October 20, 2014 / 1:48 PM / 4 years ago

BUZZ-U.S. Stocks on the Move-Steven Madden, IBM, Sinocoking

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U.S. stocks fell at the open on Monday to extend four consecutive weeks of losses as indexes were weighed by IBM, which fell more than 7 percent on disappointing quarterly results. The Dow Jones industrial average was down 0.46 percent at 16,305.01, the S&P 500 was up 0.10 percent at 1,888.66 and the Nasdaq Composite dropped 9.91 points, or 0.23 percent, to 4,248.53.

** IBM CORP, $168.91, -7.22 pct

IBM said it no longer expected to achieve its 2015 operating earnings target of at least $20 per share after weak client spending resulted in an unexpected fall in quarterly earnings and revenue.

The company also said it would hive off its loss-making semiconductor unit to contract-chipmaker Globalfoundries Inc to focus on cloud computing and big data analytics.


The coal and coke processor said its facility for conversion of carbon dioxide into clean-burning synthetic gas started operations and its CEO was in discussions about gas compression technology to help double output to 50,000 cubic meters of syngas per hour.

** NEWLINK GENETICS CORP, $35.19, +19.90 pct

The Ebola vaccine developer said it entered into a licensing agreement with Roche Holding AG to develop NewLink’s cancer immunotherapy, making the company eligible to receive over $1 billion in milestone payments.

** STEVEN MADDEN LTD, $28.76, -9.96 pct

The footwear and accessory maker cut its full-year profit forecast to $1.81-$1.86 per share, below analyst expectations of $2.02 per share, saying it expects lower sales in the retail footwear and wholesale segments.

The company also cut its full-year sales growth forecast to 1-2 percent from 2-4 percent growth.


The specialty chemicals company said it will buy rival Arysta LifeScience Ltd from a company backed by private equity firm Permira for about $3.51 billion.

** SEARS HOLDINGS CORP, $29.58, +4.12 pct

The struggling retailer plans to raise up to $625 million through a rights offering of 8 percent senior notes and attached warrants, in another effort to boost liquidity amid growing concerns among suppliers about its financial strength.

** APRICUS BIOSCIENCES INC, $1.8, +9.76 pct

The drug developer said it acquired U.S. development and marketing rights for experimental drug to treat urological conditions in men from Finland-based privately held Forendo Pharma.

Apricus paid upfront license fee of $12.5 million to Forendo and intends to begin a mid-stage trial of drug, fispemifene, during first half of 2015.

** NCR CORP, $24.55, -17.81 pct

The ATM maker lowered its third-quarter earnings forecast and said it expects full-year results to be below its previous forecast, due to a challenging retail market and difficult global macroeconomic conditions, including foreign currency headwinds.

** IMMUNOMEDICS INC, $3.678, +1.04 pct

The drug developer said European Medicines Agency had granted an orphan drug status for its IMMU-132 experimental drug for treatment of pancreatic cancer.

IMMU-132 already has orphan status from U.S. FDA for treatment of pancreatic cancer and small-cell lung cancer.

** HALLIBURTON CO, $53.07, +0.89 pct

The world’s No.2 oilfield services provider reported a better-than-expected quarterly profit, helped by buoyant shale drilling activity in North America.


Canada’s Valeant posted a better-than-expected quarterly profit, driven by demand for its skin, neuro and eye drugs. The company also raised its full-year adjusted earnings forecast.

** SHORETEL INC, $7.44, +14.29 pct

** MITEL NETWORKS CORP, $8.45, +0.36 pct

The provider of internet phone and video-conferencing services said it offered to buy smaller peer ShoreTel for about $540 million. The company said ShoreTel had rejected an earlier proposal and refused to engage with Mitel.

** CSX CORP, $32.63, -3.63 pct

** CANADIAN PACIFIC RAILWAY LTD, $195.4, -2.06 pct

Canadian Pacific Railway said on Monday it had ended talks to buy No.3 U.S. railroad operator CSX.

The Wall Street Journal reported last week that Canadian Pacific had approached CSX about merging the two North American railroad operators, but that the offer had been rebuffed.

** HASBRO INC, $55.24, +2.58 pct

The second-largest U.S. toymaker reported a 43 percent jump in quarterly profit, helped by higher international sales, particularly in Latin America and the Asia Pacific region.

** PHILIPS NV, $26.92, -4.10 pct

The Dutch healthcare and lighting company swung to a net loss in the third quarter after weak demand in key markets such as Russia and China was compounded by a patent lawsuit ruling against the company and inventory writedowns.

** CLECO CORP, $53.27, +10.36 pct

An investor group led by Macquarie Infrastructure and Real Assets has agreed to buy the Louisiana electricity supplier in a deal valued at about $4.7 billion, including about $1.3 billion of assumed debt.

The $55.37 per share offer represents a premium of about 15 percent to Cleco stock’s Friday close.

** MEAD JOHNSON NUTRITION CO, $95.63, -4.59 pct

French foods group Danone SA said on Sunday it was not conducting a strategic review of assets and had not decided on any priority in terms of possible external growth possibilities.

The maker of Activia yoghurt and Evian water made the comments after sources familiar with the matter told Reuters on Friday Danone had decided it wants to pursue a takeover of U.S. infant formula maker Mead Johnson.

** SUNOCO LOGISTICS PARTNERS LP, $45.88, +0.57 pct

The 280,000 barrel-per-day Mid-Valley pipeline segment from Longview, Texas to Mayersville, Mississippi, continues to remain shut following a crude oil spill last week, the pipeline operator said on Sunday.

** WILLIAMS COMPANIES INC, $52.14, +0.08 pct

** QEP RESOURCES INC, $24.16, +4.23 pct

Williams is said to be one of the bidders for QEP’s natural gas pipeline unit, Bloomberg reported, citing people familiar with the matter. (Compiled by Shailaja Sharma in Bangalore; Editing by Joyjeet Das)

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