(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) Wall Street was slightly lower on Tuesday as healthcare and biotech stocks fell, offsetting gains by Verizon and United Technologies. Dow Jones industrial average futures were down 0.04 percent at 17,111, S&P 500 futures were down 0.37 percent at 2,020 and Nasdaq 100 futures were down 0.85 percent at 4,416.75.
** UNITED TECHNOLOGIES CORP, $96.45, +4.78 pct
Lockheed Martin Corp and the company said they expected to finalize Lockheed’s acquisition of Sikorsky Aircraft by the end of the year.
** VERIZON COMMUNICATIONS INC, $45.33, +1.41 pct
The company reported better-than-expected quarterly results as heavy promotions helped the wireless company add monthly subscribers amid heated competition from rival carriers.
** INTERNATIONAL BUSINESS MACHINES CORP, $141.21, -5.37 pct
At least 9 brokerages cut their price targets on the stock after the world’s largest technology services company posted a bigger-than-expected drop in third quarter revenue late on Monday for the fifth straight quarter. “While IBM is another quarter along in its transition and seeing good growth in several strategic areas, it is not yet sufficient enough to offset the pressures in the legacy businesses,” Wells Fargo Securities analysts wrote.
** HEALTHSTREAM INC, $26.305, +13.24 pct
The healthcare software company raised its full-year revenue growth forecast on Monday to 19-22 percent from 18-21 percent. The company also reported better-than-expected third quarter revenue and profit, helped by higher subscriptions.
** HIGHER ONE HOLDINGS INC, $2.75, +32.85 pct
The company said on Monday it would sell its Campus Labs data analytics business to an affiliate of Leeds Equity Partners for $91 million in cash.
** ENERGY RECOVERY INC, $6.36, +158.54 pct
The company on Monday signed a $125 million deal with a unit of Schlumberger NV. Under the 15-year deal, Schlumberger will have sole access to Energy Recovery’s VorTeq technology that allows companies to avoid having to run the thick mixture of sand, water and chemicals used for hydraulic fracturing through pumps, the company said.
** HELIX ENERGY SOLUTIONS GROUP INC, $6.79, +31.33 pct
The offshore energy services company reported higher-than-expected third quarter earnings on Monday, helped by lower costs.
** FIRST CASH FINANCIAL SERVICES INC, $37.68, -10.63 pct
The pawn store operator reported weaker-than-expected third quarter profit.
** ENPHASE ENERGY INC, $3.855, -22.59 pct
Deutsche Bank cut the solar microinverter system maker’s stock to “sell” from “hold” and cuts price target to $3 from $6, citing near-term decline to margins. The brokerage said Enphase needed to invest in R&D for new micro inverters and AC storage products even as it tries to control costs.
** PROGRESSIVE WASTE SOLUTIONS LTD, $22.435, -17.12 pct
The Canadian waste management company estimated third-quarter revenue below analysts’ expectations, hurt by higher operating costs. The company also cut full-year adjusted EBITDA forecast to $480 million-$485 million from $500-$515 million.
** CORBUS PHARMACEUTICALS HOLDINGS INC, $1.93, +9.66 pct
The U.S. FDA granted orphan drug and fast-track statuses to company’s lead experimental drug, Resunab, for treatment of cystic fibrosis. Resunab was granted fast-track status in August to treat scleroderma, a potentially fatal inflammatory disorder that has no treatment in market so far.
** WESTERN DIGITAL CORP, $74.435, -7.51 pct
** SANDISK CORP, $75.2, +4.44 pct
Hard disk drive maker Western Digital is in advanced talks to acquire memory chipmaker SanDisk, people familiar with the matter said on Monday, as a frenzy of dealmaking in the semiconductor sector continued.
** RAMBUS INC, $9.995, -28.04 pct
The memory chip and security product maker reported lower-than-expected third quarter profit and revenue late on Monday, hurt by lower sales of security products. It also forecast fourth quarter revenue below average analysts’ estimate.
** ALLEGHENY TECHNOLOGIES INC, $14.65, -13.72 pct
The specialty metal producer reported a third quarter revenue drop of 22.1 percent, largely due to a decline in sales of flat-rolled products as demand fell from oil and gas markets.
** BOSTON BEER CO INC, $254.57, +5.48 pct
Goldman Sachs upgraded the beer maker’s stock to “neutral” from “sell”, saying “innovation ramp across beer and non-beer should drive sales and earnings upside in 2016”.
** HEXCEL CORP, $42.02, -8.65 pct
The carbon fibre and composite materials maker reported third-quarter profit and revenue lower than expected, hurt by a fall in sales in industrial, and space and defence businesses. It also cut 2015 sales and profit forecasts, citing weakness in space and defence business.
** TOWER SEMICONDUCTOR LTD, $13.5, +4.98 pct
Drexel Hamilton initiated coverage on the Israeli chipmaker’s stock with a “buy” rating and price target of $28, saying it is one of the most interesting and undervalued companies in the industry. “TSEM has become a high-growth, high-return, stable cash-generating engine, yet the lack of mass exposure & the hesitancy of investors over Chinese volatility has created an opportunity to build positions,” analyst Cody Acree wrote.
