May 14, 2014 / 1:58 PM / 4 years ago

MARKET PULSE-Sears, Enzymotec, Pernix Therapeutics, Arotech, Plug Power

(For more market insights, including options activity, click on ; for the Day Ahead newsletter; for the Morning News Call newsletter, U.S. stocks fell on Wednesday as investors found few reasons to keep pushing shares higher, with the Dow and S&P 500 both coming off record closing highs. The Dow Jones industrial average was down 0.30 percent at 16,664.48, and the S&P 500 was down 0.21 percent at 1,893.5.

** SEARS HOLDINGS CORP, $44.19, +2.22 pct

The department store operator said it was looking to sell its 51 percent stake in Sears Canada, in a process that could result in all of the struggling Canadian department store operator being put up for sale.

** MACY’S INC, $57.77, -0.12 pct

The department store operator said business was picking up after severe winter weather resulted in weaker-than-expected sales in the first quarter, allowing the company to stick to its full-year profit forecast.


The pharmaceutical company said it would acquire the U.S. marketing rights to GlaxoSmithKline’s migraine drug Treximet for an upfront payment of $250 million.

Acquiring the rights to the drug, which had annual sales of $78.7 million in 2013, will nearly double Pernix’s revenue, the company said.

** CELLDEX THERAPEUTICS INC, $14.11, +13.79 pct

The company said it entered into a collaboration with Bristol-Myers Squibb Co to develop two cancer therapies for an upfront payment of $5 million. The companies will share the development costs.

The drugs, Bristol’s nivolumab and Celldex’s varlilumab, are a new class of cancer treatments known as immunotherapies that harness the body’s immune system to fight cancer.

** DEERE & CO, $92.5, -1.19 pct

The farm equipment maker lowered its forecasts for its full-year agricultural equipment sales and for the U.S. construction industry.

Deere reported a 9 percent drop in second-quarter revenue due to lower sales of its tractors, harvesters and earth-moving equipment.

** VIMPELCOM LTD, $7.805, -5.51 pct

Russia’s third-biggest mobile group said it expected sales and core profit to fall this year due to fierce price competition in Italy and efforts to defend its market share in Russia.


The company declared a special cash dividend of $1.33 per common share. Payment will be made on June 3 to stockholders of record at the close of business on May 26.

** ZULILY INC, $32.16, +0.47 pct

Sale restriction on about 110.6 million shares of the online retailer will lift on Wednesday after the expiration of a six-month "lock-up" period following its November initial public offering. (

** ENZYMOTEC LTD, $13.68, -32.38 pct

The maker of lipid-based products cut the lower end of its full-year profit forecast range, saying it expected a challenging second quarter.

“We believe these headwinds will mainly impact us in the second quarter and remain optimistic in our outlook for second half of the year due to improved supply/demand dynamics across our business segments,” Chief Executive Ariel Katz said in a statement.


At least two brokerages cut their price targets on the video game publisher’s stock, after it reported a fall in fourth-quarter profit and revenue on Tuesday.

The company forecast fiscal 2015 earnings in line with analysts’ estimates.

** PLUG POWER INC, $3.901, -4.62 pct

The fuel-cell maker reported a bigger-than-expected quarterly loss as it shipped fewer systems.

** ISIS PHARMACEUTICALS INC, $27.03, +7.73 pct

The drugmaker said its experimental type 2 diabetes drug reduced blood-sugar levels in patients in a mid-stage study.

** NQ MOBILE INC, $11.16, -0.09 pct

About two-thirds of the 345,000 bearish options held by investors on the Chinese mobile security software maker will expire by May 17, and the contracts will make money if the shares drop 46 percent from Tuesday's close, Bloomberg BusinessWeek reported. (

Stock borrowed for short selling amounts to 26 percent of shares outstanding, the highest among the most-traded Chinese companies listed in the United States, the report said.

** GASLOG LTD, $25.3, -1.94 pct

The liquefied natural gas carrier reported a lower-than-expected profit for the first quarter due to high operating expenses and a fall in short-term carrier rates.

