(For faster updates on individual market-movers, Eikon users please use search string "STXBZ US"; for the Day Ahead newsletter, here ; for the Morning News Call newsletter, here) Wall Street was lower in early afternoon trading on Monday as a drop in technology and financial stocks offset a jump in energy shares.
The Dow Jones Industrial Average was up 0.13 percent at 19,782.63, the S&P 500 was down 0.15 percent at 2,256.15 and the Nasdaq Composite was down 0.70 percent at 5,406.424.
** LOCKHEED MARTIN CORP, $252.72, -2.62 pct
** GENERAL DYNAMICS CORP, $173.05, -1.33 pct
** RAYTHEON CO, $144.01, -1.57 pct
** NORTHROP GRUMMAN CORP, $230.415, -3.36 pct
U.S. President-elect Donald Trump took aim at another major defense contractor on Monday, saying the cost of Lockheed Martin’s F-35 fighter jet program was too high. “The F-35 program and cost is out of control. Billions of dollars can and will be saved on military (and other) purchases after January 20th,” Trump tweeted.
Trump’s “habit of using Twitter as a bully pulpit could become a threat to controversial high profile programs”, Cowen & Co said in a note on Wednesday, and could be a yellow flag for prime contractors; however, more likely to be an issue for Lockheed and Northrop than Boeing Co.
** CBS CORP, $62.7, +0.22 pct
** VIACOM INC, $35.6, -7.82 pct
Sumner Redstone’s privately-held National Amusements withdrew its merger proposal for CBS and Viacom, according to three sources familiar with the situation who wished to remain anonymous.
CBS shares reversed course following a New York Post report that Verizon Communications Inc has some interest in buying the company. (nyp.st/2gx1pze)
** OPHTHOTECH CORP, $5.7896, -85.07 pct
** NOVARTIS AG, $69.48, -0.37 pct
** REGENERON PHARMACEUTICALS INC, $392, +5.14 pct
Novartis AG’s Lucentis combined with Ophthotech’s Fovista in patients with neovascular age-related macular degeneration (nAMD) did not produce better outcomes than treatment with Lucentis alone.
In the first nine months of 2016, Lucentis’ sales for Novartis outside the United States fell 11 percent, on top of a previous decline in 2015, due to competition from drugs including Regeneron’s Eylea.
** PFIZER INC, $32.52, +2.59 pct
The drugmaker increases first-quarter 2017 cash dividend by 7 percent to 32 cents per share.
** ALEXION PHARMACEUTICALS INC, $111.95, -15.23 pct
The drugmaker’s chief executive officer and chief financial officer resigned, a month after the drugmaker said it was investigating allegations related to sales practices of its flagship drug.
** ACHAOGEN INC, $10.34, +96.95 pct
The drug developer’s lead drug, plazomicin, being developed to fight multi-drug resistant bacterial infections, was successful in two pivotal studies, prompting the company to proceed with regulatory submissions in the United States and Europe.
** AKORN INC, $20.12, +8.17 pct
The drugmaker said the FDA reinspected its Decatur, Illinois, manufacturing facility with no Form 483 observations. The agency in June released a Form 483 that had detailed quality control issues, unrecorded or unjustified deviations from production and process control procedures.
** JOHNSON & JOHNSON, $115.01, +2.45 pct
The band-Aid maker’s shares could rally about 20 percent to mid-$130s as operating improvements spur earnings growth, Barron’s said in a report on Sunday.
** ENERPLUS CORP, $9.72, +5.42 pct
The Canadian energy producer sold assets in North Dakota for $292 million and said it would ramp up drilling in the Bakken.
** CORNERSTONE ONDEMAND INC, $41.339, +5.73 pct
The Santa Monica-based company has received approaches from potential buyers as shareholders push the company to run a formal process, Bloomberg reported on Friday.
** CHIPOTLE MEXICAN GRILL INC, $377.58, +2.05 pct
The burrito chain said founder Steve Ells would be the sole chief executive after co-chief executive Monty Moran stepped down.
** ANAVEX LIFE SCIENCES CORP, $4.745, +9.08 pct
The drug developer reported a narrower fourth-quarter loss per share.
** EXXON MOBIL CORP, $90.99, +2.24 pct
** CHEVRON CORP, $117.42, +1.39 pct
** SCHLUMBERGER NV, $85.31, +0.63 pct
** HALLIBURTON CO, $54.68, +0.89 pct
** STONE ENERGY CORP, $6.82, +0.89 pct
** TIDEWATER INC, $3.98, +6.42 pct
OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to try to tackle global oversupply and boost prices. Producers from outside OPEC, led by Russia, agreed on Saturday to reduce output by 558,000 bpd, short of the target of 600,000 bpd but still the largest contribution by non-OPEC ever.
** JOHNSON OUTDOORS INC, $38.2762, -14.68 pct
The company, which makes Minn Kota battery-powered fishing motors, posted a 12.5 percent fall in fourth-quarter sales, blaming an “industry-wide slowdown of outdoor recreation market” in the quarter due to seasonality of the warm-weather outdoor recreational products.
** ADVANCED MICRO DEVICES INC, $10.76, +4.06 pct
BMO Capital Markets raised the chipmaker’s rating to “outperform” from “market perform” and more than doubled the price target to $15 from $6, 45 percent upside to its Friday close.
** PRUDENTIAL FINANCIAL INC, $103.89, -2.01 pct
** WELLS FARGO & CO, $55.91, -2.15 pct
U.S. insurer Prudential Financial said it had suspended the distribution of a low-cost life insurance policy through Wells Fargo, pending a review of how the product was sold by the bank.
Compiled by Arunima Banerjee in Bengaluru; Editing by Sriraj Kalluvila