Market Pulse: EnergySolutions, JC Penney, Sinovac, F5 Networks

Acura Pharmaceuticals

05/04/2013 18:33

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April 5 (Reuters) - Some U.S. stocks on the move on Friday:

WALL ST SET FOR YEAR'S WORST WEEKLY DECLINE AFTER PAYROLLS

U.S. stocks fell, setting the S&P 500 for its worst weekly performance of the year, in the wake of a payrolls report that was much weaker than expected, the latest in a series of data to indicate economic growth may be losing momentum.

The Dow Jones industrial average  .DJI  was down 109.38 points, or 0.75 percent. The Standard & Poor's 500 Index  .SPX  was down 13.27 points, or 0.85 percent. The Nasdaq Composite Index  .IXIC  was down 34.80 points, or 1.08 percent.  .N

** CITIGROUP  C.N , $42.50, down 1 pct (1213 ET)

** D.R. HORTON INC  DHI.N , $22.34, down 1 pct

** PULTEGROUP INC  PHM.N , $18.43, 1 pct

** TOLL BROTHERS INC  TOL.N , $31.21, down 1 pct

Shares of lenders and homebuilders fell after March payrolls data came in well below expectations, as American employers hired at the slowest pace in nine months, a sign a that Washington's austerity drive could be stealing momentum from the economy.  ID:nIFR1f5bLV

The economy added just 88,000 jobs last month and the jobless rate ticked a tenth of a point lower to 7.6 percent, largely due to people dropping out of the work force, Labor Department data showed on Friday.

** J.C. PENNEY CO INC  JCP.N , $15.88, up 5.3 percent (1217 ET)

The department store chain opened the first of its new home goods boutiques on Friday, a launch that analysts as well as Chief Executive Ron Johnson have called "pivotal" to efforts to revive the struggling company.  ID:nL2N0CO0MS

** SINOVAC BIOTECH LTD  SVA.O , $3.93, up 10 pct (1235 ET)

** NOVAVAX INC  NVAX.O , $2.40, up 5 pct

Shares of the companies, which develop vaccines for a strain of bird flu, were up after a new strain of bird flu was found in China. The World Health Organization said there was no sign of sustained spread of a deadly new strain, but it could not rule out that it was transmitted in a limited way similar to the H5N1 strain.  ID:nL5N0CS1C1

** ENERGYSOLUTIONS INC  ES.N , $4.11, up 10 pct (1326 ET)

Investment firm Energy Capital Partners raised its offer for nuclear waste management company EnergySolutions Inc by 40 cents to $4.15 per share in cash, almost three months after its initial bid.

EnergySolutions' stock was one of the top percentage gainers on the New York Stock Exchange.  ID:nL3N0CS2HU

** F5 NETWORKS INC  FFIV.O , $74.06, down 18 pct (1218 ET)

** JUNIPER NETWORKS INC  JNPR.N , $17.23, down 5 pct

** CITRIX SYSTEMS INC  CTXS.O , $67.79, down 3 pct

** CISCO SYSTEMS INC  CSCO.O , $20.64, down 2 pct

** CAVIUM INC  CAVM.O , $33.70, down 6 pct (1219 ET)

F5 Networks estimated second-quarter results way below analysts' expectations, hurt by U.S. federal budget cuts and a delay in orders in North America.  ID:nL3N0CR37D

The outlook dragged shares of other network gear makers. ID:nL3N0CS24N

A host of brokerages, including Citi Investment Research, Piper Jaffray and William Blair & Co, downgraded F5 network's stock on Friday, while several others cut their target price on the stock.

"From our perspective, it feels like the business isn't a mid-teens grower any more as the market gets a bit more saturated and F5's ability to take additional market share wanes," Jefferies & Co analyst George Notter wrote in a note and slashed his price target on the stock to $82 from $91.50.

** DRDGOLD LTD  DRDJ.J   DRD.N , $7.45, up 5 pct (1220 ET)

** MCEWEN MINING INC  MUX.TO   MUX.N , $2.75, up 4 pct

** ROYAL GOLD INC  RGLD.O , $68.38, $2 pct

** YAMANA GOLD INC  YRI.TO   AUY.N , $14.32, up 1 pct

** GOLDCORP INC  G.TO   GG.N , $31.86, up 1 pct

Spot gold  XAU=  traded around $1,550 an ounce on Friday, repairing some of the damage after slipping a day earlier to its lowest level since May last year at $1.539.74.

