12 Min Read
(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for the Day Ahead newsletter, link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s) U.S. stocks rose in a volatile session on Wednesday on reports that new stimulative measures would be announced by the European Central Bank at its meeting tomorrow, though a tepid outlook from IBM limited the Dow's gains. The Dow Jones industrial average was up 0.05 percent at 17,524.8, the S&P 500 was up 0.29 percent at 2,028.39 and the Nasdaq Composite was up 0.24 percent at 4,665.995.
** NETFLIX INC, $410.145, +17.59 pct
The streaming video service said it will complete its expansion into 200 countries within two years, faster than expected, as the company builds its presence overseas while growth in the United States slows. The company said on Tuesday it added 4.3 million subscribers in the quarter that ended in December, beating its own guidance.
** INTERNATIONAL BUSINESS MACHINES CORP, $152.03, -3.13 pct
The world's largest technology services company posted a new 2015 profit target and quarterly revenue that both missed analysts' estimates, as the one-time world technology leader continues to grapple with its journey from low-margin hardware maker to the new world of cloud computing.
** INSPERITY INC, $40.87, +12.47 pct
Activist investor Starboard Value LP urged human resource services provider to explore a potential sale, calling the company deeply undervalued. Starboard, which along with its affiliates holds about a 13.2 percent stake in the company, also suggested ways for management to improve execution, cut operating expenses and improve capital allocation.
** SINOCOKING COAL AND COKE CHEMICAL INDUSTRIES INC , $2.8897, +12.88 pct
Coal and coke processor's underground coal gasification (UCG) program approved as "technology demonstration project for scientific innovation" by Henan Pingdingshan Shilong district's Science and Technology Bureau. The approval grants company 30 pct reimbursement of total capital investment and 25 pct refund for taxes paid to local and state tax authorities along with access to coal for gasification purposes in Shilong district's 27 sq km of coal reserves.
** OCULUS INNOVATIVE SCIENCES INC, $0.8404, -26.28 pct
The skin care product maker said it would offer about 5.8 million shares as well as warrants to buy up to 4.3 million shares of its common stock, according to a regulatory filing. Oculus filed for shelf offering of stock and warrants on Jan. 16. (1.usa.gov/1JdQ9u6) Company had about 8.7 mln shares outstanding as of Tuesday
** ACACIA RESEARCH CORP, $13.137, -17.77 pct
The District Court for Northern District of California ruled against the patent licensing company's unit, Adaptix, finding no patent infringement by Apple Inc, Verizon Communications Inc, AT&T Inc and HTC Corp
** RHINO RESOURCE PARTNERS LP, $2.24, +19.79 pct
** LAREDO PETROLEUM INC, $9.99, +10.88 pct
** SEVENTY SEVEN ENERGY INC, $4.69, +10.35 pct
** STONE ENERGY CORP, $13.47, +8.28 pct
** SWIFT ENERGY CO, $2.15, -4.44 pct
** PIONEER ENERGY SERVICES CORP, $4.09, +6.79 pct
** WHITING PETROLEUM CORP, $28.07, +6.00 pct
Brent crude rises to above $49/bbl as more energy firms cut investments and dollar weakened.
** DIAMONDBACK ENERGY INC, $68.19, +8.57 pct
The oil and gas producer said public offering of 1.8 mln common shares to have gross proceeds of about $106 mln. To use proceeds to repay portion of outstanding borrowings under revolving credit facility.
** ELDORADO GOLD CORP, $7.69, -18.28 pct
** U.S.-listed shares, $6.22, -20.05 pct
Canada-based gold producer expects 2015 gold production of 640,000-700,000 ounces, down from 789,224 ounces in 2014. Sees 2015 production cost at $960-$995/ounce, up from $780 in 2014. At least 5 analysts cut ratings, price targets on the stock. Canaccord Genuity analysts sees rise in company's costs and debt, fall in production at Kisladag mine, company's highest gold contributor.
** HORSEHEAD HOLDING CORP, $13.65, -8.82 pct
The Zinc producer announced on Tuesday public offering of 5 mln common shares. The company said it to use proceeds for general corporate purposes, including capital spending, acquisitions and liquidity for operational contingencies. The offering represents about 9.9 pct of company's outstanding shares as of Nov. 6, 2014.
** NORTHERN TRUST CORP, $66.73, +6.87 pct
The custody bank reports a better-than-expected fourth-quarter profit as assets under custody increases. Reports Q4 earnings of 98 cents per share, above the average analyst estimate of 81 cents.
** AFFYMETRIX INC, $10.47, -10.17 pct
Analysts at Robert W. Baird & Co cut rating on the DNA-based test maker's shares to "neutral" from "outperform", citing company's 2015 revenue growth forecast.
Company forecast 2015 revenue growth of 4-6 pct at the J.P. Morgan Healthcare Conference on Jan. 13, a day after it estimated 9 pct growth for 2014.
** FORTRESS INVESTMENT GROUP LLC, $7.59, -4.17 pct
The investment firm's macro hedge fund lost 7.64 percent last week, the latest in a series of funds to suffer after the Swiss National Bank removed a cap on the franc. The Fortress Macro Fund, managed by Michael Novogratz and Jeff Feig, did not give a reason for the loss in a letter sent to investors on Wednesday.
** VERASTEM INC, $7.89, -12.24 pct
The drug developer which is developing drugs to fight cancer by the targeted killing of cancer stem cells, said it would offer up to $40 mln in common stock on Tuesday . The company did not disclose pricing.To raise $40 mln, company would need to issue about 4.5 mln shares at Tuesday's close of $8.99. It had 25.9 mln shares on issue as of Oct. 23, implying a dilution of about 17 pct.
