Post Market News
Stocks that were active in U.S. trading on Tuesday include Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX), Tiffany & Co. (NYSE:TIF), Vipshop Holdings Ltd – ADR (NYSE:VIPS), Exelon Corporation (NYSE:EXC) and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA).
Market Levels
- U.S.: Dow Jones: 15,412.41 (+0.71%), S&P 500: 1,660.35 (+0.65%), Nasdaq: 3,489.25 (+0.87+)
- World Markets: Shanghai: 2,321.32 (+1.23%), Nikkei 225: 14,311.98 (+1.20%), Hang Seng Index: 22,924.25 (+1.05%), TSEC: 8,263.05 (-0.21%), FTSE 100: 6,762.01 (+1.62%), EURO STOXX 50: 2,835.87 (+1.46%), BSE Sensex: 20,160.82 (+0.65%)
- Metals: Gold: $1,378.90 (-0.56%), Silver: $22.19 (-1.35%), Platinum: $1,461.80 (+0.68%)
- Currency: EUR/USD: 1.2875 (-0.46%), USD/JPY: 102.08 (+0.98%), GBP/USD: 1.5063 (-0.27%), USD/CAD: 1.0384 (+0.49%), USD/CNY: 6.1215 (+0.01%), AUD/USD: 0.9640 (+0.04%)
- 10 year U.S. Treasury: 2.13% (+0.09), 30 year U.S. Treasury: 3.29% (+0.08)
Market & Economy Update
Data showed today that consumer confidence in May rose to its highest level since February 2008. Consumer confidence increased from 69 in April to 76.2 in May. Home prices increased at the fastest pace in the past seven years. The increasing stock and property values have helped boost household finances. All the major stock indexes ended the session higher today. The Dow Jones Industrial Average rose 109.31 points to 15,412.41, the S&P 500 Index surged 10.48 points to 1,660.08, while Nasdaq gained 29.75 points to 3,488.89.
Stocks In Focus
Valeant Pharmaceuticals Intl Inc (NYSE:VRX) (TSE:VRX)
The Canadian drug maker has announced it will acquire the eye care firm Bausch & Lomb from Warburg Pincus LLC in a $8.7 billion cash deal. Valeant expects the transaction to be completed by the end of Q3 this year. Jefferies said in a research report that Bausch & Lomb could increase Valeant’s FY14 EPS 40 percent more than Jefferies’s revised estimates. Shares of Valeant jumped 8.68 percent to $91.80 at the end of the session.
Tiffany & Co. (NYSE:TIF)
The jewelry and specialty retailer announced first quarter earnings that handily beat analysts’ estimates. Excluding one-time items, earnings increased 2.5 percent to 70 cents a share, compared to Wall Street estimates of 52 cents. With an 8 percent increase, revenues also came above the consensus estimate. Shares were up 3.95 percent to $79.22 at the close of the trading session.
Vipshop Holdings Ltd – ADR (NYSE:VIPS)
The Chinese online discount retailer has been a victim of attacks by short sellers who have alleged that user traffic to its website, as measured by Alexa, doesn’t match the data provided by the company. Additionally, short sellers are confused as to how the company continues to grow rapidly despite any actual increase in the number of website visitors. There were several other allegations as well. American shares of the company tanked 13.15 percent to $29.22 a share.
Exelon Corporation (NYSE:EXC)
The energy company announced today that Kenneth W. Cornew, the president and CEO of Exelon business division Constellation, and former executive vice president and chief commercial officer of Exelon has been appointed as the president and CEO of Exelon Generation, and senior executive vice president and chief commercial officer of Exelon. Shares skidded 7.53 percent to $32.04.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)
The pharmaceutical company has received a request from the DEA to assess the abuse potential of its anti-obesity drug Belviq in May. Arena has long been waiting for the review which has also delayed the launch of the drug. According to the DEA, the main ingredient of the drug, lorcaserin, may cause hallucinogenic effects if taken in higher doses. The DEA has, however, classified the molecular formula as Schedule IV meaning it has a relatively low risk of abuse, which is a positive indication for the medicine. Shares rose 7.70 percent to $8.90 at the end of the session.
