(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) U.S. stock indexes fell on Tuesday amid a global bond sell-off and lingering concerns that debt-burdened Greece could run out of cash. The Dow Jones industrial average was down 0.22 percent at 18,065.93, the S&P 500 was down 0.32 percent at 2,098.6 and the Nasdaq Composite was down 0.36 percent at 4,975.667.
** AOL INC, $50.61, +18.83 pct
** VERIZON COMMUNICATIONS INC, $49.49, -0.62 pct
Verizon said it would buy AOL in a $4.4 billion deal that gives the biggest U.S. wireless carrier access to AOL’s successful digital advertising service and content including the Huffington Post news website.
** PALL CORP, $117.54, +18.36 pct
The water and air filter maker is in the final stages of an auction that could value the company at more than $10 billion, the Wall Street Journal reported on Monday.
** RACKSPACE HOSTING INC, $45.81, -13.78 pct
The Web hosting company forecast current-quarter revenue below analysts’ expectations and said a strong dollar hurt its revenue growth in the first quarter.
CLSA cut its rating on the company’s stock to “outperform” from “buy”. Morgan Stanley cut its rating to “equal-weight”, according to Benzinga.com. At least four brokerages cut their price targets on the stock by as much as $5 to as low as $50.
** THRESHOLD PHARMACEUTICALS INC, $4.14, +10.11 pct
The U.S. Food and Drug Administration granted fast-track status to an experimental pancreatic cancer drug developed by the company and Merck KGaA. Merck licensed the drug, evofosfamide, from Threshold in 2012.
** NEWLINK GENETICS CORP, $39.26, -24.70 pct
The drug developer said it would continue a late-stage study on a pancreatic cancer drug as planned, but the company did not disclose data on the main goal of the study.
NewLink had said in February that it could file for a marketing approval if interim data showed an improvement in overall survival rate. As the trial was not stopped at the interim level, investors would assume it as a failed one, Cantor Fitzgerald said, adding that the main goal of overall survival is still achievable.
** STMICROELECTRONICS NV, $8.08, +4.12 pct
The European semiconductor maker said on Tuesday that it expected second-quarter revenue to grow about 3.5 percent, squarely in the middle of the guidance the company issued two weeks ago.
** LIVEPERSON INC, $8.35, -11.73 pct
The customer service software maker cut its 2015 revenue forecast, citing the end of a large contract and an increase in forex headwinds.
At least four brokerages cut their price targets by as much as $11 to as low as $8. Roth Capital Partners said the outlook was cut dramatically due to the loss of AT&T, its largest customer.
** PAIN THERAPEUTICS INC, $3.28, +69.07 pct
** DURECT CORP, $2.31, +2.67 pct
The drug developer said a study testing its pain drug for any potential abuse met the main goal. Pain Therapeutics said the data showed that the drug, Remoxy, was less “liked” than immediate-release oxycodone, when chewed or intact.
Durect, a partner of Pain Therapeutics, is eligible to receive payments on regulatory milestones and royalties, according to a deal signed by the companies in 2012.
** NORANDA ALUMINUM HOLDING CORP, $2.23, -25.67 pct
** APOLLO GLOBAL MANAGEMENT, $21.54, -0.65 pct
Apollo Global has exited Noranda, selling its remaining 33 percent stake, or 22.8 million shares.
The offering was priced at $2.25 per share, the lower end of the $2.25-$2.35 range that sole underwriter Morgan Stanley had marketed, sources said.
** APPLE INC, $126.1606, -0.13 pct
** MICROSOFT CORP, $47.2432, -0.27 pct
Australia has proposed new legislation to tighten tax loopholes that the conservative government says have allowed around 30 of the world’s largest multinational companies to avoid paying taxes. With the new measures, Australia will join Britain in leading a crackdown on companies such as Google Inc , Apple and Microsoft, focusing on their alleged shifting of profits from high-tax countries to low or no tax regimes.
Separately, Apple is in talks with Chinese banks and Alibaba Group Holding Ltd on launching the firm’s mobile payments system in China, Chief Executive Tim Cook told the official Xinhua news agency in an interview published on Tuesday.
