June 2, 2014 / 6:34 PM / 4 years ago

MARKET PULSE-Gigatronics, Everyware, Puma Biotechnology, Mastec

(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 mostly held tiny gains on Monday, recovering from earlier losses as a closely watched read on manufacturing was reportedly corrected to show more strength than initially indicated. The Dow Jones industrial average was up 0.16 percent at 16,743.36 and the S&P 500 was up 0.07 percent at 1,924.83.

** GOOGLE INC, $561.8, -1.72 pct

Google services are being disrupted in China ahead of this week’s 25th anniversary of the 1989 crackdown on pro-democracy demonstrators around Beijing’s Tiananmen Square, a censorship watchdog said on Monday.

** GIGATRONICS INC, $3.08, +154.55 pct

The company said it had received orders valued at about $6.9 million from a major aerospace company for the delivery of YIG (Yttrium Iron Garnet) filters used in wireless communication. Gigatronics did not name the customer but said it “will be a supplier of filter systems for all three of the US designed 4th generation fighters.” Gigatronics also said it was expecting an order later this year for about $10 million associated with the production units.

** EVERYWARE GLOBAL INC, $1.74, +58.18 pct

The company, which sells dinnerware and kitchen gadgets, said on Saturday that its asset-backed loan lenders agreed not to exercise their rights and remedies till June 30 following a default on certain covenants.

Everyware said it also intends to partially reopen its Monaca, Pennsylvania facility.

** BEBE STORES INC, $3.4201, -16.07 pct

The women's apparel retailer's Chief Executive Steve Birkhold has sold 140,980 shares of the company at an average price of $4.07, a regulatory filing late on Friday revealed. (link.reuters.com/beq79v)

** PUMA BIOTECHNOLOGY INC, $60.67, -20.62 pct

The company said on Sunday that data from a mid-stage study testing its breast cancer drug, neratinib, was “positive”, but Citi analyst Yaron Werber said in a note the drug failed to meet its main goal and achieved only “modest efficacy”.

Puma Biotechnology also said some of the patients - who were previously treated and whose cancer had advanced to the brain - also experienced severe diarrhea.

The company presented the data at the American Society of Clinical Oncology 2014 Annual Meeting, where it was also announced that a clinical trial evaluating the combination of two approved breast cancer treatments - Roche’s Herceptin and GlaxoSmithKline Plc’s Tykerb - failed to show additional benefit over patients who received only one of them.

** NPS PHARMACEUTICALS INC, $33.42, +7.36 pct

London-listed drugmaker Shire Plc has secured a $5 billion credit facility for a takeover offer for New-Jersey-based NPS Pharmaceuticals, The Times of London reported on Sunday. Insiders told The Times that an initial approach to NPS by Shire has been rebuffed.

** MASTEC INC, $31.92, -11.33 pct

The infrastructure construction company said on Sunday that it now estimates second-quarter revenue of about $1.1 billion, below its previous forecast of $1.15 billion to $1.2 billion. The company cited lower than previously expected revenue from wireless projects and the oil and gas segment for the revision.

Stifel Nicolaus cut its price target on the stock to $45 from $49 on Monday.

** PROTECTIVE LIFE CORP, $58.66, +12.16 pct

Japanese insurer Dai-ichi Life Co is in advanced talks to buy U.S. peer Protective Life in a deal that could be worth over $5 billion, extending a drive to buy assets abroad as an antidote to a weak domestic outlook.


The company reported positive data from an early stage study testing its experimental lung cancer drug on Friday, but said 22 percent of patients experienced high-blood sugar severe enough to warrant treatment.

The drug - similar to AstraZeneca Plc’s AZD9291 - is designed to target non-small cell lung cancer containing a genetic mutation.

** BROADCOM CORP, $35.065, +10.03 pct

The chipmaker said it was looking to exit its cellular baseband business, and forecast current-quarter margins to beat or be at the high end of its estimate.

** ARCTIC CAT INC $33.8, -9.38 pct

The maker of all-terrain vehicles and snowmobiles said Chief Executive Claude Jordon has stepped down. The company named Chris Twomey as interim CEO.

** NORDION INC $12.85, +7.53 pct

U.S.-based Sterigenics International has sweetened its takeover offer for Nordion Inc, the Canadian medical isotope producer, to $805 million after a previous bid failed to attract enough shareholder support, Nordion said on Monday.

** ARIAD PHARMACEUTICALS INC, $6.84, +5.88 pct

The company said longer-term data from two studies of its leukemia drug, Iclusig, showed that the drug continues to be effective in patients who have already received treatment.

