Markets & Finance

Tanox Rallies on Xolair Approval


Genentech (DNA

), Novartis (NVS

), and Tanox (TNOX

) announced that the Food and Drug Administration recommended approval of Xolair for treatment of moderate-to-severe allergic asthma in adults and adolescents. Tanox shares jumped 10% on the news Friday.

Dell (DELL

) shares fell Friday after the company posted 23 cents, vs. 17 cents a year ago, first-quarter earnings per share on an 18% revenue rise. The EPS was in line with the consensus forecast. The computer maker second-quarter EPS of 24 cents on $9.7 billion or more revenue. Citigroup downgrades to in-line from outperform on valuation, and notes the company characterized demand as stable but cited no signs of a cyclical pick-up. S&P reiterates hold ranking.

Overture Services (OVER

) shares climbed 17% Friday. S&P says evidence of a productive partnership with Yahoo (YHOO

) may be fueling renewed speculation about a potential acquisition of Overture by Yahoo. S&P reiterates hold ranking.

AMR Corp (AMR

) says in an SEC filing that it might have to file for bankruptcy despite having extracted nearly $4 billion in annual costs, according to The New York Times.

InfoSpace (INSP

) shares jumped 19% Friday after Wedbush Morgan says the company won a $207 million-plus insider trading lawsuit against former CEO Naveen Jain. The company notes the Seattle Times article concerning the lawsuit.

Hanger Orthopedic (HGR

) shares fell after Lehman downgrades to equal-weight from overweight.

Deutsche Bank downgraded Convergys (CVG

) to hold from buy.

Prudential downgrades Gentex (GNTX

), Delphi (DPH

), Lear (LEA

), and Johnson Controls (JCI

) to hold from buy, and the auto-equipment maker sector to market perform from market outperform. Prudential also lowered Visteon (VC

) to sell from hold.

Prudential also cut auto maker General Motors (GM

) to sell from hold.

Kohl's (KSS

) posted 32 cents, vs. 31 cents a year ago, first-quarter earnings per share on a 13% sales rise. The retailer's earnings met its recently lowered guidance. S&P cuts estimate and reiterates hold ranking on the shares.

Arthrocare (ARTC

) shares fell after First Albany downgrades to neutral from buy on current valuation and possible near-term competitive risk.

Adolph Coors (RKY

) shares fell after UBS Warburg downgrades to neutral from buy.

Wyeth (WYE

) shares fell after the company says based upon information currently available, it believes there is no basis to change reserves relating to diet drug litigation. However, it says possible additional reserves may be required.

Del Monte Foods (DLM

) says it sees fiscal year 2004 EPS of 80 cents to 84 cents on 2% to 4% (pro forma) revenue growth. The company forecast fiscal year 2004 EPS (adjusted_ of 88 cents to 92 cents. It also confirmed fiscal year 2003 guidance.

CS First Boston downgrades Nordstrom (JWN

) to neutral from outperform. CSFB also downgrades May Department Stores (MAY

) to underperform from neutral. On Thursday, S&P Ratings said it may downgrade May's debt ratings.

Superior Financial (SUFI

) agrees to be acquired by Arvest Holding, Inc. for $23.75 per share.

Robert Half (RHI

) says executives recently interviewed were increasingly uncertain about third quarter hiring intentions. The company notes 5% of CFOs planned to increase staff, 5% planned reductions, 5% were undecided--up from 2% three months ago.

Viad (VVI

) will restate 2001-2002 financial results. The move is intended to resolve accounting issues at its Travelers Express subsidiary.

SLM Corp. (SLM

) set a 3-for-1 common stock split.

Dendrite International (DRTE

) increased its offer to acquire Synavant (SNVT

) from $2.83 per share to $3.22 per share.

Brooks Automation (BRKS

) terminated a pact under which it was to acquire privately held Berkeley Process Control, citing changes in the business environment. No termination penalties will apply.

Shurgard Storage (SHU

) will restate 2001-2002 financial results due to accounting treatment for hedge transactions entered into by the company in 2001.

King Pharmaceuticals (KG

) Files for 5-day extension for submitting its 10-Q to SEC to allow audit committee to finish its review of co.

Alcatel (ALA

) agreed to acquire TiMetra Inc. for $150 million in stock and American Depositary Shares.

TXU Corp. (TXU

) plans to sell interests in its telecom business, TXU Communications, as part of a continued focus on its energy business in Texas and Australia.


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