December 11, 2014 / 4:29 PM / 4 years ago

BUZZ-U.S. Stocks on the Move-Eli Lilly, Covenant, Wet Seal, Staples

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U.S. stocks rose on Thursday, bouncing sharply from a three-day drop as data pointed to a strengthening economy that appeared likely to weather the impact of a steep drop in oil prices. The Dow Jones industrial average was up 1.22 percent at 17,747.42, the S&P 500 was up 1.37 percent at 2,053.88 and the Nasdaq Composite 1.52 percent at 4,755.05.

** ELI LILLY & CO, $74.99, +5.55 pct

The drugmaker’s shares touched a 10-year high after Morgan Stanley upgraded the stock to “overweight” from “underweight”, citing higher chances of the company’s drugs getting approvals. The brokerage raised its price target from $60 to $85, the highest on Wall Street.

** STAPLES INC, $16.28, +9.89 pct

** OFFICE DEPOT INC, $7.56, +12.42 pct

Activist investor Starboard Value LP disclosed a 5.1 percent stake in Staples and raised its holdings in Office Depot to about 10 percent, possibly setting the stage for a merger of the struggling office-supply retailers.

** WET SEAL INC, $0.0926, -66.80 pct

The women’s apparel retailer said on Wednesday it may seek to restructure under provisions of the bankruptcy code if it fails to address liquidity in the near term. The company said strategies may include out-of-court restructurings. Wet Seal also reported a 9 percent decline in third quarter sales.

** LAKELAND INDUSTRIES INC, $10.8454, -7.78 pct

The hazmat suit maker’s third-quarter loss widened as operating expenses rose, driven primarily by higher freight out and commissions expenses. The company said on Wednesday that the main impact from Ebola-related orders will begin to be realized only in the fourth quarter.

** PETROLEO BRASILEIRO SA , $7.51, -3.10 pct

The company, known as Petrobras, is at the center of a corruption, bribery and political kick-back scandal that has seen its shares slip by about 50 percent in three months. Brazilian prosecutors are expected to indict key players in the case later on Thursday. The world’s most indebted oil firm may have to hike fuel prices, cut spending or seek government funds as the scandal threatens to temporarily leave it out of capital markets.

** FREEPORT-MCMORAN INC, $23.54, -1.75 pct

** VALE SA , $7.33, -2.79 pct

** RIO TINTO PLC, $43.32, -1.01 pct

U.S.-listed iron ore miners dip after iron ore falls to its weakest level in more than five years as a supply glut continues to weigh on a commodity that has nearly halved in value this year. Investec cut its price target on Rio Tinto’s London-listed stock to 3,046 pence from 3,129 pence


J.P. Morgan Securities raised its rating on Brazilian airline’s Brazil-listed shares to “overweight” from “neutral” and price target to 19.50 Brazilian reais from 16.50 Brazilian reais.

“The main driver behind our upgrade was the adoption of a more benign fuel cost curve as price of jet fuel has declined consistently since July 2014,” Fernando Abdalla wrote in note titled ‘Cruising Altitude Reached, Time to Enjoy the Lower Jet Fuel Price’.


Cowen and Co raised its price target to $35 from $31 on the trucking company’s stock, citing the company’s better-than-expected fourth-quarter earnings forecast. Covenant said on Wednesday it expects fourth-quarter earnings of 70-78 cents per share.

** ARIAD PHARMACEUTICALS INC, $6.69, -4.70 pct

Analysts at Credit Suisse downgraded the drugmaker's stock to "underperform" from "neutral" and cut their price target to $6 from $8, according to (

** METHODE ELECTRONICS INC, $39.51, -5.02 pct

The electronic component maker reported second-quarter profit and revenue above analysts’ average estimate, helped by higher demand from its power products and automotive customers.

** HD SUPPLY HOLDINGS INC, $27.89, -1.20 pct

About 40.7 million shares are being sold by stockholders of the maintenance services provider including Carlyle Group and Clayton, Dubilier & Rice LLC, HD Supply’s second and third-largest investors.

** DELTA AIR LINES, $48.39, +4.69 pct

The airline operator said it expects fuel costs at current market prices to benefit 2015 profit by $1.7 billion and raised its operating margin forecast for the current quarter.

** NIELSEN NV, $42.9, -1.99 pct

The TV rating service provider said affiliates of Blackstone Group, Thomas H Lee Partners, Hellman & Friedman and AlpInvest Partners plan to sell 20 million shares in a secondary offering. The offering represents about 5 percent of Nielsen’s total outstanding shares, according to Thomson Reuters data.

** RADIOSHACK CORP, $0.5194, -5.56 pct

The struggling electronics retailer said it expected its cost cutting to save more than $400 million annually but did not say when that would be achieved.


The home furnishing retailer raised its full-year profit and revenue forecasts on better-than-expected third-quarter results due to higher direct sales, including online and catalog sales.

** LULULEMON ATHLETICA INC, $50.78, +8.74 pct

The Canadian yogawear chain reported a better-than-expected quarterly profit as online sales jumped 27 percent. The company, which is facing increased competition in a niche market it once dominated while grappling with executive departures and lawsuits, marginally raised its adjusted profit forecast to $1.74-$1.78 per share from $1.72-$1.77 for the year ending early February.

** EBAY INC, $57.34, +3.75 pct

The online retailer is mulling a plan to cut thousands of jobs early next year, as it readies to spin off its PayPal unit, the Wall Street Journal reported, citing people familiar with the company’s thinking.

** RADIAN GROUP INC, $17, +0.65 pct

** ASSURED GUARANTY LTD, $26.2, +2.75 pct

The biggest U.S. private mortgage insurer is close to a sale of its financial guaranty business to Assured Guaranty for around $800 million, according to people familiar with the matter.


** PRUDENTIAL FINANCIAL INC, $88.82, +2.82 pct

The U.S. House of Representatives on Wednesday approved a bill giving big insurance companies such as American International Group and Prudential Financial relief from part of the 2010 Dodd-Frank oversight law.

** WALGREEN CO, $71.46, +4.86 pct

Walgreen said Chief Executive Greg Wasson would retire and hand the reins on an interim basis to the head of Alliance Boots Holdings Ltd, a move that follows a series of events that has tested investor confidence in the U.S. drugstore chain.

** BURGER KING, $35.79, +3.38 pct

** TIM HORTONS INC , $85.59, +1.09 pct

The fast food chain will avoid hundreds of millions of dollars in U.S. taxes if, as planned, it completes its pending buyout of Canadian coffee-and-doughnuts chain Tim Hortons, a tax activist group said on Thursday.

** SANOFI SA , $46.73, +1.90 pct

Sanofi’s new CEO will continue its strategy of diversifying beyond new drug development, possibly through acquisitions, the French drugmaker’s interim chief executive said.


** ALIBABA GROUP HOLDING LTD, $106.29, +2.32 pct

The Chinese mobile chat app firm, backed by Alibaba Group, that will list on the Nasdaq on Thursday, said its chief executive will fight allegations of misconduct and corruption made by his former employer. (Compiled by Lehar Maan in Bengaluru; Editing by Simon Jennings)

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