Category: Stock Market News

Shares of Arconic Inc. surged 5.2% in premarket trade Monday, after the company said Chief Executive Klaus Kleinfeld was leaving the company after he used “poor judgment” by contacting an activist investment without authorization. Arconic named board member David Hess as interim CEO, while lead director Patricia Russo was named interim chairman. The company said in a statement that Kleinfeld stepped down after the broad learned that he sent a letter directly to a senior officer at investor Elliott Management, which has been pushing for Kleinfeld to step down, and for four new board members. “Importantly, this decision was not made in response to the proxy fight or Elliott Management’s criticisms of the company’s strategy, leadership or performance and is not in any way related to the financials or records of the company,” the company said in a statement. Kleinfeld was CEO of Alcoa Inc. since 2008, then became CEO of Arconic after he led the aluminum giant’s separation into two companies. The stock had soared 40% year to date through Thursday, while the S&P 500 had gained 4%.

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Cloudera Inc. set a price range for its offering Monday that would give the company a market capitalization of $1.79 billion, below its most recent private valuation. The software company received a $4.1 billion valuation in March 2014, according to the Wall Street Journal. Cloudera set a price range of $12 to $14 per share and plans to sell 17.3 million shares, which would bring in up to $242 million. On a per share basis, Intel Crop. paid $30.92 in 2014 along with its $740 million investment. Cloudera has been approved to list on the New York Stock Exchange under the symbol “CLDR.”

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HCA Holdings Inc. stock slumped 2% in premarket trade Monday after the company warned of a first-quarter revenue and earnings miss. HCA Holdings expects earnings of $659 million, or $1.74 per share, down from $694 million, or $1.69 per share, in the year-earlier period. Earnings of $1.74 per share are below the FactSet consensus of $1.79. The company reaffirmed its 2017 financial guidance. HCA Holdings expects revenue of $10.6 billion, below the FactSet consensus of $10.7 billion. The latest results can be attributed to changes in payer mix, including a slightly higher percentage of Medicare admissions, and a slightly lower percentage of same facility managed care/health exchange admissions, the company said. The company said same facility admissions increased 1.2% in the first quarter and same facility equivalent admissions increased 1.6%, with same facility emergency room visits increasing 1.1%. The company plans to report earnings around May 2, it said. HCA Holdings shares have risen 8.4% over the last three months, compared with a 2.7% rise in the S&P 500 .

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Blackstone Group LP’s energy-focused private-equity business, Blackstone Energy Partners and Blackstone Capital Partners agreed Monday to buy EagleClaw Midstream Ventures LLC for $2 billion in cash. The deal is expected to close by the end of July, and includes $1.25 billion in debt financing, provided by Jefferies LLC. EagleClaw is a privately-held midstream operator in the Permian’s Delaware Basin in West Texas. EagleClaw’s management and nearly all of the company’s employees will remain in their jobs, the companies said. Blackstone’s stock, which was inactive in premarket trade, has tacked on 6.8% year to date, while the S&P 500 has gained 4%.

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Ashland Global Holdings Inc. , a specialty chemicals company serving a range of consumer and industrial markets, said Monday that it will acquire Pharmachem Laboratories Inc. for $660 million. Pharmachem Labs provides ingredients for the health and wellness industry, such as vitamin and dietary supplements, ingredients for skin care and cosmetics, fragrance ingredients for laundry detergent and perfumes, and more. The all-cash transaction is expected to be completed before the end of the June quarter. It’s also expected to be accretive to Ashland’s earnings per share in the first year following the close of the deal. Ashland will host its investor day in New York City on May 1. Ashland shares are inactive in premarket trading, and are up nearly 12% for the year so far. The S&P 500 index is up 4% for 2017 so far.

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OncoMed Pharmaceuticals Inc. shares were halted in premarket trade on Monday for news that the company’s small cell lung cancer drug had missed in a mid-stage clinical trial. The drug, tarextumab, did not meet primary or secondary endpoints, the company said. OncoMed also said on Monday that it will discontinue a phase 1b clinical trial for a brontictuzumab combination treatment in third-line colorectal cancer, because the combination was “not tolerable” in the patient population. The announcements follow news last week of a failed midstage pancreatic cancer trial and that Bayer would not be licensing two of the company’s cancer drugs. “Based on the events of today and last week, we will be undertaking a comprehensive portfolio prioritization review immediately,” said OncoMed Chairman and Chief Executive Officer Paul Hastings. OncoMed shares closed at $4.84 on Friday. Shares have dropped 36.6% over the last three months, compared with a 2.7% rise in the S&P 500 .

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Williams Partners LP said Monday it will sell its interest in Williams Olefins LLC for $2.1 billion in cash to Nova Chemicals. Williams Olefins owns an 88.5% interest in the Geismar, Louisiana olefins plant. Under terms of the deal, Williams Partners’ subsidiaries will enter long-term contracts to supply Nova with feedstock through its pipeline system. Williams plans to use the proceeds from the deal to pay off a debt and for capital and investment costs. “The Williams Olefins transaction and these announced new supply and transportation agreements fortify our focus on natural gas market fundamentals, reduce our commodity margin exposure and secure our fee-based Gulf Coast transportation business–all consistent with Williams’ strategy to allocate capital to its core, natural gas-focused business,” said Chief Executive Alan Armstrong. The stock, which was still inactive in premarket trade, has gained 6.8% year to date, while the S&P 500 has tacked on 4%.

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Eli Lilly & Co. shares dropped 5.5% and Incyte Corp. shares dropped 12.7% in premarket trade Monday after the companies said that the Food and Drug Administration failed to approve their drug for moderate-to-severe rheumatoid arthritis. Eli Lilly reaffirmed its financial guidance for this year, and Incyte said it is evaluating the news’ impact and would provide any update on its first-quarter earnings call. (Incyte’s earnings are scheduled for May 4.) The FDA told the two companies that more clinical data are required to figure out dosage information and safety concerns across groups of patients. New clinical trials could greatly extend the timeline for drug approval. But Eli Lilly and Incyte said they “disagree with the agency’s conclusions” and said they would continue to work with the FDA to find a path to approval. Incyte shares have surged 23.9% over the last three months, and Eli Lilly shares have surged 11.8%, compared with a 2.7% rise in the S&P 500 .

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Novocure Ltd. said Monday that its drug for newly diagnosed glioblastoma improved overall patient survival in a late-stage clinical trial. The drug, Optune, improved survival in combination with second line chemotherapy by about 30%, compared to second line chemotherapy alone, between about nine and nearly 12 months, Novocure said. Glioblastoma, or tumors in the brain or spinal cord, grows quickly and is one of the most dangerous cancers. The results have been published in the journal CNS Oncology. Novocure shares, which were valued at $10.45 as of Friday’s close, were not yet active in premarket trade on Monday. Shares have surged 58.3% over the last three months, compared with a 2.7% rise in the S&P 500 .

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Apple Inc. may have issues with its optical fingerprint sensing functionality, Pacific Crest analysts said Monday, citing conversations with suppliers. The analysts say they do not believe the supplier for Apple’s optical fingerprint module has set orders for production, which indicates that Apple may not be ready for it yet. Even if Apple is able to solve the problem within the next month, the analysts say it could lead to a delay of its OLED iPhone. If it takes longer, Apple may have to get rid of fingerprint sensing on the OLED phone and possibly turn to 3D sensing technology. Still, the analysts did not change any estimates for Apple or its suppliers, saying it is still early in the production cycle. The analysts have a $150 price target and overweight rating on Apple. Shares of Apple have gained 17.5% in the past three months, compared to the S&P 500’s gain of 3%.

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