January 10, 2014 / 4:17 PM / 4 years ago

MARKET PULSE-Chelsea, Retrophin, YRC Worldwide, Mannkind, Target

(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 in volatile trading on Friday as a weaker-than-expected payrolls report was partly blamed on frigid weather, leaving traders in search of further clues on the state of the economy. The Dow Jones industrial average was down 0.18 percent at 16,415.11, the S&P 500 was down 0.08 percent at 1,836.61 and the Nasdaq Composite was down 0.02 percent at 4155.18.


U.S. Food and Drug Administration reviewers said a treatment developed by Chelsea for a rare type of low blood pressure lack evidence that the drug’s benefit is durable over a longer period of time, according to documents on the FDA’s website.

** RETROPHIN INC, $10.85, +27.65 pct

The pharmaceutical company said it expects gross proceeds of $40 million from a share offering and use it to get regulatory approval for its nasal spray to aid milk ejection for breastfeeding mothers. It will also use the fund to start trials for some of its experimental drugs.

** YRC WORLDWIDE INC, $12.42, -20.74 pct

Workers at the trucking company represented by the Teamsters union rejected a contract extension that the company proposed, putting a plan to restructure its debt in jeopardy.


** CONATUS PHARMACEUTICALS INC, $14.0699, +43.57 pct

Intercept’s shares nearly quadrupled to a life high of $305 on Thursday after the company’s drug to treat liver disease caused by fat buildup was found effective in a trial, paving the way for it to become the first approved treatment for the chronic condition.

At least three brokerages - Citigroup, Needham and Oppenheimer - raised their price targets on the stock on Friday. Shares of biotechnology company Conatus, which is focused on the treatment of liver disease, also jumped on the news.

** MANNKIND CORP, $6.3401, -10.45 pct

The drugmaker said a U.S. advisory panel has tentatively set April 1 as the review date for its inhaled insulin product Afrezza, indicating that a decision on whistle-sized inhaler’s approval is unlikely to come by April 15, the deadline for FDA to complete its review.

The FDA had rejected Afrezza, which delivers powdered insulin to adults with Type 1 and Type 2 diabetes, in 2011 and asked the company to conduct two clinical trials and the company resubmitted the approval application in October last year.

** AMERICAN PACIFIC CORP, $46.51, +18.89 pct

The specialty chemical maker said it would be taken private by Miami-based private investment firm HIG Capital Inc LLC for about $392 million. The $46.50 per share deal represents a premium of 19 percent to American Pacific’s Thursday closing price.


The clothing retailer estimated a wider loss for the fourth quarter as fewer customers shopped at its stores in December. The company also said late on Thursday comparable-store sales would be flat to 1 percent higher in the quarter. It had earlier forecast a 1-5 percent growth.

Brokerage Janney Capital Markets cut its rating on the retailer’s stock to “neutral” from “buy.” The brokerage also cut its fair value on the stock to $3 from $5.

** BARRACUDA NETWORKS INC, $35.19, -9.77 pct

Brokerage BofA Merrill Lynch lowered its rating on the data storage and security company’s stock to “neutral” from “buy.”

** TARGET CORP, $62.44, -1.42 pct

The third-largest U.S. retailer said up to 70 million customers were hit by the theft of data over the holiday shopping season, a far more serious breach than previously disclosed.

** FIVE BELOW INC, $40.67, -6.70 pct

At least three brokerages cut their price targets on the specialty value retailer’s stock after the company cut its fourth-quarter forecast late on Thursday, blaming the weather for a fall in customer traffic.

Sterne Agee & Leach cut its price target on the stock to $45 from $56 and Jefferies & Co cut its price target to $48 from $51, late on Thursday. Guggenheim Securities cut its price target to $54 from $57 on Friday.

** FIFTH & PACIFIC COS INC, $31, -2.70 pct

The owner of the Kate Spade brand estimated full-year revenue below analysts’ expectations and said Chief Executive William McComb will step down next month.

** IMMUNOMEDICS INC, $5.95, +14.8 pct

The company said it had started a late-stage study of its pancreatic cancer drug, clivatuzumab tetraxetan, with the main goal of overall survival. The trial will study the safety and efficacy of the drug combined with another chemotherapy drug in about 440 patients with metastatic pancreatic cancer who have received at least two previous therapies.

