11 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. stocks advanced on Wednesday and the Dow surged to a new intraday high, buoyed by the latest merger news, as investors sorted through the latest batch of corporate earnings. The Dow Jones industrial average was up 0.44 percent at 17,136.53 and the S&P 500 was up 0.41 percent at 1,981.46.
** TIME WARNER INC, $83.26, +17.25 pct
** TWENTY-FIRST CENTURY FOX INC, $33.59, -4.55 pct
Rupert Murdoch's 21st Century Fox said it made a bid to buy media conglomerate Time Warner Inc but was rebuffed. The bid was worth roughly $80 billion, or $85 per share in cash and stock, a source familiar with the situation told Reuters.
** ZIPREALTY INC, $6.705, +121.98 pct
The real estate information provider said on Tuesday that Realogy Holdings Corp RLGY.N, which provides Internet-based residential real estate services, agreed to buy it for about $166 million. The deal is expected to close in third quarter of 2014.
** IRADIMED CORP, $8.62, +37.92 pct
The medical device maker's stock rose as much as 80 pct to $11.27, valuing company at $114.4 million. Offering of 2 million shares priced at $6.25/share, slightly above expected price range of $5-$6. Offering raises $12.5 million.
** AMSC CORP, $1.96, +21.74 pct
The power electronics and superconductor-based products supplier enters into a deal with ComEd, a unit of Exelon Corp , to build a superconductor-based electric grid system in Chicago. AMSC, the U.S. Department of Homeland Security and ComEd will fund deployment of AMSC's resilient electric grid system into ComEd's electric grid. AMSC says it expects to realize revenue of about $60 million from the project.
** INTERACTIVE INTELLIGENCE GROUP INC, $42.26, -15.45 pct
The telecom software maker said it expects second-quarter revenue below analysts' expectations as it deferred revenue from two sizable contracts and faced delays in signing several others. The company expects to report an adjusted operating loss of $6-$7 million for the quarter ended June 30. It had earlier forecast near breakeven operations.
** ICAD INC, $8.7003, +22.02 pct
The image analysis and radiation therapy provider said it had agreed to buy private companies DermEbx and Radion in a cash-and-stock deal worth about $12.6 million to expand its radiotherapy services
** IGATE CORP, $40.37, +2.25 pct
The IT outsourcing company reports better-than-expected second-quarter adjusted profit and revenue, helped by nine client additions. Five of the nine clients are part of the Global 2000 firms - from the Forbes list of the world's biggest public companies.
Shares rose as much as 8.7 percent to their highest in 14 years
** HCA HOLDINGS INC, $60.44, +9.47 pct
** COMMUNITY HEALTH SYSTEMS INC, $46.14, +8.31 pct
** TENET HEALTHCARE CORP, $48.3, +7.40 pct
** LIFEPOINT HOSPITALS INC, $65.28, +6.30 pct
** UNIVERSAL HEALTH SERVICES INC, $96.56, +5.15 pct
Largest U.S. for-profit hospital operator HCA raised its full-year forecast. HCA's shares rise 10.5 pct, reaching a life-high of $61.3. The stock was one of the top percentage gainers on the New York Stock Exchange at 1305 ET. Shares of rivals also rose.
** MAVENIR SYSTEMS INC, $13.36, -5.92 pct
The networking software maker says it is offering 4.1 million common shares and selling stockholders are offering 410,000 shares. Mavenir had 23.4 million shares outstanding as of March 31.
** LANNETT CO INC, $39.04, -17.09 pct
** IMPAX LABORATORIES INC, $28.31, -1.22 pct
Generic drugmaker Lannett said it was subpoenaed by the Connecticut Attorney General regarding possible price fixing of its generic heart drug, digoxin.
Lannet's competitor Impax is also being investigated on the subject.
** BIOAMBER INC, $11.97, -15.76 pct
The chemical company offered 2.8 million shares, representing 15 percent of its outstanding shares. The offering was priced at $12 apiece, 15.5 percent below the stock's Tuesday's close.
The stock was the biggest percentage loser on the NYSE. It has gained more than 70 percent in the past 12 months.
** VENAXIS INC, $2.06, -7.62 pct
The diagnostics company said FDA seeks additional information on the company's appendicitis test, which was submitted for marketing approval in March. Says compiling responses to the requests and expects to engage in discussions in the coming weeks.
** POZEN INC, $8.188, -7.48 pct
The drug developer said FDA has set action date of Dec. 30 to decide on Pozen's re-submission of a marketing application for its experimental pain medication and could issue another "complete response letter" if deficiencies at a supplier's plant were not satisfactorily addressed by then. The FDA rejected the drug in April, citing deficiencies at the manufacturing facility of an ingredient supplier. A complete response letter lists regulatory concerns that need to be addressed before a drug is approved.
