Post market news. Stocks that were in focus on the U.S. stock markets on Monday include: JPMorgan Chase & Co. (NYSE:JPM), Sun Life Financial Inc. (TSE:SLF) (NYSE:SLF), Smith & Wesson Holding Corporation (NASDAQ:SWHC), Caribou Coffee Company, Inc. (NASDAQ:CBOU), Pfizer Inc. (NYSE:PFE), Compuware Corporation (NASDAQ:CPWR), Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN), NuStar Energy L.P. (NYSE:NS), Garmin Ltd. (NASDAQ:GRMN), Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX), First Majestic Silver Corp (NYSE:AG) and Tranzyme Inc (NASDAQ:TZYM).
Post Market Update
Market Levels
• US: Dow: 13235.40 (0.76%), S&P 500: 1430.42 (1.19%), NASDAQ: 3010.60 (1.32%)
• Europe: CAC: 3638.10 (-0.14%), DAX: 7604.94 (0.11%), FTSE: 5912.15 (-0.16%)
• Asia-Pacific: Australia: 4573.40 (-0.21%), China: 2160.34 (0.45%), Hong Kong: 22513.61 (-0.41%), India: 5857.90 (-0.37%), Japan: 9828.88 (0.93%).
• Metals: Gold: 1698.20 (0.07%), Silver: 32.28 (-0.06%), Copper: 3.67 (-0.46%)
• Energy: Crude Oil: 87.45 (0.83%), Natural Gas: 3.27 (-5.35%)
• Commodities: Corn: 7.24 (-0.92%), Soya Bean: 14.88 (-0.22%), Wheat: 8.08 (-0.74%)
• Currency: Euro (€) / US Dollar ($) (EURUSD): 1.3163 (-0.03%), British Pound Sterling (UK£) / US Dollar ($) (GBPUSD): 1.6203 (-0.22%), US Dollar ($) / Japanese Yen (¥) (USDJPY): 83.8450 (0.46%)
• 10 year US Treasury: 1.772% (0.072)
Market and Economy News Update
U.S. markets end higher: U.S. markets accelerated their gains in the final hour of trading to finish higher on Monday as investors cheered reports of progress in Washington over a budget deal to resolve the fiscal cliff. The White House said President Obama and House Speaker John Boehner met today in their talks on avoiding spending cuts and tax increases in January, but provided no additional details. The Dow Jones Industrial Average (INDEXDJX:.DJI) rallied 100.38 points, or 0.76 percent, to close at 13,235.39 and the S&P 500 (INDEXSP:.INX) jumped 16.78 points, or 1.19 percent, to finish at 1,430.36, while the NASDAQComposite (INDEXNASDAQ:.IXIC) soared 39.27 points, or 1.32 percent, to end at 3,010.60.
Oil prices rise: Oil prices gained for the second consecutive session on Monday, buoyed by optimism about U.S. budget talks, and continued uncertainty and political turmoil in the Middle East. Crude oil for January delivery added 0.8 percent, to settle at $87.45 a barrel on the New York Mercantile Exchange. Brent oil for January settlement lost 0.2 percent to $107.99 a barrel on the London-based ICE Futures Europe exchange.
Stocks in Focus
JPMorgan Chase & Co. (NYSE:JPM)
The U.S. Securities and Exchange Commission has approved the first exchange-traded fund backed by physical copper, allowing JPMorgan Chase & Co. (NYSE:JPM) to list its JPM XF Physical Copper Trust on NYSE Arca Inc. A spokesman for JPMorgan Chase & Co. (NYSE:JPM) declined to comment on when the firm plans to launch the fund. Shares of JPMorgan Chase & Co. (NYSE:JPM) jumped 1.6 percent to close at $43.48. A consortium of U.S. copper fabricators as well as a large hedge fund had fought hard to get the SEC to block the funds, saying it would hurt the industry by creating shortages and driving up prices.
Sun Life Financial Inc. (TSE:SLF) (NYSE:SLF)
Sun Life Financial Inc. (TSE:SLF) (NYSE:SLF) will sell its U.S. annuity business for $1.35 billion to Delaware Life Holdings, a unit of asset manager Guggenheim Partners. Sun Life Financial Inc. (TSE:SLF) (NYSE:SLF) President Dean Connor said the sale will significantly lower the Toronto-based insurer’s risk profile and earnings volatility. The company said it would use the cash raised to support its dividend program and expand in fast growing regions like Asia. Sun Life Financial Inc. (TSE:SLF) (NYSE:SLF) shares were down 3.6 percent at $27.18 on the New York Stock Exchange on Monday.
Smith & Wesson Holding Corporation (NASDAQ:SWHC)
Shares of Smith & Wesson Holding Corporation (NASDAQ:SWHC) plunged 5.3 percent to $8.65 a share amid talks about tighter gun control laws following last week’s elementary school shooting that left 20 children dead in Newtown, Connecticut. The killings by a single gunman have reignited the debate over restrictions on the sales of firearms. Smith & Wesson Holding Corporation (NASDAQ:SWHC) shares have more than doubled this year through last week.
