MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING THURS DECEMBER 18, 1997 (1)
Friday, December 19, 1997
Stock Markets
Asia Gloom Checks Dow
U.S. stocks fell for a second day amid concern that Asia's economic turmoil will slow growth around the world. Canadian stocks fell, led by gold producers as bullion prices relinquished gains
The Toronto Stock Exchange 300 composite index fell 30.55 points, or 0.5%, to 6594.94.
Barrick Gold Corp. and Placer Dome Inc. led the gold group lower as the US$ gained against the Japanese yen amid fading optimism that planned tax cuts will be enough to revive economic growth in Japan, the world's fifth largest gold consumer. Franco-Nevada Mining Corp. Ltd. (FN/TSE) fell $1.95 to $28 and Cambior Inc. (CBJ/TSE) slid 65› to $8.60 after gold dropped US$2.10 to US$287.20 an ounce on the New York Mercantile Exchange's Comex division. Barrick (ABX/TSE) fell 20› to $26.15 and Placer Dome (PDG/TSE) slipped 15› to $17.40. Barrick adopted a "poison pill" anti-takeover defence to deter would-be predators as shares of North America's second largest gold miner hover near five-year lows.
Banks, which account for 23% of the total market capitalization of the benchmark index, weighed on the broader market.
"Interest-sensitive issues are a little softer on concern that the Bank of Canada may raise rates in the short term to support the C$," said Norman Duncan, a broker with C.M. Oliver & Co. Bank of Montreal (BMO/TSE) fell $1 to $62.75, Bank of Nova Scotia (BNS/TSE) slipped 60› to $65 and Royal Bank of Canada (RY/TSE) slid $1.20 to $76.05. BCE Inc. was also dragged lower by interest rate concerns. The stock (BCE/TSE) fell 45› to $44.90.
On the broader TSE, declining issues outpaced advancers 568 to 500. More than 127.1 million shares changed hands, down from the exceptional 208.3 million shares traded on Wednesday.
Traders expect equity markets to be volatile today as stock and index options and index futures contracts all expire on the same day. Known as triple witching, such days can lead to large orders to buy and sell, making prices bounce erratically.
Other major Canadian markets were mixed. The Montreal Exchange portfolio fell 29.42 points, or 0.9%, to 3347.4. The Vancouver Stock Exchange index rose 2.37 points, or 0.4%, to 595.45.
Hot Canadian Stocks
Hyal Pharmaceutical Corp. (HPC/TSE), down $1.67 to 53›, on volume of 2.3 million shares. Retail investors rushed for the exits after the company said Wednesday that medical tests showed its main product did not work. Hyal is abandoning Hyanalgese-D, a pain relief drug for osteoarthritis.
AGF Management Ltd. (AGFb/TSE), down 50› to $56.50, on volume of 24,316 shares. Northern Telecom Inc. (NTL/TSE), down 80› to $127, on volume of 295,074 shares.
Both companies announced or confirmed stock splits to increase their float and bring their price within the reach of more investors. The board of money-manager AGF approved a three-for-one split, pending regulatory and shareholder approvals. Shareholders will meet Jan. 30. Nortel said shareholders had approved a two-for-one split, effective Jan. 5 in Canada and Jan. 12 in New York and London.
Magellan Aerospace Corp. (MAL/TSE), up 95› to $9.85, on volume of 1.1 million shares. The company's stock will be included in the TSE 300 composite index today. It replaces Dominion Textiles Inc. (DTX/TSE), which has been taken over by a U.S.-based company.
TSE 100 index participation units (HIP/TSE), down 20› to $40.30, on volume of 3.2 million units. Levesque Beaubien Geoffrion Inc. crossed a block of two million HIPs at $40.50 each.
Loblaw Cos. Ltd. (L/TSE), up 65› to $26.85, on volume of 67,100 shares. The stock may be rising following a meeting with analysts last week, where the company talked in detail about its expansion plans. One analyst confirmed a "strong buy" rating on the stock after the meeting.
Philip Services Corp. (PHV/TSE), down $1.65 to $19.05, on volume of 337,478 shares. Shares of the industrial services company have dropped almost 20% since last week and are well off their 52-week intraday high of $27.80 in September. After the market closed, the company said the price drop was not related to its fourth-quarter operations. One analyst said investors may be nervous that Philip will enter a bidding war with Laidlaw Environmental Services Inc. for Safety Kleen Corp. Safety Kleen has already accepted Philip's buyout offer, but Laidlaw has forced a special shareholders' meeting for early January. Another analyst questioned whether Philip could satisfy projected growth rates through its recent acquisitions.
