July 8, 2013 / 2:46 PM / in 4 years

MARKET PULSE-Dell, Luna Innovations, solar stocks, ClickSoftware

(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; for the Morning News Call newsletter, link.reuters.com/vax49t)

July 8 (Reuters) - Some U.S. stocks on the move on Monday:


U.S. stocks rose, putting the S&P 500 on pace for its third straight advance after a robust June payrolls report and before the start of quarterly earnings reports after the market’s close. The Dow Jones industrial average rose 0.49 percent, the Standard & Poor’s 500 Index gained 0.46 percent and the Nasdaq Composite Index added 0.41 percent.

** DELL INC, $13.34, up 2.37 pct (0931 ET)

Investment advisory firm ISS has recommended Dell shareholders vote in favor a $24.4 billion offer for the PC maker from founder and Chief Executive Michael Dell, the company’s special committee said on Monday.

** INTEL CORP, $23.44, down 2.5 pct (1035 ET)

Analysts at Evercore Partners downgraded the microprocessor company’s stock to “underweight” from “equal weight”, saying near-term PC trends continue to weaken and the company’s Atom chips could in fact accelerate the cannibalization of its core business, resulting in lower profitability.

Intel’s top executives said last month that the company would speed up development and roll-out of its Atom chips for mobile devices, as the computing world moves away from the traditional personal computer.

** SPRINT NEXTEL CORP, $7.11, down 1 pct (0944 ET)


The majority of Sprint Nextel shares elected to receive cash when Japan’s SoftBank Corp takes control of the company. Sprint shareholders voted in favor of the $21.6 billion deal that will give SoftBank 78 percent ownership when the merger closes on July 10.

Separately, Standard & Poor’s cut SoftBank’s debt rating two notches to “junk” grade, citing financial risks from its purchase of Sprint Nextel and Sprint’s proposed buyout of Clearwire.

Meanwhile, Clearwire shareholders are expected to vote on Monday in favor of majority shareholder Sprint’s offer of $5 per share to buy out the company’s minority shareholders.

** ALCOA INC, $7.89, up 1 pct (0935 ET)

The world’s leading aluminum producer reports second-quarter earnings after market closes. Analysts on average are expecting adjusted earnings of 6 cents per share on revenue of $5.9 billion, according to Thomson Reuters I/B/E/S. The company’s earned adjusted profit of 6 cents per share on revenue of $6 billion a year earlier.

** LUNA INNOVATIONS INC, $2.00, up 54 pct (1019 ET)

The technology company said it would receive development milestones through 2015 from surgical robot maker Intuitive Surgical Inc after the companies amended their existing development and supply agreement.

Luna signed the agreement in 2007 to integrate its shape sensing technology, which tracks the position of an optical fiber along its entire length, into Intuitive’s surgical devices.

Over 1.3 million shares of Luna changed hands by 1017 ET, nearly two times their 10-day average moving volume.

** NATUS MEDICAL INC, $12.54, down 12 pct (0935 ET)

The company estimated lower-than-forecast revenue of $81 million to $82 million for the second quarter. It had earlier forecast revenue of $86 million to $90 million for the quarter ended June 30.

** CLICKSOFTWARE TECHNOLOGIES LTD, $7.56, down 10.10 pct (0939 ET)

The maker of workforce management software cut its full-year revenue forecast to between $110 million and $115 million due to a faster-than-anticipated transition to subscription-based revenue from software as a service model and a slow ramp up of revenue from new regions. The Israeli company earlier expected revenue of $120 million to $125 million for the full year.

ClickSoftware also estimated a loss of 8 cents to 10 cents per share on revenue of about $24.5 million for the second quarter. Analysts on average were looking for a loss of 3 cents per share on revenue of $27.8 million, according to Thomson Reuters I/B/E/S.

** TURQUOISE HILL RESOURCES, $5.85, up 7 pct (0954 ET)

The copper-gold miner’s majority shareholder Rio Tinto said it will start exporting copper from the $6.2 billion Oyu Tolgoi mine in Mongolia on Tuesday.

Turquoise Hill Resources owns a 66 percent stake in the mine, with the Mongolian government holding the rest.

The unlocking of ore shipments is key for Rio and Turquoise Hill to secure a further $4 billion in project funding for the expansion of the mine.

** LINN ENERGY LLC, $26.22, up 13 pct (1015 ET)

** LINNCO LLC, $29.50, up $12 pct (1015 ET)

** BREITBURN ENERGY PARTNERS LP, $15.93, up 5 pct (1015 ET)

Analysts at Robert W. Baird & Co upgraded Breitburn and LinnCo, which are involved in buying oil and gas assets, to “outperform” from “neutral”. The upgrades come after Linn Energy and affiliate LinnCo shares suffered losses all of last week due to U.S. regulators inquiry on their financial activities and uncertainty surrounding their buyout of Berry Petroleum Co . Baird analysts said the current low stock prices is an opportunity for long-term investors to buy shares.

