July 12 (Reuters) - Some U.S. stocks on the move on Friday:
U.S. stocks were mostly flat in afternoon trading, helped by strong earnings from JPMorgan Chase and Wells Fargo, while shares of Boeing slumped after an airplane fire in London. The Dow Jones Industrial Average was down 0.20 percent, the Standard & Poor’s 500 Index was down 0.01 percent and the Nasdaq Composite Index was up 0.29 percent.
** BOEING CO, $103.72, down 3 pct (1357 ET)
** PRECISION CASTPARTS CORP, $232.60, down 2 pct (1430 ET)
** SPIRIT AEROSYSTEMS HOLDINGS, $22.60, down 2 pct (1430 ET)
A Boeing 787 Dreamliner operated by Ethiopian Airlines caught fire at Britain’s Heathrow airport in a fresh blow for the planemaker which earlier this year was forced to ground the new planes for three months after battery fires.
Boeing suppliers’ stocks were also down.
** UNITED PARCEL SERVICES INC, $86.08, down 5.8 pct (1359 ET)
** FEDEX CORP, $102.20, down 2 pct (1359 ET)
United Parcel Service, the world’s No.1 package delivery company, estimated second-quarter profit below analysts’ expectations, hurt by overcapacity in the global air freight market and a slowing U.S. industrial economy.
Shares of rival Fedex, the world’s No.2 package delivery company, also fell.
The biggest U.S. bank by assets posted a 31 percent increase in second-quarter earnings after underwriting income jumped and bond market trading revenue rose.
** WELLS FARGO & CO, $42.72, up 2 pct (1359 ET)
The biggest U.S. mortgage lender reported a higher-than-expected 20 percent rise in quarterly profit as it set aside less money to cover bad loans.
Billionaire investor Carl Icahn and Southeastern Asset Management Inc sweetened their bid for Dell by adding warrants they say would increase the value of the offer to a range of $15.50 to $18.00 per share from $14.00.
More than 11.6 million shares changed hands by 1215 ET, making them one of the most traded on the exchange.
** IGO INC, $3.42, up 49.7 pct (1400 ET)
The designer of chargers for notebooks and mobile phones said late on Thursday that Steel Excel Inc will commence an offer for up to 44 percent of its outstanding stock at $3.95 per share. The deal represents a premium of 73 percent to the stock’s closing price on the Nasdaq on Thursday.
** CERES INC, $2.36, down 27.3 pct (1400 ET)
Analysts at Raymond James downgraded the agricultural seeds company’s stock to “market perform” from “outperform” after Ceres reported a bigger third-quarter loss as costs more than tripled due to marketing programs in Brazil and an obsolete inventory. Ceres’s net loss widened to $9.3 million, or 38 cents per share, from $8.4 million, or 34 cents per share, a year earlier.
** WEBMD HEALTH CORP, $34.08, up 26.4 pct (1400 ET)
The health information provider said it expects to post its first profit in six quarters, helped by increased revenue from its public portals in the second quarter.
** MEDICINES CO, $31.88, down 6 pct (1427 ET)
A Delaware district court sided with a unit of Teva Pharmaceutical Industries Ltd in interpreting the scope of the patents covering the Angiomax anticoagulant drug that Medicines Co is claiming Teva violated. The court’s comments could be a positive for generic drug companies such as Hospira Inc, Sun Pharmaceuticals Inc, Dr. Reddy’s Laboratories Inc and Mylan Inc, which are all vying to launch copies of Angiomax and are embroiled in patent issues with Medicines Co.
** ATHENAHEALTH INC, $106.18, up 16 pct (1401 ET)
The healthcare IT company entered into an agreement with a unit of Ascension Health Alliance to use Athena's cloud-based services for over 4,000 providers, the company said in a regulatory filing. (link.reuters.com/jyc69t)
** SPREADTRUM COMMUNICATIONS INC, $29.82, up 12.7 pct (1401 ET)
The Chinese cellphone chip designer will be acquired by a unit of government-owned Tsinghua Holdings Co Ltd for a raised offer price of about $1.78 billion.