Health Canada has given the go-ahead to Toronto-based Hemosol Inc. for a second Phase 2 clinical trial of its experimental blood substitute. The blood substitute, Hemolink, is being developed as an alternative way of carrying oxygen through the body. But Hemosol also hopes to show Hemolink boosts production of red blood cells in dialysis patients. Hemosol is already conducting Phase 2 tests of its product in orthopedic surgery, but the latest regulatory approval means the company can begin testing in patients with chronic anemia associated with kidney failure. Therapy for such patients now uses a synthetic version of the hormone erythropoietin, known as EPO, to stimulate red blood cell production. Data from the trials will be used to extend the use of Hemolink to treat other anemias, such as those related to AIDS or cancer, the company said. Hemosol shares closed up $0.05 to $0.65 yesrterday.
Geac Computer Corp. (GAC/TSE), up $1.90 to $46.75, on volume of 378,656. Shares of the software company closed at $40.70 Monday before it reported stronger than expected second-quarter results. Analysts had expected Geac to earn 63› a share in the quarter ended Oct. 31, but it reported 67›. They also took comfort from evidence in the financial report that Geac's businesses are growing. Some analysts worried the company was overly reliant on acquisitions to boost revenue.
Agnico-Eagle Mines Ltd. (AGE/TSE), down 35› to $7.60, on volume of 93,325 shares. The company cut its dividend to US2› a share from US10› in 1996, to conserve cash and expand its business. The dividend is payable Jan. 27 to shareholders of record Jan. 6.
Teleglobe Inc. said yesterday it will more than double its $100-million cash pile after rolling over the large chunk of stock acquired in CGI Group Inc. four months ago. For CGI, a high-octane market performer over the past year, the sale of Teleglobe's stake means a significant boost in stock liquidity. Class A shares of the Montreal-based information technology provider just began trading on a 2-for-1 basis on Monday and Teleglobe's shares represent almost a third of those outstanding.
Teleglobe is selling its 10,530,400 class A shares for $24 each through a bought deal by an underwriting syndicate led by Scotia Capital Markets, L‚vesque Beaubien Geoffrion Inc. and Nesbitt Burns Inc. Chief financial officer Claude S‚guin said Teleglobe had plans to dispose of the shares ever since it acquired them as payment for the sale of its ISI Systems Inc. outsourcing division to CGI. The unit was sold for $140-million cash and stock last August just before another CGI stock split. He said Teleglobe's net return will be about $242 million, an amount that should translate into "a gain of more than $100 million, more than doubling our [existing] cash pool of about $100 million." CGI shares (GIBa/TSE) closed yesterday at $23.85, down $1.15. Teleglobe shares (TGO/TSE) closed down 20› at $46.30.
Avenor Inc. (AVR/ME), up 95› to $21, on volume of 503,075 shares. The company said it had signed a deal that will make Canfor Corp. the exclusive marketingagent for Avenor's lumber products from Jan. 1.
Pan African Resources Corp. (PARC/CDN), up 1› to 6›, on volume of 58,000 shares. Golden Star Resources Ltd., which holds 64% of Pan African, will buy out minority shareholders by exchanging one Golden Star share for 50 Pan African shares. Pan African valued the offer at 7› a share. Pan African traded at 85› a share in January.
Ballard Power Systems Inc. scored a $105-million investment from a blue chip European joint venture yesterday, only four days after the environmentally friendly energy company inked a $600-million deal with Ford Motor Co. Under the terms of the agreement announced yesterday, GEC-Alsthom NV of Paris will help market and manufacture Burnaby, B.C.-based Ballard's stationary power plants.
The flurry of blue chip deals has sent Ballard shares soaring. Last Friday, the stock closed at $88 and hit a record $115 Wednesday this week. Only two years ago, shares traded in the $10 range. Yesterday the shares (BLD/TSE) were off $1.75 to close at $113.25. "The market is responding to the fact we have met our milestones," said BGS president Scott Weiner. Despite the lofty gains, analysts contacted yesterday remained bullish. "There is a real technology here," said Christine Farkas of Toronto's Midland Walwyn Capital Inc. Continued deals mean the company is moving closer towards commercialization, she said.
