11 Min Read
Aug 19 (Reuters) - Some U.S. stocks on the move on Monday:
The S&P 500 and Dow stock gauges were little changed on Monday, with investors reluctant to make new bets because the Federal Reserve is expected to begin slowing its stimulus, while the Nasdaq composite index rose on large-cap technology shares.
The Dow Jones industrial average was down 0.09 percent and the S&P 500 0.13 percent. The Nasdaq Composite was up 0.33 percent.
** INTEL CORP, $22.35, up 2 pct (1:36 p.m. ET)
Brokerage Piper Jaffray & Co upgraded the Dow component to "neutral" from "underweight" and boosted its share-price target as it expects the company's "2014 revenue to grow in the mid-single digits after two years of decline."
"We expect a modest corporate refresh cycle, driven by the end of support for Windows XP in April 2014, coupled with the release of Windows 8.1 in Q4 (fourth-quarter)," Piper Jaffray analyst, Auguste Gus Richard wrote in a note to clients.
The chipmaker's stock rose as much as 3.2 percent to $22.70 and was the biggest percentage gainer on the S&P.
** APPLE INC, $513.15, up 2 pct (01:10 p.m. ET)
Several tech websites cited KGI Securities analyst Ming-chi Kuo as saying that Apple's anticipated low-cost iPhone 5C will be positioned as the company's mid-range device with a price of between $400 and $500. Previously some reports had suggested it might be cheaper and replace the iPhone 4/4S as the entry level model. (link.reuters.com/huf52v)
** GTX INC, $1.49, down 64 pct (1:37 p.m. ET)
GTx said its experimental drug to treat muscle wasting in cancer patients was not effective in improving body mass in late-stage trials.
** SUPERNUS PHARMACEUTICALS INC, $7.33, up 10.4 pct (1:37 p.m. ET)
The company said it received final approval from the U.S. Food and Drug Administration for its epilepsy drug, Trokendi XR. Supernus said it would launch the drug over the next few weeks.
** EDWARDS GROUP LTD, $9.98, up 18 pct (1:38 p.m. ET)
Swedish engineering group Atlas Copco said it was buying British industrial technology firm Edwards Group for up to $1.6 billion, an investment which should help it offset volatile swings in its mining business.
Atlas Copco said it would pay up to $10.50 per share for Edwards, including net debt, representing a 24 percent premium to Friday's closing price.
** EFUTURE INFORMATION TECHNOLOGY INC, $4.59, up 61.6 pct (1:39 p.m. ET)
The Chinese supply chain management software maker said it signed an agreement with Rainbow Department Store Co Ltd to launch a software that enables easy access between sales staff and customers.
The stock touched a year-high of $6.00 on Monday. It was trading more than six times its average 10-day volume and was the top gainer on the Nasdaq.
** HARVEST NATURAL RESOURCES INC, $4.84, up 22.8 pct (1:39 p.m. ET)
Brokerage Wunderlich Securities raised its rating on the oil and gas company's stock to "buy" from "hold" as it expects the company to gain from drilling in Africa and Indonesia.
** NTELOS HOLDINGS CORP, $16.29, down 10.6 pct (1:40 p.m. ET)
Brokerage FBR Capital Markets added the telecom services provider's stock to its top picks list as a "short" and said it expects the company's revenue from major customer Sprint Corp to fall to $82.9 million in 2015, and $26.6 million in 2016, an article on investment website Seekingalpha.com said.
NTelos's wholesale and other revenues, which are mostly Sprint related, totaled $168.9 million in 2012, according to Seekingalpha.com. (r.reuters.com/tef52v)
** COBALT INTERNATIONAL ENERGY INC, $25.02, down 14.8 pct (1:41 p.m. ET)
** MARATHON OIL CORP, $32.71, down 4 pct (2:08 p.m. ET)
Oil explorer Cobalt International Energy Inc said it failed to find oil in its wells off the coast of Gabon in West Africa and in the Gulf of Mexico, triggering the steepest drop in its shares in more than two years. The Gabon well is operated by French energy company Total SA and Marathon Oil is the other partner.
** E-HOUSE CHINA HOLDINGS LTD, $6.40, up 5.43 pct (1.41 p.m. ET)
Oppenheimer & Co raised its price target on the stock of the China-based real estate services company to $8 from $6.
E-House on Friday reported second-quarter results that beat analysts' estimates. The company also forecast higher-than-expected full-year revenue of $630 million. Analysts on average were expecting $594.8 million, according to Thomson Reuters I/B/E/S.
** SAREPTA THERAPEUTICS INC, $30.07, down 9.2 pct (1.42 p.m. ET)
Cowen & Co analysts said that Sarepta shares' jump on Friday after clinical data released by a rival drugmaker was surprising and unwarranted.
The stock closed up 3.25 pct on Friday on the Nasdaq.
"While we are bullish on Sarepta shares, we want the stock to move on concrete outcomes, not hype. The Street should, in our opinion, invest in Sarepta for the long term prospects, not for Accelerated Approval," Cowen's Edward Nash wrote in a note.
** TATA MOTORS LTD, $23.50, down 6.5 pct (1:43 p.m. ET)
** ICICI BANK LTD, $26.85, down 9.4 pct (1:43 p.m. ET)
** STERLITE INDUSTRIES (INDIA) LTD $4.90, down 2.2 pct (1:44 p.m. ET)
India's NSE index fell nearly 2 percent on Monday to its lowest close in 11 months, as blue chips slumped after a record low rupee aided fears of foreign selling and more steps by the central bank to stem dollar outflows.
