(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 lower early on Tuesday afternoon, dragged down by Apple, as investors braced for an interest rate hike by the Federal Reserve next month and fretted about weakening demand in China.
Dow Jones industrial average futures were down 0.11 percent at 17,655, S&P 500 futures were down 0.13 percent at 2,070.25 and Nasdaq 100 futures were down 0.62 percent at 4,623.75.
** APPLE INC, $116.63, -3.27 pct
** AVAGO TECHNOLOGIES LTD, $121.63, -3.85 pct
** CIRRUS LOGIC, $29.24, -9.22 pct
** QORVO, $51.8, -4.23 pct
** SKYWORKS SOLUTIONS INC, $80.54, -5.12 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.
** VALEANT PHARMACEUTICALS INTERNATIONAL INC, $84.62, -0.93 pct
** MALLINCKRODT PLC, $61.96, +6.81 pct
Influential short seller Citron Research’s Andrew Left told CNBC that he has been short on Mallinckrodt on and off for nearly four years. Mallinckrodt’s stock plunged 26 pct on Monday after Citron tweeted the drugmaker was “a far worse offender of the reimbursement system” than Valeant. Left said his short on Valeant has been significantly scaled down, but raised no fresh concerns on Mallinckrodt.
Valeant’s chief executive said on Tuesday cutting ties with a controversial specialty pharmacy will hurt its dermatology business in the short term.
** RESTAURANTS BRANDS INTERNATIONAL INC, $35.13, -1.51 pct
** YUM BRANDS INC, $68.39, -0.88 pct
** WENDY’S CO, $9.365, -0.48 pct
** GOOD TIMES RESTAURANTS INC, $4.62, -7.23 pct
** HABIT RESTAURANTS INC, $23.77, -4.46 pct
** SHAKE SHACK INC, $47, -3.19 pct
** EL POLLO LOCO HOLDINGS INC, $11.39, -2.90 pct
Shares of fast-food chain operators fell on a nationwide protest by fast-food workers, demanding $15 an hour minimum wage and union rights. Organizers of the “Fight for $15” campaign said the strikes on Tuesday would be followed by rallies in 500 cities, aimed at gaining candidates’ support heading into the 2016 U.S. presidential election.
** WAYFAIR INC, $39.67, -13.46 pct
Short seller Whitney Tilson called the online home furnishing retailer his biggest short position and predicted the stock will trade below $10 within a year. Wilson is second short seller after Andrew Left’s Citron Research to predict it will fall below $10. The call on the stock overshadowed the company’s better-than-expected Q3 revenue.
** SOPHIRIS BIO INC, $2.639, +206.40 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.
** OCATA THERAPEUTICS INC, $8.435, +89.13 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.
** ANAVEX LIFE SCIENCES CORP, $4.54, -26.77 pct
The drug developer’s stock closed down 24 percent lower on Monday, reversing course from premarket, 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.
** FLOTEK INDUSTRIES INC, $9.27, -36.51 pct
The specialty chemicals and drilling equipment distributor said it has carefully reviewed recent report on validity of data from its FracMax database. The analysis suggests production data for 3 of wells were misinterpreted and that it understated production of those wells.
** BELLICUM PHARMACEUTICALS INC, $19.815, +18.23 pct
The drug developer said interim data from an early-stage trial showed patients with blood cancers and inherited blood diseases were disease-free after a stem cell transplant with company’s lead drug.
** AEGERION PHARMACEUTICAL INC, $10.2, -22.26 pct
The drug developer said it expects to set aside funds to settle a U.S. government probe and that it breached some covenants on $25 million loan. Aegerion also said the use of its cholesterol drug, Juxtapid, fell in the U.S. as more patients switched to a new therapy.
** SCICLONE PHARMACEUTICALS INC, $9.8781, +23.63 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, $0.6901, -22.46 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, $0.64, -45.30 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, $37.4899, -28.93 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.
** RIGNET INC, $24.07, -24.19 pct
The provider of network infrastructure services for oil and gas companies reported lower-than-expected Q3 revenue and profit.
** SCIENTIFIC GAMES CORP, $9.37, -19.01 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”.
** MCDERMOTT INTERNATIONAL INC, $5.87, +11.81 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.
** EXONE CO, $8.13, -22.05 pct
** 3D SYSTEMS CORP, $9.68, -4.06 pct
** STRATASYS LTD, $25.05, -6.29 pct
** VOXELJET AG, $5.68, -6.43 pct
3D printer maker ExOne reported a bigger-than-expected Q3 loss, hurt by higher costs, and also forecast 2015 revenue below analysts’ average estimate.
The report also weighed on other 3D printer makers.
** EMC CORP, $25.54, -1.12 pct
** VMWARE INC, $59.4, -0.10 pct
Dell Inc’s $67 billion offer for EMC could run into a big tax barrier of up to $9 billion that could derail the deal, technology news website Re/code reported, citing sources familiar with the matter. VMware is majority owned by EMC.
** C1 FINANCIAL INC, $24.18, +17.09 pct
** BANK OF THE OZARKS INC, $53.52, +1.42 pct
Bank of the Ozarks said it would acquire Florida-based C1 Financial and its unit, C1 Bank, in an all-stock deal valued at about $402.5 million.
** RACKSPACE HOSTING INC, $30.85, +13.88 pct
The web-hosting company reported Q3 revenue and profit above analysts’ average estimate, 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.
