(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) The Dow and S&P were unchanged, while Apple dragged down the Nasdaq on Tuesday, as investors worried about China's economic health and braced for an interest rate hike by the Federal Reserve next month.
Dow Jones industrial average futures were up 0.03 percent at 17,681, S&P 500 futures were up 0.05 percent at 2,074 and Nasdaq 100 futures were down 0.41 percent at 4,633.5.
** APPLE INC, $117.515, -2.53 pct
** AVAGO TECHNOLOGIES LTD, $121.76, -3.75 pct
** CIRRUS LOGIC, $30.1, -6.55 pct
** QORVO, $52.54, -2.87 pct
** SKYWORKS SOLUTIONS INC, $80.886, -4.72 pct
Credit Suisse is the latest broker to note weakening demand for the iPhone 6s leading to cuts in component orders from Apple to its Asian suppliers. CS’s comments follow HSBC on Monday, which said that iPhone 6s and 6s Plus adoption after about 40 days of being on sale has been worse than the iPhone 6 and only marginally better than the iPhone 5. Supply chain stocks fell on the commentary.
** CHIPOTLE MEXICAN GRILL INC, $626.04, +2.75 pct
Chipotle said it would reopen all 43 restaurants in Seattle and Portland after health officials found no evidence of E. coli bacteria at those outlets.
** ATMEL CORP, $7.305, -4.63 pct
Activist hedge fund Elliott has disclosed a 2.9 percent stake in Anglo-German chipmaker Dialog Semiconductor and says it will rally co-shareholders to vote against the acquisition of U.S. peer Atmel.
** ARCH COAL INC, $1.539, -1.35 pct
The second largest coal miner in the United States, said on Monday that it could follow its smaller peers into bankruptcy in the near term, even if current talks with creditors yield a restructuring agreement.
** LIONS GATE ENTERTAINMENT CORP, $39.79, +3.94 pct
The movie studio behind “Hunger Games” franchise reported lower-than-expected Q2 revenue and posted an unexpected loss, hurt by the underperformance of “American Ultra”, higher marketing costs for “Sicario” and a $7.2 million write-down on “The Last Witch Hunter”.
** GAP INC, $26.85, -3.03 pct
The apparel retailer reported lower-than-expected Q3 sales, hurt by a strong dollar, while October comparable sales fell much more than expected due to a steep decline in comparable sales at the Banana Republic chains.
** TUBEMOGUL INC, $13, +4.33 pct
The advertising software maker reported better-than-expected Q3 revenue, helped by higher sales from platform services business where it executes its customers’ advertising campaign. The company also forecasts Q4 revenue above analysts’ estimate.
** SCIENTIFIC GAMES CORP, $9.15, -20.92 pct
The slot machine maker reported a much bigger Q3 net loss, mainly due to a $535 million goodwill impairment charge associated with recent acquisitions.
Deutsche Bank said the chare was a “eyes wide open moment” and “call out the reality that future cash flows will be lower than previously articulated”.
** NORFOLK SOUTHERN CORP, $86.85, -2.00 pct
** CANADIAN PACIFIC RAILWAY LTD, $140.73, -1.02 pct
Canadian Pacific is exploring a potential acquisition of U.S. peer Norfolk Southern, a person familiar with the matter said on Monday. The two rail companies have held preliminary merger talks, but there is no certainty that negotiations will advance, the person said.
** MCDERMOTT INTERNATIONAL INC, $5.71, +8.76 pct
The energy-focused construction company won a brownfield contract from RasGas Co Ltd for engineering, procurement, construction and installation (EPCI) of a project, offshore Qatar. McDermott also reported better-than-expected Q3 results.
** RACKSPACE HOSTING INC, $31.21, +15.21 pct
The web-hosting company reported Q3 revenue and profit above analysts’ estimates, helped by higher demand for its online storage space offering. The company also said it intends to offer $350 million of senior notes due 2024.
** EXONE CO, $8.63, -17.26 pct
The 3D printer maker reported a bigger-than-expected Q3 loss, hurt by higher costs, and also forecast 2015 revenue below analysts’ average estimate.
** NEVRO CORP, $50.46, +6.59 pct
The medical device maker reported better-than-expected Q3 revenue, driven by increased demand for its spinal cord stimulator. It also forecasts 2015 revenue above analysts’ estimates.
** KEYW HOLDING CORP, $6.81, -7.85 pct
The cyber-security software and hardware maker reported a bigger-than-expected loss and also lowered its revenue expectations for the year from its government and commercial businesses.
** SCICLONE PHARMACEUTICALS INC, $10.1616, +27.18 pct
The drugmaker said Q3 revenue jumped 25 percent, boosted by increased sales of lead drug Zadaxin, and the company also raised its FY 2015 adjusted EPS forecast.
