Tag: stock market

Achaogen Inc. shares surged 3% in extremely heavy morning trade Tuesday after the company said the Food and Drug Administration plans to review its therapy for complicated urinary tract infections. The regulator plans to issue an approval decision on or by June 25, and plans an advisory committee meeting to discuss the application, which will likely take place in late April to mid-May. Achaogen’s plazomicin is intended for patients with few or no alternative treatment options who have complicated UTIs such as the life-threatening kidney inflammation pyelonephritis, as well as certain bloodstream infections that are antibiotic-resistant. The FDA’s advisory committee meeting is likely to focus on “the language surrounding a potential indication for plazo, which, with compelling outcomes data from a small study in carbapenem resistant enterobacteriaceae (CRE), stands to be the first potential antibiotic with a pathogen-specific indication (alongside a potential indication for cUTI),” Leerink Partners analyst Paul Matteis said. In January of 2017, the FDA designated plazomicin a Qualified Infectious Disease Product, which is designed to encourage development of new antibiotics, including priority review and an extra five years of market exclusivity. The therapy was also designated a breakthrough therapy by the FDA, expediting its development and FDA review. Achaogen shares have plummeted 29% over the last three months, compared with a 6.4% rise in the S&P 500 and a 9.6% rise in the Dow Jones Industrial Average .

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McDonald’s Corp. is Instinet analysts’ top U.S. restaurant pick for 2018 based on the rollout of fresh beef; the new Dollar Menu with $1, $2 and $3 price points that will go national this month; problems at Subway, the third-largest restaurant chain; and a possible stock split. The fresh beef rollout should be complete by the middle of this year, which Instinet analysts led by Mark Kalinowski think will boost same-store sales. The new Dollar Menu will also give same-store sales a bump. In December, The New York Post reported that traffic to Subway sandwich shops has dropped 25% over the past five years, providing McDonald’s with an opportunity to snap up market share. “We believe hundreds of Subway franchisees are in financial distress, and we would not be surprised to see a net-closure count in the hundreds once again for Subway U.S. during 2018 (from current domestic store count of 25,800+),” the analyst note said. Instinet rates McDonald’s shares buy and raised its price target to $190 from $180. McDonald’s shares are up 42.5% for the past year, outpacing the S&P 500 Index , which is up 20.2% for the period, and the Dow Jones Industrial Average , which is up 25.1% for the last 12 months.

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Biogen Inc.’s recent price increases on multiple sclerosis drugs “could provide lift into ’18,” according to RBC Capital Markets analyst Brian Abrahams, who maintained a sector perform rating for the company on Tuesday. Biogen shares rose 2.5% in Tuesday morning trade. The price changes included an 8% increase on the MS therapies Tecfidera, Avonex and Plegridy and a 3% increase on Tysabri, and “while the moves are largely consistent with the price hikes seen in 2017, they could provide potential upside to our price growth estimates, which are conservatively modeled, if net pricing pull through is fully realized,” Abrahams said. RBC had previously expected price increases of 4% on those drugs. Even so, the changes were made to the drugs’ Wholesale Acquisition Cost, or the price a drugmaker offers middleman wholesalers. Because significant rebates and discounts are typically taken off the WAC price, it’s unclear to what degree the increases will translate to Biogen’s bottom line. Last year, Biogen took one price increase for its multiple sclerosis drugs in January, Abrahams noted, and the company is likely to do the same this year, given the scrutiny on drug prices in this area. “We continue to believe BIIB will be viewed as a ‘safe’ large-cap biotech in 2018, with no major dramatic headwinds to existing franchise revenues,” Abrahams said, adding, “we also see fewer potential major upside catalysts.” Biogen shares have risen 3.4% over the last three months, compared with a 6.4% rise in the S&P 500 and a 9.6% rise in the Dow Jones Industrial Average .

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Amazon.com Inc. said that more than five billion items were shipped using Prime membership in 2017, which includes unlimited free two-day shipping. Among the Prime member favorites that showed up on the 2017 Best of Prime list for the U.S. were “The Handmaid’s Tale” on Prime Reading, the Fire TV Stick and Echo Dot, and “The Grand Tour” on Prime Video. Dec. 30 was the biggest day for Prime’s streaming service around the world, with “The Grand Tour” and “The Marvelous Mrs. Maisel” the top shows. Instant Pot was the most gifted item on the Amazon Wedding Registry. And Amazon’s fulfillment and shipping network grew in square footage by more than 30% around the globe in 2017. Amazon shares are up 57.4% for the past year, outpacing the S&P 500 index’s 20% growth for the period.

