10 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) U.S. stock indexes were little changed on Wednesday. The Dow Jones industrial average was up 0.03 percent at 17,136.46, the S&P 500 was down 0.05 percent at 1,998.03 and the Nasdaq Composite was unchanged at 4,552.793.
** ENDO INTERNATIONAL PLC, $69.14, +6.09 pct
** AUXILIUM PHARMACEUTICALS, $30.9942, +44.03 pct
** QLT INC, $5.45, -12.10 pct
Auxilium adopted a poison pill with a 15 percent trigger, a day after an unsolicited $2.2 billion buyout offer from Endo . Poison pills, or shareholder rights plans, are designed to stop hostile takeover attempts by triggering the issuance of new shares, which dilutes the holdings of all investors if any one exceeds a set threshold.
Auxilium said its board would review Endo's proposal, but it would not modify or withdraw its bid for Canadian eye drug maker QLT.
** NET ELEMENT INC, $3.17, +21.92 pct
The company said it would equip its mobile payment hardware devices and software that would allow merchants to accept payments made via Apple Pay.
Up to Tuesday's close, the company's stock had gained 50 percent since Apple unveiled the new iPhones and Apple Pay, the mobile payment service, on Sept. 9.
** CONCERT PHARMACEUTICALS INC, $14.34, +9.47 pct
The drug developer said it initiated an early-stage trial of its experimental drug, code named CTP-730, which is being tested as a potential treatment for inflammatory diseases and being developed in collaboration with Celgene Corp .
** TOKAI PHARMACEUTICALS INC, $23.715, +58.10 pct
Shares of the company doubled to $30 in their debut on Wednesday, valuing Tokai at about $655.3 million. The company raised $97.2 million from its 6.5-million-share IPO.
** UNITED STATES STEEL CORP, $45.11, +8.94 pct
The steelmaker said its Canadian arm would apply for relief from creditors under Canada's Companies' Creditors Arrangement Act and said it would drop plans to expand two of its facilities. The company said its Canadian operations, which have lost about $2.4 billion over the past five years, will also be dropped from its financial statements.
Goldman Sachs raised its price target on the company's stock to $58 from $47.
** RACKSPACE HOSTING INC, $33, -16.12 pct
The cloud management services provider said it would not sell itself. The company also named President Taylor Rhodes as chief executive, replacing Graham Weston, who co-founded Rackspace. Weston will become the non-executive chairman.
** ADOBE SYSTEMS INC, $67.7, -4.28 pct
The Photoshop maker forecast disappointing revenue for this quarter and reported lower quarterly sales at its digital media business, which includes the Creative Cloud software suite.
** PETROBRAS, $17.77, +1.48 pct
The Brazilian oil company is in focus amid presidential elections in Brazil. Also, Brazilian regulators said on Tuesday that they were confident new ANP Regulation 25 would trump 2010 oil law provisions. The rules don't prohibit Brazil from giving operator rights to some existing fields to Petrobras.
The company also plans to drill 200 wells in the country's offshore subsalt area by 2019, Petrobras's head of subsalt operations said.
The U.S.-listed stock of the company was the most traded share on the New York Stock Exchange on Wednesday.
** GENERAL MILLS INC, $51.16, -3.80 pct
The maker of Cheerios cereal and Betty Crocker cake mixes reported a 25 percent fall in quarterly profit as sales fell for the fourth straight quarter and merchandising costs rose.
** LENNAR CORP, $41.12, +5.09 pct
** D.R. HORTON INC, $22.13, +2.45 pct
** TOLL BROTHERS INC, $33.73, +1.87 pct
** KB HOME, $17.35, +3.64 pct
** PULTEGROUP INC, $19.19, +1.37 pct
Second largest U.S. homebuilder Lennar reported a 47 percent rise in quarterly profit as it sold more homes at higher prices, and said orders rose 23 percent.
Separately, U.S. homebuilder sentiment rose in September to its strongest in nearly nine years as a firming job market has begun to unleash pent-up demand, data from the National Association of Home Builders showed on Wednesday.
** CTI BIOPHARMA CORP, $2.815, +12.15 pct
The company entered into a $133.5 million licensing deal with Servier to develop and market its blood cancer drug, Pixuvri. As part of the deal, CTi will receive upfront payment of about $18.1 million.
** FEDEX CORP, $159.52, +3.14 pct
** UNITED PARCEL SERVICE INC, $99.32, +1.39 pct
World's No. 2 package delivery company FedEx reported a 24 percent rise in quarterly profit as it benefited from higher volumes in both its express and ground businesses.
Shares of larger rival United Parcel also rose after the news.
** OWENS-ILLINOIS INC, $29.04, -7.37 pct
The glass container maker said it expected current-quarter earnings to fall by at least 5 percent from a year earlier. The company also said its North America sales were expected to fall due to poor operating performance.