** ALNYLAM PHARMACEUTICALS INC, $49.73, up 14.2 pct (1402 ET)
Several brokerages including J.P. Morgan Securities and Leerink Swann LLC raised their price targets on the drugmaker’s stock after an early-stage trial of the company’s gene-based therapy showed the drug was effective in suppressing a protein that causes a rare organ-damaging hereditary disorder. The stock rose 19 percent on Thursday when the company announced the study results.
** XILINX INC, $42.94, up 2.6 pct (1330 ET)
Analysts at Citi Investment Research upgraded their rating on the programmable chipmaker’s stock to “buy” from “neutral”, according to Streetinsider.com.
** F5 NETWORKS INC, $79.24, up 4 pct (1420 ET)
Piper Jaffray & Co said pent up demand from service providers would boost the network-gear maker’s results for the June quarter and upgraded the stock to “overweight” from “neutral”. “Increasing momentum from the recent product refresh cycle will ultimately translate into meaningful estimate revisions over the next several quarters,” said analyst Troy Jensen, raising his price target to $88 from $80.
F5’s stock has gained 14.4 percent since peer Adtran reported better-then-expected results due to growth in its inter-networking and broadband access products late on Tuesday.
** VALERO ENERGY CORP, $35.66, up 3 pct (1424 ET)
** MARATHON PETROLEUM CORP, $72.68, up 2 pct (1230 ET)
** TESORO CORP, $54.87, up 3 pct (1230 ET)
** HOLLYFRONTIER CORP, $43.01, up 2 pct (1230 ET)
Analysts said the flagship U.S. refiner Valero’s forecast of lower second-quarter earnings confirms that the quarter was challenging for the industry but it does not change their outlook for next year or beyond. The narrowing spread between U.S. crude oil and global benchmark Brent and downtime have hurt margins at U.S. refiners like Valero who relied on cheaper domestic crude. “In refining it often seems like when it rains it pours and Q2 appears to be no exception,” Wells Fargo analysts Roger Read and Lauren Hendrix said.
** REALD INC, $12.20, down 9.6 pct (1403 ET)
Analysts at Brokerage Dougherty & Co cut their rating on the 3D technology licensor to “neutral” from “buy”, saying they have less confidence in the company’s ability to grow license revenue on a year-over-year basis.
Stifel Nicolaus analysts cut their price target on the stock to $15 from $20, saying 3D rates domestically are declining more aggressively post opening weekend than expected and international 3D rates also appear to be weaker than expected.
** SPRINT CORP, $7.01, up 11.6 percent (1403 ET)
Analysts at J. P. Morgan Securities resumed coverage of the telecom service provider with a “neutral” rating and a price target of $7. The No.3 U.S. wireless operator said late on Thursday it would offer unlimited data services for the lifetime of an account, in a bid to lure customers away from bigger rivals Verizon Wireless and AT&T Inc.
** QUALITY SYSTEMS INC, $21.94, up 10 pct (1403 ET)
Robert W. Baird & Co upgraded its rating on the healthcare IT company’s stock to “outperform” from “neutral”, according to theflyonthewall.com.
** INFOSYS LTD, $46.26, up 5 pct (1404 ET)
The India-based outsourcing company hopes a return to aggressively chasing deals, even those with low margins, will help it regain lost market share but cut-throat competition and a possible change in U.S. visa rules may derail its plans. Infosys maintained its revenue growth forecast for the current 2013/14 financial year, defying some expectations that it would cut its target if the business outlook remained poor.
** THE WENDY‘S CO, $6.51, up 6.2 pct (1404 ET)
BMO Capital Markets analysts raised their rating on the second-largest U.S. hamburger chain’s stock to “outperform” from “market perform,” according to Theflyonthewall.com.
** TELECOM ITALIA , $5.17, down 5.6 pct (1406 ET)
The Italian regulator tentatively approved lower fees for rivals to use its fixed-line copper network. The company said the cut would put at risk the planned spin-off of its fixed-line access network and reduce its results by 110 million euros ($143 million).
** YELP INC, $40.31, up 7.6 pct (1406 ET)
Needham & Co initiated coverage on the consumer review website’s stock with a “buy” rating, saying the company is becoming a necessary advertising medium for local businesses across the world. “We view the Yelp platform as highly extensible and expect the company to not only enhance its current offerings with additional features and functionality, but also to enter adjacent markets such as food delivery, event management, and payments,” analyst Kerry Rice said in a note.