** CERUS CORP, $5.31, -7.33 pct
Analysts at Robert W. Baird & Co cut price target on the medical device maker to $10 from $11, citing recent $65.5 mln stock offering and higher marketing costs related to launch of company's blood transfusion device as reasons for brokerage action. "Additionally, we are modestly lowering our revenue estimates for Europe to reflect increased economic pressures in Russia and elsewhere," analysts write in a note.
** DANA HOLDING CORP, $21.39, +5.01 pct
Vehicle driveline technology supplier's stock to replace Cubist Pharmaceuticals Inc in the S&P 400 MidCap Index after close of trading on Jan. 22. Drugmaker Merck & Co Inc said on Wednesday it completed tender offer to acquite Cubist Pharma for $102 per share.
** UNITED HEALTH GROUP INC, $108.39, +2.62 pct
The healthcare insurer posted better-than-expected Q4 earnings, helped by higher premium revenue . The company reported an earnings $1.55 per share compared with average analyst estimate of $1.50.
** PUMA BIOTECHNOLOGY INC, $200.5, -7.59 pct
The drug developer plans to offer 1 mln shares, with 30-day option for underwriters to buy up to 150,000 additional shares Puma had about 30.1 mln shares outstanding as of Nov. 3, Thomson Reuters data.
** GOPRO INC, $49.51, +4.58 pct
Action camera maker was granted with design patent for "covering the ornamental design for a camera" on Tuesday (1.usa.gov/159AnmG).
** FXCM INC, $2.27, +41.88 pct
The retail forex brokerage stock fell 87 pct on Tuesday in busiest trading day for company ever. Keefe Bruyette & Woods upgrades FXCM to "market perform" from "underperform" and cuts price target to $1.50 from $4.50; Median price target $1.75 New price target midpoint of $0-$3 per share that shareholders could receive in a potential sale, brokerage says. Of the nine brokerages covering the stock, 4 recommends "hold", 4 recommends "sell" or below and 1 recommends "strong buy".
** QUALCOMM INC, $71.865, -0.85 pct
** SILICON MOTION TECHNOLOGY CORP, $25.91, +7.33 pct
Samsung Electronics Co Ltd, one of the company's top customers, said it will not use its processors for the next version of the Galaxy S smartphone, Bloomberg said.
The wireless chipmaker's new Snapdragon 810 chip overheated during Samsung's testing and Samsung will use its own Exynos chips, Bloomberg says.
Silicon Motion will benefit from Samsung's plan to start using its inhouse chips, which will have transceivers made by company, analysts said.
Silicon Motion said in October it had started shipping its wireless transceiver, a chip component that helps transmit and receive digital and analog signals, to Samsung for several smartphones and tablets
** ARENA PHARMACEUTICALS INC, $4.83, -8.70 pct
The drugmaker announced stock offering but did not disclose size. Earlier Tuesday, Arena's partner Eisai Co Ltd launched savings card for obesity drug Belviq, which will boost number of prescriptions, but hit sales price per prescription. Eisai's Q4 net Belviq sales to fall 35-45 pct from $16.8 mln in Q3, Arena says.
** CREE INC, $33.12, +2.41 pct
Analysts at J.P. Morgan Securities raises target price on the light-emitting diode maker's stock to $39 from $37, citing stabalized gross margins as company rationalizes expenses and redirects investments. Susquehanna Financial Group also raises target price to $31 from $28. The company reported better-than-expected Q2 revenue, profit on Tuesday after market closed. Results helped by 33 pct jump in revenue from lighting products and higher-than-expected operating margins.
** ALNYLAM PHARMACEUTICALS INC, $90.71, -5.76 pct
The drug developer late on Tuesday priced its offering of 4.7 million shares at $95 per share, a 1.2 pct discount to the stock's last close. Company had about 77.2 million shares outstanding as of Dec. 31, according to Thomson Reuters data
** ESPERION THERAPEUTICS, $47.12, +3.18 pct
Analysts at BofA Merrill raises its rating on the drug developer's stock to "buy" from "neutral" and its price target on the Esperion stock to $60 from $34, according to Theflyonthewall.com.
** OXFORD IMMUNOTEC GLOBAL PLC, $13.92, -2.52 pct
Analysts at Robert W. Baird & Co cuts price target on the diagnostic company stocks to $21 from $22, citing higher spending on company's pipeline products and increased investment in R&D and sales personnel.
** ASML HOLDING NV, $106.3, +2.40 pct
The world's largest maker of semiconductor production equipment posted higher-than-expected fourth-quarter results, saying demand from memory chip makers was stronger than expected. The group reported Q4 net income of 305 million euros ($353.04 million) on sales of 1.49 billion, beating analysts' expectations of 221 million euros and sales of 1.31 billion.
** MICHAEL KORS HOLDINGS LTD, $68.2, +1.78 pct
Cowen and Co upgraded the Handbag and accessories retailer's stock to "outperform" from "market perform". "Our conviction in KORS is strengthened on continued momentum in handbag sales from Oct-Dec (about 30 pct plus growth), KORS exceeding plan, and sales increased vs. last year combined with belief that promotions are under control," analyst Oliver Chen wrote. 16 analysts have "buy" or higher ratings of 30 covering stock.
** ADVANCED MICRO DEVICES INC, $2.385, +6.47 pct
The U.S. chipmaker forecast weaker-than-expected first-quarter revenue and said it taking steps to return its computing and graphics businesses to a "healthy trajectory" from the second quarter. (Compiled by Rosmi Shaji in Bengaluru; Edited by Don Sebastian)