Iclusig was allowed a restricted return to the U.S. market in December, after sales were suspended due to safety concerns.


Brokerage JG Capital initiated coverage on the Chinese online cosmetics retailer’s stock with an “overweight” rating, saying it expects Jumei to benefit from the company’s strong brand awareness, large loyal user base and online shopping’s increasing penetration in China.

** CONN’S INC, $49.19, +5.47 pct

The electronics and home appliance retailer reported a better-than-expected profit for the first quarter as furniture and mattress sales jumped about 65 percent.


** VENTAS INC, $65.1, -2.54 pct

Ventas, one of the largest U.S. healthcare real estate investment trusts, said it would buy American Realty Capital Healthcare Trust in a cash-and-stock deal valued at about $2.6 billion.

** PENN VIRGINIA CORP, $14.43, -4.94 pct

The oil and gas producer said it would sell its Mississippi assets to an undisclosed buyer for about $72.7 million. The assets had net production of about 11.9 million cubic feet of natural gas equivalent per day during the first quarter.

** MEADWESTVACO CORP, $42.78, +5.42 pct

Activist investor Starboard Value LP reported a 5.6 percent stake in MeadWestvaco and said the packaging materials maker’s stock was “deeply undervalued”.

** CENTURY ALUMINUM CO, $13.975, +2.38 pct

Analysts at BofA Merrill Lynch upgraded the company’s stock to “neutral”, according to StreetInsider.com.

** EXPRESS INC, $12.62, +0.08 pct

** AEROPOSTALE INC, $3.61, -7.67 pct

Nomura Equity Research cut its price targets on the apparel retailers’ stocks. The brokerage cut its price target on Express’s shares to $16 from $20, and on Aeropostale’s stock to $5 from $6.

** WALTER ENERGY INC, $4.589, -5.96 pct

** ARCH COAL INC, $3.49, -1.97 pct

** ALPHA NATURAL RESOURCES INC, $3.32, -1.78 pct

** PEABODY ENERGY CORP, $16.19, +0.19 pct

The United States on Monday formally announced a plan to slash carbon emissions from the power sector by 30 percent nationwide below 2005 levels by 2030, a key element of President Barack Obama’s plan to tackle global warming.

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** THERAVANCE BIOPHARMA, $28.24, -1.43 pct

Robert W. Baird & Co analyst Brian Skorney downgraded the biotechnology company’s stock to “neutral” from “outperform”, saying, “We think the stock may be particularly volatile in the near term and see little fundamental upside without better clarity into acceleration of Breo and Anoro sales.”

Breo and Anoro are two FDA-approved treatments developed by the company in collaboration with GlaxoSmithKline Plc for chronic obstructive pulmonary disease, a serious lung condition.

Theravance said it would split into two publicly traded U.S. companies in April last year, separating some of its most advanced respiratory drugs from its other biopharmaceutical operations.

** ALLERGAN INC, $172.03, +2.73 pct

** VALEANT PHARMACEUTICALS INC , $133.83, +2.00 pct

Valeant Pharmaceuticals on Monday prepared to take its $53.8 billion takeover bid for Allergan directly to the Botox maker’s shareholders, and Pershing Square called for a meeting to turn over the target company’s board in a battle that could last late into the year.


** RICE ENERGY INC, $31.48, -0.79 pct

** ANTERO RESOURCES CORP, $61.635, +0.22 pct

** CHESAPEAKE ENERGY CORP, $29.35, +2.19 pct

** GULFPORT ENERGY CORP, $61.8, +0.44 pct

** RANGE RESOURCES CORP, $92.54, -0.44 pct

** STONE ENERGY CORP, $43.56, -1.87 pct

Natural gas producer Rice Energy, which went public earlier this year, said it had successfully tested its first Utica Shale well in Ohio.

The well, the Bigfoot 9H, had a stabilized production rate of 41.69 million cubic feet per day (mmcf/d) of gas, the company said. The market estimate was at about 30 mmcf/d, analysts at Tudor, Pickering, Holt & Co said in a note.

The high production rate was a positive for other exploration and production companies with exposure to the dry gas window of the Utica, analysts said.

** UNITED STATES STEEL CORP, $22.66, -1.65 pct

United States Steel Corp X.N said on Monday it is idling two facilities in Pennsylvania and Texas that make tubular steel, saying the plants are losing money partly because of unfair trade from low-cost rivals in other countries.


An article in Barron's weekly said the property and casualty insurer could be under-reserved due to certain accounting disparities. (r.reuters.com/kaq79v)

Compiled by Shubhankar Chakravorty in Bangalore; Editing by Sriraj Kalluvila

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