LWSN, AA, TJX, ELX, VRGY, EXBD, LSR Popular Stocks
U.S. stocks rose on Thursday as investors snapped up beaten-down technology and commodity shares, while a positive broker comment on Goldman Sachs boosted the financial sector.
Investors bought shares of technology and commodity-related companies as they moved out of defensive shares, including healthcare and consumer staples, which had led the market higher recently due to uncertainty about the economy.
The Dow Jones industrial average was up 10.05 points to 8188.46. The Standard & Poor’s 500 Index rose 3.89 points to 883.45. The Nasdaq Composite Index added 10.81 points to 1757.98.
Lawson Software, Inc. (NASDAQ:LWSN, $5.46, +$0.28, 5.41%) reports on Thursday, the key numbers to look for will be revenue and EPS guidance for Q1 and FY10. The first quarter is typically Lawson’s weakest so it will be no surprise to see a sequential decline in revenue and EPS expectations but should management guide Q1 earnings lower than expectations. Lawson announced in May that it will be eliminating about 150 positions which will save about $18-$20 million on an annual basis.
On the earnings front, Alcoa (NYSE:AA, $9.40, -$0.06, -0.63%) reported an adjusted second quarter loss of $256 million or $0.26 per share, while Wall Street expected the company to report a loss of $0.37 per share. The firm also reported quarterly revenues of $4.2 billion, edging out analyst estimates of $3.93 billion.
The TJX Companies Inc. (NYSE:TJX, $32.07, +$0.97, 3.12%) said June same-store sales rose 4%, well ahead for the forecast for a loss of 0.6% in a survey of analysts by Thomson Reuters. Sales for the five-week period ended July 4 were $1.84 billion, up 4%.
Emulex Corporation (NYSE:ELX, $9.00, -$0.70, -7.22%) on Thursday rejected Broadcom Corp.’s (NASDAQ:BRCM, $24.48, +$1.13, 4.84%) increased $912 million takeover bid as the company said its fiscal fourth-quarter results came in at the high end of its April projections, citing strong operational performance.
Verigy Ltd. (NASDAQ:VRGY, $10.44, -$0.81, -7.20%) said it will offer $110 million in convertible senior notes to help boost its working capital, while also maintaining its revenue and gross margin targets for its fiscal third quarter.
Baird cut its stock-investment rating on The Corporate Executive Board Company (NASDAQ:EXBD, $17.05, -$1.94, -10.22%) to underperform from neutral, saying that industry contacts indicate the business research and analysis services provider has started another round of voluntary departures. The firm said that while the cost reductions are positive, it believes near-term renewal and booking trends remain challenged and second-quarter contract value is likely to disappoint.
Life Sciences Research Inc. (NYSE:LSR, $8.14, +$0.96, 13.37%) agreed to be acquired by Lion Holdings Inc., an entity controlled by the company’s Chairman and Chief Executive Andrew Baker, for $8.50 a share in cash. The offer is an 18% premium to the contract research organization’s closing price Wednesday of $7.18.
Other Stocks in Focus
Autoliv Inc. (NYSE:ALV, $27.47, +$0.79, 2.96%), the world’s largest maker of seat belts and airbags, announced Mats Wallin has been named chief financial officer as the current CFO, Marika Fredriksson, is leaving for the same position at another company.
Baldor Electric Company (NYSE:BEZ, $22.38, +$1.27, 6.02%) jumped 6.02 percent to $22.38 in mid-day trading session and climbed earlier to $22.63. Over the last 52 weeks Baldor Electric has ranged from a low of $10.21 to a high of $39.90.
JMP Securities raised its stock-investment rating on Ciena Corp. (NASDAQ:CIEN, $9.42, +$0.49, 5.49%) to market perform from market underperform, saying the telecommunications-equipment maker continues to face a difficult business environment, but this is now more fully reflected in the stock price.
Exactech Inc. (NASDAQ:EXAC, $13.19, -$0.33, -2.44%), a maker of replacement bones and joints, said its second-quarter results would fall below earlier expectations, cutting its revenue view to $43 million from its previous guidance of $44 million to $46 million. It also warned earnings would be weaker than expected, but didn’t give a new figure, and cut its full-year revenue forecast to a range of $167 million to $173 million, below expectations.
Credit Suisse upgraded KB Home (NYSE:KBH, $12.53, +$1.15, 10.11%) to outperform, citing its expectation of solid order trends through the second half of the year. Following the stock’s recent pullback, that presents an attractive entry point for investors, the firm said. Other home builders also gained, including Hovnanian Enterprises Inc. (NYSE:HOV, $1.96, +$0.15, 8.29%), Meritage Homes Corp. (NYSE:MTH, $15.51, +$0.86, 5.87%) and Beazer Homes USA Inc. (NYSE:BZH, $1.63, +$0.18, 12.42%).
Shares of Map Pharmaceuticals Inc. (NASDAQ:MAPP, $10.95, -$0.11, -1.00%) fell after the drug company said Thursday that it is suspending the development of its asthma drug for children. The suspension comes after Anglo-Swedish drug maker AstraZeneca PLC (NYSE:AZN, $43.77, +$0.45, 1.04%) terminated its license agreement with Map on the drug, Unit Dose Budesonide. Map said it received the termination notice Wednesday.
Natixis Bleichroeder cut its stock-investment rating on Merck & Co. Inc. (NYSE:MRK, $26.97, -$1.07, -3.82%) to hold from buy, saying early termination of clinical trial of cholesterol drugs could be bad news for the drug maker’s joint venture with Schering-Plough Corp (NYSE:SGP, $24.64, -$0.63, -2.50%).
Novavax Inc. (NASDAQ:NVAX, $2.65, +$0.14, 5.58%) said it launched a joint venture with privately held Cadila Pharmaceuticals in India, under an agreement they signed in March. The joint venture will develop and manufacture vaccines, and announced Thursday it expects to develop the pandemic H1N1 influenza vaccine candidate in India that Novavax is developing in the U.S.
Validus Holdings Ltd. (NYSE:VR, $21.82, -$0.78, -3.45%) will buy rival reinsurer IPC Holdings Ltd. (NASDAQ:IPCR, $27.78, +$0.17, 0.62%) for about $1.65 billion in the culmination of a months-long battle in the reinsurance sector. Validus had said Monday it wouldn’t raise its bid for IPC after Flagstone Reinsurance Holdings Ltd. (NYSE:FSR, $10.27, +$0.54, 5.55%) entered the fray last week with a $1.8 billion offer.
Some news content written by help of WSJ
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