AIMC, CFX, IEX, PNR, ITT, GGG, WMG, CVM Popular Stocks
U.S. stocks traded higher Wednesday, as the Dow Jones Industrial Average rose 0.87% to 9768, the S&P 500 rose 1.2% to 1065 and the Nasdaq Composite rose 1.14% to 2127.
Baird cut the investment ratings on five companies, and raised one, that make industrial process controls and systems, saying the sector has seen a run-up that has the stocks fairly priced. The analysts also said new orders for inventory from customers may have already peaked, which means companies will now trade on fundamentals. Baird cut to neutral Altra Holdings Inc. (NASDAQ:AIMC, $9.92, -$0.89, -8.23%), Colfax Corp. (NYSE:CFX, $11.64, -$0.20, -1.68%), Idex Corp. (NYSE:IEX, $28.66, -$0.85, -2.88%), Pentair Inc. (NYSE:PNR, $31.17, -$0.36, -1.14%) and ITT Corp. (NYSE:ITT, $51.03, -$0.60, -1.16%). It also upgraded Graco Inc. (NYSE:GGG, $29.62, +$0.72, 2.49%) thanks to its exposure to Europe and construction markets, adding it benefits most from a weaker U.S. dollar.
Various factors point to a tie-up between Warner Music Group (NYSE:WMG, $4.84, +$0.30, 6.61%) and EMI Music, Citi said in upping WMG to buy. The firm noted Warner Music’s capital raise earlier this year lowers covenant pressure, and the move of Warner Chief Executive Edgar Bronfman Jr. to London could mean another attempt to merge with EMI. Warner and EMI have been in long-running merger standoff for much of last decade, and Citi suggested a tie-up may be limited to recorded business. It added Warner can likely remove $230 million from EMI’s recorded cost structure even following cost cuts by EMI owner Terra Firma.
Cel-Sci Corp. (AMEX:CVM, $1.30, -$0.06, -4.45%) received FDA approval to go ahead with its first clinical trial to study its immunogen-synthesizing technology LEAPS as a treatment for H1N1. CVM will test the effects of the LEAPS-H1N1 treatment on white blood cells of hospitalized patients when it finishes making it. FDA will consider treatment on “as expedited a basis as possible,” CVM says as it hopes to be at forefront of treating those stricken by pandemic. Shares gained 48% Tuesday after a report the company was in discussions with government concerning the treatment.
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