May 20, 2014 / 5:34 PM / 4 years ago

MARKET PULSE-Aeroflex, Home Depot, General Motors, Stage Stores

(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 dipped on Tuesday, weighed down by retailers after earnings from TJX Companies and Staples. The Dow Jones industrial average was down 0.79 percent at 16,381.08, the S&P 500 was down 0.65 percent at 1,872.76 and the Nasdaq Composite was down 0.78 percent at 4,093.57.

** AEROFLEX HOLDING CORP, $10.44, +25.63 pct

British aerospace and defense supplier Cobham is buying U.S. communications equipment maker Aeroflex Holding Corp for $1.46 billion, continuing its quest for more commercial customers as its main defense clients cut spending.

** GENERAL MOTORS CO, $33.4, -2.48 pct

The automaker said it was recalling another 2.42 million vehicles in the United States, raising the number of vehicles it has recalled so far this year to more than 15 million.

** STAGE STORES INC, $17.82, -8.14 pct

The discount retailer reported lower-than-expected first-quarter sales, hurt by a 0.2 percent decline in comparable store sales.

** VITAMIN SHOPPE INC, $41.71, -2.75 pct

The company's shares fell after Deutsche Bank said Nielsen's monthly vitamin sales data declined 0.5 percent year-over-year for the four weeks ending May 10, a reversal from recent improving trends, according to Theflyonthewall.com. (link.reuters.com/kaz49v)

** LEJU HOLDINGS LTD, $10.7, +6.47 pct

The provider of online-to-offline real estate services posted a first-quarter profit compared with a year-ago loss, helped by a 238 percent jump in revenue from its e-commerce services. The company, which went public last month, posted a net income of $1.8 million, compared with a loss of $9.8 million, a year earlier.

** STEMLINE THERAPEUTICS INC, $14.25, +13.37 pct

The drugmaker said it would present data showing that its experimental cancer drug, SL-401, decreased the viability of malignant cells as a treatment for multiple myeloma in preclinical experiments.

Stemline said it would present the data at the American Society for Clinical Oncology Annual Meeting held from May 30-June 3 in Chicago.

** DONALDSON CO, $39.96, -6.94 pct

The maker of filtration and exhaust control products reported lower-than-expected third-quarter results, hurt by a decline in sales at its industrial products business.

** 3D SYSTEMS CORP, $50.1, +1.71 pct

The 3D printer maker opened pre-ordering for its recently released Cube 3 and CubeProTM 3D printers and said they would start shipping in the second half of June.

** ORBITZ WORLDWIDE INC, $6.95, -8.07 pct

The online travel agency said an affiliate of Travelport Limited would offer 7.5 million of Orbitz’s shares for sale, from which Orbitz would not receive any proceeds.

** STAPLES INC, $11.73, -12.40 pct

The largest U.S. office supply retailer forecast a fall in sales in the current quarter as customers shift to e-retailers, mass merchants and drugstores to buy their office supplies.

** HOME DEPOT INC, $78.29, +2.34 pct

The world’s largest home improvement chain said its sales were “robust” in May and that it expected to realize in the current quarter most of the sales lost in the first quarter due to a severe winter in the United States.

** INTERCEPT PHARMA, $239.435, -7.91 pct

An article on Street.com alleged that the drugmaker had intentionally downplayed the side effects of its liver disease drug in a mid-stage trial that it stopped in January citing highly positive data. (link.reuters.com/cuw49v)

At the time, Intercept’s stock had quadrupled to a life high of $305.

** ENDOCYTE INC, $6.08, -6.32 pct

Merck & Co Inc and Endocyte said on Monday that they had withdrawn conditional marketing authorization applications from the European health regulator for their experimental advanced ovarian cancer treatment.

The decision follows a recommendation from an independent safety committee that said a mid-stage study testing the drug, vintafolide, in combination with a chemotherapy agent, should be stopped, as the pre-specified criteria for improving survival in patients without their cancer worsening was not met. Study enrollment was suspended earlier this month, the companies said.

** CHIMERIX INC, $14.66, -12.84 pct

The drug developer said on Monday that it was offering 6.2 million shares of its common stock and would use a part of the proceeds from the sale on research and development.

** DENDREON CORP, $2.335, +9.11 pct

The biotechnology company said data from two studies of its cancer vaccine, Provenge, showed that the treatment evoked an immune response associated with an overall survival benefit in patients with advanced prostrate cancer. Dendreon said on Tuesday that the results would be presented during the 2014 American Urological Association (AUA) Annual Meeting in Florida.

** SESA STERLITE LTD, $16.48, +5.57 pct

The Indian mining company’s shares continued to rise on hopes tied to the incoming government led by Narendra Modi. The company’s shares rose 7.9 percent on India’s National Stock Exchange on Tuesday.

