15 Min Read
(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s); for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks were little changed on Tuesday after the Dow and S&P 500 hit record highs the previous session, with a handful of earnings reports dominating trading amid a lack of broad market catalysts. The Dow Jones industrial average rose 0.04 percent, while the S&P 500 lost 0.11 percent and the Nasdaq Composite dropped 0.04 percent.
** TESLA MOTORS INC, $127.78, up 5 pct (10:25 a.m. ET)
U.S. auto safety regulators have launched an investigation into the luxury electric sports car maker's Model S sedan after three car fires in six weeks. Late on Monday, the company said it would push out a software update to the Model S air suspension that will give the car more ground clearance at highway speeds, and will amend its warranty policy to cover fire damage even if it is due to driver error.
After falling sharply before the bell, Tesla shares were up 5 percent in early trade on the Nasdaq.
The company's shares have fallen 37 percent since reports of the first fire on Oct. 2. They had jumped almost five times in the seven months to their Oct. 1 close.
** CAMPBELL SOUP CO, $39.48, down 6 pct (9:32 a.m. ET)
The world's largest soup maker cut its full-year profit forecast after a drop in demand for its soups and drinks resulted in first-quarter earnings that fell far short of analyst estimates.
** INTELLIPHARMACEUTICS INTERNATIONAL INC, $3.45, up 84 pct (9:33 a.m. ET)
The Canadian company said late on Monday that it received approval from the U.S. Food and Drug Administration to sell the generic version of Novartis Pharmaceuticals Corp's drug, Focalin XR. Commercial sale of Focalin, used to treat attention deficit hyperactivity disorder, will be launched by Intellipharmaceutical's U.S. partner Par Pharmaceutical Inc.
** SPHERIX INC, $10.88, up 45 pct (9:33 a.m. ET)
The lifesciences company said it settled a patent dispute with a technology company it did not name. Spherix said it would license the patent, which accepts refill requests for online prescriptions.
** EVOKE PHARMA INC, $11.05, up 37 pct (09:41 a.m. ET)
Brokerage Aegis Capital started coverage of the drugmaker with a "buy" rating and an 18-month price target of $60 per share, saying that the U.S. health regulator has indicated that a single pivotal trial for its experimental gastrointestinal drug would be enough to support a marketing application.
Analyst Raghuram Selvaraju said the company's only late-stage experimental drug EVK-001 could reach the market in late 2016 and generate over $400 million in annual sales.
** HORIZON PHARMA INC, $5.74, up 28 pct (9:34 a.m. ET)
** POZEN INC, $6.20, up 7.5 pct
Horizon said it would buy the right to market AstraZeneca Plc's arthritis drug Vimovo in the United States for an upfront payment of $35 million. Horizon will also pay 10 percent royalty on net sales of the drug to Pozen, which licensed the drug to AstraZeneca in 2010.
** CHINACACHE INTERNATIONAL HOLDINGS LTD, $7.17, down 17 pct (9:46 a.m. ET)
The content delivery network and cloud computing provider reported an adjusted loss of 16 million yuan ($2.6 million) in the third quarter, compared with a profit of 12.6 million yuan a year earlier.
** CARDIOME PHARMA CORP, $4.7, up 17 pct (10:54 a.m. ET)
The Canadian biopharmaceutical company said has acquired privately held Swiss pharmaceutical company Correvio LLC for $12 million. The deal will serve as a potential platform to accelerate the launch of its heart drug Brinavess, Cardiome Pharma said in a statement late on Monday.
** LIGHTINTHEBOX HOLDING CO LTD, $8.26, down 17 pct (10:19 a.m.)
The online retailer reported a surprise third-quarter loss and forecast fourth-quarter revenue below analysts' estimates due to lower orders and higher costs. "The average order size dropped from more than $50 to around $43," the company said on a post-earnings conference call.
** RADCOM LTD, $4.99, up 12.6 pct (11:17 a.m. ET)
The Israel-based company, which makes test equipment and software for computer networks, said it won orders worth $3.6 million from a Tier 1 telecom operator based in Asia.
** NOAH HOLDINGS LTD, $19.75, down 12.5 pct (9:45 a.m. ET)
The Chinese wealth management service provider's operating expenses for the third quarter rose nearly 50 percent to $24.5 million even as quarterly profit almost doubled to $13.9 million.
** DAKTRONICS INC, $13.87, up 10 pct (9:35 a.m. ET)
The supplier of electronic displays and scoreboards reported better-than-expected quarterly results, helped by strong growth in orders.
** VISIONCHINA MEDIA INC, $9.16, down 9 pct (9:49 a.m. ET)
The China-based outdoor digital advertising company reported a 14 percent fall in revenue on an annualized basis due to a fall in average advertising revenue per broadcasting hour.
** SCIENTIFIC GAMES CORP, $16.89, down 7.4 pct (11:29 a.m. ET)
The company, which provides lottery and gaming services, said David Kennedy will replace Lorne Weil as Chief Executive with immediate effect.
