October 20, 2014 / 4:18 PM / 4 years ago

BUZZ-U.S. Stocks on the Move-Vitae, ChemoCentryx, TubeMogul, IBM

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U.S. stocks were mixed on Monday, with the S&P 500 and Nasdaq posting modest gains, but the Dow falling as quarterly results from IBM disappointed. The Dow Jones industrial average was down 0.18 percent at 16,350.16, the S&P 500 was up 0.44 percent at 1,895.13 and the Nasdaq Composite dropped 9.91 points, or 0.23 percent, to 4,248.53.

** IBM CORP, $169.19, -7.06 pct

The world’s largest technology services company 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 pay contract-chipmaker Globalfoundries Inc $1.5 billion in cash over the next three years to take its loss-making semiconductor unit off its hands.

The stock, which fell to its lowest in nearly three years, was Monday’s biggest drag in the S&P 500 index as well as Dow Jones industrial average.


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.

The stock was the top percentage loser of the day.

** TESORO LOGISTICS LP, $61, -9.06 pct

** QEP RESOURCE INC, $24.66, +6.38 pct

U.S. pipeline and storage company Tesoro said it would offer 19.4 million common units to fund a deal for QEP’s natural gas gathering and processing business QEP Midstream Partners.

The offering represents 35 percent of the total outstanding units.

Tesoro Logistics shares were among the top percentage losers on the New York Stock Exchange.

** VITAE PHARMACEUTICALS INC, $6.99, +10.95 pct

At least four brokerages initiated coverage on the biotechnology company’s stock. JMP Securities started with “market outperform” and a price target $15 while Wedbush initiated with “outperform” and a $21 price target.

“While Vitae’s programs are early, we believe they have potential to be first- or best-in-class, multi-blockbuster opportunities in Alzheimer’s disease and type-II diabetes,” JMP Securities wrote in a note.

** CHEMOCENTRYX INC, $5.4735, +3.66 pct

The drug developer reported positive data from a late-stage trial on its experimental drug vercirnon, a potential treatment for Crohn’s disease.

Patients given the drug twice daily experienced improved response and remission rates than those on a once-a-day dosage.

** TUBEMOGUL INC, $12.59, +9.67 pct

BMO Capital Markets upgraded the advertising software maker’s stock to “outperform” from “market perform” and raised its price target to $15 from $11. Median target price on stock is $13.

Recent industry developments and company-specific actions, including integration with Comcast Corp -owned FreeWheel’s FourFronts program, indicate an acceleration of TubeMogul’s momentum, BMO analyst Dan Salmon wrote in his note.

** BLACKBERRY LTD, $10.193, +7.41 pct

BlackBerry shares rose as much as about 7 percent on Monday after a news website said Chinese computer maker Lenovo Group might offer to buy the Canadian technology company.

Benzinga.com, citing an unnamed source familiar with the matter, said an offer worth $15 a share could come as early as this week.


The banana producer said proxy advisory firm Institutional Shareholder Services had changed its stance on the company’s proposed merger with rival Fyffes Plc and was now advising Chiquita’s shareholders to vote for the deal.

** LENNOX INTERNATIONAL INC, $82.65, +8.25 pct

The climate control equipment provider reported third-quarter adjusted profit of $1.44 per share, above the average analyst estimate of $1.41 per share. The company also announced a new $450 million accelerated share buyback program in October.

** MEAD JOHNSON NUTRITION CO, $96.05, -4.17 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.

** NEWLINK GENETICS CORP, $34.95, +19.08 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, $29, -9.20 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, $32.0995, +12.99 pct

The struggling retailer plans to raise up to $625 million through an offering of 8 percent senior notes and warrants, in another effort to boost liquidity amid concerns among suppliers about its finances going into the holiday season.

** APRICUS BIOSCIENCES INC, $1.48, -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, $23.32, -21.93 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.


** ALLERGAN INC, $180.996, +1.98 pct

Canada’s Valeant may raise its hostile takeover bid for Allergan and will not walk away from its pursuit ahead of the botox maker’s Dec. 18 special shareholder meeting, Chief Executive Michael Pearson said on Monday.

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, $7.67, +17.82 pct

** MITEL NETWORKS CORP, $8.162, -3.06 pct

The provider of internet phone and video-conferencing services offered to buy smaller U.S. peer ShoreTel for about $540 million as part of efforts to expand in the United States.

** CSX CORP, $32.86, -2.95 pct

** CANADIAN PACIFIC RAILWAY LTD, $198.31, -0.60 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, $55.96, +3.92 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, $27.2, -3.10 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, $53.18, +10.17 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. (Compiled by Shailaja Sharma in Bangalore; Editing by Joyjeet Das)

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