September 9, 2014 / 1:43 PM / 4 years ago

BUZZ-U.S. Stocks on the Move-Annie's, Threshold Pharma, Netflix

(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for more market insights, including options activity, ; for the Day Ahead newsletter,; for the Morning News Call newsletter, U.S. stocks dipped at the open on Tuesday, continuing a streak of modest moves, as investors find few reasons to push equities higher in the wake of a rally that has sent the benchmark S&P index to repeated records. The Dow Jones industrial average was down 0.38 percent at 17,045.59, the S&P 500 was down 0.34 percent at 1,994.66 and the Nasdaq Composite was down 0.37 percent at 4,575.472.

** GENERAL MILLS INC, $53.5, -0.02 pct

** ANNIE’S INC, $46.01, +37.30 pct

General Mills Inc, the maker of Cheerios cereal and Betty Crocker cake mixes, said it would acquire organic food producer Annie’s for about $820 million to expand its presence in the fast-growing U.S. natural foods market.


Cantor Fitzgerald initiated coverage on the drug developer’s stock with a “buy” rating and a $14 price target, based on the potential of its experimental cancer drug, code named TH-302. The brokerage expects peak revenue of $2 billion in 2025 for the drug in pancreatic cancer and soft tissue sarcoma indications. TH-302 is currently in late-stage trials.

** HAIN CELESTIAL GROUP INC, $100.54, +2.81 pct

** WHITEWAVE FOODS CO, $37, +3.58 pct

J.P. Morgan Securities raised its price targets on the shares of organic products company Hain and dairy products producer WhiteWave.

The brokerage raised its price target on Hain stock to $113 from $102, citing an increased focus on healthy eating to push demand for Hain’s better-for-you products such as Earth’s Best and Sensible Portions.

Analysts also raised WhiteWave’s price target to $39 from $35, citing expected M&A activity.

** VERIFONE SYSTEMS INC, $34.59, +0.49 pct

Apple Inc is reportedly going to include a special communication chip in its latest iPhone, expected to be introduced on Tuesday, that will let users make payments wirelessly.

VeriFone, a credit card swipe device maker, sells payment devices that can accept wireless payments using near field communication (NFC) technology.

** MCDONALD’S CORP, $92.36, -0.15 pct

McDonald’s reported a fall in sales at established restaurants across all regions in August, the fifth such monthly drop since CEO Don Thompson took the helm in July 2012.

** NETFLIX INC, $485.9767, +1.39 pct

RBC Capital Markets raised its price target on the video streaming company’s stock to $600 from $530 late on Monday. The analysts said Netflix’s growth and profitability was not yet factored into the stock price. Analysts expect the company’s foray into Europe to boost growth.


The coal processor signed an agreement to implement a technology to convert 21 million tons of coal at four underground mines in China into syngas, a clean burning fuel.

The mines were shut for three years due to the Chinese government’s guidelines on mine consolidation. The first phase of the project will cost about $18 million and be funded primarily from cash reserves, while subsequent phases will cost about $280 million and be funded with bank loans and company-issued debt.

** FUELCELL ENERGY INC, $2.42, -9.36 pct

The fuel cell maker’s third-quarter loss to common shareholders increased to $7.8 million from $6.4 million a year ago, hurt by higher operating costs. The company’s revenue declined nearly 20 percent to $43.2 million.

** ENDOCYTE INC, $7.25, +5.53 pct

Cantor Fitzgerald on Monday initiated coverage on the drug developer’s stock with “buy” rating and $21 price target. The brokerage cited the market opportunity for Endocyte’s experimental cancer drug, code named EC1456, for the initiation.

** BROOKDALE SENIOR LIVING INC, $34.22, -0.81 pct

The retirement-home operator made a common stock offering of about 9 million shares priced at $33.50 per share, a discount of 3 percent to the stock’s Monday close. The offering represents about 5 percent of total outstanding shares and expects to fetch about $287 million in net proceeds.

** LOCKHEED MARTIN CORP, $175, +0.13 pct

** ALLIANT TECHSYSTEMS INC, $128.96, +2.01 pct

CNBC's Jim Cramer said investors should buy defense stocks on his show, Mad Money. (

“With the new mess in the Middle East, not to mention the dramatic rise in tensions with Russia, our military spending is going to have to start increasing again,” Cramer said. Most defense contractors have lagged the market this year and are much cheaper than the average stock on the S&P 500 index, Cramer said.

** GLAXOSMITHKLINE PLC, $46.45, -0.71 pct

A U.S. anti-bribery probe into GlaxoSmithKline touched on the firm’s Chinese consumer healthcare business in 2012, internal documents show, suggesting the drugmaker’s compliance problems in China could go wider than previously revealed.

** ROCKET FUEL INC, $15.75, -1.81 pct

The web-based video advertising provider said on Monday that CFO Peter Bardwick had resigned.

BMO Capital Markets on Tuesday cut its price target on the company’s stock to $17 from $25. The brokerage said an earlier-than-expected close of [x+1] acquisition could lead to a revenue loss of $3 million-$4 million for the company in the September quarter.

** PEP BOYS-MANNY MOE AND JACK, $10.51, -7.89 pct

The auto parts retailer reported a second-quarter loss of $273,000, compared with a year-ago profit of $5.4 million, hurt by fall in comparable merchandise sales.


Brokerage Cantor Fitzgerald began covering the cancer drug developer with a “buy” rating. Analyst Daniel Brims said he expects Merrimack to launch its pancreatic cancer drug next year and rake in global peak sales of $800 million in 2025. Brims has a price target of $16 on the stock.

Up to Monday’s close, the stock had gained about 56 percent since May, when the company said its lead drug, MM-398, improved overall survival rates in metastatic pancreatic cancer patients when used as a combination therapy.

** HOME DEPOT INC, $90.21, -0.67 pct

Home Depot confirmed on Monday that its payment security systems had been breached, a data theft analysts warn could rival Target Corp’s massive breach last year.

** MORGAN STANLEY, $34.29, -1.64 pct

The Wall Street bank has agreed to pay $95 million to resolve a lawsuit accusing it of misleading investors in mortgage-backed securities in the run up to the 2008 financial crisis.

** BGC PARTNERS INC, $7.52, +1.48 pct

** GFI GROUP INC, $5.53, +9.94 pct

BGC Partners is likely to make a $675 million all-cash unsolicited offer for derivatives broker and rival GFI Group in a bid to bolster its business, the Wall Street Journal reported, citing people familiar with the matter.

** ENCANA CORP, $22.7, +0.89 pct

Canada’s largest natural gas producer will sell its remaining stake in PrairieSky Royalty Ltd, the company it spun out to investors in May, in a C$2.6 billion ($2.37 billion) deal as it continues to raise funds to increase oil production.

** RPM INTERNATIONAL INC, $46.25, -2.26 pct

The specialty chemicals maker estimated first-quarter profit in line with year ago - below what analysts expected.

The company said last year’s results were boosted by product launches from acquisitions. (Reporting By Shubhankar Chakravorty in Bangalore; Editing by Simon Jennings)

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