Tyco ($45.34, +$1.64, +3.75%) plans to separate its security, fire protection and flow control segments into three publicly traded companies in about 12 months.
United Technologies Corp. (UTX, $74.14, -$1.36, -1.80%) is in talks to acquire aircraft systems maker Goodrich ($103.36, +$10.47, +11.27%), The Wall Street Journal reported, citing people familiar with the matter, as the conglomerate looks to bulk up its operations. Shares of companies that had been named last week as other potential acquisition targets fell, including Textron Inc. (TXT, $17.33, -$1.30, -6.98%) and Rockwell Collins Inc. (COL, $53.11, -$3.10, -5.52%).
European bank shares sank Monday after euro-zone governments threatened to withhold the next round of scheduled aid to Greece, raising the prospect of a painful default for the region's banks within a matter of weeks. American depositary shares of Barclays ($9.60, -$0.80, -7.69%), Royal Bank of Scotland Group Plc (RBS, $7.10, -$0.67, -8.62%) and Lloyds Banking Group Plc (LYG, $2.05, -$0.18, -8.07%) declined.
Sterne Agee downgrades a set of oil-and-gas explorers as it cuts commodity-price expectations a general 5-10% starting for the second half of the year. The firm cuts its rating on Canadian Natural Resources Ltd. (CNQ, $33.54, -$1.64, -4.66%), Continental Resources Inc. Oklahoma (CLR, $53.94, -$2.11, -3.77%), Forest Oil Corp. (FST, $18.70, -$0.63, -3.26%) and Penn Virginia Corp. (PVA, $6.79, -$0.76, -10.07%) to hold. "CNQ and CLR are two names that are well managed with quality assets," but would be overvalued if oil slides to $80/barrel "given their oil weighting and relatively unhedged 2012 oil exposure," the firm said.
Netflix Inc. (NFLX, $159.04, +$3.85, +2.48%) Chief Executive Reed Hastings said in a blog post the company is separating its movie-streaming business and its DVD-by-mail service, to be renamed Qwikster, a move he said was the undisclosed impetus for a recent price increase that outraged customers and sent the company's stock price plummeting.
Other Stocks In Focus:
Anadarko Petroleum Corp. (APC, $72.87, -$1.90, -2.54%) has obtained permits to drill a well in the Utica Shale formation in eastern Ohio, according to the state's oil and gas regulator. The move makes the Houston company the latest energy firm to enter the latest big North American oil discovery.
Goldman Sachs cut its stock-investment rating on semiconductor companies Applied Materials Inc. (AMAT, $11.16, -$0.42, -3.59%) to sell from neutral and Lam Research Corp. (LRCX, $38.08, -$1.67, -4.20%) to neutral from buy, saying the recent rally has created "significant downside risk" for the stocks. Record shipments to foundries and Intel Corp. (INTC, $21.67, -$0.30, -1.37%) will lead to a downward trend through mid-2012, the firm said, as orders have been above the long-term average for six quarters and will need to trend below average over the next 12-18 months to correct the excess supply.
Susquehanna downgraded its stock-investment rating on AsiaInfo-Linkage Inc. (ASIA, $9.80, -$1.40, -12.50%) to neutral and halved its price target to $11, saying expectations are too high following a visit with the Chinese IT-services provider last week. "We believe consensus estimates for Q3, Q4 and 2012 are all too high." Susquehanna noted, "As has happened globally, the telecom software industry in China appears to be maturing. As ASIA has the highest share, they are relegated to market growth."
Luxembourg's Cargolux Airlines International SA called off plans next week for the first delivery of the Boeing 747-8, in the latest blow to the airplane maker's launch of the revamped version of its popular jumbo jet. A Boeing Co. (BA, $63.23, -$2.15, -3.29%) spokesman confirmed Friday afternoon that events scheduled for Monday for the cargo operator to take delivery of the aircraft in Everett, Wash., had been canceled, an embarrassing turn of events for the Chicago aerospace giant.
Jefferies cut its stock-investment rating on Cabot Corp. (CBT, $31.06, -$2.24, -6.73%) to hold from buy, citing near-term uncertainties could mask the chemicals and specialty materials company's growth levers. The firm said fourth-quarter volumes are down 2% to 4% in rubber blacks and fumed metal oxides.
Raymond James kept its bullish bias on Caterpillar Inc. (CAT, $82.79, -$3.11, -3.62%), but cut the company to outperform from strong buy, saying "it is impossible for us to ignore the effects that a global economic slowdown will have on CAT's business." The firm said Caterpillar has reported that it's "business as usual," and drivers of strong results "have yet to show definitive signs of weakness."
