(Adds U.S. Bank stocks, RCS Capital, Skullcandy, Esperion, oil driller stocks, Boston scientific, Cytokinetics, China Southern Airlines, NV5 Holdings; updates oil stocks) (For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for the Day Ahead newsletter, link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/nex49s)
Energy sector stocks led a broad selloff on Wall Street on Monday as crude prices fell to fresh five-and-a-half-year lows and a strong dollar also weighed on other commodities. The Dow Jones industrial average was down 1.80 percent at 17,511.22, the S&P 500 was down 1.85 percent at 2,020.19 and the Nasdaq Composite was down 42.12 points, or 0.89 percent, to 4,684.70.
** BANK OF AMERICA CORP, $17.359, -3.02 pct
** JPMORGAN CHASE & CO, $60.63, -2.98 pct
** GOLDMAN SACHS GROUP INC, $188.3, -3.14 pct
** CITIGROUP INC, $52.56, -3.13 pct
Shares of major U.S. banks were down in a broad selloff led by energy stocks. “Traders know where they don’t want to be invested, before identifying the next buying opportunity,” said Gordon Charlop, a managing director at Rosenblatt Securities in New York.
** MORGAN STANLEY, $37.27, -3.72 pct
The bank said an employee stole data from up to 10 percent of its wealth management clients, including account names and numbers, but there was no evidence of economic loss.
** RCS CAPITAL CORP, $12.6, +2.86 pct
The retail brokerage’s wholesale broker dealer subsidiaries raised $9.7 billion in sales last year, despite sales suspensions. RCS Capital said it remained the securities industry leader in raising money for non-traded investment programs.
Citigroup added RCS to its U.S. focus list.
** SKULLCANDY INC, $9.95, +10.19 pct
Jefferies upgraded the headphone maker’s stock to “buy” from “hold”, and raised its price target to $11 from $9. “We believe (the company) is better positioned in the competitive landscape today with sharper pricing, cleaner and more strategic distribution and a more focused retail strategy to drive pricing power and sales,” Jefferies analysts said.
** ESPERION THERAPEUTICS INC, $44.88, +8.85 pct
JMP Securities analyst Jason Butler raised his price target on the drugmaker’s stock to $75 from $53, citing minimal risk of negative results from two-year carcinogenicity studies of the company’s cholesterol drug, ETC-1002.
** ROYAL DUTCH SHELL PLC, $63.85, -4.67 pct
** TOTAL SA, $47.86, -6.45 pct
** BP PLC, $36.198, -5.04 pct
** STATOIL ASA, $16.47, -5.45 pct
** EXXON MOBIL CORP, $90.07, -2.97 pct
** CHEVRON CORP, $107.99, -4.08 pct
** PETROLEO BRASILEIRO PETROBRAS SA, $6.099, -9.78 pct
** LAREDO PETROLEUM INC, $9.42, -13.58 pct
** BAYTEX ENERGY CORP, $14.46, -14.03 pct
** WHITING PETROLEUM CORP, $29.1, -12.32 pct
Oil and gas producers down after prices dropped to fresh five-and-a-half-year lows on concerns of supply glut and lackluster demand. Russia’s oil output hit a post-Soviet high last year, Iraq’s oil exports were at their highest since 1980 in December.
** PRECISION DRILLING CORP SHARES, $6.4, -10.24 pct
** PATTERSON-UTI ENERGY INC, $15.6, -6.31 pct
** NABORS INDUSTRIES LTD, $11.87, -4.96 pct
** HELMERICH & PAYNE INC, $65.02, -3.45 pct
** DIAMOND OFFSHORE DRILLING INC, $34.58, -7.12 pct
** SEADRILL LTD, $10.84, -9.74 pct
** TRANSOCEAN LTD, $16.79, -7.34 pct
** ENSCO PLC, $28.31, -6.17 pct
Oil drillers’ shares were also pulled down by sliding oil prices. Oil prices have been dipping on concerns of a supply glut and lackluster demand, losing more than half their value since a peak in June last year.
** BOSTON SCIENTIFIC CORP, $13.85, +4.77 pct
J.P. Morgan upgraded rating on the medical device maker’s stock to “overweight” from “neutral” and raised its price target to $17.50 from $14.50. The company’s performance were expected to improve in the coming months with investors anticipating a strong 2015 and an even better 2016, driven by new products and significant margin expansion, analysts said in a note.
** CYTOKINETICS INC, $7.615, +3.32 pct
The drug developer said it would initiate mid-stage trial on its spinal muscle atrophy drug along with partner Astellas Pharma Inc later this year.
