U.S. stock index futures fell Thursday as investors digested a deal agreed by lawmakers in Washington a day earlier to reopen the federal government and raise the debt ceiling in order to avoid a debt default.
S&P 500 futures fell 2 points and were slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures lost 54 points while Nasdaq 100 futures added 1.5 points.
** GOLDMAN SACHS GROUP INC, Wednesday close $162.25, down 2.4 pct premarket
The bank’s third-quarter profit fell 2 percent as weak bond-trading volumes hit revenue in its biggest business. Revenue from Goldman’s fixed income, currency and commodities business, which undertakes trading for clients, fell 44 percent to $1.25 billion in the quarter ended Sept. 30.
** IBM, Wednesday close $186.73, down 8 pct premarket
The company reported a 4 percent fall in third-quarter revenue, worse than expected by Wall Street, amid a decline in hardware and emerging markets even as it beat earnings estimates. [ID: nL1N0I620T]
** VERIZON COMMUNICATIONS INC, Wednesday close $47.25, up 2.4 pct premarket
The company posted higher-than-expected third-quarter earnings and revenue. Verizon reported a profit of $2.2 billion, or 78 cents per share, compared with $1.59 billion, or 56 cents per share, a year earlier.
** SELECT COMFORT CORP, Wednesday close $24.20, down 26 pct premarket
The specialty mattress maker reported third-quarter results well below analysts’ estimates due to higher costs and sagging demand for its mattresses.
** PEABODY ENERGY CORP, Wednesday close $17.89, up 4.5 pct premarket
** CLIFFS NATURAL RESOURCES, Wednesday close $22.48, up 2 pct premarket
** ALPHA NATURAL RESOURCES, Wednesday close $5.99, up 3 pct premarket
The coal miner reported an unexpected profit for the third quarter on an adjusted basis as shipments from its Australian mines rose and the company’s efforts to curtail costs helped blunt the impact of weak prices.
** FAIRCHILD SEMICONDUCTOR INTERNATIONAL INC, Wednesday close $13.59, up 7 pct premarket
The chipmaker forecast current-quarter sales well below analysts’ estimates, mainly due to weak demand from notebook personal computer and mobile device makers. “Demand from the computing, TV and some portions of the tier two mobile market in Asia was incrementally weaker which impacted third quarter results and our guidance for the fourth quarter,” Fairchild’s Chief Executive Mark Thompson said.
** SUPERVALU INC, Wednesday close $8.40, up 4 pct premarket
The supermarket operator reported second-quarter results that beat Wall Street estimates as its margins benefited from lower costs at its heavily restructured operations.
** XILINX INC, Wednesday close $46.93, down 4 pct after market
The chipmaker forecast current-quarter revenue largely below analysts’ estimates, saying it expects lower revenue at its industrial and aerospace businesses.
** SANDISK CORP, Wednesday close $62.94, up 2 pct after market
The company more than tripled its quarterly profit, beating analysts’ estimates, after a fire at a rival chip maker increased prices at a time when Apple Inc and other users of its flash memory chips were launching new products.
** CSX CORP, Wednesday close $25.89, down 2 pct premarket
The company posted a higher quarterly profit on Tuesday as its non-coal business did well and the railroad increased prices.
** PACTERA TECHNOLOGY INTERNATIONAL LTD, Wednesday close $6.54, up 8 pct premarket
** BLACKSTONE GROUP LP, Wednesday close $27.02, down 2 pct premarket
Pactera, China’s largest technology outsourcing company, agreed to be taken private by a consortium led by Blackstone Group for $625 million, after a month of wrangling over the sale price. Pactera agreed to an offer price of $7.30 per American depositary share, an 11.6 percent premium to the stock’s $6.54 closing price on Wednesday.
** ELDORADO GOLD, Wednesday close $5.66, up 5 pct premarket
** NEWMONT MINING CORP, Wednesday close $25.88, up 3 pct premarket
** BARRICK GOLD CORP, Wednesday close $17.62, up 3 pct premarket
** AURICO GOLD INC, Wednesday close $3.87, up 3 pct premarket
** ROYAL GOLD INC, Wednesday close $47.0, up 4 pct premarket
Gold prices rose to a one-week high on Thursday, aided by dollar weakness and belief that a temporary deal to avoid historic U.S. debt default might also prompt the Federal Reserve to hold back from reducing its additional monetary stimulus.
Spot gold was just shy of $1,320 per ounce, up more than 2.5 percent. By 1114 GMT, it stood at $1,312.84.
** HARLEY-DAVIDSON INC, Wednesday close $66.52, down 0.5 pct premarket
The U.S. motorcycle maker said on Wednesday that it is voluntarily recalling more than 29,000 of its 2014 touring motorcycles because of a problem with their hydraulic clutch system.