BofA Merrill Lynch raised its rating on oil and gas producer Linn Energy’s stock to “buy”.

** CYTOKINETICS INC, $11.99, down 6.4 pct (0938 ET)

The biotechnology company said 58 of the 450 patients enrolled in a mid-stage trial of its experimental drug for an autoimmune disease received placebo instead of the drug, Tirasemtiv.

“This could end up costing them more money, but it’s not going to jeopardize them finishing the trial. They have the cash,” Needham & Co analyst Chad Messer told Reuters.

The programming error in the electronic data system controlling the assignment of the drug has been corrected and an independent data safety monitoring board said there were no concerns regarding safety of those patients, the company said.

** NOODLES & CO, $41.87, down 5.2 pct (1006 ET)

Wedbush Securities initiated coverage of the casual dining chain’s stock with a “neutral” rating and a $35 price target.

“We believe Noodles’ current 187 percent and 98 percent premiums on a P/E and EV/EBITDA basis, respectively, to the restaurant growth group are unwarranted given largely in-line metrics relative to the group,” analysts at Wedbush said.

Noodles’ shares have risen about 21 percent since it went public on June 28.

** JA SOLAR HOLDINGS CO LTD, $8.26, up 4 pct (1020 ET)

** CANADIAN SOLAR INC, $12.41, up 3 pct (1020 ET)

** JINKOSOLAR HOLDING CO LTD, $11.28, up 3 pct (1020 ET)

** YINGLI GREEN ENERGY HOLDING, $3.90, up 3 pct (1020 ET)

** SUNTECH POWER HOLDINGS CO, $1.06, up 3 pct (1020 ET)

Chinese solar companies’s shares continued their rally for the second day on Monday. They gained between 5 percent and 7 percent on Friday after officials from Europe and China said they were moving towards a deal to defuse a conflict over alleged dumping of Chinese solar panels in Europe.

The European Commission, the EU’s executive, accuses China of flooding Europe with billions of euros of cheap solar panels sold at below the cost of production, and has imposed duties that will jump up to punitive levels in August.

** CAMTEK LTD, $2.35, up 3 percent (1010 ET)

The maker of testing products said it received $2.5 million worth of orders from a number of leading chipmakers. The Israel-based company reported revenue of $84.5 million last year.

** AVANIR PHARMACEUTICALS INC, $4.37, up 2.79 pct (0939 ET)

The biotechnology company filed with the U.S. Securities and Exchange Commission to raise up to $150 million through sale of shares of its common and preferred stock, debt and warrants over a period of time.

The company expects to use part of the proceeds to fund commercial activities of its lead drug Nuedexta, the first therapy approved by U.S. health regulators to treat Pseudobulbar Affect. The central nervous system condition is characterized by involuntary laughing, crying or emotional outbursts. [r.reuters.com/xes49t ]

** PRICELINE.COM INC $877.60, up 2.62 pct (0940 ET)

Morgan Stanley upgraded the online travel agency’s stock to “overweight” from “equal weight,” according to theflyonthewall.com.

** HEARTLAND PAYMENT SYSTEMS INC, $38.96, up 2.71 pct (0941 ET)

Goldman Sachs analysts raised their rating on the payment processor’s stock to “buy” from “neutral”, according to Theflyonthewall.com.

** AOL INC, $37.28, up 2 percent (0936 ET)

The online media group raised its stock repurchase program by $150 million to $200 million.

** EBIX INC, $9.80, up 1.5 pct (0937 ET)

The insurance software provider said its unit, Ebix Latin America, signed an agreement with Syndicate of Insurance Brokers of the State of Sao Paulo to implement and deploy a Multi-Quote Exchange Solution for auto insurance in Brazil.

** AG MORTGAGE INVESTMENT TRUST INC, $16.73, down 2.6 pct (0953 ET)

** WESTERN ASSET MORTGAGE CAPITAL CORP, $15.50, down 1 pct (0953 ET)

Analysts at brokerage Wunderlich Securities downgraded the stocks of six mortgage real estate investment trusts (REITs), including AG Mortgage and Western Asset Mortgage, to “hold” from “buy,” citing illiquid market and expected failure to meet margin requirements. The analysts expressed concerns about the ability of these REITs to sustain their dividend payout.

** VERIFONE SYSTEMS INC, $16.72, down 1.71 pct (0934 ET)

Analysts at Barclays Capital downgraded the credit card swipe machine maker’s stock to “equal weight” from “overweight” and said the company is facing market share pressure. The brokerage also cited the loss of Verifone’s Middle East business, and the overall uncertain growth prospects as reasons for the rating cut. (Compiled by Lehar Maan; Editing by Sriraj Kalluvila)

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