Roth Capital analysts said extended collaboration provided a “strong cash runway”.
** CHINA SOUTHERN AIRLINES CO LTD, $25.115, +7.61 pct
The Chinese airline operator’s US-listed shares were among the top percentage gainers on the NYSE. AerCap Holdings NV to lease 24 Airbus A320neo aircraft to China Southern Airlines. AerCap’s subsidiary, AeroTurbine, to buy four older vintage aircraft from China Southern Airlines.
** NV5 HOLDINGS INC, $12.23, -6.93 pct
The engineering and consulting services provider said public warrant holders can convert all 412,414 outstanding warrants into shares. Each warrant can be exercised at purchase price of $7.80 per share. NV5 had 5.75 million shares outstanding as of Nov. 9, according to Thomson Reuters data.
** CLEANTECH SOLUTIONS INTERNATIONAL INC, $3.651, +7.38 pct
The Chinese maker of components for solar and wind energy industries said it received $13 million orders in December from Chinese state-owned company based in Xinjiang to supply equipment for large scale chemical project.
** GILEAD SCIENCES INC, $96.8, +1.99 pct
** ABBVIE INC, $64.35, -2.34 pct
** CVS HEALTH CORP, $94.02, -1.14 pct
CVS Health, one of the largest U.S. managers of drug benefits, said it would give Gilead’s hepatitis C treatment preferred status over AbbVie’s drug, CNBC reported. Express Scripts Holding Co, the largest U.S. drug benefits manager, gave AbbVie’s drug a preferred status over Gilead’s medication two weeks ago.
** FORD MOTOR CO, $14.75, -3.97 pct
** FIAT CHRYSLER AUTOMOBILES NV, $11.15, -4.62 pct
** HONDA MOTOR CO, $28.98, -2.06 pct
The December U.S. sales of all three automakers fell short of market estimates. Industry executives and analysts cautioned that sales growth will slow this year after five years of rapid recovery from the recession.
** KITE PHARMA INC, $67.95, +12.11 pct
Amgen Inc and Kite Pharma said they entered into a deal to develop and market cancer immunotherapies using Amgen’s cancer targets and Kite’s technology platform.
** STEREOTAXIS INC, $1.88, +22.08 pct
The U.S. Food and Drug Administration approved the medical device maker’s catheter device, Vdrive with catheter advancement system, for sale in the country.
The company also received an approval from Japan Pharmaceuticals and Medical Devices Agency for Odyssey data management products.
** CONATUS PHARMACEUTICALS INC, $10.064, +24.40 pct
The biotechnology company said it would present results from three clinical trials of its lead drug Emricasan on Thursday. Conatus said it would present results from a mid-stage study of the drug in patients with acute-on-chronic liver failure.
** ISIS PHARMACEUTICALS INC, $67.09, +8.97 pct
Johnson & Johnson will pay the biotech company up to $835 million for an option to license three drugs targeting autoimmune diseases in the bowel.
** CEMPRA INC, $24.78, +8.26 pct
The antibiotic drug developer moved a step closer to approval for its lead antibiotic, solithromycin, after an oral version of the potential blockbuster met the main goal in a late-stage trial.
** NATIONAL BANK OF GREECE SA, $1.67, -9.24 pct
Political uncertainty in Greece may force the European Central Bank to start quantitative easing as debate around the possibility of elections later this month resulting in the country leaving the euro zone picked up again.
Euro fell to $1.18605 in early Asian trading on Monday, its weakest level since March 2006.
** BREITBURN ENERGY PARTNERS LP, $7.1264, -6.60 pct
The oil and gas company said on Friday it expected 2015 production of 19.5-20.7 million barrels of oil equivalent (boe), up from an estimated 14.1 million boe for 2014. Breitburn forecast oil and gas capital expenses to fall to $200 million in 2015 from an estimated $375 million in 2014.
** CINEMARK HOLDINGS INC, $33.84, -3.07 pct
The movie theater chain’s shares could rise more than 25 percent over the next year, Barron’s reported in its Jan. 5 edition.
** ZIMMER HOLDINGS INC, $116.375, +3.36 pct
Analysts at J.P. Morgan upgraded the orthopaedic device maker’s shares to “overweight” from “neutral” and raised their price target on it to $136 from $120 - the highest among 25 brokerages covering the stock.
Zimmer could benefit from reduced dis-synergy risk and improved industry pricing over time if Stryker Corp pursues and ultimately reaches an agreement with Smith & Nephew Plc, the analysts wrote.
The stock touched its year-high of $117.19. (Compiled by Lehar Maan; Editing by Joyjeet Das)