(For more market insights, including options activity, click on ; for the Day Ahead newsletter link.reuters.com/mex49s; the Morning Call newsletter, r.reuters.com/vut44v) U.S. stocks drifted down to session lows on Tuesday in the wake of data showing U.S. service-sector business activity picked up in October and firms took on workers despite a partial government shutdown. The Dow Jones industrial average was down 0.58 percent, the S&P 500 was down 0.54 percent and the Nasdaq Composite was down 0.5 percent.
** ENDO HEALTH SOLUTIONS INC, $55.35, up 27 pct (10:05 a.m. ET)
The U.S.-based specialty pharmaceutical company said it would buy Canadian peer Paladin Labs Inc for about $1.6 billion to expand its presence in Canada and emerging markets.
** ORBITZ WORLDWIDE INC, $7.65, down 20 pct (9:41 a.m. ET)
The online travel agency posted quarterly earnings that missed forecasts as costs rose. The company, which operates Orbitz and CheapTickets brands in the United States and ebookers in Europe, pared its revenue forecast for 2013.
** GT ADVANCED TECHNOLOGIES INC, $10.00, up 19 pct (10:07 a.m. ET)
** RUBICON TECHNOLOGY, $10.66, up 21 pct
Apple Inc will open a manufacturing facility in Arizona in partnership with mineral crystal specialist GT Advanced Technologies to make sapphire materials for Apple’s popular electronics devices.
Sapphire materials company Rubicon rose on news of the deal as it could benefit from higher demand in the industry.
** CYTORI THERAPEUTICS INC, $3.42, up 64 pct (10:06 a.m. ET)
The medical device maker said on Monday it would receive up to $531 million from Chinese company Lorem Vascular as license fee for its stem cell therapy that removes fat cells from a patient’s body. These cells, which are then injected into the affected area, increase blood profusion and heal the wound. Lorem will market the therapy in Asia-Pacific.
** BROADSOFT INC, $25.18, down 24 pct (10:05 a.m. ET)
The internet communications company forecast fourth-quarter results below expectations, citing concerns about the short-term service provider spending. It also reported a third-quarter loss, compared with a profit a year earlier, as operating expenses rose.
** KERYX BIOPHARMACEUTICALS INC, $13.33, up 20 pct (10:04 a.m. ET)
The company said its sole drug in development, Zerenex, proved to be effective in treating patients with chronic kidney disease who were not on dialysis.
** IMMUNOGEN INC, $14.00, down 15 pct (10:03 a.m. ET)
The biotechnology company said it will discontinue a mid-stage trial testing its lung cancer drug, following the recommendation of an independent data monitoring committee.
** POLYPORE INTERNATIONAL INC, $36.94, down 16 pct (10:03 a.m. ET)
The maker of specialized microporous membranes reported third-quarter results below analysts estimates late on Monday as consumer electronics orders remained weak and electric drive vehicles volumes declined.
At least three brokerages - Wedbush Securities Inc, Stifel Nicolaus and D.A.Davidson & Co - cut their price targets on the company’s stock.
** SYKES ENTERPRISES INC, $20.97, up 15 pct (10:07 a.m. ET)
The business process outsourcing company reported better-than-expected quarterly profit, helped by higher revenue from Europe, Middle East and Africa.
** LEAPFROG ENTERPRISES INC, $7.98, down 8 pct (10:03 a.m. ET)
The toy company cut its full-year sales forecast as rising competition hurt demand for its LeapPad tablets. The company also said it “sees a weak retail climate and growing concern surrounding this holiday season, especially in the U.S.”
** CORINTHIAN COLLEGES INC, $1.97, down 8.8 pct (10:06 a.m. ET)
The post-secondary education services provider reported first-quarter results that missed analysts estimates as new enrollment declined 8.1 percent and forecast second-quarter revenue to be largely below Wall Street expectations.
** MCDERMOTT INTERNATIONAL INC, $7.07, down 5 pct (10:02 a.m. ET)
The engineering and construction firm reported a wider-than-expected quarterly loss on Monday due to lower revenue from two projects in Australia and increased cost estimates on a project in Malaysia.