** BAZAARVOICE INC, $7.29, -11.75 pct

A federal court ruled against Bazaarvoice Inc’s BV.O $168.2 million acquisition of its main rival PowerReviews Inc, saying the deal could lead to one firm dominating the online product rating and review market, a court filing showed.

** SEARS HOLDINGS CORP, $36.32, -14.68 pct

The retailer on Thursday reported declines in comparable-store sales at its Kmart and U.S. namesake chain for the crucial holiday season that were even sharper than for the third quarter.

** PHARMERICA CORP, $25.05, +22.85 pct

The pharmacy services provider said it expected 2014 revenue of $1.67 billion to $1.72 billion, ahead of analysts’ estimates of $1.52 billion. The company said its ongoing restructuring program would save $50 million annually, when it is fully implemented in the fourth quarter of 2014.

** PLUG POWER INC, $3.7399, +12.65 pct

The fuel cell maker said it would offer 10 million shares in an underwritten offering and use the proceeds for working capital and other general corporate purposes including, capital expenses. The company’s shares rallied after the company said on Tuesday it would develop hydrogen fuel cell systems for 20 FedEx Express electric delivery trucks in a $3 million, U.S. Department of Energy-funded project.

** ABERCROMBIE & FITCH CO, $36.79, +10.7 pct

At least one brokerage raised its rating on the teen apparel retailer’s stock after the company raised its full-year earnings forecast on Thursday, citing higher-than-expected sales in the fourth quarter to date.

Janney Capital Markets upgraded the stock to “buy” and raised its price target to $49 from $34. Mizuho Securities USA raised its price target to $38 from $36, while Susqehanna Financial Group raised their price target to $46 from $43.

** GALECTIN THERAPEUTICS INC, $16.43, +21.78 pct

The company said it raised gross proceeds of $23.9 million through an offering of about 2.4 million shares that ended on Thursday. The company said it will use net proceeds of $23.2 million to fund the mid-stage trial of its fibrosis drug. The company said it has about $32.3 million in cash.

Shares of the company, which is developing a treatment for liver disease, soared on Thursday after Intercept Pharmaceuticals Inc’s drug to treat the same condition was found effective in a trial.

** ALCOA INC, $10.06, -5.89 pct

The company reported a massive quarterly loss on Thursday after recent declines in aluminum prices led to a $1.7 billion non-cash impairment charge on smelter acquisitions.


The company said it has started three studies to test its experimental drug ganetespib for two forms of blood cancer. The trials are sponsored by Cardiff University in the UK.

** TIFFANY & CO, $90.22, -1.95 pct

** ZALE CORP, $16.39, +15.83 pct

U.S. jeweler Tiffany reported a 4 percent rise in sales through November and December, helped by strong demand in America and Asia. Comparable store sales rose 6 percent in the two months, excluding the impact of currency fluctuations. Lower-end peer Zale Corp ZLC.N reported a 2 percent rise in comparable-store sales for the same period, driven by higher sales at its Zales Jewelers and Zales Outlet stores.

** JINKOSOLAR HOLDING CO LTD, $35.8, +2.93 pct

The Chinese solar company said it would operate the restructured factories of Topoint from Jan. 13, boosting its manufacturing capacity to 2 gigawatt (GW) from 1.5 GW. JinkoSolar plans to buy these assets once Topoint, based in China’s southeastern coastal province of Zhejiang, completes its reorganization.

** DRYSHIPS INC, $3.73, -4.85 pct

** EAGLE BULK SHIPPING INC $3.73, -3.12 pct

** DIANA SHIPPING INC $12.1, -2.26 pct


Shares of dry bulk shippers slid on Friday, as Baltic Exchange’s main sea freight index fell more than 11 percent due to a decline in rates of bigger vessels such as capesize and panamax. The index gauges the cost of shipping dry bulk commodities such as iron ore, cement, grain, coal and fertilizer.

** APOLLO GLOBAL MANAGEMENT LLC, $35.22, +0.23 pct

The company said on Thursday it had completed fundraising for its latest flagship global private equity fund, amassing $17.5 billion from investors, the most any such fund has raised since the financial crisis.

