June 7, 2016 / 6:22 PM / 2 years ago

BUZZ-U.S. STOCKS ON THE MOVE-Navistar, Cott, Vascular, airline stocks

(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) Surging energy shares pushed the S&P 500 to within 16 points of its record high and the Dow above 18,000 for the first time since April, but tumbling biotech stocks capped gains on the Nasdaq. The Dow Jones industrial average was up 0.42 percent at 17,995.7, the S&P 500 was up 0.39 percent at 2,117.68 and the Nasdaq Composite was up 0.10 percent at 4,973.551.


The Canadian drugmaker slashed its 2016 forecasts on Tuesday, as its new chief executive said he would focus on rebuilding the reputation of a “distracted organization” with a debt-loaded balance sheet.

** BIOGEN INC, $253.86, -12.41 pct

Biogen said its experimental drug for treating multiple sclerosis, a nervous system disease affecting the brain and the spinal cord, did not meet the main goal of improving some symptoms in a mid-stage study.

** RALPH LAUREN CORP, $94.31, -2.10 pct

The luxury fashion retailer said it would cut jobs, close stores and reduce its real estate as part of a sweeping plan to lower costs and revive sales growth.

** NAVISTAR INTERNATIONAL CORP, $14.59, +19.98 pct

The truck and engine maker posted a surprise second-quarter profit, helped by cost cuts and restructuring. The company has been trying to keep its turnaround on track amid a U.S. sales slump that has led its revenue to fall for the fifth straight quarter.

** SAREPTA THERAPEUTICS INC, $19.69, +22.68 pct

The drug developer said the U.S. FDA has requested for additional data from an ongoing study for its muscle-wasting treatment as the agency decides whether to approve the drug or not.

The FDA appears to leave no stone unturned to explore every possible pathway under which it could possibly approve the drug that under almost every other circumstance would have been rejected given the severe deficiencies in its dataset, RBC Capital Markets’ analysts said.

** CATALENT INC, $24.11, -8.05 pct

No. 1 holder Blackstone Group carved its stake in the drug delivery tech company, cutting its ownership position to 13.7 percent from 20.8 percent. Catalent also announced a 10 million-share secondary offering. Sources said sole bookrunner Goldman Sachs is marketing the deal in a range of $24.85-$25.25, at a discount of 3.7-5.2 percent to the stock’s $26.22 last sale.

** ALEXION PHARMACEUTICALS INC, $138.39, -10.71 pct

The drugmaker said Soliris, already approved in the United States for the treatment of two rare blood disorders, missed its primary goal in a late-stage trial. At least 9 out of 20 brokerages covering stock cut price targets on the stock.

** VASCULAR BIOGENICS LTD, $6, -12.41 pct

The drug developer said it would sell about 4.36 million ordinary shares to institutional investors at $5.50 per share. The company intends to use a part of the proceeds to advance clinical programs.

** UNITED NATURAL FOODS INC, $44.86, +15.53 pct

The organic and fresh food distributor forecast better-than-expected FY 2016 sales as a result of the acquisitions of Nor-Cal, Global Organic, Haddon House Food Products. At least 5 brokerages, including Deutsche Bank, raised price targets by as much as $8 to as high as $53.

** MICHAELS COS INC, $27.15, -9.92 pct

The arts and crafts retailer reported first-quarter sales below analysts’ average estimate, citing softer sales in April.

** CHINA AUTO LOGISTICS INC, $2.4, +128.57 pct

The provider of auto-related logistical services sold one of its business for about $63.2 million, with roughly 41 percent payable in cash by July 1 and the rest in the assumption of debt.

** AEHR TEST SYSTEMS, $1.77, +65.42 pct

The semiconductor test equipment supplier received the first order worth over $4.5 million for its new FOX-XP production test cell.

** ITT EDUCATIONAL SERVICES INC, $1.98, -10.00 pct

The U.S. Department of Education said the for-profit college chain could close due to state and federal investigations, the Wall Street Journal reported. The regulator ordered the company to boost its cash reserves amid allegations of fraud levied against subsidiary ITT Technical Institute.

** CHEVRON CORP, $103.67, +2.47 pct

** EXXON MOBIL CORP, $90.81, +1.65 pct

** ANADARKO PETROLEUM CORP, $55.44, +4.05 pct

** EMERGE ENERGY SERVICES LP, $6.75, +10.29 pct

U.S.-listed shares of oil and gas producers, service providers and drillers rose as oil prices hit their highest in eight months on Tuesday, buoyed by the dollar nearing one-month lows and by falling Nigerian oil output after a spate of attacks on infrastructure.

** JETBLUE AIRWAYS CORP, $18.6, +3.56 pct

** SOUTHWEST AIRLINES CO, $43.19, +3.40 pct

** SKYWEST INC, $25.09, +5.69 pct

J.P. Morgan analyst Jamie Baker said JetBlue on Monday raised its domestic fare structure by $3 one-way, spurring competitors to keep pace.

** AXIALL CORP, $25.48, +9.36 pct

Lotte Chemical Corp is bidding for U.S. chemicals maker Axiall and Hanwha Chemical Corp flagged a likely U.S. deal, as cash-flush South Korean chemicals firms target acquisitions in a hunt for new revenue streams.

** DRYSHIPS INC, $1.34, -43.22 pct

The dry bulk shipper raised “substantial doubt” about its ability to stay in business after it defaulted on three bank facilities, hit by a prolonged downturn in commodity prices and low charter rates.

** COTT CORP, $16.2, +10.58 pct

The Canadian beverage maker agreed to buy Eden Springs for 470 million euros ($533 million) to expand services in home and office bottled water delivery, office coffee and filtration.

** THOR INDUSTRIES INC, $68.46, +5.65 pct

The recreational vehicle (RV) maker’s third-quarter profit beat estimates and consol RV backlog rose 45.4 percent. The company said continued strength in the RV market, ongoing shift toward more “moderately priced” towable products should result in high-single-digit revenue growth in the fourth quarter.

** ZIMMER BIOMET HOLDINGS INC, $119.63, -1.57 pct

** LDR HOLDING CORP, $36.94, +63.60 pct

Zimmer Biomet, a maker of orthopedic reconstructive products, agreed to buy fellow medical device maker LDR Holding for about $1 billion deal to expand in the market for treating spine disorders.

** ERICKSON INC, $1.05, +90.91 pct

The aviation service provider got two contracts from United States Navy Military Sealift Command worth about $70 million. (Compiled by Sruthi Shankar in Bengaluru; Editing by Maju Samuel)

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