** GAP INC, $26.65, -3.76 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.
** LIONS GATE ENTERTAINMENT CORP, $40.05, +4.62 pct
Liberty Global Plc and Discovery Communications Inc to purchase 5 million shares of Lions Gate, resulting in each having about 3.4 percent shareholding in the movie studio behind the “Hunger Games” franchise.
** NEVRO CORP, $50.98, +7.69 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, $6.675, -9.68 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.
** OPKO HEALTH INC, $10.45, +5.03 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, $5.86, -20.81 pct
The U.S. solar company said it would reduce sales of assets to its “yieldcos”, raising fresh concerns about its ability to fund its operations, projects and acquisitions.
** D.R. HORTON INC, $30.84, +7.20 pct
** BEAZER HOMES USA, $13.69, +1.33 pct
** TOLL BROTHERS, $35.11, +1.95 pct
** KB HOME, $13.3, +4.15 pct
** PULTEGROUP, $18.04, +2.73 pct
** LENNAR, $48.69, +1.86 pct
** MDC HOLDINGS, $25.69, +2.51 pct
** MERITAGE HOMES, $34.89, +1.72 pct
D.R. Horton, 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. D.R. Horton said on conference call with analysts that labor costs likely to be a challenge but that can offset higher costs with higher prices. Stocks of other homebuilders also rose.
** ROCKWELL AUTOMATION, $103, -4.44 pct
Automation systems maker reported Q4 profit, revenue below analysts’ estimates due to a 10.7 pct fall in sales in control products and solutions business, the company’s 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.
** GALENA BIOPHARMA INC, $1.48, -13.95 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 and posted a bigger-than-expected Q3 loss.
** CYBERARK SOFTWARE LTD, $40.48, -9.60 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.
** JAZZ PHARMACEUTICALS PLC, $134.3775, -4.01 pct
The drug developer posted lower-than-expected Q3 profit and revenue on Monday and lowered the upper end of 2015 revenue forecast.
** OVERSTOCK.COM, $14.07, -17.24 pct
The online retailer reported a Q3 loss, compared with profit year earlier and in Q2, as operating and litigation expenses rose.
** QT MIDSTREAM PARTNERS, $71.49, -6.17 pct
The pipeline company’s first follow-on equity offering in two months was priced and its units fell to trade roughly in line with their offering price.
** ACETO CORP, $26.05, -5.65 pct
The company said it planned to privately place convertible senior notes of about $125 million, but provided no details on when the offering would be priced.
** PTC THERAPEUTICS INC, $29.16, +6.19 pct
The drugmaker said on Monday that it planned to complete regulatory submissions to the FDA and EMA on the Translarna trial for muscle wasting disorder Duchenne Muscular Dystrophy by year-end.
** RENTECH INC, $3.8859, -32.18 pct
The nitrogen fertilizer maker posted an bigger Q3 loss on Monday, hurt by asset impairment charges.
** PUMA BIOTECHNOLOGY INC, $80.46, -11.52 pct
The cancer drug developer late on Monday posted a bigger Q3 loss, hurt by a 68 percent jump in operating expenses.
** ASTRONICS CORP, $43.26, +6.32 pct
The aircraft cabin electronics supplier reported a better-than-expected Q3 profit, helped by higher margins and lower costs.
** CARA THERAPEUTICS INC, $17.58, +11.41 pct
The biotechnology company posted a smaller-than-expected Q3 loss and its revenue beat analysts’ estimates, helped by license and milestone fee payments.
** PLUG POWER INC, $1.9943, -15.67 pct
Roth Capital Partners analysts cut their price target on the stock after the fuel cell maker reported a bigger-than-expected Q3 loss on Monday. Roth expects gross margins in fuel cell servicing business to hurt the company for the foreseeable future.
** HALOZYME THERAPEUTICS INC, $15.81, -11.58 pct
The drug developer reported a bigger-than-expected Q3 loss as operating expenses surged.
** TURTLE BEACH CORP, $2.055, -20.04 pct
The headset maker said it expects its 2015 revenue from its headset business to fall year-over-year, hurt by weakness in European and Australian markets, and a delay in certain investments in China.
** ATWOOD OCEANICS INC, $18.86, +11.20 pct
The offshore drilling company reported a 12.3 percent rise in Q3 revenue on Monday, helped by higher contract drilling. revenue
** GULFMARK OFFSHORE INC, $5.35, -10.83 pct
The company posted a bigger-than-expected Q3 loss on Monday. Iberia Capital Partners expects GulfMark to face prolonged supply and demand imbalance in North Sea, and budget issues in Brazil and Mexico.
** QIWI PLC, $17.615, +10.16 pct
The Russian payment services provider reported a better-than-expected Q3 profit, helped by higher payment volumes in its online and money remittances businesses.
** Amaya Inc, $15.98, -32.17 pct
The Canadian gaming company cuts its 2015 forecast due to a strong dollar, financial headwinds in Portugal and Greece and postponing the launch of its sportsbook. Amaya also reported lower-than-expected Q3 results.
** SURMODICS INC, $24.59, +11.67 pct
The medical device maker reported better-than-expected Q4 revenue and adjusted profit, driven by higher sales in its medical device business.
** ASCENT CAPITAL GROUP, $17.95, -21.34 pct
The home security firms operator posted a much bigger Q3 loss as costs rose mainly at its at LiveWatch unit, which is a do-it-yourself home security firm. (Reporting by Natalie Grover in Bengaluru; Editing by Savio D’Souza)