** FLEXTRONICS INTERNATIONAL LTD, $11.935, +6.56 pct
The contract electronics manufacturer reported better-than-expected second quarter revenue and profit on Monday, helped by higher revenue in its integrated network solutions business, which provides technology and services for cloud computing. The company also estimated third quarter revenue and profit above analysts’ expectations.
** HORIZON PHARMA PLC, $15.17, -20.45 pct
The drugmaker among companies that use specialty drug distributors to work around barriers to high prices, the New York Times reported.
** DOVER CORP, $61.83, +7.14 pct
The industrial equipment maker reported a better-than-expected third quarter profit as income tax provisions fell 36 percent.
** BADGER METER INC, $56.84, -5.49 pct
The flow measurement maker reported lower-than-expected third quarter profit and revenue due to higher tax rate, lower sales of higher-priced products and as sales of municipal water products were hit due to “product issue” at one of the company’s alliance partners. The company said about $4.5 million in potential sales were delayed in the quarter.
** SONIC CORP, $28.68, +7.74 pct
The drive-in restaurant chain operator raised forecast for fiscal 2016 profit growth to 16-20 percent from 14-18 percent and reported better-than-expected fourth quarter profit and revenue.
** TILE SHOP HOLDINGS INC, $14.96, +14.64 pct
The tile maker reported third quarter net sales and earnings per share above analyst expectations, helped by a 9.7 percent rise in same-store sales and reduced discounting. It forecast full year 2015 net sales between $289 million and $292 million, up from its earlier forecast of $275 million-$290 million.
** ASTEC INDUSTRIES INC, $32.63, -5.61 pct
The road building equipment maker reported lower-than-expected third quarter profit and revenue.
** SIGNAL GENETICS INC, $0.98, +5.03 pct
The diagnostic test maker said it expanded reimbursement network for its cancer detection test, MyPRS, and will provide coverage to over 21 million multiple myeloma patients across the United States.
** MARATHON PETROLEUM CORP, $47.44, -3.30 pct
** ALON USA ENERGY INC, $16.2, -2.06 pct
** PBF ENERGY INC, $30.77, -4.17 pct
** WESTERN REFINING INC, $43.47, -1.96 pct
** VALERO ENERGY CORP, $60.3, -1.84 pct
** TESORO CORP, $100.73, -1.77 pct
** HOLLYFRONTIER CORP, $46.67, -2.06 pct
Analysts at Simmons & Co cut rating on a number of U.S. refiner stocks and reduced their earnings estimates for the companies, citing weak refining margins. The analysts said limited November/December refinery maintenance create downside risk to fourth-quarter earnings, while flat or declining U.S. oil production reduce growth opportunities for refiners.
** YUM BRANDS INC, $73.5, +2.50 pct
The KFC owner said it planned to split off its China business, which has been besieged by food scandals and marketing missteps, bowing to pressure from an activist shareholder.
** HARLEY-DAVIDSON INC, $48.46, -13.54 pct
The motorcycle maker posted lower quarterly net profit as global new motorcycles sales fell more than 1 percent. It expected to ship 265,000-270,000 motorcycles to dealers and distributors worldwide in 2015, down from 276,000-281,000 forecast previously.
** FITBIT INC, $39.09, +4.49 pct
The company said it added over 20 new enterprise customers in the last four months, including Barclays Plc. It said Barclays would offer Fitbit’s activity trackers to more than 75,000 employees in US and UK as part of the bank’s global wellness program.
** TEAMHEALTH HOLDINGS INC, $61.455, +17.06 pct
** AMSURG CORP, $74.2789, -4.88 pct
AmSurg proposed a $5.3 billion merger with TeamHealth as it looks to add heft to its business that provides doctors to hospitals and other healthcare services.
** TRAVELERS COS INC, $108.93, +2.45 pct
The property and casualty insurer reported a better-than-expected quarterly profit, helped by higher underwriting gains.
** ASTRAZENECA PLC, $30.83, -4.25 pct
Credit Suisse cuts the company’s primary stock to “underperform” from “neutral” on worries over pricing. Astra struggles across the board with a portfolio in transition, high generic erosion and exposure to low pricing power in a number of key categories, Credit Suisse said.
** MAGNEGAS CORP, $1.4, +13.82 pct
The alternative fuel maker said its second production facility will be operational from this week to fulfil increasing demand from customers.
** FIAT CHRYSLER AUTOMOBILES NV, $15.86, -3.70 pct
Luxury sportscar unit Ferrari’s IPO could be priced as high as $53 per share, valuing the company at $10 billion, CNBC reported, citing sources. Fiat Chrysler had filed to sell up to 10 percent of Ferrari at $48-$52 per share, which would have valued the unit up to $9.8 billion. (Compiled by Manish Parashar in Bengaluru; Editing by Maju Samuel)