** LEAPFROG ENTERPRISES INC, $0.76, -14.61 pct
The toy maker said it says it continues to explore all available financial, strategic and structural alternatives after it reported lower-than-expected Q2 sales hurt by significant markdown to support its promotion plans for LeapTV. The company said international sales continue to be impacted by the closure of Target stores in Canada and that 2016 sales would “contract considerably” relative to the prior year.
** REAL GOODS SOLAR INC, $0.71, -39.32 pct
The SEC has subpoenaed the solar company on June 29, asking for documents related to investigation into a July 2014 pipe offering.
** BARRETT BUSINESS SERVICES INC, $35.1611, -33.34 pct
The business management services provider said its accounting firm, Moss Adams LLP, has information, which indicates an illegal act has or may have occurred regarding BBSI’s workers’ compensation expense reserve. Barrett said in May that SEC was investigating its accounting practices with regard to worker compensation reserves.
** OPKO HEALTH INC, $10.6, +6.53 pct
The drug developer posted an unexpected Q3 profit, helped by several non-recurring and non-cash activities, on significantly higher revenue that beat analysts’ expectations. Revenue was boosted by recently acquired Bio-Reference Labs and EirGen and also income from a collaboration with Pfizer Inc.
** SUNEDISON INC, $6.9, -6.76 pct
The U.S. solar company said it would reduce sales of renewable energy assets to its “yieldcos” until market conditions improved.
** D.R. HORTON INC, $29.41, +2.22 pct
The largest U.S. homebuilder reported a near 44 percent jump in profit for the fourth quarter as the company sold more homes and it said orders rose 19 percent.
** MOTOROLA SOLUTIONS INC, $68.28, +0.12 pct
Activist investor ValueAct, the largest shareholder in the walkie-talkie maker, said the company’s shares were undervalued and that it would talk to its board about ways to enhance shareholder value.
** VALEANT PHARMACEUTICALS INTERNATIONAL INC, $83.23, -2.55 pct
The beleagured Canadian drugmaker said cutting ties with Philidor Rx Services, a controversial specialty pharmacy, will hurt its dermatology business in the short term.
** MALLINCKRODT PLC, $57.01, -1.72 pct
Mallinckrodt tumbled 17 percent on Monday after influential short-seller Citron Research called the drugmaker “a far worse offender of the reimbursement system”. Earlier in October, Citron had accused Valeant Pharmaceuticals of using specialty pharmacies to inflate revenue.
** ROCKWELL AUTOMATION, $103.6, -3.89 pct
Automation systems maker reported Q4 profit, revenue below analysts’ estimates due to a fall in sales in control products and solutions business, its biggest. The company also forecast 2016 adjusted profit and sales below estimates, citing weak oil and gas markets, strong dollar and continued weakness in its key emerging markets.
** OCATA THERAPEUTICS INC, $8.42, +88.79 pct
Japan’s Astellas Pharma Inc said late on Monday that it would buy the cell therapy developer in all-cash deal valued at about $379 mln to build presence in opthalmology market.
** CANADIAN SOLAR INC, $23.52, +2.13 pct
The solar company posted better-than-expected Q3 profit and revenue, helped by strong demand for modules from U.S., Japan, China and India.
** GALENA BIOPHARMA INC, $1.45, -15.70 pct
The oncology drug developer said it planned to divest its commercial business, which comprises Abstral and Zuplenz tablets used for treating cancer pain and prevention of nausea and vomiting caused by surgery, and posted a bigger-than-expected Q3 loss.
** SOPHIRIS BIO INC, $2.62, +204.19 pct
The drug developer said its experimental drug met the main goal of improving symptoms in men suffering from benign prostatic hyperplasia, or enlarged prostate, in a late-stage study. Similar results in a separate late-stage study for PRX302 could support U.S. approval, Sophiris said.
** ANAVEX LIFE SCIENCES CORP, $3.94, -36.45 pct
The drug developer’s stock closed down 24 percent lower on Monday after TheStreet columnist Adam Feuerstein said Anavex presented “meaningless” data on its Alzheimer’s drug. The company had said its experimental oral drug met main goal of being safe and well-tolerated in mid-stage study.
** CYBERARK SOFTWARE LTD, $42.2301, -5.69 pct
BofA Merrill Lynch cuts its rating on the Israel-based cyber security software maker to ”neutral“ from ”buy“, and price target to $48 from $80, citing ”concerns over earnings in the next few quarters. “The market is also showing some signs of fatigue, with Barracuda Networks Inc and FireEye Inc reporting on disappointing revenues and Fortinet Inc disappointing on margins,” analysts wrote. (Reporting by Natalie Grover in Bengaluru; Editing by Savio D‘Souza)