London, Ont.-based Bioniche Inc. (BNC/TSE) is acquiring California's Jordan Pharmaceuticals Inc., in a non-cash transaction aimed at boosting annual sales to $10 million. Bioniche told shareholders at its annual meeting yesterday it had signed a letter of intent, but terms of the deal were not disclosed. The operations of Jordan, which distributes injectable pharmaceutical products, will be combined with those of Bioniche to form a new company. The majority of shares will be owned by Bioniche and the balance by Jordan shareholders and management, the company said. Shares closed at $0.65, up $0.05 on very high volume of 408,500 shares.
New York Commentary
If the forces of negativity were playing football with the market, they might get called for a "late hit." After a day when bad news was running amok on Wall Street, there was more to come after the bell.
First, athletic-apparel giant Nike (NKE) reported second-quarter earnings of 48 cents per share, a solid 7 cents below expectations. The firm said its results were negatively affected not only by a slowdown in Asia, but also by a "higher percentage of close-out sales in the USA and Europe."
As if that weren't bad enough, Nike CEO Philip Knight said in a prepared statement that a "slowdown in future orders clearly signals that revenue growth in the second half of fiscal 1998 will be below our previous expectations." The Nike chief also said the need to pare down inventories will pressure the firm's gross margins for the balance of fiscal 1998.
In after-hours activity, Nike was trading down more than $2 per share from its New York session close of 43 7/16. The earnings report overshadowed Nike's announcement that its board has approved a $1 billion share-repurchase plan.
The big tech earnings news posted late Thursday was also disappointing, but not as dramatically. 3Com (COMS) said it earned 4 cents per share in its second quarter, a penny below predictions, according to Zacks, but in line with First Call's consensus. Those expectations had already been trimmed lower after 3Com's warning on Dec. 3.
Looking ahead, the networking giant said the market for its products will grow in 1998, but not as fast as in the early 1990s. In addition, 3Com said the situation in Asia is unlikely to return to "above average" anytime soon and that there's no evidence pricing pressures will be alleviated next year. 3Com closed off 1 3/8 to 33 1/8 Thursday, ahead of its earnings report.
The lack of an "upside surprise" from either Nike or 3Com probably means the weakness evident in trading Wednesday and Thursday will continue Friday. Then again, Friday is a triple-witching session and it appears there has been a negative bias leading up to the concurrent expiration of stock futures and options with index futures. That could mean there's some pent-up buying power waiting to be unleashed.
And there are some players out there who believe the negative calls Thursday from high-profile strategists Ralph Acampora at Prudential Securities and Barton Biggs at Morgan Stanley Dean Witter could be a contrarian indicator.
"For a long time I've been saying things aren't looking so rosy and felt like I was the lone voice," said Doug Myers, vice president for stock trading at Interstate Johnson Lane. "Now some smart guys are coming out saying the same thing. It makes me think, maybe they're wrong."
Employing the often-perverse "bad news is good news" logic that sometimes prevails among traders, Myers said the very fact that negativity reigns on Wall Street right now gives him reason for hope. The rationale behind the theory is that when the market is preparing for the worst, its impact will be muted.
"As soon as everyone is coming out with trepidation, then it's OK to come back in," he said. "When everyone starts coming out saying, 'Expect this,' that very well may come to pass but it won't be as shocking or disruptive to the system. As long as an economic slowdown is not a surprise, (companies) can manage inventories and their labor force and weather it well."
The traders stopped short of predicting a big rebound is in the offing Friday, but suggested that the market is in the process of a "pullback to a new base." There may be a lot more volatility in the offing for stocks, but Myers believes that after the first of year the so-called "January effect" may in fact come to pass.
After The Bell
While Nike shares were falling, Adobe Systems (ADBE) stock was rising in after-hours trading. The software developer reported fourth-quarter earnings of 56 cents per share, a penny ahead of expectations.
Manugistics (MANU) posted third-quarter results of 15 cents per share, 2 cents better than expectations.
Great Plains Software (GPSI) also beat the Street by 2 cents, earning 15 cents per share in its second quarter.
Results for Integrated Systems (INTS) were right in line with estimates. The software maker said it earned 7 cents per share in its third quarter.
Periphonics (PERI) said it earned 7 cents per share in its fiscal second quarter, 4 cents below expectations.
Gibraltar Steel (ROCK) said its fourth-quarter earnings will be shy of Wall Street's expectations. A profit warning (for its second quarter) was also posted by Briggs & Stratton (BGG), which cited the negative impact of a strong dollar.
Thursday Markets
An aura of negativity invaded Wall Street as dour comments from two influential strategists and the apparent victory of the liberal opposition candidate in Korea's election combined to punish stocks. A rash of computer-driven "sell" programs didn't help matters either, as the Dow closed off 111 points while the Nasdaq slid 24.