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Shares of Walt Disney Co. rose more than 1% after being upgraded to outperform from neutral by analysts at Macquarie Research on Tuesday. Analysts said in a note to investors that the company’s distribution leverage and optionality, as well as its concentration of valuable intellectual property, which should only improve with the acquisition of 21st Century Fox Inc. , are reasons for the upgrade. They also cited Disney’s continued impressive theatrical momentum. “In an increasingly concentrated space where content is still king but now requires direct-to-consumer distribution, Disney has by far the highest chance of success,” lead Macquarie analyst Tim Nollen wrote. Nollen’s view is that media companies with ad-driven models will continue to struggle, while those with subscription models will win out in the end. Disney, with its new standalone streaming service coming in 2019, is in a position of strength. Nollen also said Disney could be one of the biggest winners from tax reform, with an estimated 10% to 13% upside to 2018 earnings from tax benefits. Disney shares are up more than 4% in the last 12 months, while the S&P 500 index is up 20% and the Dow Jones Industrial Average is up 25%.

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The Dow Jones Industrial Averaged on Tuesday traded more than 100 points as Wall Street looked to kick off 2018 on solid footing. The Dow was up to about 120 points, or 0.5%, at 24,838. The S&P 500 index gained 0.4% at 2,682, while the Nasdaq Composite Index gained 0.3% at 6,926. Stocks headed higher after U.S. equity markets were closed for New Year’s Day on Monday. In corporate news, shares of Netflix Inc. were in focus after Macquarie raised the online-streaming company to outperform. Meanwhile, the dollar was sinking, off 0.2%, at 91.91, trading near September lows for the ICE U.S. Dollar Index , which tracks the buck against six rival currencies. A weaker dollar can be a boon to multinational companies, making their products and services more appealing to clients abroad.

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Pizza Hut, the Yum Brands Inc. pizza chain, is offering a 50% discount on menu-priced pizza orders placed online for delivery or carryout from Jan. 2 to Jan. 8. “[E]ntertaining season is in full swing,” according to a statement from Zipporah Allen, Pizza Hut’s vice president of marketing, with college football championships, Hollywood awards season, and other upcoming events. Orders can be placed on the Pizza Hut website or on the app. Yum shares are up nearly 29% for the past year, outpacing the S&P 500 index , which is up 19.4% for the period. Yum’s other brands include Taco Bell and KFC.

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Nordstrom Inc. said Tuesday that it will hire 250 employees for its first standalone Men’s Store, which will be located in Manhattan. The store will open in April 2018. Job openings will be posted on Jan. 3, and will include sales positions, housekeeping, loss prevention, and other support jobs. A new New York City flagship is coming in 2019. Nordstrom shares are up 1.8% in premarket trading, but down 1.2% for the last year. The S&P 500 index is up 19.4% for the past 12 months.

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Nordstrom Inc. was upgraded to neutral from underweight at J.P. Morgan based on investments and partnerships that have created what analysts call a “‘differentiated’ retail profile.” Analysts raised the price target to $50 from $33. Nordstrom has upgraded its technology, service and store experience, analysts say, and partnerships with Nike Inc. , Top Shop, Madewell and Bonobos are highlighted in a Tuesday note. Even with e-commerce making up only 15% of the business versus 85% in-store, J.P. Morgan thinks Nordstrom is insulated from online competition thanks to high-quality real estate, omnichannel initiatives, and the off-price Rack and Hautlook concepts. Nordstrom shares are up 1.8% in premarket trading, and up 7.2% for the last three months. The S&P 500 index is up 5.7% for the past three months.

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Zions Bancorp , the Salt Lake City-based large regional bank, said Tuesday it would pay $1,000 bonuses to nearly 80% of its workforce and increase compensation for nearly 40% of employees as a result of the tax legislation passed late in December. Wells Fargo and Fifth Third Bank previously announced they would increase the minimum wage they pay. Zions stock gained 18% over the past 12 months, lagging the 19.4% gain for the S&P 500 .

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