** COMMUNITY HEALTH SYSTEMS INC, $37.65, +1.59 pct

Analysts at BofA Merrill Lynch added the hospital operator’s stock to the brokerage’s U.S. 1 list, saying it would significantly outperform over the next 12 months as patient volumes and benefits from healthcare reforms picked up.

“We are bullish on reform benefits for hospitals over the next 2-3 years as we believe that the increased coverage of the uninsured should result in a significantly larger reduction in bad debt than the market is forecasting,” the analysts wrote in a note to clients.

** DICK‘S SPORTING GOODS INC, $44.28, -16.70 pct

** CABELA‘S INC, $61.4, -4.79 pct

** CALLAWAY GOLF CO, $7.64, -8.50 pct

** SPORTSMAN‘S WAREHOUSE HOLDINGS INC, $7.9685, -13.48 pct

The athletic apparel and footwear retailer estimated current-quarter earnings way below analysts’ average estimate and cut its full-year 2014 adjusted earnings and same-store sales growth forecasts due to weak demand for its golf and hunting products.

Shares of Dick’s Sporting Goods’ rivals were also down on the news.

** E-HOUSE CHINA HOLDINGS LTD, $9.3, +13.69 pct

The China-based real-estate services company reported better-than-expected first-quarter results, as revenue from its larger real-estate online services business almost doubled.

** CARNIVAL CORP & PLC, $39.27, +1.11 pct

Morgan Stanley raised its rating on the cruise operator’s stock to “equal weight” from “underweight”, citing the company’s “excellent” cost controls.

** TJX COS INC, $54.34, -6.95 pct

TJX Cos Inc, the owner of off-price chains TJ Maxx and Marshalls, cut the top-end of its full-year earnings outlook after reporting lower-than-expected comparable store sales due to weak demand for apparel.

** GRAPHIC PACKAGING HOLDING CO, $10.43, -2.43 pct

The packaging company said some of its stockholders would sell about 43.7 million shares of its common stock in a secondary public offering. The company said it would not sell any shares or receive any proceeds from the offering and added that its total number of outstanding shares would not change.

** ACELRX PHARMACEUTICALS INC, $8.73, -3.11 pct

The drug developer filed for a mixed shelf offering to raise gross proceeds of up to $150 million.

** VODAFONE GROUP PLC, $34.33, -5.45 pct

Britain’s Vodafone said next year’s earnings would be hit by vital investment in its network, as it reported a 6.6 billion pound ($11.1 billion) dent to its 2014 results from writing down the value of European operations struggling in a tough market.

($1 = 0.5943 British Pounds)

** RED ROBIN GOURMET BURGERS INC, $70.58, +10.54 pct

The restaurant chain reported better-than-expected first-quarter results, helped by demand for its new “Finest” line of gourmet burgers and higher restaurant-level margins.

** PERFECT WORLD CO LTD, $16.95, -7.58 pct

The China-based online game developer reported lower first-quarter revenue compared with the previous quarter, hurt by lower revenue from licensing and online game operations.

Brokerage Pacific Crest cuts its price target on the company’s stock to $24 from $28.

** J C PENNEY INC, $8.89, -5.02 pct

Wells Fargo Securities cut its rating on the department store operator’s stock to “underperform” from “market perform”, as it believes the retailer’s high level of debt likely leaves “very little value” for shareholders.

** OPHTHOTECH CORP, $39.15, +24.44 pct

** NOVARTIS AG, $88.87, -0.73 pct

Ophthotech Corp said it could potentially receive over $1 billion in payments as part of a licensing deal for its experimental eye drug with Novartis AG.

** VALEANT PHARMACEUTICALS INTERNATIONAL INC, $130.74, +2.77 pct

** ALLERGAN INC, $162.07, +1.48 pct

Canada’s Valeant Pharmaceuticals International said on Tuesday it would not make an all-cash bid for drugmaker Allergan Inc as many had expected last week when the company said it would improve its cash and stock offer for the Botox maker.

** ASTRAZENECA PLC, $72, +1.93 pct

AstraZeneca’s twelfth largest shareholder Schroders has joined a chorus of investor disapproval over its rejection of a takeover offer by Pfizer and urged it back into talks.

** URBAN OUTFITTERS INC, $33.26, -8.05 pct

** AMERICAN EAGLE OUTFITTERS INC, $11.42, -4.59 pct

The teen apparel retailer reported a lower-than-expected quarterly profit as costs jumped and tough competition forced it to spend more on marketing.

Shares of rival American Eagle also fell after Urban Outfitters posted results.

** MEDTRONIC INC, $59.15, -1.97 pct

** EDWARDS LIFESCIENCES CORP, $85, -1.71 pct

Medtronic said it had agreed to pay royalties to its rival medical device maker in a settlement that allows Medtronic to continue to sell its CoreValve replacement heart valves. (Compiled by Ankit Ajmera in Bangalore; Editing by Simon Jennings)

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