On The Fly: Closing Wrap (winners KMX FLML, not ORCL)
| Stocks on Wall Street had a quiet open and remained that way throughout the session. The averages moved in a narrow range but drifted mostly in positive territory, allowing the Dow and S&P 500 to close the week at all-time highs. The Nasdaq also notched a gain, despite being weighed on by shares of Oracle (ORCL), which slid after reporting earnings below Wall Street estimates. ECONOMIC EVENTS: In the U.S., no major economic data was reported.
COMPANY NEWS: Shares of enterprise software provider Oracle sunk $1.69, or 3.98%, to $40.82 after the company’s fourth quarter results trailed analysts’ consensus estimates. Citigroup downgraded Oracle to Neutral from Buy citing weak license growth and "relatively aggressive" Q1 targets following the company's Q4 results... Shire (SHPG) shares trading in New York rose $31.18, or 16.26%, to $222.89 after the company confirmed it rejected a takeover offer from AbbVie (ABBV). Abbvie, which has tried unsuccessfully three times to strike a deal to buy the Ireland-based drugmaker, is considering raising its offer for Shire a fourth time, according to Bloomberg, citing two people with knowledge of the matter.
MAJOR MOVERS: Among the notable gainers was car retailer CarMax (KMX), which surged $7.47, or 16.5%, to $52.75 after the company reported first quarter results that beat expectations. Also higher were shares of Flamel Technologies (FLML), which rose $2.40, or 18.79%, to $15.17 after the FDA changed its drug shortage website and now lists Flamel's Bloxiverz as the "first and only" approved neostigmine. Analysts at Summer Street believe the change could be a "hugely significant" milestone for Flamel and may mean that the FDA could be taking action to remove unapproved neostigmines offered by other companies.
Among the noteworthy losers was Targa Resources Partners (NGLS), which fell $11.44, or 14.03%, to $70.11 after announcing last night that its takeover talks with Energy Transfer Equity (ETE) ended without a deal and the stock was downgraded at Wunderlich following the news. Shares of Targa Resources Partners and its parent, Targa Resources (TRGP), had spiked late in yesterday's session after Bloomberg reported that Energy Transfer was near a deal to buy them. Also lower was restaurant operator Darden (DRI), which dropped $1.94, or 3.92%, to $47.58 after stating that same-store sales at its Olive Garden restaurants had declined 3.5% last quarter and reporting earnings that disappointed.
INDEXES: The Dow rose 25.62, or 0.15%, to 16,947.08, the Nasdaq advanced 8.71, or 0.2%, to 4,368.04, and the S&P 500 gained 3.39, or 0.17%, to 1,962.87. |
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