Exxon Mobil Corp. (XOM, $72.72, -$1.83, -2.45%) should be able to restart within the next few days at its Silvertip pipeline, which has been off line since leaking up to 1,000 barrels of oil in the Yellowstone River in July, an official with the Montana government said Friday.
Lennar Corp.'s (LEN, $14.34, +$0.54, +3.91%) (LEN.B, $10.81, +$0.50, +4.85%) fiscal third-quarter earnings slumped 31% as the homebuilder delivered fewer homes than a year earlier. But Ticonderoga said Lennar's results were "surprisingly good"--though EPS and revenue were merely in line with consensus estimates--and "that should put a little bounce in investors' steps." It noted management's commentary regarding demand was a bit more upbeat, with orders up a better-than-anticipated 11% in the quarter from a year ago.
GT Advanced Technologies Inc.'s (GTAT, $8.91, -$1.06, -10.63%) Chief Executive Officer Thomas Gutierrez sold 234,574 shares of the company last week, according to a filing with the Securities and Exchange Commission late Friday.
Former bulls on Jinko Solar Holding Co. (JKS, $6.86, -$2.18, -24.12%) gave up in the wake of the stock's 45% plunge this month as the solar sector continues to be buffeted by weak demand and the resulting slump in prices. Among the cuts, Goldman Sachs and Collins Stewart each downgraded their stock-investment ratings to neutral. Jinko Solar's American depositary shares were down as investors also reacted to China shutting down a panel-manufacturing plant Monday after hundreds of local residents staged violent protests about pollution in recent days.
Lennar Corp.'s (LEN, $14.34, +$0.54, +3.91%) (LEN.B, $10.81, +$0.50, +4.85%) fiscal third-quarter earnings slumped 31% as the homebuilder delivered fewer homes than a year earlier. But Ticonderoga said Lennar's results were "surprisingly good"--though EPS and revenue were merely in line with consensus estimates--and "that should put a little bounce in investors' steps." It noted management's commentary regarding demand was a bit more upbeat, with orders up a better-than-anticipated 11% in the quarter from a year ago.
NYSE Euronext (NYX, $26.01, -$1.72, -6.20%) declined as resurgent fears centered on the euro zone weigh on prospects for trading and revenues for operators that collect some fees in euros. Nasdaq OMX Group Inc. (NDAQ, $24.15, -$1.12, -4.43%), which operates some Nordic markets, also fell.
Piper Jaffray downgraded its stock-investment rating on Power Integrations Inc. (POWI, $33.91, -$1.72, -4.83%) to neutral from overweight, citing a slowdown in the company's core business of AC/DC converter chips as the company's size has increased. The firm also said top-line growth for Power Integrations, which makes and sells high-voltage analog integrated circuits used in power conversions, will be difficult in 2012 due to its high exposure to consumer spending.
Ralcorp Holdings Inc.'s (RAH, $73.47, -$2.72, -3.57%) board unanimously reiterated its rejection of ConAgra Foods Inc.'s (CAG, $23.44, -$0.49, -2.05%) $5.2-billion bid to acquire the company, while also saying the food maker won't enter into negotiations. ConAgra in August had raised its bid to the $94-per-share level in its first response to Ralcorp's defense: the company's plan to spin off its Post cereals unit and bulk up by paying $545 million for the refrigerated-dough business of Sara Lee Corp. (SLE, $17.19, -$0.31, -1.77%). ConAgra had previously said it would withdraw its offer unless negotiations began Monday.
Shares of Savient Pharmaceuticals Inc. (SVNT, $4.35, +$0.23, +5.58%) gained Monday after filings with the Securities and Exchange Commission late Friday showed several executives, including Chief Executive John Johnson, purchased stock in the specialty biopharmaceutical company last week.
Oppenheimer cut its stock-investment rating on mutual fund administration and distribution services provider SEI Investments Co. (SEIC, $15.81, -$1.07, -6.34%) to perform from outperform, citing recent market volatility and weakness, sluggish sales trends and the potential for further elongation of sales cycles, and rising costs.
Apparel retailer Stein Mart Inc. (SMRT, $6.60, -$0.53, -7.43%) said Chief Executive David H. Stovall Jr. will retire, effective immediately, after leading the company since 2008.
Moody's Investors Service downgraded Vulcan Materials Co.'s (VMC, $31.70, -$1.48, -4.46%) credit ratings a notch further into junk territory on its weak operating performance and high leverage.
Wright Medical Group Inc. (WMGI, $16.80, +$0.77, +4.80%) has temporarily suspended its financial guidance as the orthopaedic medical device company named a new president and chief executive. original post by online.wsj.com
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