February 4, 2014 / 3:12 PM / in 4 years

CORRECTED-MARKET PULSE-Microsoft, Michael Kors, Google, J.C. Penney, Furiex

(Corrects Wal-Mart item to change currency to C$ from US$. The error also appeared in previous versions of Market Pulse.) U.S. stocks rose on Tuesday, underpinned by a slew of sturdy corporate results, as the market regained its footing following its largest selloff in months a day earlier. The Dow Jones industrial average was up 0.38 percent at 15,430.86, the S&P 500 was up 0.56 percent at 1,751.64 and the Nasdaq Composite was up 0.67 percent at 4,023.7.

** MICROSOFT CORP, $36.75, +0.74 pct

The company named Satya Nadella as its next chief executive on Tuesday, ending a longer-than-expected search for a new leader after Steve Ballmer announced his intention to retire in August. Nadella is only the third CEO in Microsoft’s 39-year history, following co-founder Bill Gates and Ballmer.

** MICHAEL KORS HOLDINGS LTD, $92, +19.99 pct

The retailer reported a better-than-expected rise in quarterly results and raised its sales and profit forecast for the year as the demand for its trendy handbags, watches and accessories showed no sign of slowing.

** CISCO SYSTEMS INC, $21.58, +0.14 pct

** GOOGLE INC, $1,149.27, +1.40 pct

The two companies into a patent cross-licensing agreement with, Google’s second such deal in as many months. The cross-licensing agreement is an effective way to help prevent unnecessary patent lawsuits, the companies said in a statement.

** YUM BRANDS INC, $72.25, +9.21 pct

The KFC parent reaffirmed on Monday its 2014 profit forecast amid worries about a resurgent bird flu in China, its top market for sales. Yum forecast earnings per share growth of at least 20 percent for 2014.

** J.C. PENNEY CO INC, $5.71, +0.53 pct

The struggling retailer said comparable store sales rose 2 percent during the U.S. holiday quarter, reporting its first three-month period of growth in two years. Chief Executive Myron Ullman said in a statement the struggling department store operator’s turnaround “is on track.”

** CLOROX CO, $85.31, -1.22 pct

The company, known for its namesake bleach, posted a lower quarterly profit on Tuesday, hurt by rising commodity and manufacturing costs, and the company lowered its full-year sales and profit forecasts for the second quarter in a row.

** ARCH COAL INC, $4.12, +2.74 pct

The U.S. coal miner reported a bigger-than-expected quarterly loss due to lower shipments and weak prices of both thermal and metallurgical coal.

** GAP INC, $38.23, +2.63 pct

Brokerage UBS raised its rating on the teen apparel retailer’s stock to “buy” from “neutral,” citing increased square footage growth at its stores, strong e-commerce sales and good exposure to athletic apparel.

“We look for GPS to deliver 15 percent plus earnings per share growth over the next 3 years and potentially over $5 of EPS in 2017,” analyst Roxanne Meyer wrote in a note, raising her price target on the stock to $50 from $41.


The drugmaker said it had received approvals to market two of its acne products in some European Union countries.

The topical drugs, Microcyn-based GramaDerm Solution and GramaDerm Hydrogel, are intended for use along with other acne treatments to treat mild to moderate acne.

** CME GROUP INC, $73.14, -0.05 pct

The company reported higher quarterly earnings on Tuesday as the exchange operator’s average daily trading volume rose 11 percent from a year earlier. The quarterly profit still fell short of analysts’ expectations amid a drop in the average fee paid per contract to CME, which owns the Chicago Board of Trade and Chicago Mercantile Exchange.

** REDHILL BIOPHARMA LTD, $12.86, -4.03 pct

The U.S. Food and Drug Administration rejected a migraine drug made by Israel’s RedHill Biopharma and Canada’s IntelGenx Corp.

** W.R. GRACE & CO, $93.65, +1.48 pct

The specialty chemicals maker said on Monday that it emerged from bankruptcy after more than 12 years.

Grace filed for Chapter 11 protection in 2001, making it one of the longest bankruptcies in U.S. history, after an asbestos leak at one of its mines led to a slew of lawsuits.

Also, the company’s board authorized on Tuesday a share buyback program of up to $500 million, expected to be completed over the next 12-24 months.

** WAL-MART STORES INC, $72.93, +0.37 pct

The company said it would invest about C$500 million this year to strengthen its presence in Canada, creating more than 7,500 jobs including construction.

** BLACKROCK INC, $289.16, +0.97 pct

The company’s iShares, the largest U.S. provider of exchange-traded funds, is launching a new set of currency-hedged ETFs on Tuesday as it looks to target investors interested in international equity exposure but concerned about potential losses from a rising U.S. dollar.