Short-term carrier rates are expected to stay weak in the second quarter, as supply of vessels is increasing faster than liquefaction projects are coming online, the company said.


The Bermuda-based insurer said in a filing with the U.S. regulators on Wednesday that it dismissed PricewaterhouseCoopers LLP as its auditor on May 9.

** HYDROGENICS CORP, $14.99, -23.48 pct

The fuel cell products maker said it would sell 1.5 million shares at $15 each. The offer price represents a 23 percent discount to the stock’s Tuesday close.

In the public offering, announced on Tuesday, Hydrogenics will sell shares from its treasury and from shareholder CommScope Inc. The offering is expected to raise net proceeds of about $13.7 million.

** MANNKIND CORP, $7.04, +6.99 pct

Piper Jaffray raised its rating on the drugmaker’s stock to “neutral” from “underweight,” according to the

** CANADIAN SOLAR INC, $27.48, +0.66 pct

The company said it would collaborate with IKEA Australia to build solar systems totaling 3.6 megawatt across seven IKEA sites in Victoria, New South Wales, and Queensland.

The project is expected to generate enough clean energy to offset about 4,000 tons of carbon dioxide annually, Canadian Solar said.

** AKAMAI TECHNOLOGIES INC, $54.62, +2.48 pct

Pacific Crest Securities raised its rating on the content delivery services provider’s stock to “outperform” from “sector perform,” citing faster growth in media traffic.

“The two primary factors for the change in our opinion are: (1) the strong acceleration in media traffic...(2) strong 1H revenue performance despite lower pricing with the company’s largest customer, which makes us less concerned about pricing pressure hurting revenue growth,” analyst Chad Bartley wrote in a note.

Bartley said competition was also less of a concern now than it was three-four years ago as smaller rivals faded away and Akamai got aggressive with pricing.

** AROTECH CORP, $4.065, +21.34 pct

The company’s profit more than doubled in the first quarter as margins expanded. Arotech makes defense and security products for the military.

** FOSSIL GROUP INC, $102.18, -8.32 pct

The watches and fashion accessory retailer forecast a much lower-than-expected profit for the current quarter as costs rise.

** COTY INC, $16.15, +4.60 pct

The perfume and cosmetics maker reported a better-than-expected adjusted quarterly profit, helped by growth in its fragrance and skincare business, primarily in Europe and emerging markets.

** LOJACK CORP, $5.38, +21.72 pct

The company, which makes tracking systems to recover stolen vehicles, said an arbitration panel dismissed all claims filed against the company by Tracker do Brasil LTDA, the licensee of LoJack’s technology in Brazil. The panel allowed LoJack to terminate a supply agreement with Tracker, after the Brazilian company did not meet its minimum purchase requirements for vehicle location units, LoJack said.

** YUME INC, $6.14, -4.95 pct

The video advertising service provider forecast current-quarter revenue below analysts’ estimates and said its chief financial officer would step down by May 23.

The company, however, maintained its full-year revenue forecast. “While there is always the chance for fluctuation in quarter to quarter revenue results in advertising models, we view the company’s maintenance of CY14 guidance as a sign of confidence by YuMe in its relationship with advertisers over the longer term,” Piper Jaffray analysts wrote in a note.

Deutsche Bank and Piper Jaffray lowered their price targets on YuMe’s stock.


The biotechnology company posted a bigger quarterly loss due to higher research and development expenses.

** URS CORP, $43.42, -7.99 pct

The engineering and construction services provider reported weaker-than-expected results for the first quarter as revenue declined from its infrastructure and environment and federal services.


The Chinese solar company said it would provide engineering, procurement and construction services to Thailand’s biggest state-controlled electricity producer for a 5 megawatt plant in Thailand, as a member of a consortium.

** SPIRIT REALTY CAPITAL INC, $10.32, -3.82 pct

The real estate investment trust said it commenced concurrent underwritten public offerings of 23 million shares of its common stock and two series of convertible senior notes. ($1 = 0.73 euros) (Compiled by Vrinda Manocha in Bangalore; Editing by Kirti Pandey)

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