** LIONS GATE ENTERTAINMENT CORP,$30.97, +4.38 pct
The movie studio extended its multi-year distribution agreement with Roadshow Films, Village Roadshow Ltd's theatrical distribution arm in Australia. Deal will give Roadshow Films distribution rights to Lionsgates' action comedy Mortdecai, starring Johnny Depp and Gwyneth Paltrow, and The Hunger Games: Mockingjay - Parts 1 & 2
** BEST BUY CO INC, $30.54, +2.79 pct
Electronics retailer Shares rose 1.8 pct amid rumors on Twitter that Carl Icahn has taken a stake in the company. Reuters was unable to reach Best Buy and Icahn for comment. Icahn scheduled to appear at CNBC's annual Delivering Alpha Conference in Manhattan later on Wednesday. At least two analysts said it was unlikely that Icahn took a stake in the company as he usually targets companies with a weak management team, whereas Best Buy has a strong one. "Why would Carl Icahn want to be an activist with one of the best management teams in the S&P?" Janney Capital Markets analyst David Strasser comments.
** INTERNATIONAL GAME TECHNOLOGY INC, $16.97, +9.48 pct
Italy's GTECH will buy U.S. slot machine maker International Game Technology for $6.4 billion including debt, shifting the lottery operator's centre of gravity away from its struggling domestic market.
** JOY GLOBAL INC, $64.88, +7.86 pct
The mining equipment maker's shares up on takeover speculations, says Theflyonthewall.com. Tweets discuss reports of Swedan's Atlas Copco AB being interested in buying Joy Global but some tweets call it a rumor, saying report recalled by source. Joy Global spokeswoman declines comment. Intra-day volume highest since February 2013.
** FIREEYE INC, $34.76, +2.78 pct
Goldman Sachs began coverage of network security software make with a "buy" rating and price target of $42. "Following significant investor concern around weaker product revenue growth in 1Q14, we expect growth to re-accelerate in 2Q14, following a wave of recent product launches," analysts said
** PRECISION DRILLING CORP, $13.92, +3.88 pct
The oil and gas services provider boosted its drilling services technology through an alliance with Schlumberger NV, the world's largest oilfield services provider. Agreement extends to Canada and lower 48 states in the United States.
** BANK OF AMERICA CORP, $15.52, -1.83 pct
The second-largest U.S. bank reported a 43 percent drop in second-quarter profit, falling short of Wall Street estimates, as revenue from mortgages fell and litigation costs soared. Earnings attributable to shareholders fell to $2.04 billion, or 19 cents per share, in the three months ended June 30 from $3.58 billion, or 32 cents per share, a year earlier.
Bank of America has offered $13 billion to settle a probe into mortgage securities sold by the bank, the Wall Street Journal reported, citing sources.
** MGIC INVESTMENT CORP, $7.665, -8.20 pct
The mortgage insurer reported a lower-than-expected second-quarter said may not continue to meet government-sponsored profit as net premiums earned fall 13 percent. Total revenue down 12 pct at $231.2 million in the quarter ended June 30. The company Fannie Mae and Freddie Mac's mortgage insurer eligibility requirements and that returns may decrease if company is required to maintain significantly more capital.
** YAHOO INC, $33.995, -4.54 pct
Yahoo's net revenue, which excludes fees paid to partner websites, decreased 3 percent year-on-year to $1.04 billion in the three months ended June 30. Analysts polled by Thomson Reuters I/B/E/S were looking for net revenue of $1.084 billion.
** INTEL CORP, $34.1101, +7.57 pct
** ADVANCED MICRO DEVICES INC, $4.668, +3.05 pct
Intel believes the worst is over for a personal computer industry hammered by the mobile revolution. The Santa Clara, California chipmaker forecast third-quarter revenue above Wall Street's expectations on Tuesday
At least 19 brokerages raised their price targets on the stock to $29-$45, while two brokerages raised their ratings to an equivalent of "buy".
Smaller rival Advanced Micro Devices Inc's shares are also up in premarket, boosted by Intel's third-quarter and full-year revenue outlook.
** APPLE INC, $96, +0.71 pct
** INTERNATIONAL BUSINESS MACHINES CORP, $193.24, +2.52 pct
** BLACKBERRY LTD, $10.22, -9.56 pct
IBM Corp said it will partner exclusively with Apple Inc to sell iPhones and iPads loaded with applications geared at enterprise clients.
This comes as a threat to BlackBerry, which has increasingly targeted its secure software at businesses as part of an effort to turn the company around after losing ground to Apple's iPhone and Samsung Electronics Co.
** TAIWAN SEMICONDUCTOR MFG CO LTD, $21.06, -6.28 pct
Susquehanna Financial Group downgraded the world's largest contract chipmaker's shares to "negative" from "neutral", saying the company was likely to face higher competition if Apple Inc moves some orders for 20 nanometer chips to GlobalFoundries in 2015. Taiwan Semiconductor is likely to see lower demand for chips below 20 nanometers even as it moderately raises capital investment in 2015 to commercialize 10 nanometer chips, analyst Mehdi Hosseini said.
** HERSHEY CO, $92.12, -2.68 pct
The No. 1 candy producer in the United States on Tuesday raised its chocolate prices for the first time in three years, a sign that a year-long soaring cocoa market is eating into confectioners' profits.
** ARES CAPITAL CORP, $17.02, -2.18 pct
Investment firm priced an offering of 13.5 million shares of its common stock. Offering represents about 4.5 pct of total outstanding shares as of May 5.
** PNC FINANCIAL SERVICES GROUP INC, $85.29, -3.34 pct
The regional bank said second-quarter profit was down 6 pct as net interest income fell. Institutional banking unit earnings fall 23 pct to $470 million. (Compiled by Sneha Banerjee in Bangalore; Edited by Don Sebastian)