Category: Stock Market News

Airline stocks were knocked lower in morning trade Monday, after Warren Buffett said on CNBC earlier that his Berkshire Hathaway Inc. was unlikely to add much to its airline investments. The NYSE Arca Airline Index shed 0.4%. Among airlines Buffett had made significant investments in, shares of Delta Air Lines Inc. slid 1%, American Airlines Group Inc.’s stock dropped 0.9%, United Continental Holdings Inc. shares fell 0.7% and Southwest Airlines Co.’s stock lost 0.4%. Buffett also said, according to a WSJ report, that he didn’t want to own more than 10% of any airline stock. Berkshire was the largest shareholder in Delta, with 8.0% of the shares outstanding, and was also the the largest investor in United Continental with 9.1% of the shares. Berkshire owned 8.8% of American’s shares to be the second-largest shareholder, and was also the second-largest owner of Southwest’s stock at 7.0%. The airline index has gained 3.1% over the past three months, while the S&P 500 has tacked on 6.9%.

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Shares of Shutterstock Inc. sank 13% in active morning trade Monday, enough to make them the biggest losers listed on the New York Stock Exchange, after the provider of licensed photographs missed profit and sales expectations and provided a downbeat outlook. Trading volume topped 450,000 shares within the first 15 minutes after the open, compared with the full-day average of about 265,000. The company reported earnings of $9.9 million, or 27 cents a share, compared with $6.9 million, or 19 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to 42 cents, below the FactSet consensus of 45 cents. Revenue rose to $130.2 million from $116.0 million, but missed the FactSet consensus of $135.3 million. For 2017, the company said it expects revenue of $545 million to $560 million, below the FactSet consensus of $578.2 million. Separately, Shutterstock said Chief Financial Officer Steven Berns will also take on the responsibility of chief operating officer, effective March 1. The stock has now lost 9% over the past three months, while the S&P 500 has gained 6.7%.

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U.S. stocks opened marginally lower on Monday, with the Dow Jones Industrial Average set to take a breather after recording an impressive string of record gains. The blue-chip index slid 25 points, or 0.1%, to 20,800. The S&P 500 index declined two points, or 0.1%, to 2,365. The Nasdaq Composite Index shed 11 points, or 0.2%, to 5,833. Shares of Sotheby’s rose after the auction house posted earnings and profits that beat estimates. Shares of La Jolla Pharmaceutical Co. soared after the company announced positive results from a phase 3 drug trial. The Dow posted its 11th straight record close on Friday

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Shares of Pieris Pharmaceuticals Inc. soared 16% in premarket trade Monday, after the drug maker announced an exclusive license deal with Japan’s ASKA Pharmaceutical Co. Ltd. for the development and commercial rights to Pieris’s anemia treatment. Under terms of the agreement, Pieris will receive an immediate upfront payment of $2.75 million from ASKA, and will be eligible for up more than $80 million. Pieris’s stock has run up 27% over the past three months through Friday, while the SPDR S&P Pharmaceuticals ETF has gained 3.9% and the S&P 500 has tacked on 7%.

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Goldman Sachs on Monday downgraded Tesla Inc. shares to sell from neutral, citing near-term challenges including the launch of the Model 3. “While we believe Tesla currently has a lead relative to OEM peers with respect to vehicle technology adoption, electric vehicle architecture, and (potentially) battery scale, our concerns are more near-term oriented with respect to operational execution on the Model 3 launch, an unproven solar business, and cash needs,” analysts led by David Tamberrino wrote in a note. Goldman is expecting the launch of the Model 3, a mass market sedan, to be delayed and expects an accelerating free cash flow burn rate to weigh on Tesla’s stock. The company is expected to raise capital again before the fourth quarter, said Tamberrino. Shares fell 2.5% in premarket trade, but have gained 35% in the last 12 months, while the S&P 500 has gained about 22%.

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Shares of La Jolla Pharmaceutical Co. rocketed 51% in active premarket trade Monday, after the drug maker announced positive results from a phase 3 trial of its hypotension treatment. Volume topped 126,000 shares about two hours before the open, compared with the full-day average for the stock of 200,000 shares. The company said LJPC-501 showed a “highly statistically significant” target blood pressure response, the study’s primary efficacy endpoint, and a trend toward longer survival was also observed. An independent data safety monitoring board recommended the study continue as planned. The stock, which was on track to open at the highest level since Dec. 9, 2015, has gained 1.6% over the past three months through Friday, while the SPDR S&P Pharmaceuticals ETF has gained 3.9% and the S&P 500 climbed 7%.

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Sotheby’s reported fourth-quarter net income of $65.5 million, or $1.20 per share, compared with a loss of $11.2 million, or 17 cents per share, for the same period last year. Adjusted EPS was $1.35 per share, beating the $1.17 FactSet consensus. Sales totaled $308.7 million, down from $335.8 million last year but ahead of the $269.0 million FactSet estimate. Sotheby’s shares are inactive in Monday premarket trading, and are up 76.3% for the past year. The S&P 500 index is up 21.5% for the last 12 months.

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Valeant Pharmaceuticals International Inc. subsidiary Salix Pharmaceuticals said Monday it has boosted its sales force by nearly 40%, or 250 employees. The company said it the move was a sign of its commitment to Salix’s gastrointestinal treatments. “The significant investments in Salix’s dedicated Primary Care Physician (PCP) sales force will help us further reach patients in need of irritable bowel syndrome with diarrhea (IBS-D) treatment, and in doing so, will further accelerate growth for our company,” said Valeant Chief Executive Joseph Papa. Valeant’s stock, which slipped 0.8% in premarket trade, has lost 4.8% over the past three months, while the SPDR S&P Pharmaceuticals ETF has gained 3.9% and the S&P 500 has climbed 7%.

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Women’s apparel retailer J. Jill said it has launched its initial public offering of 11.67 million shares. The IPO is expected to price between $14 and $16 a share. The company will not receive any proceeds from the IPO, as all the shares will be sold by a selling stockholder. The underwriters of the IPO have been granted 30-day options to buy up to an additional 1.75 million shares. The stock will list on the New York Stock Exchange under the ticker symbol “JILL.” BofA Merrill Lynch, Morgan Stanley and Jefferies are the joint lead book-running managers. J. Jill had net income of $14.3 million for the fiscal year ended Jan. 3, 2016, up from $10.3 million in the same period a year ago. The IPO comes at a time that the retail sector has underperformed the broader stock market, as the SPDR S&P Retail ETF has lost 0.8% year to date while the S&P 500 has gained 5.7%.

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Bill Paxton, star of films including blockbuster “Titanic” and “Apollo 13” has died from complications due to surgery, the Associated Press reported Sunday, citing a family representative. Paxton, 61, was a prolific actor who got his start in films in the art department on Roger Corman movies in the ’70s, according to the AP. He became a favorite of director James Cameron and had roles in “Terminator,” “Aliens” and “Titanic.” He was also known for his small screen roles and garnered three Golden Globe nominations for his role in HBO’s drama about a Mormon family, “Big Love.”

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