partners is likely to make a $675 million all-cash unsolicited offer for derivatives broker and rival GFI Group in a bid to bolster its business, the Wall Street Journal reported, citing people familiar with the matter.
** ENCANA CORP, Monday close $22.5, +3.73 pct premarket
Canada's largest natural gas producer will sell its remaining stake in PrairieSky Royalty Ltd, the company it spun out to investors in May, in a C$2.6 billion ($2.37 billion) deal as it continues to raise funds to increase oil production.
** RPM INTERNATIONAL INC, Monday close $47.32
The specialty chemicals maker estimated first-quarter profit in line with year ago - below what analysts expected.
The company said last year's results were boosted by product launches from acquisitions. (Reporting By Shubhankar Chakravorty in Bangalore; Editing by Simon Jennings)