The prices jumped after U.S. non-farm payrolls data came in much weaker than expected, stoking fears the recovery of the world's largest economy is losing momentum.  ID:nL5N0CS22H

** DELTA AIR LINES INC  DAL.N , $14.05, down 5 pct (1221 ET)

** ALASKA AIR GROUP INC  ALK.N , $58.73, down 2 pct

** UNITED CONTINENTAL HOLDINGS INC  UAL.N , $28.58, down 3 pct

** U.S. AIRWAYS GROUP  LCC.N , $15.43, down 2 pct (1222 ET)

** SOUTHWEST AIRLINES CO  LUV.N , $12.65, down 2 pct (1223 ET)

J.P. Morgan Securities cut its revenue expectations for U.S. airlines by 2 percent to 3 percent for 2013 and 2014 and said it expects monthly revenue per available seat mile (RASM) to turn negative for some airlines, hurt by sequestration. RASM is the money received for each available seat mile.

"We're growing weary that purported revenue benefits of consolidation appear nowhere to be found," it said in a note to clients.

** HEWLETT-PACKARD  HPQ.N , $21.85, down 2 pct (1224 ET)

Hewlett-Packard Chairman Ray Lane, who has come under fire from shareholders for his role in the acquisition of software company Autonomy Plc, has relinquished his post in the No.1 personal computer maker's latest board shake-up. Director and activist investor Ralph Whitworth will serve as interim chairman until Lane's replacement is found.  ID:nL2N0CR1T9

The appointment of activist investor Ralph Whitworth as his interim replacement is a positive move that sets the stage for a more "shareholder friendly" board, analysts said on Friday.

ID:nL3N0CS22U

** FACEBOOK INC  FB.O , $27.48, up 2 pct (1224 ET)

** GOOGLE INC  GOOG.O , $779.92, down 2 pct

The company on Thursday unveiled its most ambitious attempt yet to enter the mobile computing market without a phone of its own, introducing a new app that replaces the home screen on some Android smartphones.

Analysts say should the new software take off, it may begin to draw users away from Google services. Offering Facebook messaging, social networking and photos on the very first screen that Android users see could divert attention from the panoply of services, such as search and email, which generate advertising revue for Google.  ID:nL2N0CR1BY

** RIGEL PHARMACEUTICALS  RIGL.O , $4.78, down 37 pct (1225 ET)

London-based AstraZeneca  AZN.L , which licensed its experimental rheumatoid arthritis pill named fostamatinib from Rigel in 2010, said it met only one of two goals in a late-stage clinical trial. Rigel's stock was the top percentage loser on the Nasdaq.  ID:nL5N0CS0EL

** SAREPTA THERAPEUTICS INC  SRPT.O , $35.69, up 4 pct (1225 ET)

The company said its drug eteplirsen, to treat a rare degenerative muscular disorder in boys, showed a continued stabilization of walking ability at 74 weeks in a mid-stage study. Sarepta said the drug was well tolerated and there were no significant adverse events reported.  ID:nMKW4151a

The company said in October that the drug had met the study's main goal of improving walking ability by enabling the production of dystrophin - a protein that plays a key role in muscle fiber function.  ID:nL3E8L35M9

** NII HOLDINGS  NIHD.O , $5.29, up 16 pct (1226 ET)

The Latin American telecom service provider said on Thursday its has agreed to sell its Peruvian operations to Empresa Nacional de Telecomunicaciones SA  ENT.SN  for about $400 million. NII's stock was one of the top percentage gainers on the Nasdaq.  ID:nPNFL89224

** RADWARE LTD  RDWR.O , $29.21, down 22 pct (1226 ET)

The Isreal-based network equipment maker estimated first-quarter results below analysts' expectations on weak performance in EMEA and China. The company is scheduled to report quarterly results on April 25.  ID:nPn4059090

** MILLENNIAL MEDIA INC  MM.N , $6.44, up 6 pct (1243 ET)

Millennial Media, which helps mobile developers and advertisers come up with promotions designed for mobile devices, said it has closed its acquisition of Metaresolver, a mobile media buying and targeting platform.  ID:nBwbDkJfFa

The company announced the deal in February but had not given a date for closing the acquisition.  ID:nBwxLLyfa

** ALAMOS GOLD INC  AGI.TO   AGI.N , $12.75, up 1 pct (1227 ET)

Brokerage CIBC resumed coverage of the Canadian gold miner with a "sector performer" rating, saying that with the failed hostile bid for peer Aurizon Mines Ltd  ARZ.TO  behind it, Alamos can now focus on production from newly-acquired assets in Turkey to partly offset rising costs and lower-grade gold ores.