** REGENERON PHARMACEUTICALS INC, $296.00, up 5 pct (10:01 a.m. ET)
The company reported better-than-expected quarterly results after net U.S. sales of its eye drug Eylea jumped 49 percent to $363 million in the third quarter.
** AOL INC, $41.38, up 7 pct (10:00 a.m. ET)
The online media group reported a 6 percent rise in third-quarter revenue, helped by a rise in advertising sales.
** QUICKSILVER RESOURCES INC, $2.24, up 4.6 pct (9:58 a.m. ET)
Italian oil and gas group Eni said it had reached an agreement with Quicksilver to explore and develop onshore shale oil reservoirs in the United States. Eni said it would pay up to $52 million to take a 50 percent stake in Quicksilver acreage in the Leon Valley area in West Texas.
** ENCANA CORP, $18.65, up 4 pct (9:58 a.m. ET)
Canada’s largest natural gas producer will cut about 20 percent of its workforce, slash its dividend and invest nearly three-quarters of its 2014 capital spending budget in more lucrative oil and liquid gas assets.
** COGNIZANT TECHNOLOGY SOLUTIONS CORP, $88.17, up 1.5 pct (9:55 a.m. ET)
The IT services firm reported a better-than-expected 22 percent rise in quarterly revenue as businesses, especially financial firms and companies in Europe, outsourced more work and increased spending on consulting.
** MICHAEL KORS HOLDINGS LTD, $77.70, up 4 pct (9:55 a.m. ET)
The company reported a better-than- expected 40 percent jump in quarterly revenue, driven by strong demand for its trendy handbags and watches.
** FOREST OIL CORP, $4.61, down 8 pct (9:54 a.m. ET)
The company reporter lower-than-expected results on Monday as its oil and natural gas liquids production volumes fell short of analysts’ expectations. The company also said it expects fourth-quarter output to dip 2 to 4 percent from the third quarter.
** CORNERSTONE ONDEMAND INC, $49.49, up 7 pct (9:53 a.m. ET)
The HR software maker said third-quarter revenue rose 50 percent, helped by strength in its North American and EMEA (Europe, Middle-East and Africa) business.
** TENET HEALTHCARE CORP, $44.25, down 8 pct (9:52 a.m. ET)
The company said its third-quarter net income slid from a year earlier due to costs related to its acquisition of smaller hospital chain Vanguard Health Systems Inc. Tenet completed the acquisition of Vanguard for about $1.8 billion on Oct. 1 to expand into new markets and position itself to benefit from an increase in patients who have health insurance under President Barack Obama’s healthcare reform.
** DRYSHIPS INC, $3.43, up 6 pct (9:51 a.m. ET)
** OCEAN RIG UDW INC, $20.17, up 11 pct
DryShips’ drilling unit, Ocean Rig, is in the early stages of creating a new master limited partnership (MLP) with an initial public offering targeted during the second quarter of 2014.
Analysts say the formation of an MLP would be a positive, given DryShips’s 59 percent stake in Ocean Rig and the corresponding increase in cash flow from MLP distributions.
** OPEN TEXT CORP, $80.08, up 7 pct (9:50 a.m. ET)
The Canadian business software maker said it would buy privately held cloud computing company GXS Group Inc for $1.17 billion.
** ROVI CORP, $16.10, down 4 pct (9:48 a.m. ET)
Goldman Sachs lowered its rating on the software maker’s stock to “sell” from “neutral”, according to Theflyonthewall.com. Rovi’s software is used in home entertainment devices to play various digital media formats.
** MINDRAY MEDICAL INTERNATIONAL LTD, $35.84, down 3 pct (9:54 a.m. ET)
The medical device maker reported third-quarter revenue that fell short of analysts’ estimates on Monday and said weak market sentiment in China’s healthcare sector delayed some purchases. The company also announced it plans to buy back up to $200 million of its common shares effective Monday. (Compiled by Natalie Grover; Editing by Don Sebastian)