Scientific Games also said the roles of chairman and chief executive officer would be separated and named billionaire financier Ronald Perelman as chairman.
The company did not say why Weil was leaving.
** EQUAL ENERGY LTD, $4.72, up 6.5 pct (9:48 a.m. ET)
The Oklahoma-based oil and gas producer said it found a suitable option to consider from its strategic alternatives process. Equal Energy neither disclosed the option nor named the company it was negotiating with. The exclusive negotiation will continue until early December, the company said.
** BEST BUY CO INC, $39.99, down 8 pct (9:38 a.m. ET)
The world's largest consumer electronics chain said it would be competitive on prices during the holiday season as promotional activity by rivals grows fierce, but warned it could hurt margins in the fourth quarter.
For a graphic on earnings, (link.reuters.com/jet74v)
** QIWI PLC, $45.57, up 8.5 pct (9:35 a.m. ET)
The Russian payment transfer company reported third-quarter results that beat estimates due to higher payment volumes in its Visa QIWI Wallet business.
** ALBANY MOLECULAR RESEARCH INC, $12.92, down 7 pct (10:15 a.m. ET)
The company said it will offer $100 million of cash convertible senior notes due 2018. Albany expects to grant the initial purchasers an option to buy up to an additional $15 million of the notes, solely to cover over-allotments, if any.
** DATAWATCH CORP, $32.08, down 7 pct (10:23 am ET)
The enterprise data analytics software maker's fourth-quarter net loss widened to 37 cents per share from 4 cents per share a year earlier. The company also reported a net loss of 63 cents per share for the full year, compared with a profit of 15 cents per share last year.
** SIMULATIONS PLUS INC, $4.93, down 6.6 pct (11:56 a.m. ET)
The company, which sells drug discovery and development software, reported lower-than-expected revenue in the third quarter, hurt in part by a delay in a large upgrade order.
** ANTHERA PHARMACEUTICALS INC, $2.90, down 6.4 pct (11:41 a.m. ET)
A report on investment website The Street said that patients with acute coronary syndrome were more likely to suffer heart attacks, strokes or die after being treated with Anthera's experimental heart drug, varespladib, according to results from a late-stage study. The results were presented by Anthera on Monday night at the American Heart Association Scientific Sessions. (r.reuters.com/pav74v)
In March 2012, Anthera halted the late-stage study early, citing lack of efficacy of varespladib, The Street report said.
** TRINA SOLAR LTD, $17.16, up 5.89 pct (9:36 a.m. ET)
The solar company swung to a profit after eight straight quarters of losses as solar panel prices held steady after a four-year decline and the company cut manufacturing costs.
** BROCADE COMMUNICATIONS SYSTEMS INC, $8.59, up 6.2 pct (9:39 a.m. ET)
The network equipment maker reported better-than-expected fourth-quarter results due to higher gross margins and lower costs.
At least two brokerages raised their price targets on the company's stock. While BMO Capital Markets analyst Keith Bachman was skeptical about Brocade's revenue growth, he said the company "can manage opex and drive margins higher".
Bachman raised his price target on the stock to $9.25 from $8.75, with a "market perform" rating.
** COMMONWEALTH REIT, $24.56, up 6 pct (11:35 a.m. ET)
The office building operator said late on Monday that an arbitration panel ruled that a consent solicitation by activist investor Keith Meister and real estate major Related Cos to remove the company's board of trustees "was not properly conducted and cannot be validated."
CommonWealth REIT also said it would increase the size of its board so that independent trustees will represent at least 75 percent of total trustees.
Related and Meister's Corvex Management LP, which together own about 9.6 percent of CommonWealth shares, bid for the company earlier this year and said they would pursue the removal of the company's board if it was not open to being acquired by them or another buyer.
Corvex and Related said on Monday that they would pursue a new solicitation and file a preliminary consent solicitation statement with the U.S. Securities and Exchange Commission.
** UNITED CONTINENTAL HOLDINGS, $38.23, up 5.2 pct (9:52 a.m. ET)
The parent company of United Airlines said its costs will fall by $2 billion every year and that it may issue dividends by 2015, as the airline cuts fuel consumption and sourcing costs and increases productivity.
** DEMANDWARE INC, $60.56, down 5 pct (11:21 a.m. ET)
The company, which makes software that powers e-commerce sites, said on Monday it is making a public offering of 3.3 million shares.
The offering is expected to consist of 2.5 million shares to be offered by Demandware and 810,098 shares to be offered by certain selling stockholders, the company said.
** AUTONAVI HOLDINGS LTD, $15.12, up 4.7 pct (11:11 a.m. ET)
The Chinese digital mapping and navigation firm reported better-than-expected third-quarter revenue buoyed by an increase in monthly active users of its application.
