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Pin to quick picksVodafone Share News (VOD)

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MARKET PULSE-Health insurers, Delta Air, Ford, Optimer Pharma, Hertz

Tue, 02nd Apr 2013 16:19

(For more market insights, including options activity, click on ; for the Day Ahead newsletter http://link.reuters.com/mex49s; for the Morning News Call newsletter, http://link.reuters.com/faq23t)

April 2 (Reuters) - Some U.S. stocks on the move on Tuesday:

HEALTHCARE LEADS WALL ST HIGHER, S&P RECORD IN VIEW

U.S. stocks rose on Tuesday, putting the S&P 500 withinstriking distance of its all-time intraday high as healthcarestocks surged on prospects of a boost to earnings.

The Dow Jones industrial average was up 83.90 points,or 0.58 percent. The Standard & Poor's 500 Index was up9.51 points, or 0.61 percent. The Nasdaq Composite Index was up 24.75 points, or 0.76 percent.

** HUMANA INC, $81.92, up 9 pct (0931 ET)

** UNITEDHEALTH GROUP INC $62.19, up 5 pct (0931 ET)

** AETNA INC, $54.88, up 5 pct (0931 ET)

** UNIVERSAL AMERICAN CORP $9.36, up 8 pct (0932 ET)

** MOLINA HEALTHCARE INC, $31.37, up 2 pct (0932 ET)

** CIGNA CORP, $65.49, up 4 pct (1000 ET)

** WELLCARE HEALTH PLANS INC, $63.45, up 5 pct (1001ET)

** VANGUARD HEALTH SYSTEMS INC, $15.10, up 3 pct(1005 ET)

In a reversal that followed intense lobbying from the healthinsurance industry and members of Congress, the U.S. governmentsaid it would increase the payment rate for health insurers thatoffer coverage through the Medicare Advantage program by 3.3percent in 2014, from the 2.3 percent cut announced in February.

Brokerage Raymond James upgraded the stocks of UnitedhealthGroup to "strong buy" from "outperform" and of UniversalAmerican to "market perform" from "underperform" after thefavourable decision. The brokerage also raised its price targeton Humana from $90 to $85.

** OPTIMER PHARMACEUTICALS INC, $14, up 20 pct(1119 ET)

Shares of the company rose after a Bloomberg report, citingunnamed sources, said GlaxoSmithKline PLC and CubistPharmaceuticals Inc were among those interested inbuying the antibiotic maker.

Optimer aims to get as much as $1 billion in a possibleauction, the report said, quoting two sources familiar with thematter.

** HERTZ GLOBAL HOLDINGS INC, $23.14, up 5.5 pct(1035 ET)

** AVIS BUDGET GROUP INC, $28.59, up 4 pct (1035 ET)

Car rental company Hertz Global Holdings Inc raised itsthree-year financial outlook on strong global demand and saidtotal revenue would increase by up to 14 percent by 2015.

** DELTA AIR LINES INC, $15.1, down 7 pct (1001 ET)

** JETBLUE AIRWAYS CORP, $6.59, down 2 pct

Delta's unit revenue for March rose 2 percent from a yearearlier, but was lower than its forecast due tolower-than-expected demand, temporary inefficiencies duringimplementation of new revenue management technology and lowerclose-in bookings driven by the sequester.

** FORD MOTOR CO, $13.03, up 1 pct (1203 ET)

** GENERAL MOTORS CO, $27.95, up 1 pct (1204 ET)

Ford and Chrysler Group LLC reported on Tuesday slightlybetter-than-expected U.S. auto sales in March, buoyed by greaterdemand for sport utility vehicles and pickup trucks, whileGeneral Motors fell short of estimates.

March is expected to be the fifth consecutive month that theindustry's annual sales pace has held above 15 million vehicles,a sign that rising home values are helping American consumersfeel more confident about buying a new vehicle.

** UNITED STATES STEEL CORP, $18.18, down 4 pct

** ARCELORMITTAL SA, $12.41, down 3 pct (1030 ET)

Downbeat manufacturing data from China and the United Statesin March indicated stuttering growth momentum in the topconsumers of steel. The deteriorating fundamentals also weighedon the metal prices.

U.S. factory activity grew at the slowest rate in threemonths in March as the effects of tighter fiscal policy startedkicking in.

** BGC PARTNERS INC, $5.46, up 42 pct (0935 ET)

** NASDAQ OMX GROUP INC, $28.91, down 9 pct (0955ET)

Nasdaq OMX Group agreed to buy electronic Treasuries-tradingplatform eSpeed from BGC Partners for $750 million in cash,providing the exchange operator an entry into one of the world'slargest and most liquid cash markets.

BGC is the top gainer on Nasdaq today with more than 17million shares traded.