Technology stocks were once again a focal point of selling activity, as investors took a grim view of the latest developments in Microsoft's (MSFT) ongoing battle with the Justice Department. Elsewhere in the sector, worries about exposure to Asia were enough to condemn many of the industry's biggest names to significant losses.
The Dow Jones Industrial Average ($INDUA) began the day weaker, sliding more than 30 points early on, then dipping more than 70 points. The index climbed briefly until the selling reaccelerated following a CNBC report that Ralph Acampora, Prudential Securities chief technical analyst, had revised his 1998 stock forecast. Acampora, who has been one of the market's most vociferous bulls in the past 18 months, reportedly pushed back his prediction that the Dow will hit 10,000 in mid-1998 to sometime in 1999. Acampora could not be reached for comment.
Word that one of the market's most visible proponents was getting less effusive helped send the Dow tumbling from about 11:30 a.m. EST straight through until about 2:30 p.m., when it was down nearly 145 points. The blue-chip index bounced back a bit, rising within 85 points of break-even in the last hour before slipping again to end down 110.91 points at 7,846.50.
In addition to Acampora's call, negative comments attributed to Morgan Stanley's chief global strategist Barton Biggs were also cited as dampening enthusiasm during the session. Biggs, who has been negative on the market for some time, flatly predicted a bear market will arise in 1998.
The tech-ridden Nasdaq Composite Index (COMP) opened with weakness and never generated much forward momentum. After an initial modest drop, the Nasdaq drifted in negative territory, off about 10 points until noon EST. Thereafter, the index steadily moved lower, reaching its nadir at about 2:30 p.m. EST with a loss of nearly 30 points. The Nasdaq then recovered somewhat along with the Dow, finishing with a loss of 24.18 points at 1,523.19.
The S&P 500 (SPX) shed 10.24 points to 955.30, while the Russell 2000 Index (RUT) reversed two days of gains with a loss of 6.09 points, closing at 420.35.
On the NYSE, 630 million shares were traded and advancing issues were bested by decliners by a 19-to-10 margin. In Nasdaq trading, 750 million shares were exchanged and advancers got whipped by declining issues by a 29-to-15 spread.
Overseas, the big development was the apparent victory of National Congress candidate Kim Dae Jung in South Korea's presidential election. Kim, who later pledged to adhere to the program, was the most vocal opponent of the nation's relief package negotiated with the International Monetary Fund. Despite his pledge, traders worried that Kim might seek to renegotiate the terms of the $57 billion bailout once in office.
In Japan, the Nikkei 225 Index shed 2.3% as traders took another look at the fiscal stimulus package released Wednesday. Once the positive surprise wore off, Japanese investors realized that the $15 billion one time income tax cut was far from a panacea for the nation's economic ailments. The dollar rose versus the yen, reversing a big decline the prior day.
Benefiting from all the unrest in global equity markets was the U.S. bond market, which rose more than 7/8 of a point. The yield on the benchmark 30-year Treasury bond, which moves in the opposite direction of its price, fell to 5.94%.
Technology Stocks
Wall Street rendered its own verdict on Microsoft (MSFT), pushing the stock down 4 3/4 to 130 7/8. Late Wednesday, the Justice Department asked a federal judge to hold Microsoft in "civil contempt" and levy a $1 million-per-day fine on the software firm. Last week, U.S. District Court Judge Thomas Penfield Jackson ordered Microsoft to offer a version of Windows 95 without forcing PC makers to also include its Internet browser but did not hold the company in contempt.
Another software maker suffering the market's wrath was Broderbund (BROD), which fell 5 1/4 to 28 1/2. UBS Securities cut the stock to "hold" from "buy," citing price. That downgrade overshadowed Broderbund's first-quarter earnings report that, at 49 cents per share, was a nickel better than Street expectations.
The other big drag on the Nasdaq was Dell Computer (DELL), which fell 4 to 80 3/4 amid weakness in the PC sector. On the NYSE, Compaq Computer (CPQ) slid 1 7/16 to 54, and Dow components IBM (IBM) shed 2 1/8 to 99 7/8 and Hewlett-Packard (HWP) closed off 1 1/16 to 62 1/8. Meanwhile, PC retailer CompUSA (CPU) closed down 4 3/4 to 26 3/16.
Gateway 2000 (GTW) rose 9/16 to 30 1/8 after Prudential Securities reiterated its "buy" rating.