The benchmark BSE index fell 1.56 percent, or 290.66 points, to end at 18,307.52, adding to Friday's 4 percent fall, marking its lowest close in nearly four months.
** HALCON RESOURCES CORP, $4.71, down 7.10 pct (1:49 p.m. ET)
Stifel Nicolaus downgraded the stock to "hold" from "buy" citing the oil and gas producer's increased equity offering on Aug. 8.
The brokerage also cut its 2014 production forecast for Halcon by 11 percent. Stifel lowered its forecast to 42 million barrels of oil equivalent per day (mboepd) as drilling activity is expected to slow down in the second half of the year.
** ARMOUR REIT RESIDENTIAL INC, $3.81, down 7.52 pct (1.30 p.m. ET)
Barclays Capital cut its rating on the REIT's stock to $5 from $5.50 due to lower asset balances at the end of the second quarter.
** PANDORA MEDIA INC, $21.46, up 5.5 pct (1:49 p.m. ET)
Brokerage Needham & Co raised its price target on the online streaming music service's stock to $25 from $20 on valuation.
** NOVAVAX INC, $2.78, up 5 pct (2:10 p.m. ET)
Lazard Capital Markets analyst William Tanner said the drugmaker's respiratory syncytial virus vaccine showed antibodies similar to those produced by an approved vaccine. This cuts the company's risk in developing the vaccine, he said.
"Novavax's technology could be particularly useful in the event new and dangerous pathogens emerge," Tanner wrote in a note to clients. Respiratory syncytial virus causes respiratory tract infections, mainly in children.
** CIA SIDERÚRGICA NACIONAL SA, $3.67, up 4.85 pct (1.50 p.m. ET)
Cia Siderúrgica Nacional plans to raise prices for hot- and cold-rolled, galvanized and zinc steel products to distributors in Brazil's local market as early as this week, a source told Reuters on Monday.
The company, commonly known as CSN, plans to increase prices between 5.5 percent and 6.75 percent, said the source.
** ZILLOW INC, $86.33, down 5.4 pct (1:50 p.m. ET)
The real estate website said it would buy smaller peer StreetEasy for about $50 million in cash to tap into the home shopping market in New York.
The company also said it would start a public offering of 2.5 million shares of Class A common stock.
** APACHE CORP, $75.42, down 4.5 pct (1:13 p.m. ET) Brokerage Stifel Nicolaus downgraded the oil and gas producer's stock to "hold" from "buy" due to concerns over Apache's high exposure to Egypt, where a violent unrest in underway.
"While Egyptian production operations have not been disrupted to date, the potential risk of disruption going forward cannot be ignored," Stifel analysts said in a note.
Egypt accounted for 20 percent of the company's output last year. At least 850 people have died since Wednesday in clashes pitting the followers of deposed Islamist President Mohamed Mursi against the army-backed government.
** GERDAU SA, $7.02, up 3.84 pct (1:15 p.m. ET)
HSBC Securities analysts led by Leonardo Correa raised the recommendation on preferred shares in Brazilian steelmaker to "overweight" from "neutral,".
In a client note on Monday, the analysts said hikes in long steel prices, expected gains in operational revenues, stronger cash flow generation and rising confidence were behind the upgrade decision. The analysts also raised their price target on the stock to 19 reais from a prior 14 reais.
** TRULIA INC, $43.52, down 5.5 pct (1:50 p.m. ET)
Brokerage RBC Capital Markets cut its rating on the online real estate listing service's stock to "sector perform" from "outperform" as the company faces strong competition from Zillow Inc and Realtor.com.
** DOLLAR GENERAL CORP, $54.43, up 3.7 pct (1:51 p.m. ET)
J.P. Morgan Securities raised its rating on the discount retailer's stock to "overweight" from "neutral", saying its checks point to reduced discounts at the company's stores, which signals price stability. The brokerage raised its price target on the stock to $64 from $51. JP Morgan said it expects increased traffic at Dollar General's stores and the recent introduction of tobacco products to add 100 basis points to the company's gross margins.
** CLIFFS NATURAL RESOURCES INC, $21.71, down 5 pct (2:01 pm ET)
Morgan Stanley analyst Evan Kurtz said the miner will continue to battle costs at its aging Koolyanobbing mine in Australia and Wabush mine in Canada.
Also, major projects at rivals Fortescue Metals Group and Rio Tinto, which will start at the end of this year, could pressure iron ore pricing. The Morgan Stanley commodities team forecast iron ore prices to average at $117 per tonne in 2014, compared with Monday's spot price of $138 per tonne.
** BLACKBERRY LTD, $10.37, down 1.3 pct (1.18 p.m. ET)
Jefferies & Co analyst Peter Misek said BlackBerry has cut back production of its new smartphone devices by at least another 10 percent. Misek, who cut his price target on U.S.-listed shares of the struggling smartphone maker to $15 from $18, said there was very modest demand for the Q5 device, which was launched recently in Canada.
Last week, BlackBerry said it was weighing options that could include an outright sale.
** JPMORGAN CHASE & CO, $52.16, down 2 pct (1:53 p.m. ET)
A federal bribery investigation into whether JPMorgan Chase hired the children of key Chinese officials to help it win business is just the latest in a series of legal and regulatory headaches for Chief Executive Jamie Dimon. (Compiled by Neha Alawadhi in Bangalore; Editing by Maju Samuel)