** BALLARD POWER SYSTEMS, $2.37, +13.94 pct

The Canadian fuel cell maker said on Thursday it had sold about 400 kilowatts of FCgen- 1300 fuel cell stack product to Taiwan-based M-Field Energy Ltd. FCgen- 1300 fuel cell is a low-cost product, designed specifically for stationary applications and is incorporated into systems developed for backup power.

** NATURAL RESOURCE PARTNERS LP, $16.9, -16.91 pct

The company, which owns interests in coal and oil and gas reserves, said it reduced its quarterly payout by 20 cents to 35 cents per share due to a fall in coal revenue. The company also forecast lower-than-expected 2014 results due to weak coal prices and lower production.


The company said the U.S. Department of Justice has requested documents related to the sale of the cholesterol drug Juxtapid, its only approved product. Aegerion also forecast net product sales of $190 million to $210 million in 2014. Analysts on average were expecting the company to post revenue of $204 million, according to Thomson Reuters I/B/E/S.

Cowen & Co analyst Nicholas Bishop cut the price target on the stock to $95 from $105, saying “investors were looking for guidance just above consensus.” Jefferies & Co cut its target to $90 from $102.

** ACCELERON PHARMA INC, $43.24, -11.74 pct

The drug developer said it would offer about $100 million of its common shares. The company did not announce the price at which it would sell the shares.

** ATRICURE INC, $21.9, +15.20 pct

The medical device maker forecast 2013 and 2014 revenue above market estimates as it expects the accelerating growth of 2013 to continue.

** PROGRESS SOFTWARE CORP, $23.59, -7.56 pct

The enterprise software maker reported fourth-quarter earnings below Wall Street expectations and forecast first-quarter results that fell short of analysts’ estimates.

** INFOSYS LTD, $59.29, +5.59 pct

India’s Infosys is chasing more big-ticket contracts from Europe and the United States this year and keeping a lid on costs as the outsourcing services giant powers ahead with a turnaround to regain market share. India’s second largest software services exporter raised on Friday its revenue growth outlook for the 2014 financial year to between 11.5 and 12 percent from a previously forecast 9-10 percent, citing higher demand for its services.

Brokerage Jefferies & Co raised the target price on the stock to $66 from $61.

** KINDRED BIOSCIENCES, $12.65, +13.55 pct

Baupost Group, one of the world's biggest hedge funds, run by Seth Klarman, reported a 17.93 percent passive holding in the clinical-stage animal biotech firm, making it the second-largest shareholder. [ r.reuters.com/nyt85v ]

** MICROSOFT CORP, $36.06, +1.49 pct

Barclays Capital raised its rating on the company’s stock to “overweight” from “equal weight,” saying it was better positioned than peers in the increasingly important cloud services market with its Windows Azure and Office 365 offerings. “With the market now pricing in a lower probability that an outside CEO is selected, we believe it appropriate to refocus on the strong fundamental drivers at the company,” analysts at Barclays said in a note. Barclays also raised its price target on the stock to $42 from $35.

** STEMCELLS INC, $1.57, +9.03 pct

The company said it would complete enrollment of patients in a trial testing purified human stem cells as a treatment for chronic spinal cord injury. Stemcells, which said it transplanted the cells into its first patient in North America, said the expansion of its study would pave the way for a mid-stage study it plans to start by the middle of the year.

** GOLDCORP INC, $23.25, +3.75 pct

** FIRST MAJESTIC SILVER CORP, $10.55, +4.98 pct

** SILVER WHEATON, $21.15, +3.83 pct

** BARRICK GOLD CORP, $18.27, +2.99 pct

** ROYAL GOLD INC, $50.41, +4.54 pct

** ELDORADO GOLD, $5.94, +3.30 pct

** NEWMONT MINING CORP, $23.8, +2.59 pct

Gold rose around 1 percent on Friday after sharply weaker-than-expected U.S. jobs data supported the view that the U.S. Federal Reserve will take a gradual approach to tapering its bond-buying programme this year. Spot gold rose as much as 1.4 percent to a session high of $1,244.90 an ounce, and was up 1.3 percent to $1,243.40 by 1453 GMT. Silver extended its gains to reach $20.06 an ounce, up 2.7 percent.


Goldman Sachs cut its rating on the asset manager’s stock to “neutral” from “buy,” according to Theflyonthewall.com (Compiled by Rohit T.K. in Bangalore; Edited by Don Sebastian)

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