** NOBLE CORP, Wednesday close $37.58, up 2 pct after market
The offshore drilling contractor now breaking itself up in an effort to boost its value, reported a larger-than-expected rise in quarterly profit on Wednesday as its rigs were busier and the rates paid for them improved.
** EBAY INC, Wednesday close $53.52, down 4 pct premarket
The company gave a disappointing holiday forecast on Wednesday, saying the U.S. economic environment, including consumer confidence, had deteriorated in part because of the shutdown of the U.S. government.
** USG CORP, Wednesday close $27, down 6 pct after market
The company agreed to a joint venture with Australian building materials maker Boral Ltd to bring together Boral’s manufacturing and distribution network and USG’s technologies, the two companies said.
** ALCOA INC, Wednesday close, $8.53, down 1 pct premarket
Europe’s highest court ordered Italy to take back about 295 million euros ($398 million) of state aid given to the U.S. aluminum producer.
Alcoa said on Wednesday that the massive smelter run by the Ma‘aden-Alcoa joint venture has temporarily shut down one of two potlines due to problems during ramp-up.
** DOVER CORP, Wednesday close $88.32, down 0.4 pct premarket
The company, which makes garbage truck compactors, car washes and drill bits for oil rigs, narrowed its full-year profit forecast range due to weaker market conditions in the United States. Dover said it now expected earnings of $5.57-$5.64 per share compared with $5.56-$5.71 forecast earlier.
** UNIVERSAL FOREST PRODUCTS INC, Wednesday close $42.51, up 6 pct after market
The building products supplier reported a 22 percent rise in third-quarter sales due to higher demand in a recovering U.S. housing and construction market.
** UNITEDHEALTH GROUP INC, Wednesday close $75.19, down 1 pct premarket
The company said its third-quarter profits rose mainly due to the enrolment of an additional 275,000 people in its healthcare plans during the three-month period.
** AMERICAN EXPRESS CO, Wednesday close $76.32
The card payment company posted a higher-than-expected 9 percent rise in quarterly profit as spending by corporate card users began to pick up after more than a year of sluggish growth.
** QUEST DIAGNOSTICS INC, Wednesday close $58.75, down 1.6 pct premarket
The company slashed its full-year earnings forecast as the laboratory tests provider struggles with cuts in Medicare reimbursement.
** GLAXOSMITHKLINE, Wednesday close $50.29
Mark Reilly, former head of the company’s operations in China, is helping anti-corruption officials in the country who are investigating allegations of extensive bribery by the drugmaker. One person familiar with the situation said Reilly had been requested to remain in China while the investigations proceeded and he was happy to do so.
** AMARIN CORP PLC, Wednesday close $5.17
The company’s triglyceride-lowering drug Vascepa should not be approved for use in a broader patient population until results from an additional study have been analyzed, an advisory panel to the U.S. Food and Drug Administration said on Wednesday.
** COSTCO WHOLESALE CORP, Wednesday close $117.36, down 0.6 pct after market
The company said on Wednesday that it would cooperate with the U.S. Drug Enforcement Administration in its ongoing investigation of prescriptions for controlled substances, after receiving subpoenas and warrants from the agency.
** AMERICA MOVIL, Wednesday close $21.75
Dutch telecoms group KPN does not rule out resuming talks with America Movil after the Mexican group controlled by billionaire Carlos Slim withdrew a 2.40 euros per share offer late on Wednesday. KPN said that the price America Movil was offering was too low but did not say how much it would have wanted to recommend the deal to shareholders.
** UNITED RENTALS INC, Wednesday close $59.79, down 0.4 pct after market
The company’s net income nearly doubled in the third quarter and its board approved a share repurchase program of up to $500 million.
** KCG HOLDINGS INC, Wednesday close $8.50
Knight Capital, now part of KCG Holdings, was fined $12 million to settle charges connected with a trading error in 2012 that caused millions of errant orders to flood the market, the U.S. Securities and Exchange Commission said on Wednesday.
** 3D SYSTEMS CORP, Wednesday close $55.25, up 1 pct premarket
Brokerage Piper Jaffray & Co raised its price target on the 3D printer maker’s stock to $61 from $52, saying the company is likely to report revenue slightly above expectations for the September quarter based on results from its third-quarter 3D printing industry survey and various channel checks over the past few weeks. “We believe that demand tracked ahead of plan for 3D Systems resellers,” Piper Jaffray analyst Troy Jensen wrote in a note to clients.
** CYPRESS SEMICONDUCTOR CORP, Wednesday close $9.40, down 2 pct premarket
The company, whose touch controllers are used in devices made by Samsung Electronics Co, reported third-quarter results that were above analysts’ lowered estimates, but said it would continue to see volatility in its mobile handset business in the current quarter.