** APPLE INC  AAPL.O ,  $422.54, down 1 pct (1228 ET)

Samsung Electronics  005930.KS , the iPhone's main adversary, estimated its January-March operating profit rose 53 percent to 8.7 trillion won ($7.7 billion) as sales of mid-tier smartphones helped the South Korean company tide over the off-peak season.  ID:nL3N0CR0Z1

** SABA SOFTWARE INC  SABA.O , $7.45, down 4 pct (1228 ET)

The enterprise software provider said on Thursday it will delist its common stock from the Nasdaq later this week, as it had failed to comply with the U.S. Securities and Exchange Commission's filing requirements for continued listing.

ID:nBw046387a

Saba, which said last March it was reviewing certain international transactions, has not issued quarterly results since then.

** PICO HOLDINGS INC  PICO.O , $23.09, up 7 pct (1228 ET)

Homebuilder UCP LLC, owned by diversified holding company Pico Holdings Inc  PICO.O , filed with U.S. regulators to raise up to $125 million through an initial public offering of its shares. U.S. homebuilders are taking advantage of a strong recovery in the housing market, which is getting a boost from low mortgage rates and rising rents.  ID:nL3N0CR3F6

** ACURA PHARMACEUTICALS INC  ACUR.O , $2.19, up 6 pct (1229 ET)

The company said it received a U.S. patent for its abuse resistant drug technology, which prevents common methods of substance abuse like snorting and injecting drugs. The abuse resistant drug technology is called Aversion and certain claims in the patent are licensed to Pfizer Inc  PFE.N , the company said in a statement.

** EXCO RESOURCES INC  XCO.N , $7.13, up 7 pct (1229 ET)

** BILL BARRETT CORP  BBG.N , $20.67, up 5 pct

** ULTRA PETROLEUM CORP  UPL.N , $20.11, up 6 pct (1230 ET)

** ARCH COAL INC  ACI.N , $5.23, up 4 pct (1230 ET)

** PEABODY ENERGY CORP  BTU.N , $19.99, up 1 pct

** ALPHA NATURAL RESOURCES INC  ANR.N , $7.57, up 3.5 pct

Goldman Sachs upgraded Bill Barrett's stock to "buy" from "neutral", citing a likely increase in natural gas prices  NGc1  as they no longer saw a surplus in supply, according to streetinsider.com.

The brokerage said prices would rise to the upper end of $4 to $4.50 per million metric British thermal units range, benefiting oil and gas companies with a higher mix of natural gas.

Shares of coal miners also rose on expectations that U.S. utilities will use more coal and less natural gas to generate power as gas becomes expensive.

** ENERGY TRANSFER PARTNERS  ETP.N , $49.56, down 2 pct (1231 ET)

The pipeline company priced its offering of 12 million common units at $48.05 per unit, below Thursday's close of $50.35.  ID:nBw1G8MX1a

** EVERCORE PARTNERS INC  EVR.N , $36.70, down 5 pct (1232 ET)

Keefe Bruyette & Woods downgraded the boutique investment bank to "marketperform" from "outperform," citing a slowdown in global completed M&A volume. The brokerage also cuts its target price on the stock to $41 from $42.

** WD-40 CO  WDFC.O , $53.60, up 2 pct (1232 ET)

The lubricant maker's second-quarter profit zoomed past Wall Street expectations as price increases and stability in commodity costs boosted margins.

The company also benefited from supply chain initiatives in China and North America. Gross margin was 50.9 percent in the quarter, compared with 49.0 percent, a year earlier. ID:nPnLA89028

** TEREX CORP  TEX.N , $30.52, down 4 pct (1233 ET)

** MANITOWOC CO INC  MTW.N , $18.16, down 3 pct (1233 ET)

Wells Fargo Securities cut its rating on Terex's stock to "market perform" from "outperform" on concerns that weak construction activity in Europe could hit demand for cranes.

Crane demand in the United States has also moderated, with little growth in demand for rough terrain, all terrain and boom trucks, Wells Fargo said. Equipment maker Manitowoc gets 62 percent of its revenue from its crane business.

** WALT DISNEY CO  DIS.N , $57.24, down 1 pct (1234 ET)

The company expects to begin layoffs at its studio and consumer product divisions within the next two weeks, a source with knowledge of the matter told Reuters, in the latest cost-reduction step to emerge from a company-wide review. ID:nL2N0CS018

(Compiled by Pallavi Ail in Bangalore,)

((pallavi.ail@thomsonreuters.com)(within U.S. +1 646 223 8780, outside U.S. +91 80 4135 5800)(Reuters Messaging:  pallavi.ail.thomsonreuters.com@reuters.net))

Keywords: MARKETS USA STOCKS/PULSE