** YAMANA GOLD ; $14.79; down 2 pct (1003 ET)

** ELDORADO GOLD CORP ; down 3 pct (1003 ET)

** ENDEAVOUR SILVER CORP ; $5.98; down 3 pct (1006ET)

Shares of precious metal producers such as Yamana Gold and ElDorado Gold fell after gold prices weredown more than 1 percent to a 2-1/2 week low.

Spot gold fell as low as $1,581.89 an ounce, itsweakest since March 14. Prices of platinum, palladium and silveralso fell.

** VODAFONE , $29.81, up 5 pct (0936 ET)

The Financial Times Alphaville blog cited "usually reliablepeople" as saying that Verizon Communications and AT&T have been working together on a breakup bid for Vodafone.

Vodafone, the world's second largest mobile operator, hasbeen at the center of deal speculation in recent months, linkedto its ownership of a 45 percent stake in U.S. mobile operatorVerizon Wireless.

Vodafone's shares were most traded on the Nasdaq, with morethan 30 million shares changing hands.

** IGO INC, $2.47, down 36 pct (1004 ET)

The company, which designs products such as chargers fornotebooks and mobile phones, reported a 25 percent drop infourth-quarter revenue on lower sales of its power products.

"We continue to see ongoing competitive pressures impactingour revenues and margins," Chief Executive Michael Heil said ina statement.

** EZCORP INC, $19.71, down 6 pct (1140 ET)

FBR Capital Markets downgraded the pawn and payday lender to"underperform" from "market perform" and cut its price target to$17.50 from $22 citing weak corporate governance and an expectedslow down in U.S. retail sales in the quarter.

The brokerage said that the company's Class A investors, who have no voting rights, are frustrated by the outsizedcompensation of $8.7 million paid to EZCORP's non-executive in2011, and $7.2 million in annual advisory fees to be paid toMadison Park, which is fully owned by Philip Cohen who controlsall of the Class B voting shares and 12 percent of the company.

** OBAGI MEDICAL PRODUCTS INC, $22.88, up 16 pct(1010 ET)

** VALEANT PHARMACEUTICALS INTERNATIONAL INC , $76.42 (0939 ET)

Neurological and dermatology drugs maker Merz Pharma Groupoffered to buy cosmetic products maker Obagi Medical Productsfor $383.5 million, topping a bid by Canada's ValeantPharmaceuticals International Inc last month.

** APPLE INC, $432.71, up 1 pct (0939 ET)

Chief Executive Tim Cook apologized to Chinese consumers onMonday and altered iPhone warranty policies in its No. 2 marketafter more than two weeks of condemnation in the state-run mediaof its after-sales service.

** NUANCE COMMUNICATIONS INC, $21.78, up 8 pct(0940 ET)

Billionaire investor Carl Icahn, known for taking large"activist" positions in companies and pushing for managementchange, has taken a 9.27 percent stake in speech recognition anddigital imaging software maker Nuance Communications, accordingto a regulatory filing on Monday.

** BOINGO WIRELESS INC, $5.93, up 8 pct (1010 ET)

The Wi-Fi software and services provider authorized therepurchase of up to $10 million of its outstanding common stockat the prevailing prices.

** BROADWIND ENERGY INC, $4.45, up 10 pct (1005ET)

The company, which makes products for the wind powerindustry, won a $14 million order for wind towers in the UnitedStates. Broadwind said the towers are scheduled to be deliveredin the second half of this year.

** URBAN OUTFITTERS INC, $40.52, up 5 pct (0941 ET)

The clothing retailer said that comparable retail segmentnet sales are trending positive in high single digits so far inthe first quarter of fiscal 2014. (http://link.reuters.com/fes96t)

"This supports our belief that Urban Outfitters is offeringthe consumer trend-right, appealing apparel, and bodes well fornear-term results," Stifel Nicolaus analyst Richard Jaffe wrotein a note.

He also said the outlook for the rest of the quarter isfavorable as pent-up demand for spring merchandise is likely tofuel April sales.

** DFC GLOBAL CORP, Monday close $13.28, up 2 pct(0941 ET)

Nomura upgraded the pawn and payday lender's stock to "buy"from "hold", citing an attractive risk/reward at currentvaluation levels. The brokerage said DFC Global is being prudentby ensuring compliance with regulatory standards in the UnitedKingdom.

** HEWLETT PACKARD, $22.18, down 5 pct (0942 ET)

Goldman Sachs cut its rating on the world's No.1 personalcomputer maker's stock to "sell" from "neutral",theflyonthewall.com reported.