** GOOGLE INC, $539.64, -1.13 pct
The Internet search company’s self-driving cars have been involved in 11 accidents, but have not been the cause of any, over the last six years since the project began, the program’s director said on Monday.
** OCWEN FINANCIAL CORP, $10.88, +1.40 pct
The private mortgage servicer filed its annual report for 2014 on Monday without a qualification as to its ability to operate as a going concern. The company said it expected first-quarter net income to fall to $34.4 million, or 27 cents per share, from $60.5 million, or 43 cents per share, a year earlier. Ocwen also said it expected revenue to fall 7 percent to $510.4 million.
** GAP INC, $38.27, -4.01 pct
The apparel retailer’s first-quarter net sales fell 3 percent as a stronger dollar reduced the value of sales from markets outside the United States.
** VERASTEM INC, $7.88, -5.63 pct
The drug developer reported a bigger-than-expected first quarter loss late on Monday, hurt by a 16 percent jump in expenses.
** ITT EDUCATIONAL SERVICES INC, $2.5, -37.81 pct
The U.S. Securities and Exchange Commission on Tuesday announced fraud charges accusing the for-profit college operator and two top executives of fraudulently concealing the poor performance of two student loan programs that the company financially guaranteed.
** SPECTRUM PHARMACEUTICALS INC, $6.7, +10.56 pct
Armistice Capital LLC disclosed a 5.4 percent stake in the cancer drug maker and asked it to initiate complete or partial sale. Armistice suggested measures, including job cuts, reduction in management compensation and curtailing research, to improve the company's performance. (1.usa.gov/1ATJS3h)
** DEPOMED INC, $20.27, -16.96 pct
The drugmaker posted a surprise first-quarter adjusted loss, hurt by a fall in revenue and higher costs.
RBC Capital Markets cut its price target on the company’s stock to $26 from $29.
** BHP BILLITON LTD, $52.01, +1.80 pct
The world’s largest mining company said on Tuesday that it would slash its iron ore production cost further and cut spending to better withstand a downturn in commodity prices.
** VIMPELCOM LTD, $5.69, +7.97 pct
The company and Hutchison Whampoa Ltd reached a consensus on senior management jobs in a bid to reach an agreement on merging their Italian mobile phone businesses, Bloomberg reported, citing people familiar with the matter. (bloom.bg/1E3DuX6)
** JG WENTWORTH CO, $9.72, -7.25 pct
The specialty financing company reported a first-quarter loss, compared with a year-ago profit, as it earned lower interest income and fees. “Adjusted net income was impacted by lower spread revenues and investments in the company’s transformation,” Chief Financial Officer John Schwab said.
** ARROWHEAD RESEARCH CORP, $6.455, -3.51 pct
The drug developer’s second-quarter loss more than doubled as costs rose, while revenue stayed flat. Research and development and acquired in-process R&D costs soared in the quarter, meaning total operating costs more than doubled.
** CLEAN ENERGY FUELS CORP, $8.65, -2.15 pct
The company, which provides natural gas to fuel vehicles, reported a bigger-than-expected first quarter loss due to a delay in the timing of revenue from projects and lower commodity prices.
** HERTZ GLOBAL HOLDINGS INC, $20.02, -3.05 pct
The car rental company said it did not file its first-quarter results on Monday due to an ongoing review of financials for 2011, 2012 and 2013. The review could impact its 2014 and 2015 financial results as well, the company said.
** ENCANA CORP, $14.2, +2.38 pct
Canada’s largest natural gas producer posted a surprise quarterly operating profit as investments in technology to lower well costs and increase production begin paying off.
** PARTNERRE LTD, $135.54, +1.57 pct
** AXIS CAPITAL HOLDINGS, $55.61, +0.76 pct
Italian holding company Exor has raised its all-cash offer for Bermuda-based reinsurer PartnerRe to $137.5 per share after its previous attempt to trump a bid by Axis Capital was rejected. (Compiled by Anet Josline Pinto in Bengaluru; Editing by Kirti Pandey)