** TESORO LOGISTICS LP, $50.50, down 4.6 pct (9:39 a.m. ET)
The pipeline and storage company late on Monday said it would offer 6.3 million units representing limited partner interests in an underwritten public offering.
** VAIL RESORTS INC, $75.98, up 4 pct (12:09 p.m E.T)
Credit Suisse upgraded its rating on the mountain resort operator's stock to "outperform" from "neutral" and raised its price target to $81 from $71 as it expects the company to gain from rising demand from international travelers and an improving Denver economy.
** MEMORIAL PRODUCTION PARTNERS LP, $19.61, down 4 pct (9:40 a.m. ET)
The company, formed to acquire and develop oil and natural gas properties, said late on Monday that it would offer about 7.1 million of common units representing limited partner interests.
** SOLARCITY CORP, $48.93, down 4 pct (10:45 a.m. ET)
Republican Alabama Senator Jeff Sessions sent a letter on Monday to Treasury Secretary Jacob Lew questioning taxpayer-funded grants received by the solar-panel installer, according to Nov. 18 edition of U.S weekly newspaper Barron's. (r.reuters.com/qyt74v)
** GW PHARMACEUTICALS PLC, $34.33, down 4 pct (10:31 a.m. ET)
The biopharmaceutical company posted a wider quarterly loss as research and development expenditure rose more than 60 percent.
** OILTANKING PARTNERS LP, $60.75, down 5 pct (9:41 a.m. ET)
The pipeline and storage company late on Monday said it would offer 2.6 million units representing limited partner interests in an underwritten public offering. The proceeds would be used to buy additional units, pay down debt and fund ongoing projects, the company said.
** VISHOP HOLDINGS LTD, $83.32, down 4 pct (10:57 a.m E.T.)
HSBC began coverage on the Chinese online discount retailer's stock with an "overweight" rating, according to Theflyonthewall.com.
** SALESFORCE.COM INC, $53.26, down 4.2 pct (9:42 a.m. ET)
The San Francisco-based cloud computing company forecast fourth-quarter revenue to come in slightly better than analysts' projections, helped by a strong performance by newly acquired email marketing firm ExactTarget.
** AERIE PHARMACEUTICALS INC, $11.00, up 3.6 pct (10:31 a.m. ET)
At least three brokerages initiated coverage on the company's stock with "buy" ratings, citing the potential of its experimental glaucoma drug.
"We believe AERI's product candidates could demonstrate greater efficacy, safety and convenience than currently available glaucoma drugs," RBC Capital Markets analyst Adnan Butt wrote in a note. He started his coverage with an "outperform" rating.
** XINYUAN REAL ESTATE CO LTD, $5.64, down 3.5 pct (9:50 a.m. ET)
The Chinese real estate company said it had registered to resell 18.63 million American Depository Shares by selling shareholders. The company said it would not receive any proceeds from the sale of the shares.
** URBAN OUTFITTERS INC, $38.35, down 3.1 pct (9:41 a.m. ET)
The teen apparel retailer joined rival Abercrombie & Fitch Co in warning of a squeeze on current-quarter margins as a tough holiday season could force it to discount more.
** DICK'S SPORTING GOODS INC, $58.31, up 3 pct (10:09 a.m E.T)
The sporting goods retailer reported better-than-expected quarterly results as its pricing initiatives boosted traffic to its stores.[ID: nPn5Pp9b1]
** W&T OFFSHORE INC, $17.95, up 3 pct (11:45 a.m. ET)
The oil and gas producer's director Robert Israel bought 3,850 shares at $18.04 per share on Monday.
** HOME DEPOT INC, $81.79, up 2.6 pct (9:42 a.m. ET)
A recovery in the U.S. housing market helped the company to top profit and sales estimates for the third quarter, prompting the No. 1 home improvement chain to raise its fiscal-year outlook for the third time this year.
** BALTIC TRADING LTD, $4.47, up 2 pct (11:54 a.m. ET)
Perrin Harry, a director at the dry bulk shipper, bought 15,000 shares at $4.97 per share on Monday. (link.reuters.com/byk53v)
** MEDTRONIC INC, $57.37, down 1.6 pct (9:44 a.m. ET)
The company reported higher quarterly earnings that were slightly above analysts' expectations on stronger sales of its implantable devices to treat abnormal heart rhythms.
** OMEROS CORP, $7.68, up 2 pct (9:35 a.m. ET)
The drugmaker said analyses of a late-stage trial of its experimental eye drug showed the treatment reduced the occurrence of intraoperative pupil constriction - an important risk factor during surgeries.
The drug, OMS302, is being developed for use during lens replacement surgeries including cataract surgery and refractive lens exchange.
** SEMTECH CORP, $31.85, up 1.5 pct (9:48 a.m. ET)
The supplier of analog and mixed-signal semiconductor products reported third-quarter results above analysts' expectations, helped by design wins and product releases.
Compiled by Natalie Grover; Editing by Sriraj Kalluvila