** GROUPON INC, $5.61, down 6 pct (10:04 ET)

UBS started coverage on the daily deals company with a"sell" rating, streetinsider.com reported. (http://r.reuters.com/nus96t)

** MICRON TECHNOLOGY, $9.54, up 2 pct (0942 ET)

CNBC's Mad Money host Jim Cramer said on his show late onMonday that the chipmaker was "one of the most intriguingleaders in the first quarter". Cramer said that followingMicron's acquisition of Japanese memory chipmaker Elpida, thecompany was coming in as the second-biggest company in theslow-end memory chip business behind Samsung Electronics.

** TEXAS INSTRUMENTS INC, $34.75, down 1 pct (0942ET)

Stifel Nicolaus downgraded the chipmaker's stock to "hold"from "buy," saying it expected orders to slow down in the nearterm. "We also continue to observe weaker macroeconomic datapoints from China, which we believe could be causing thesemiconductor supply chain to take a cautious approach toinventory levels and build rates," the brokerage said in a noteto clients.

** SUPERVALU INC, $4.96, up 2 percent (1020 ET)

Billionaire investor Steven Cohen, owner of the $15 billionhedge fund SAC Capital, declared a 5.1 percent stake in the grocery store operator, according to a regulatory filing onMonday. (http://r.reuters.com/rus96t)

** NORDIC AMERICAN TANKER LTD, $9.94, down 10 pct(1207 ET)

The oil tanker operator said it is commencing a publicoffering of $87 million worth common shares and will use theproceeds to buy tankers and for general corporate purposes.

Analysts at Evercore Partners expressed their doubt aboutthe company's ability to afford the additional growth as theoffering would increase the company's share count by 18 percent."The transaction appears more likely to be dilutive thanaccretive in the medium term," Evercore analyst JonathanChappell said.

Nordic American were the top percentage loser on the NewYork Stock Exchange in midday trading.

** F5 NETWORKS INC, $89.51, up 2 pct (0944 ET)

Baird Equity Research upgraded the network gear maker'sstock to "outperform", saying the company is benefiting fromhealthy demand particularly in its security business.

"We believe F5 will benefit from some incremental businessfollowing Cisco's decision to end development of itstraditional ADC solution," analyst Jayson Noland wrote in anote.

** BLACKBERRY, $15.29, up 1.5 pct (0945 ET)

Brokerage Societe Generale raised its price target on theCanadian company's stock to $13 from $8.4, saying the launch ofthe company's new Z10 smartphone has gone much better thanexpected and there should be opportunity for volumes to growagain in the first quarter of 2014.

"The key concern for Blackberry is the short shelf life ofhigh-end handsets. Samsung will launch its Galaxy S4 also inApril and Blackberry may struggle to keep momentum. Nonetheless,this is an impressive turnaround for the company," analyst AndyPerkins wrote in a note dated March 28.

** QUALCOMM INC, $66.55, up 1 pct (0946 ET)

Raymond James raised upgraded the chipmaker's stock to"strong buy" from "outperform," and raised its price target to$83 from $80.

"Qualcomm will maintain a meaningful advantage on high-endsmartphones and continues to lead the world in system-on-chipintegration," the brokerage said in a note to clients.

** EBAY INC, $56.36, up 1 pct (0946 ET)

Topeka Capital Markets upgraded the e-commerce company'sstock to "buy" from "hold", saying it is on track to meet itsthree-year plan for "an aspirational doubling of the paymentsbusiness and near mid-teens growth in e-commerce".

The brokerage also raised its price target on the stock to$65 from $54.

** ACTAVIS INC, $96.22, up 4 pct (0948 ET)

A U.S. court ruling that the patent protecting AstraZeneca's Pulmicort Repsules asthma treatment is invalid clearsthe way for a generic copy from Actavis.

Total branded and generic sales of Pulmicort Repsules werearound $1.2 billion in the United States in the 12 months toJanuary 2013, according to Actavis.

** ASTEX PHARMACEUTICALS INC, $4.72, up 4 pct (0948ET)

JMP Securities initiated coverage on the company's stockwith an "outperform" rating and a price target of $8, saying a10-year marketing exclusivity in the European Union for Astex'sblood disorder drug will benefit the company's currentvaluation.

** INVESTORS REAL ESTATE TRUST, $9.29, down 4 pct(0949 ET)

The REIT, which owns and operates residential and commercialproperties, said it has commenced an underwritten publicoffering of 8 million shares. The company intends to use theproceeds to repay debt and for general business purposes.

** CITIGROUP INC, $44.26, up 1 pct (0950 ET)

A Manhattan federal judge on Monday signaled he will notrubber-stamp Citigroup's proposed $590 million settlement of ashareholder lawsuit accusing it of hiding tens of billions ofdollars of toxic mortgage assets.

U.S. District Judge Sidney Stein asked lawyers for the bankand its shareholders to address several issues at an April 8fairness hearing, including requested legal fees and expenses ofroughly $100 million, and the absence of payments by formerCitigroup executives. (Compiled by Pallavi Ail in Bangalore,)

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