April 22, 2014 / 2:38 PM / 4 years ago

MARKET PULSE-Revance, Arotech, Medidata, Lexmark, MGIC, GW Pharma

(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)

April 22 (Reuters) - U.S. stocks rose on Tuesday, with both the S&P 500 and Nasdaq on track for a sixth straight day of gains as a number of bellwether companies reported strong results. The Dow Jones industrial average was up 0.41 percent at 16,517.39, the S&P 500 was up 0.42 percent at 1,879.84 and the Nasdaq Composite was up 0.79 percent at 4,154.088.

** REVANCE THERAPEUTICS INC, $33.55, +17.23 pct

The company said on Monday an experimental long-lasting form of botulinum toxin - the same compound used in Allergan Inc’s Botox - met the main goal of reducing wrinkles in patients in an early stage trial.

Cowen & Co analysts estimated the product could eventually generate $1 billion in sales.

** ALLERGAN INC, $164.94, +16.15 pct

** VALEANT PHARMA, $132.59, +5.22 pct

Canada’s Valeant Pharmaceuticals said it offered to buy Botox maker Allergan to boost its skin and eye-care portfolio. Valeant said it had offered to pay $48.30 per share in cash and 0.83 of its common share for each Allergan share.

** AROTECH CORP, $4.011, -10.07 pct

The defense and security products company would not benefit from a lithium-ion battery factory being set up by Tesla Motors Inc as it did not make electric batteries, according to a Seeking Alpha article.

Arotech was expected to re-enter the battery market after a failed attempt in the 1990s but Chief Executive Robert Ehrlich said earlier this month the company was not looking to enter the electric vehicle market, the article said. (r.reuters.com/pyv68v)

Arotech was not worth more than $2 per share, the article said. The company’s shares have nearly quadrupled in the past year and currently trade around $4.

** AK STEEL HOLDING CORP, $6.57, -2.09 pct

The U.S. steelmaker reported a wider-than-expected quarterly loss partly hurt by higher operating costs and lower shipments.

** ARCH COAL INC, $4.78, -3.82 pct

The U.S. coal miner said it expects to ship fewer tons of steel-making metallurgical coal this year as prices and demand remain weak, but signaled recovering demand for thermal coal, used in power generation.

** NETFLIX INC, $373.26, +7.11 pct

The video streaming service’s planned price hikes will allow it to spend more to produce more original content that will help it attract more customers globally, analysts said, as many of them raised their price targets on the stock.

While Cantor Fitzgerald upgraded the stock to “buy,” several other brokerages raised their price targets after Netflix posted better-than-expected first-quarter profit.

** GW PHARMACEUTICALS PLC, $60.63, +31.69 pct

Morgan Stanley initiated coverage on the biopharmaceuticals company with an “overweight” rating, citing the potential of its epilepsy program. The brokerage said it expects about 800 million pounds peak worldwide sales for the company’s experimental epilepsy drug Epidiolex by 2024. It set a price target of $103 on the GW Pharma stock.

** MEDIDATA SOLUTIONS INC, $39.445, -25.14 pct

The provider of cloud-based services for clinical research companies reported a quarterly adjusted profit that was lower than analysts’ estimates.

** FACEBOOK INC, $62.63, +2.27 pct

Credit Suisse upgraded the social media company’s stock to “outperform” from “neutral” and raised its price target to $87 from $6. The brokerage said it expects new products to drive faster growth in revenue per user.

** LEXMARK INTERNATIONAL INC, $41.56, -11.14 pct

The printer maker reported first-quarter adjusted earnings above analysts’ average estimate, helped by higher revenue from its managed print services and software businesses.

** HARLEY-DAVIDSON INC, $72.94, +8.00 pct

The motorcycle maker posted a stronger-than-expected quarterly profit on Tuesday, lifted by strong sales growth outside its core North American market.

** MGIC INVESTMENT CORP, $8.9, +6.84 pct

Mortgage insurer MGIC posted a better-than-expected quarterly profit as fewer homeowners defaulted on their payments in an improving U.S. housing market.

** KONINKLIJKE PHILIPS NV, $32.51, -6.01 pct

Philips warned on Tuesday it would struggle to post a rise in operating profit for 2014 after slowing demand in China and Russia, combined with the impact of a strong euro, wiped out its first-quarter sales growth.

** NOVARTIS AG, $86.39, +1.09 pct

** GLAXOSMITHKLINE PLC, $55.58, +4.63 pct

** ELI LILLY AND CO, $60.48, -0.62 pct

Novartis and GlaxoSmithKline traded more than $20 billion worth of assets on Tuesday, aiming to bolster their best businesses and exit weaker ones as the drugs industry reshapes to cope with healthcare spending cuts and generic competition.

Eli Lilly said it will buy the Novartis’ animal health business for $5.4 billion in cash to strengthen and diversify its Elanco unit.


The company, which makes fully automatic transmissions for medium- and heavy-duty commercial vehicles, said its shareholders Carlyle Group and Onex Corp sold 25 million shares they owned in the company.

Carlyle and Onex are the largest shareholders in Allison Transmission.

** RENT-A-CENTER INC, $28.9, +12.15 pct

The rent-to-own home furniture retailer forecast full-year earnings above analysts’ estimates after reporting a better-than-expected quarterly profit, due to higher revenues from Mexico and its Acceptance Now membership program.

** PERRIGO CO PLC, $151.51, +4.38 pct

Jefferies initiated coverage of the company’s stock with a “buy” rating, based on its dominant share of the over-the-counter medicine market, expansive pipeline, and “sustainable” growth strategy.

** BEBE STORES INC, $5.89, -8.54 pct

The women’s apparel retailer warned of a bigger-than-expected quarterly loss as extremely cold weather in parts of the United States cut sales.

** CANADIAN SOLAR INC, $28.9999, +7.09 pct

The solar company said it won a supply agreement to provide 43 mega watt of photovoltaic modules to the second-largest solar power plant project in Japan. Delivery of the modules is expected to start from May 2014.

** INTUITIVE SURGICAL, $417.73, +1.61 pct

The medical device maker said the U.S. health regulator approved for marketing its robotic surgical device, da Vinci Sp Surgical System, for use in certain urologic surgical procedures. (Compiled by Rohit T.K. in Bangalore; Editing by Joyjeet Das)

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