U.S. stocks edged higher on Thursday as investors weighed the impact of an agreement by lawmakers in Washington to reopen the federal government and raise the U.S. debt ceiling, but disappointing earnings from IBM weighed on the Dow.
The Dow Jones industrial average fell 0.35 percent, the S&P 500 gained 0.21 percent and the Nasdaq Composite added 0.28 percent.
** GOLDMAN SACHS GROUP INC, $158.58, down 2 pct (9:58 a.m. ET)
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, $175.20, down 6 pct (9:58 a.m. ET)
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]
** OVERSTOCK.COM INC, $24.05, down 18 pct (11:38 a.m. ET)
The online discount retailer said its revenue growth slowed in the third quarter after a change in Google Inc’s search engine algorithm hurt its search ranking.
** VERIZON COMMUNICATIONS INC, $48.41, up 2.5 pct (9:58 a.m. ET)
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.
** WINNEBAGO INDUSTRIES INC, $28.89, up 5 pct (9:43 a.m. ET)
The No. 1 U.S. motorhome 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.
** SELECT COMFORT CORP, $18.45, down 24 pct (9:57 a.m. ET)
The specialty mattress maker reported third-quarter results well below analysts’ estimates due to higher costs and sagging demand for its mattresses.
** AEGEAN MARINE PETROLEUM NETWORK INC, $10.91, down 9 pct (11:41 a.m. ET)
The marine fuel supplier said it planned to offer $75 million of convertible senior notes due 2018.
** PEABODY ENERGY CORP, $19.42, up 8.5 pct (9:57 a.m. ET)
** CLIFFS NATURAL RESOURCES, $23.40, up 4 pct
** ALPHA NATURAL RESOURCES, $6.16, up 3 pct
Coal miner Peabody reported on Thursday 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, $12.22, down 10 pct (9:56 a.m. ET)
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.
** XILINX INC, $44.33, down 5.5 pct (9:54 a.m. ET)
The chipmaker forecast current-quarter revenue largely below analysts’ estimates, saying it expects lower revenue at its industrial and aerospace businesses.
** SANDISK CORP, $66.22, up 5 pct (9:54 a.m. ET)
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.
** M&T BANK CORP, $113.56, down 2 pct (10:06 a.m. ET)
The bank reported third-quarter results that beat analysts’ estimates but it set aside more money to cover soured loans than it did a year earlier.
** PORTOLA PHARMACEUTICALS INC, $24.70, down 3 pct (10:10 a.m. ET)
The biopharmaceutical company said its common stock offering of 6.4 million shares is priced at $23.75 per share, which represents a discount of 7 percent to the stock’s Wednesday close. Portola is offering 4.5 million shares in the offering, while certain stockholders are offering 1.9 million shares.
** PACTERA TECHNOLOGY INTERNATIONAL LTD, $7.10, up 8.6 pct (9:52 a.m. ET)
** BLACKSTONE GROUP LP, $27.12, up 0.3 pct
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, $6.12, up 8 pct (11:51 a.m. ET)
** NEWMONT MINING CORP, $27.01, up 4 pct
** BARRICK GOLD CORP, $18.47, up 5 pct
** AURICO GOLD INC, $4.13, up 7 pct
** ROYAL GOLD INC, $49.82, up 6 pct
** FIRST MAJESTIC SILVER CORP, $11.50, up 9 pct
** SILVER STANDARD RESOURCES INC, $5.92, up 7.4 pct
** COMPANIA DE MINAS BUENAVENTURA, $13.70, up 9 pct
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.
** JINKOSOLAR HOLDING CO LTD, $25.79, up 11 pct (10:49 a.m. ET)
Analysts at Credit Suisse upgraded the Chinese solar panel maker’s stock to “outperform” from “neutral” and raised their price target to $32 from $22, citing recent policy developments in China that boost building of solar power plants and expectations of stable panel prices through next year.
** D.R. HORTON INC, $18.64, up 3 pct (11:28 a.m. ET)
** PULTEGROUP INC, $16.49, up 3 pct
** TOLL BROTHERS INC, $31.58, up 2 pct
** LENNAR CORP, $34.54, up 2 pct
** KB HOME, $16.77, up 2 pct
The number of Americans filing new claims for unemployment benefits dropped from a six-month high last week. Initial claims for state unemployment benefits fell 15,000 to a seasonally adjusted 358,000, with no perceptible increase in filings last week from non-federal workers furloughed because of the just-ended government shutdown, the Labor Department said.
