October 21, 2015 / 3:46 PM / 2 years ago

BUZZ-U.S. STOCKS ON THE MOVE-Valeant, SolarWinds, Pearson, Athersys

(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. stocks were little changed on Wednesday as healthcare stocks resumed their slide for a second day, offsetting gains by General Motors and technology stocks. Dow Jones industrial average futures were up 0.47 percent at 17,188, S&P 500 futures were up 0.33 percent at 2,027.25 and Nasdaq 100 futures were up 0.51 percent at 4,447.5.

** FERRARI, $56.97, +9.56 pct

Shares of the company opened at $60 in debut, more than 15 percent above the IPO price of $52/share.

** GENERAL MOTORS CO, $35.17, +5.05 pct

The company reported record quarterly earnings before charges for the third quarter, as strong demand for trucks in North America and improved profit margins in China overcame declining revenues.


Shares of Valeant plunged after a short-seller released a report accusing the company of fraud.

** SOLARWINDS INC, $58.51, +16.55 pct

The IT management software maker said it agreed to be taken private by investment firms Silver Lake Partners and Thoma Bravo LLC for $4.5 billion.

** PEARSON PLC, $15.43, -16.10 pct

The company said earnings would be worse than expected, partly because fewer students were enrolling at U.S. colleges.

** LAM RESEARCH, $73.935, +5.58 pct

** KLA-TENCOR CORP, $66, +22.54 pct

Semiconductor equipment maker Lam Research said it agreed to buy rival KLA-Tencor in a cash and stock deal valued at about $10.6 billion. Under the deal terms, KLA-Tencor shareholders can opt for $32 in cash, or 0.5 of a share of Lam’s shares, or a combination of two.

** VMWARE INC, $55.87, -18.75 pct

** EMC CORP, $26.15, -4.87 pct

Virtualization software maker VMware forecast lower-than-expected revenue for the current quarter, prompting a slew of rating and price target cuts. Berenberg analysts say the announcement of a JV between the company and parent EMC makes preliminary 2016 guidance “messy and hard to decipher”.

EMC reported EPS and revenue lower than analysts’ estimates.

** CHIPOTLE MEXICAN GRILL INC, $658.52, -6.68 pct

At least 5 brokerages cut price target on the burrito chain’s stock by as much as $40 to as low as $660 after company posted a weaker-than-expected third quarter profit and said same-store sales growth would cool further in 2016.

** SUPERVALU INC, $6.955, -3.54 pct

The grocery wholesaler reported lower-than-expected second quarter profit and sales, hurt by a fall in same-store sales in Save-A-Lot and retail food businesses.

** SYNTA PHARMACEUTICALS CORP, $0.5657, -72.27 pct

The drugmaker has decided to end a late-stage trial of its lung cancer treatment after an independent review said it proved ineffective.

** INTUITIVE SURGICAL INC, $508.49, +7.50 pct

The robotic surgical equipment maker reported better-than-expected third quarter profit and revenue, benefiting from increasing use of its flagship da Vinci systems.

** ATHERSYS INC, $0.99, -10.00 pct

The stem cell therapy developer said it ended development of its stem cell therapy product with Japan’s Chugai Pharmaceutical Co Ltd.

** ST. JUDE MEDICAL INC, $63.05, -7.77 pct

The heart device maker forecast a lower-than-expected adjusted profit for the fourth quarter and the full year due to a strong dollar. The company expects fourth-quarter earnings of $1.00-$1.02 vs estimate of $1.07.

** XOMA CORP, $1.065, +6.50 pct

The drug developer entered into licensing agreement with Novartis that adds Xoma’s TGF-beta inhibition programs to the Swiss drugmaker’s immuno-oncology portfolio.

** WESTERN DIGITAL CORP, $75.3, +0.59 pct

** SANDISK CORP, $77.2, +2.67 pct

Hard disk drive maker Western Digital said it would buy memory chip maker SanDisk in a deal valued at about $19 billion, the latest in a wave of consolidation in the chip-making industry.

** ARM HOLDINGS, $47.34, +5.74 pct

The British chip designer, whose technology powers Apple’s iPhone, beat market expectations with a 27 percent rise in third-quarter profit and said it was confident it could keep outperforming rivals.

** YAHOO INC, $31.465, -4.16 pct

The company said on Tuesday it had signed a search advertising deal with Google Inc, providing a potential boost to Marissa Mayer’s efforts to turn around the company, which also reported revenue and profit that fell short of market estimates.

** THERMO FISHER SCIENTIFIC INC, $126.49, -1.66 pct

The world’s largest maker of scientific instruments on Wednesday reported a third-quarter profit that narrowly beat Wall Street expectations and raised the low end of its full-year earnings forecast to reflect the contribution of an acquisition.

** STARBICKS CORP, $60.85, -0.05 pct


Europe’s competition chief ordered the Netherlands to recover 20-30 million euros in back taxes from Starbucks on Wednesday and told Luxembourg to claim the same amount from Fiat Chrysler, saying their favorable tax arrangements breached the bloc’s rules.

** CREDIT SUISSE, $25.13, -3.20 pct

Credit Suisse plans to raise 6 billion Swiss francs ($6.3 billion) from investors, slim down its investment bank and cut jobs as new chief Tidjane Thiam embarks on the biggest overhaul of the Swiss bank in almost a decade. (Compiled by Manish Parashar in Bengaluru; Editing by Maju Samuel)

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