Among technology's other bellwether names, the losses were more muted: Intel (INTC) dipped just 3/8 to 69 1/8, Sun Microsystems (SUNW) fell 3/4 to 37 1/6, and Cisco Systems (CSCO) slid 5/8 to 53 9/16.
On the NYSE, Texas Instruments (TXN) stumbled 1/2 to 43 4/8, America Online (AOL) slid 3/16 to 83 3/4, and Computer Associates (CA) closed down 1 11/16 to 49 13/16.
On Monday, Micron Technology (MU) rose despite being downgraded by Merrill Lynch. Thursday, the chip maker fell 3/4 to 24, although Goldman Sachs added the stock to its "priority" list.
Semiconductor-equipment supplier DuPont Photomasks (DPMI) fell 2 1/4 to 31 3/4 following the company's warning that its exposure to South Korea will hurt its second-quarter results.
DuPont Photomask's warning helped push shares of Speedfam International (SFAM) down 1 1/8 to 23 7/8. The red flag from a fellow chip equipment provider overshadowed SpeedFam's report late Wednesday that it earned 49 cents per share in its second quarter, in line with projections.
Shares of electronics manufacturer Plexus (PLXS) tumbled 11 to 14 after the company warned that its first-quarter results will be below expectations due to slowing sales. Other contract assemblers were down in sympathy: Jabil Circuits (JBIL) slid 3 7/16 to 38 1/16 and Sanmina (SANM) lost 2 5/16 to 62 7/16.
Among Internet-related stocks, Yahoo! (YHOO) fell 1 7/16 to 58 1/8, Amazon.com (AMZN) closed off 1 3/16 to 51 1/2, and AmeriTrade Holding (AMTD) lost 1 to 27 3/8.
The wireless-telecom group was the lone pocket of strength in technology on Thursday. Motorola (MOT) climbed 1 11/16 to 55 7/8, Lucent Technologies (LU) rose 1 1/16 to 77 1/16, and Nextel Communications (NXTL) climbed 1 1/8 to 24 5/8 after being initiated with a "buy" rating at CS First Boston.
Telephone & Data Systems (TDS) climbed 2 15/16 to 48 1/2 after it announced a restructuring that includes the purchase of the public stakes in U.S. Cellular Corp. (USM) and Aerial Communications (AERL). TDS will create three separate classes of stock to reflect the performance of its U.S. Cellular, Aerial, and TDS Telecommunications units.
Ameritech (AIT) rose 2 9/16 to 83 11/16 after the firm announced a 2-for-1 stock split and said it will buy back up to $2 billion of its common stock.
Even in this group, however, there was some weakness as Ericsson (ERICY) fell 1 3/8 to 36 5/8, Nokia (NOK/A) closed off 1 9/16 to 70, and Brightpoint (CELL) fell 1 3/16 to 15 1/4. NextLink Communications (NXLK) closed off 1 1/2 to 22 3/8 despite being added to Goldman Sachs' "recommended" list.
Software-tools developer Cognos (COGNF) rose 1 1/2 to 21 1/2 after reporting earnings of 30 cents per share in its third quarter, 4 cents ahead of expectations.
Information-technology provider En Pointe Technologies (ENPT) fell 3 5/8 to 9 after the company said the delay in orders diminished its first-quarter revenues by $10 million.
Securities Dynamics Technologies (SDTI) fell 1 3/4 to 33 1/8 despite receiving a new "buy" rating from SBC Warburg Dillon Read.
Active Issues
Despite the bond market's advance, the Dow's retreat was led by J.P. Morgan (JPM), which fell 3 3/16 to 118 7/8. Other laggards included DuPont (DD), off 2 5/8 to 58 1/4; International Paper (IP), which fell 1 3/4 to 42 3/4; and Merck (MRK), which slid 2 3/16 to 105 1/8.
Eastman Kodak (EK) rose 1 1/2 to 58 to lead the blue-chip gainers. The firm said it would eliminate 16,600 jobs -- 6,600 more than originally expected -- in a restructuring that will cost the company $1.5 billion. The consumer products giant said it will take the restructuring charge in its fourth quarter, results for which are due on Jan. 15.
AT&T (T) closed up 1 3/8 to 59 1/4, a new 52-week high, after Citicorp (CCI) agreed to acquire its credit-card business for $4 billion. Citicorp slipped 2 3/8 to 129 1/8.
3M (MMM) rebounded after its heavy sell-off on Wednesday when the company forecast flat fourth-quarter profits. The stock closed up 1 to 85 7/8 on the heels of the previous day's 8 7/8-point decline.