** KERYX BIOPHARMACEUTICALS INC, $11.37, up 8 pct (10:22 a.m. ET)
Ladenburg Thalmann raised its price target on the company’s stock to $19 from $15, citing increased confidence over its experimental drug Zerenex, being studied in a mid-stage trial as a treatment for chronic kidney disease. If positive, the data, combined with data from the late-stage trial already completed by Keryx’s Japanese partners, could serve as a significant catalyst for the stock, the brokerage said. Keryx has sublicensed Zerenex’s Japanese rights to Japan Tobacco Inc and Torii Pharmaceutical Co Ltd.
** SYMMETRY MEDICAL INC, $8.25, down 3.5 pct (10:42 a.m. ET)
The medical device maker’s third-quarter revenue estimate was lower than analysts’ expectations, hurt by last month’s fire at its Sheffield, U.K. manufacturing plant, among other factors. Symmetry said it expected revenue of about $98 million. Analysts were expecting $102.5 million, according to Thomson Reuters I/B/E/S. The company said its earnings could be negatively impacted by 8 cents to 11 cents per share in the third and fourth quarters.
** PETSMART INC, $70.83, down 2.4 pct (11:21 a.m ET)
The pet products retailer cut its third-quarter comparable store sales forecast to 2.2-2.5 percent from 3-4 percent as customers cut back on spending in the face of growing economic uncertainty.
** HARLEY-DAVIDSON INC, $65.29, down 2 pct (9:50 a.m. ET)
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, $38.27, up 2 pct (9:50 a.m. ET)
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.
** UNITEDHEALTH GROUP INC $72.07, down 4 pct (11:35 a.m. ET)
** HUMANA INC, $93.06, down 4 pct
UnitedHealth Group, the largest U.S. health insurer, reported third-quarter earnings in line with analysts’ expectations, but its revenue fell short.
CRT Capital analyst Sheryl Skolnick said that investors generally expected UnitedHealth to beat Wall Street estimates. Smaller rival Humana will report its third-quarter results on Nov. 6.
** EBAY INC, $51.16, down 4 pct (9:50 a.m. ET)
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.
** TEKMIRA PHARMACEUTICALS CORP, $8.51, down 3.5 pct (10:10 a.m. ET)
The drugmaker priced its offering of 3.75 million shares at $8 apiece, which represents a nearly 9 percent discount to the stock’s Wednesday close.
** USG CORP, $26.13, down 3 pct (9:49 a.m. ET)
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.
** DOVER CORP, $85.95, down 3 pct (9:49 a.m. ET)
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, $46.05, up 8 pct (9:48 a.m. ET)
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.
** CSX CORP, $25.40, down 2 pct (9:53 a.m. ET)
The company posted a higher quarterly profit on Tuesday as its non-coal business did well and the railroad increased prices.
** AMERICAN EXPRESS CO, $79.55, up 4 pct (9:48 a.m. ET)
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, $57.79, down 1.6 pct (9:47 a.m. ET)
The company slashed its full-year earnings forecast as the laboratory tests provider struggles with cuts in Medicare reimbursement.
** GLAXOSMITHKLINE, $50.90, up 1 pct (10:00 a.m. ET)
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, $1.94, down 62 pct (9:46 a.m. ET)
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.
** 3D SYSTEMS CORP, $55.83, up 1 pct (9:44 a.m. ET)
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, $9.21, down 2 pct (9:43 a.m. ET)
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.
** SOLARCITY CORP, $56.28, up 7 pct (11:45 a.m. ET)
** REAL GOODS SOLAR INC, $3.58, up 29 pct
J.P. Morgan Securities started coverage of U.S. solar installer SolarCity’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, $2.62, up 3 pct (9:42 a.m. ET)
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, $84.19, down 1.7 pct (9:42 a.m. ET)
Morgan Stanley cut its rating on the consumer products maker’s stock to “underweight” from “equal weight,” according to Theflyonthewall.com.
** SNAP-ON INC, $99.93, up 1.5 pct (9:42 a.m. ET)
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.
** BAXTER INTERNATIONAL INC, $66.55, down 1.5 pct (9:39 a.m. ET)
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.
** EXCO RESOURCES INC, $7.15, up 0.7 pct (9:38 a.m. ET)
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.
** KINDER MORGAN ENERGY PARTNERS LP, $80.60, up 0.6 pct (9:36 a.m. ET)
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)