Cypress had cut its third-quarter forecast last month, citing weakness in mobile handset revenue from Asia. The company had said it expected its fourth-quarter revenue to be lower than that in the third quarter.
** WINNEBAGO INDUSTRIES INC, Wednesday close $27.28, up 4 pct premarket
The No. 1 U.S. motor-home manufacturer reported a higher-than-expected profit for the fourth quarter. Winnebago reported a quarterly profit of $10.6 million, or 38 cents per share, compared with $40.9 million, or $1.41 per share a year earlier.
** SOLARCITY CORP, Wednesday close $52.38, up 3 pct premarket
J.P. Morgan Securities started coverage of the U.S. solar installer’s stock with an “overweight” rating, citing the company’s growth in the residential solar market. SolarCity dominates the roof-top installation market with a 20 percent share, benefiting from widely-distributed sales and access to low-cost finance, the brokerage said in a note to clients.
** DISCOVERY LABORATORIES INC, Wednesday close $2.55, up 4 pct premarket
The biotechnology company said it submitted an investigational new drug application to the U.S. Food and Drug Administration to initiate a mid-stage study to test its experimental drug-device combination, Aerosurf. The regulator confirmed receipt of the application and said the company could initiate the trial after a 30-day period, unless otherwise notified during its review.
Aerosurf is being developed to treat premature infants with respiratory distress syndrome.
** CLOROX CO, Wednesday close $85.68, down 1.5 pct premarket
Morgan Stanley cut its rating on the consumer products maker’s stock to “underweight” from “equal weight,” according to Theflyonthewall.com.
** SNAP-ON INC, Wednesday close $98.46, up 1.6 pct premarket
The power tool maker reported a 6 percent rise in its third-quarter revenue due to higher sales to independent mechanics and dealership service and repair shops.
** BNY MELLON CORP, Wednesday close $30.76
The company’s top executives said on Wednesday that clients had started to flood the trust and custody bank with billions of dollars of deposits as they worry about the effects of the U.S. government shutdown.
** NASDAQ OMX, Wednesday close $33.68, up 0.6 pct after market
Nasdaq will have its strongest year for initial public offerings since 2007 with a total of 120 companies listing in 2013 thanks to economic recovery in the United States and rising interest rates, a senior official said on Wednesday.
** GENERAL MOTORS CO, Wednesday close $35.13
The company will begin selling a mid-sized sedan next summer that can be powered by either gasoline or compressed natural gas, the U.S. automaker’s chief executive said on Wednesday.
** BAXTER INTERNATIONAL INC, Wednesday close $67.56
The medical products maker reported a 7 percent fall in third-quarter earnings, hurt by charges related to its $4 billion acquisition of Swedish dialysis products company Gambro AB.
** BOEING CO, Wednesday close $120.34
Mexican airline VivaAerobus is set to confirm next week an order worth up to $4 billion for 40 Airbus A320-family jets as it defects from Boeing to Airbus, industry sources said. The selection follows a bitterly fought contest between planemakers as the Mexican low-cost carrier becomes the latest to compare updated fuel-saving models designed to enter service in mid-decade.
** JOS A. BANK CLOTHIERS INC, Wednesday close $48.86
The U.S. apparel retailer has received support for its $2.3 billion takeover bid for Men’s Wearhouse Inc from the majority of the shareholders with big stakes in both companies, Jos A. Bank chairman Robert Wildrick said on Wednesday.
** LOCKHEED MARTIN CORP, Wednesday close $127.86
The largest U.S. defense contractor on Wednesday became the latest weapons maker in recent months to announce layoffs, saying it would let go of 600 workers in its Mission Systems and Training Division later this month.
** EXCO RESOURCES INC, Wednesday close $7.20
The gas producer and its U.K-based joint venture partner BG Group Plc are selling their stakes in pipeline company TGGT Holdings LLC to Azure Midstream Holdings LLC for a total of $910 million. About $875 million of the sale proceeds will be in cash and the remaining will be in the form of an 8 percent stake in Azure, split equally between EXCO and BG Group. EXCO said it expected to receive about $230 million in cash from the sale.
** CABOT OIL & GAS CORP, Wednesday close $37.47
The natural gas producer said it entered into two agreements to sell oil and gas properties in the Mid-Continent and West Texas for about $188 million. The company said it would use the proceeds to fund its higher-return projects in the Marcellus Shale.
** KINDER MORGAN ENERGY PARTNERS LP, Wednesday close $80.14
The largest U.S. pipeline company said on Wednesday that its profit in the third-quarter rose sharply and distributions increased 7 percent mainly due to acquisitions. (Compiled by Sneha Banerjee in Bangalore; Editing by Kirti Pandey)