** FURIEX PHARMACEUTICALS INC, $108.1328, +135.22 pct

An experimental drug developed by the company met the main goal of a pair of large Phase III clinical trials by significantly alleviating diarrhea and abdominal pain associated with irritable bowel syndrome, the company said.

** ENTEGRIS INC, $11.28, +9.73 pct

** ATMI INC, $33.77, +25.40 pct

Entegris said it would buy ATMI, a provider of specialty semiconductor materials, for $1.15 billion, or $34 per share. Entegris’s offer represents a premium of 26 percent to ATMI’s closing price on the Nasdaq on Monday.

** HCA HOLDINGS INC, $48.67, +0.43 pct

The largest U.S. hospital operator said its fourth-quarter earnings rose as it generated more revenue from patients despite a decline in admissions to its facilities.

** INTERNATIONAL PAPER CO, $45.57, -1.06 pct

The largest North American producer of corrugated shipping boxes posted a lower-than-expected quarterly profit due in part to write-downs and pension costs.

** ASBURY AUTOMOTIVE GROUP INC, $49.99, +10.06 pct

The U.S. auto dealer posted a better-than-expected quarterly profit as an improving economy and easier availability of loans encouraged more Americans to buy cars.

** ARM HOLDINGS, $41.17, -10.13 pct

The British chip designer said a slowdown in demand for Apple and Samsung smartphones was behind a smaller-than-expected rise in fourth-quarter royalty revenues.

** HOLOGIC INC, $20.47, +0.00 pct

The medical device maker reported a better-than-expected adjusted quarterly profit as it sold more 3D systems that help detect breast cancer, and its CEO said he would pursue the strategic review started by his predecessor.


The insurer’s quarterly profit exceeded average analyst estimate as the company benefited from lower disaster losses. Hartford also announced a new $2 billion share buyback plan.

** SILVER STANDARD RESOURCES, $7.32, -4.81 pct

** GOLDCORP INC, $24.52, -0.93 pct

** BARRICK GOLD, $19.16, -0.73 pct

Silver Standard Resources said it would buy the Marigold mine in Nevada for $275 million in cash from joint owners Goldcorp and Barrick Gold in a deal that would provide the Canadian miner more exposure to gold.

** INTEL CORP, $23.77, -0.75 pct

The company, wrestling with shrinking personal computer sales and struggling to expand into mobile devices, said on Monday that it was tightening its compensation policy to make senior executives more accountable.

** DEXCOM INC, $39.89, +2.33 pct

The medical device maker said the U.S. Food and Drug Administration had approved its glucose-monitoring system for use in diabetic children aged between two and 17 years.

Already approved for adults, the device, Dexcom G4 PLATINUM (Pediatric), is now the only such system approved for children as young as two years old, the company said.


The banking and payments technology provider said its board had authorized a new share repurchase program of up to $2 billion, effective through Dec. 31, 2017.

The new program replaces the previous $1 billion program under which about $174 million is outstanding.

The company also reported a 13 percent rise in its fourth-quarter profit.

** DISH NETWORK CORP, $56, +2.56 pct

An investment vehicle owned by the company’s Chairman Charles Ergen is joining an existing lender group to extend $33 million in financing to bankrupt wireless company LightSquared, court filings show.

** BANK OF AMERICA MERRILL LYNCH, $16.53, +1.10 pct

The bank is raising salaries for some of its senior bankers by about 20 percent, a person familiar with the matter said on Monday, to get around a new European Union cap on pay.

** ANADARKO PETROLEUM CORP, $81.01, +3.63 pct

The company reported on Monday a wide quarterly loss on hefty provisions for divestitures and legal wrangling over the Tronox case - warning that potential damages stemming from the litigation may rise.

** CEPHEID, $48.93, -1.90 pct

The medical device maker said it planned to offer $250 million of convertible senior notes due 2021.

The interest rate, conversion rate, offering price and other terms will be determined through talks between Cepheid and the initial purchasers, the company said.

** HALOZYME THERAPEUTICS INC, $14.2898, -3.02 pct

The drugmaker said it commenced a public offering of $100 million of its common shares.

J.P. Morgan Securities and Citigroup were the joint book-running managers for the offering, the company said.

** SUPERIOR ENERGY SERVICES INC, $23.79, +2.72 pct

A vice president of the oilfield services company sold more than 3,100 shares at a 2 percent premium to the stock’s Monday closing price, Superior Energy said in a regulatory filing.


The company, which provides equipment for telecom service providers, reported a better-than-expected profit for the third quarter on Monday, helped by strong demand for its wireless products. (Compiled by Natalie Grover in Bangalore; Editing by Kirti Pandey)

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