Aetna (AET) plunged 9 3/8 to 69 1/2 on word that the company's CFO, James Dickerson, has resigned. The news sparked fears that the results at the multi-line insurer's U.S. Healthcare unit are even worse than previously disclosed. SBC Warburg Dillion Read and Donaldson Lufkin & Jenrette downgraded Aetna on the news.
Other HMO operators and insurers were lower in sympathy: Cigna (CI) fell 3 5/16 to 159 3/4; WellPoint Health Networks (WLP) lost 3 1/2 to 41 5/16; United Healthcare (UNH) dipped 2 3/16 to 47 7/16; and Oxford Health Products (OXHP) slid 1 3/16 to 14 15/16.
There was weakness in the big drug stocks. Bristol-Myers Squibb (BMY) fell 2 1/8 to 92 9/16 and Pfizer (PFE) dipped 1 3/16 to 74 1/8. However, Warner-Lambert (WLA) rose 4 1/4 to 117 7/8 thanks to an upgrade by Schroder & Co. to "outperform" from "perform in-line."
Transportation stocks were also sagging. UAL (UAL) fell 1 7/16 to 90 5/8, AMR (AMR) dipped 2 5/16 to 127 13/16, Delta Air Lines (DAL) lost 2 9/16 to 115 1/16, Federal Express (FDX) closed down 3 9/16 to 56 13/16, and Airborne Freight (ABF) lost 3 7/16 to 61 15/16.
And the oil-drilling and equipment stocks were losers as well. Cliffs Drilling (CDG) fell 2 to 50 1/16, Smith International (SII) slid 1 1/2 to 60 5/8, Noble Drilling (NE) closed off 1 5/8 to 28, and Nabors Industries (NBR) fell 1 5/8 to 30 7/16.
American Pad & Paper (AGP) fell 2 9/16 to 7 15/16 after warning that it will have a loss of up to 10 cents per share in the fourth quarter. Wall Street was expecting a gain of 50 cents per share.
Apogee Enterprises (APOG) fell 5 3/4 to 10 3/8 following the glass manufacturer's warning that it expects earnings to be down significantly from last year's 20 cents per share.
Dean Foods (DF) fell 1 13/16 to 54 3/4 thanks to a downgrade from Schroder & Co. to "perform-in-line" from "outperform." Wednesday, the milk and dairy firm posted second-quarter earnings of 66 cents per share, 6 cents better than expectations.
Scientific-Atlanta (SFA) slid 2 1/2 to 16 1/2 following a downgrade by Merrill Lynch to intermediate-term "neutral" from "accumulate."
Raychem (RYC) tumbled 3 3/4 to 42 1/16 thanks to a downgrade from Morgan Stanley Dean Witter to "outperform" from "strong buy."
Bay State Gas (BGC) rose 5 3/8 to 37 after agreeing to be acquired by NIPSCO Industries (NI) for $780 million, or $40 per share. NIPSCO ended up 1/16 to 47 3/8.
B/E Aerospace (BEAV) climbed 1 11/16 to 23 3/16 after reporting third quarter earnings of 40 cents per share, 2 cents bette than expectations. An upgrade from PaineWebber to "buy" from "hold" also helped the stock.
Showboat (SBO) rose 2 3/8 to 21 1/8 amid heavy options trading in the casino and hotel operator.
Stoneridge (SRI) gained 2 15/16 to 17 3/16 thanks to an upgrade from Morgan Stanley Dean Witter to "strong buy" from "outperform."
Aurora Biosciences (ABSC) jumped 1 1/8 to 14 3/8 after inking a research and licensing deal with Merck (MRK) worth $33 million initially and up to $100 million if certain milestones are reached.
Major Overseas Markets Closed Mixed.
London: A mild case of profit-taking pushed Britain's leading share index to a slightly weaker finish. The FT-SE 100 index closed at 5168.3, down 22.5 points or 0.4%.
Frankfurt: German blue chips edged higher. The Dax index closed at 4166.24, up 7.56 points or 0.2%.
Tokyo: Japanese stocks ended lower, giving back much of Wednesday's gains. The 225-share Nikkei average closed at 16,161.64, down 379.42 points or 2.3%.
Hong Kong: Stocks shrugged off opening losses to close modestly higher. The Hang Seng index closed at 10,754.11, up 61.41 points or 0.6%.
Sydney: The Australian share market scrambled back to square by the close after a day of topsy turvy trade. The all ordinaries index closed at 2563.1, up just one point.
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