** REGENERON PHARMACEUTICALS INC, $259.61, up 4.4 pct (1407 ET)
Lazard Capital Markets analyst Joshua Schimmer upgraded the Eylea eye drug maker’s stock to “buy” from “neutral”, saying he expected another strong quarter, with a possibility that the company would raise its forecast.
Regeneron has already raised its 2013 sales view for Eylea.
Schimmer said Eylea seems well positioned to continue beating expectations and faces little competition after Allergan’s rival drug was delayed, and with patients shifting to Eylea from Avastin due to compounding pharmacies issues.
** AVEO PHARMACEUTICALS INC, $2.48, down 2.3 pct (1407 ET)
The company said it received a subpoena from the U.S. Securities and Exchange Commission on July 3 seeking documents and communication covering its experimental cancer drug, tivozanib.
** CLOUD PEAK ENERGY INC, $16.47, down 2.6 pct (1407 ET)
The coal producer cut its full-year adjusted pretax profit forecast by $15 million to $210 million-$250 million, citing a fall in shipments in the second quarter from the first quarter. The company said shipments were down 1 million tons at 20.1 million tons in the second quarter, due to weather-related interruptions and power plant outages at some major customers.
** MOLYCORP INC, $6.9, up 2.6 pct (1408 ET)
Byron Capital Markets upgraded its rating on the rare earths producer’s stock to “strong buy” from “buy”, according to streetinsider.com.
** STEWART INFORMATION SERVICES, $29.27, up 4 pct (1415 ET)
The global title insurance and real estate services company’s stock was raised to “overweight” from “equal weight” by Stephens Inc, according to Theflyonthewall.com.
** NETFLIX INC, $255, up 4.4 pct (1416 ET)
Barclays Capital analysts raised their price target on the video streaming service’s stock to $250 from $220, according to theflyonthewall.com.
** DOMTAR CORP, $70.74, down 3.5 pct (1416 ET)
The Montreal-based company warned it expects to report a second-quarter operating loss due to restructuring costs, maintenance shutdowns, lower paper and pulp shipments and higher costs for freight.
** EDWARDS LIFESCIENCES, $67.53, up 2.6 pct (1417 ET)
** MEDTRONIC INC, $53.22, down 1 pct (1417 ET)
A German court ruled against Medtronic in the latest round of its patent fight with Edwards Lifesciences on Friday, judging the U.S. medical device maker’s heart valve technology infringes a patent owned by Edwards.
** SODASTREAM INTERNATIONAL INC, $58.97, down 5.6 pct (1417 ET)
Oppenheimer & Co analysts downgraded their rating on the Israeli company’s stock to “perform” from “outperform” and removed its $85 price target, saying they expect tough comparisons to weigh on the company’s second-quarter results.
Sodastream’s shares closed 5 percent lower on Tuesday after the New York Post reported that the company, whose machines make carbonated drinks from tap water, has seen little interest from buyers after it began looking to sell itself three months ago.
** FIVE BELOW INC, $39.07, up 3 percent (1418 ET)
CNBC‘S Mad Money host Jim Cramer named the dollar store his favorite play in the discount retail space on his show late on Thursday.
“Five Below is still a small, up-and-coming, regional to national growth story,” Cramer said.
“By contrast both Family Dollar and Dollar General are mature. Although Five Below stock is up 18 percent for the year, I‘m confident that it can keep going higher, simply because of the growth potential.”
** H&R BLOCK INC, $30.70, up 2.5 pct (1418 ET)
The tax services provider said on Thursday it will sell its banking assets to a unit of Republic Bancorp Inc as it looks to avoid a sharp rise in costs associated with the introduction of stricter banking rules by the Federal Reserve.
** RADIOSHACK CORP, $2.81, up 6.8 pct (1418 ET)
The company said on Friday that its balance sheet continues to be strong, with total liquidity of $820 million at the end of the first quarter, a day after a trade publication reported that the electronics retailer was considering hiring a financial adviser. (Compiled by Lehar Maan; Editing by Sriraj Kalluvila)