Caribou Coffee Company, Inc. (NASDAQ:CBOU)
Caribou Coffee Company, Inc. (NASDAQ:CBOU) soared 31 percent after closely-held German investment group Joh. A. Benckiser said it would acquire the premium coffee house operator for $16 per share in cash, or about $340 million. Caribou Coffee Company, Inc. (NASDAQ:CBOU) will continue to be based in Minneapolis and operate as an independent company post the buyout, the companies said today in a statement. Earlier this year, Benckiser spent about $1 billion to buy Peet’s Coffee & Tea, Inc. (NASDAQ:PEET). Caribou Coffee Company, Inc. (NASDAQ:CBOU), founded in 1992, has 610 outlets in 22 U.S. states.
Pfizer Inc. (NYSE:PFE)
Pfizer Inc. (NYSE:PFE) said its board has raised the quarterly dividend 9.1 percent to 24 cents per share from 22 cents per share. The dividend will be paid on March 5 to shareholders of record as of February 1. The increased payout will cost Pfizer Inc. (NYSE:PFE) about $59 million a year. Last month, Pfizer Inc. (NYSE:PFE) reported a drop in quarterly profit due to falling sales of its cholesterol drug, Lipitor, which lost U.S. market exclusivity. Pfizer Inc. (NYSE:PFE) shares rose 17 cents to $25.35.
Compuware Corporation (NASDAQ:CPWR)
Compuware Corporation (NASDAQ:CPWR) rallied sharply after Elliott Management Corp. offered to buy the Detroit-based software development company for about $2.35 billion. Elliott currently owns an 8 percent stake in Compuware Corporation (NASDAQ:CPWR), said it was offering $11 a share in cash for the remaining stock. The news comes days after Compuware Corporation (NASDAQ:CPWR) filed for a possible initial public offering of its Covisint Corp. unit. Further reading here.
Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN)
Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) soared after the biotechnology company said it is considering a possible sale of the company or its corporate assets, and has retained Lazard as its financial adviser to review options. Enzon Pharmaceuticals, Inc. (NASDAQ:ENZN) said it will suspend any ongoing clinical developments so as to conserve capital and maximize shareholder value.
NuStar Energy L.P. (NYSE:NS)
NuStar Energy L.P. (NYSE:NS) has agreed to sell its San Antonio refinery and a related terminal in Elmendorf, Texas, to Calumet Specialty Products Partners LP for about $115 million. The pipeline and storage company had put the refinery and terminal up for sale in November. NuStar Energy L.P. (NYSE:NS) had acquired the 14,500-barrel-per-day refinery and the terminal, located about 12 miles away from the refinery, out of bankruptcy in April 2011 for $41 million and said it spent about $54 million on improving the facility. Shares of NuStar Energy L.P. (NYSE:NS) edged 0.3 percent higher on Monday.
Garmin Ltd. (NASDAQ:GRMN)
Personal navigation devices maker Garmin Ltd. (NASDAQ:GRMN) has named Clifton Pemble as President and CEO effective January 1. Pemble will succeed co-founder Min Kao. Garmin Ltd. (NASDAQ:GRMN) shares closed Monday at $41.42, up 74 cents. Garmin Ltd. (NASDAQ:GRMN) has seen demand for its GPS-enabled handheld navigation devices drop in recent quarters amid the rise of smart phones. Earlier this month, Standard & Poor’s said it would add Garmin Ltd. (NASDAQ:GRMN) to its S&P 500 (INDEXSP:.INX) index. Further information here.
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) jumped in trade after the U.S. Food and Drug Administration accorded fast-track status to its irritable bowel syndrome treatment. Fast-track status expedites the review of drugs that treat serious or life-threatening diseases and may shorten the time to FDA approval. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX)’s oral treatment, LX1033, is in mid-stage testing, and results are expected in the first half of next year. Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) is also undertaking mid-stage testing on potential treatments for rheumatoid arthritis, diabetes and carcinoid syndrome.
First Majestic Silver Corp (NYSE:AG)
First Majestic Silver Corp (NYSE:AG) said it will buy Orko Silver Corp. (CVE:OK) in a friendly deal worth $387 million. The deal will help strengthen Vancouver-based First Majestic Silver Corp (NYSE:AG)’s presence in Mexico, where Orko Silver Corp. (CVE:OK) has large silver deposits. Shares of First Majestic Silver Corp (NYSE:AG) tumbled 10 percent to $20.59, while Orko Silver Corp. (CVE:OK) has jumped 51 percent to $2.39.
Tranzyme Inc (NASDAQ:TZYM)
Tranzyme Inc (NASDAQ:TZYM) plunged 19 percent after it ended a mid-stage study of its treatment for diabetic gastroparesis, due to insufficient efficacy. The treatment, labeled TZP-102, is Tranzyme Inc (NASDAQ:TZYM)’s most advanced drug candidate, and the company said the decision was made after three daily oral doses of the treatment failed to outperform a placebo. Gastroparesis is a debilitating stomach condition, which affects about 12 percent of people with diabetes. Tranzyme Inc (NASDAQ:TZYM) currently has another drug candidate, TZP-201, for the treatment of diarrhea caused by chemotherapy.