** RETROPHIN INC, $11.44, -8.41 pct
The company named on Tuesday Marc Panoff as CFO, replacing Jeffrey Paley, who has resigned. Retrophin also notified the Nasdaq on Sept. 12 that its board no longer comprised a majority of independent directors, as required by the exchange's listing rules.
** YINGLI GREEN ENERGY HOLDING CO LTD, $3.65, +5.19 pct
** TRINA SOLAR LTD, $14.18, +5.04 pct
** JINKOSOLAR HOLDING CO LTD, $32.98, +3.81 pct
** CANADIAN SOLAR INC, $39.3, +4.72 pct
Deutsche Bank said in a note that it expected solar stocks to outperform the broader market, boosted by stronger pricing and higher demand. "Our checks indicate demand in China has picked up over the past two weeks, module prices and utilization rates have been rising," Deutsche Bank analysts said, reiterating their "buy" rating on Trina and Yingli.
** CIVITAS SOLUTIONS INC, $16.2, -4.71 pct
The home-and-community-based health and human services provider's shares fell as much as 5 percent to $16.16 in their debut, valuing the company at about $597 million. Civitas raised about $198.9 million from the offering. The 11.7-million-share IPO was priced at $17 per share, below the expected range of $20-$23 per share.
** ATLANTIC POWER CORP, $2.27, -11.67 pct
The power producer's U.S.-listed shares fell for the second day after it decided against selling itself and slashed its dividend by 70 percent
At least five brokerages cut their price targets on the stock on Wednesday.
** YRC WORLDWIDE INC, $23.08, +16.57 pct
The trucker said it expected to comply with its debt covenants in the third quarter. The company amended its key debt-to-equity ratio to avoid a covenant breach through the fourth quarter of 2016. "We are launching the amendment now to take uncertainty out of the market ..." Chief Executive James Welch said.
** SONY CORP, $19, -6.17 pct
The company sharply deepened its net loss estimate on Wednesday and said it would not pay a dividend this fiscal year for the first time since it listed in 1958 after it was hit by a massive impairment charge for its struggling smartphone division.
** DUPONT E I DE NEMOURS & CO, $68.84, +4.57 pct
Activist investor Nelson Peltz's Trian Fund Management LP urged DuPont to separate its high-growth businesses from the more cyclical ones, blaming the chemical company's conglomerate structure for its "underperformance".
** NUCOR CORP, $58.1, +4.46 pct
** STEEL DYNAMICS INC, $24.92, +4.09 pct
** AK STEEL HOLDING CORP, $9.95, +3.22 pct
Steelmaker Nucor said it expected a higher third-quarter profit due to a rise in profitability from some steel products. The company's stock rose to its highest level in six years on Wednesday.
Shares of other steel producers also rose after the news. Steel Dynamics and AK Steel separately said they had completed the acquisition of U.S. units of Russia's Severstal OAO
** SUNOCO LOGISTICS PARTNERS LP, $47.69, -4.54 pct
The pipeline operator's public offering of 7.7 million common units was priced at $48.46 per unit, which represents a discount of 3 percent to the stock's Tuesday close.
Sunoco said it would use the net proceeds of the offering to repay debt under its revolving credit facility and for general partnership purposes.
** MOBILE TELESYSTEMS OAO, $16.98, -4.34 pct
The U.S.-listed shares of the Russian company fell after Vladimir Yevtushenkov, the chairman of its majority stakeholder Sistema, was placed under house arrest due to suspicion of money laundering.
J.P. Morgan Securities cut its price target on the stock to $19 from $22, citing rising risks from Yevtushenkov's arrest.
** APOGEE ENTERPRISES INC, $38.865, +6.74 pct
The company, which makes glass used in commercial buildings, reported higher-than-expected profit and revenue for the second quarter on Tuesday as revenue from its architectural glass business, its largest, rose 20 percent.
Apogee also raised its 2015 profit and revenue forecast due to strengthening of the U.S. commercial construction market. The company's stock rose as much as about 11 percent to a record high of $40.37 on Wednesday.
** IAC/INTERACTIVE CORP, $69.37, -0.10 pct
** PERION NETWORK, $6.9, +8.83 pct
New York-based media and Internet company IAC/Interactive has offered to buy Perion Network, an Israeli financial news website said on Wednesday. Israel's Calcalist, quoting unnamed market sources, said that IAC has offered more than $500 million for Perion, whose technology helps developers distribute apps and make money off them through advertising.
** GOGO INC, $18.4999, +3.06 pct
The in-flight wireless service provider signed an agreement to offer services to Virgin Atlantic Airways.
** SALIX PHARMACEUTICALS LTD, $160.1, +2.71 pct
Some of the company's top 20 investors are threatening to vote down a proposed deal to buy a unit of Cosmo Pharmaceuticals SpA, and are pressing Salix to consider selling itself instead, people familiar with the matter said on Tuesday. (Compiled by Amrutha Penumudi in Bangalore; Editing by Kirti Pandey)