7 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 rose on Friday. The Dow Jones industrial average was up 0.42 percent at 17,339.37, the S&P 500 was up 0.37 percent at 2,018.74 and the Nasdaq Composite was up 0.29 percent at 4,606.566.
** YAHOO INC, $42.501, +0.99 pct
** AMAZON.COM INC, $331.46, +1.99 pct
Alibaba Group Holding Ltd, in which Yahoo owns stake, priced its initial public offering at $68 per share, the top end of the expected range, raising $21.8 billion on Thursday, in the latest sign of strong investor appetite for the Chinese e-commerce juggernaut. At that price, the IPO, one of the largest ever, would give Alibaba a market valuation of $167.6 billion.
At least three brokerages raised their price targets on Yahoo's stock. Cantor Fitzgerald raised its target to $43 from $39, while Jefferies raised it to $46.50 from $45. Piper Jaffray raised its price target to $48 from $44.
Shares of online retailer Amazon.com also rose.
** DRESSER-RAND GROUP INC, $81.62, +11.76 pct
Germany's Siemens plans to offer more than $6.1 billion, or $80 per share, for the U.S. compressor and turbine maker, Germany's Manager Magazin said on Friday.
** ITT EDUCATION SERVICES INC, $5.62, -26.54 pct
The for-profit college operator disclosed on Friday that it might face civil charges by the U.S. securities regulator following investigations related to two private education loan programs for its students.
** TIBCO SOFTWARE INC, $20, -3.80 pct
Susquehanna cut its price target on the stock to $18 from $19, but maintains its "neutral" rating. "Tibco is facing a fundamentally structural and operational challenge that will take several quarters to improve as it transitions its go-to-market focus and product focus (subscriptions)," analyst J. Derrick Wood wrote in a note.
** CONCUR TECHNOLOGIES INC, $127.38, +18.16 pct
German business software maker SAP SE said on Thursday it had agreed to acquire U.S.-based expense management software maker Concur in a cash deal valued at $7.3 billion that expands its presence in internet-based software or so-called cloud computing.
** MOLYCORP INC, $1.37, +4.58 pct
Oaktree Capital Group LLC reported a 9.1 percent passive stake in the company as of Sept. 11.
Oaktree agreed in August to provide the company up to $400 million.
** RED HAT INC, $57.19, -5.72 pct
The world's largest commercial distributor of the Linux operating system forecast quarterly revenue below analysts' estimates. Red Hat's billings growth of 17 percent for the second quarter also disappointed investors, said Derrick Wood, an analyst with Susquehanna Financial Group.
** ORACLE CORP, $39.79, -4.24 pct
Larry Ellison, co-founder and leader of Oracle for 37 years, stepped aside as chief executive officer on Thursday, to be replaced by co-CEOs Safra Catz and Mark Hurd, raising questions about a job-sharing arrangement that has had a fraught record elsewhere. Oracle also reported a lower-than-expected quarterly profit, hurt by weak hardware sales.
** MICROSOFT CORP, $47.09, +0.88 pct
The company will close its Silicon Valley research and development operation as part of 2,100 layoffs announced on Thursday, as it moves toward its new CEO's goal of cutting 18,000 staff, or about 14 percent of its workforce.
** JETBLUE AIRWAYS, $11.37, +0.35 pct
The company named on Thursday Robin Hayes, its current president and a former British Airways executive, to succeed Dave Barger as chief executive.
** GLAXOSMITHKLINE PLC, $47.67, +0.80 pct
China has fined the British pharmaceuticals giant 3 billion yuan ($488.8 million) for paying out bribes in what is a record penalty for China, state news agency Xinhua said on Friday. A court in Changsha has also sentenced Mark Reilly, the former head of GSK in China, and other GSK executives to between two and four years in jail, Xinhua added.
** GLU MOBILE INC, $5.17, -2.82 pct
The mobile game developer will offer up to 9.9 million shares at $5.135 per share, which represents a 3.5 percent discount to the stock's Thursday close. (1.usa.gov/1yjileW)
The stock shelf offering, valued at up to about $51.3 million, is related to Glu Mobile's acquisition of Cie Games Inc in July.
** ADVANCED MICRO DEVICES INC, $3.93, +1.29 pct
** SYNOPSYS INC, $41.13, +0.22 pct
Advanced Micro Devices said on Thursday that it signed multi-year agreement with chip design software and services provider Synopsys to gain access to some of Synopsys' chip design intellectual property.
Synopsys said it acquired rights to some of AMD's intellectual property and had hired 150 R&D engineers from AMD.
** CERNER CORP, $59.41, +0.83 pct
** ATHENAHEALTH INC, $133.52, +2.91 pct
The U.S. electronic health record providers said on Thursday they were working with Apple Inc to develop applications that leverage Apple's mobile health service HealthKit.
** TRANSCANADA CORP, $56.97, +2.61 pct
The Calgary-based company is emerging as a possible target, with several U.S. activist hedge funds reviewing the nearly $38 billion pipeline operator as a break-up candidate, people close to the matter said. Discussions about a potential campaign are still in the early stages, but some of TransCanada's largest shareholders have been contacted by hedge funds interested in shaking up one of North America's biggest pipeline companies, the people said.
** CARBO CERAMICS INC, $86.65, -7.71 pct
Goldman Sachs cut its rating on the company's stock to "sell" from "neutral," only the second such rating among 13 brokerages tracking the company. The brokerage also cut its price target to $71 from $104, the lowest on the stock.
Analysts said ceramic proppant sales are below their estimates, hurt by a preference for using more sand as well as competition from cheaper and, in some cases, higher quality Chinese imports. (Compiled by Amrutha Penumudi in Bangalore; Editing by Kirti Pandey)