CORRECT: US HOT STOCKS: Argon, Abraxis, General Mills, Ford, BP

30th Jun 2010 18:05

("US HOT STOCKS: Argon, Abraxis, General Mills, Ford, BP," published at 10:17 a.m. ET, misidentified Mela Sciences Inc.'s (MELA) operations in the seventh paragraph. The error also appeared in "BEFORE THE BELL -2: US HOT STOCKS TO WATCH" at 8:34 a.m. ET. The correct version follows:) U.S. stocks were mixed Wednesday, with the Dow Jones Industrial Average off 6 to 9864, the Standard & Poor's 500 up 2 points to 1043 and the Nasdaq Composite increasing 9 points to 2144. Among the companies whose shares are actively trading in the session are Argon ST Inc. (STST), Abraxis BioScience Inc. (ABII) and General Mills Inc. (GIS). Aerospace giant Boeing Co. (BA, $63.35, +$0.31, +0.49%) has agreed to buy defense-equipment maker Argon ($34.21, +$9.78, +40.03%) for about $775 million, with the deal coming as the sector shuffles operations amid belt-tightening and shifting priorities at the Pentagon. Boeing will pay $34.50 a share, a 41% premium to Argon's closing price Tuesday. Argon rival Applied Signal Technology Inc. (APSG, $19.60, +$1.40, +7.69%) also surged as investors looked for the next potential deal in the sector. Celgene Corp. (CELG, $50.91, -$2.33, -4.38%) agreed to acquire Abraxis BioScience ($73.49, +$12.18, +19.87%) for at least $2.9 billion in cash and stock, broadening its cancer-drug portfolio. Abraxis' primary treatment is Abraxane, a breast cancer injection approved in the U.S. and Europe. General Mills' ($35.36, -$1.54, -4.17%) fiscal fourth-quarter profit slid 41% as the company reported higher costs and lower sales, while year-earlier results benefited from an extra week and mark-to-market gains. The packaged-food giant sees earnings for the new year below analysts' projections. Fellow packaged-food company Kellogg Co. (K, $50.61, -$1.14, -2.20%) also slid. Ford Motor Co. (F, $10.39, +$0.51, +5.16%) said Wednesday it is reducing its debt by more than $4 billion, a sign the auto maker remains confident in its own turnaround despite a softening car market in the U.S. BP PLC (BP, $28.95, +$1.28, +4.63%) shares rose as the market reappraised the embattled energy company's value as a takeover target once the crisis in the Gulf of Mexico subsides, equities traders said Wednesday. Mela Sciences Inc. (MELA, $7.57, -$0.73, -8.80%) priced an offering of 2.2 million shares at $7.50 a share, a 9.6% discount to Tuesday's closing price. The medical device company said it planned to use the proceeds to pursue the premarket approval application and eventual commercialization of MelaFind, which helps identify skin lesions to be considered for biopsy to rule out melanoma. Omnova Solutions Inc.'s (OMN, $7.95, +$0.68, +9.35%) fiscal second-quarter earnings nearly tripled, sending shares in the specialty-chemicals company higher. Other Stocks In Focus Acuity Brands Inc.'s (AYI, $37.06, -$3.91, -9.54%) fiscal third-quarter earnings fell 3.1% as the maker of light fixtures saw its overhead costs increase, offsetting higher revenue. Results missed analysts' forecasts. American Greetings Corp.'s (AM, $18.30, -$1.21, -6.20%) fiscal first-quarter profit more than tripled following prior-year results hurt by the sale of the greeting-card maker's retail stores business. But results were weaker than the couple analysts covering the stock were expecting. Continental Airlines Inc. (CAL, $22.17, +$0.85, +3.99%) and United Airlines will meet U.S. regulators next week to review the technical aspects of their planned merger. The airlines said in a filing that they will hold a "kick-off meeting" with the Federal Aviation Administration on July 9 to outline the process for securing a so-called "single operator certificate," with a formal combination targeted for the first quarter of 2012. Other airlines trading higher included Delta Air Lines Inc. (DAL, $11.74, +$0.43, +3.80%) and AMR Corp. (AMR, $6.90, +$0.16, +2.37%). BMO upgraded Diamond Foods Inc. (DMND, $41.83, +$2.18, +5.50%) to outperform from market perform, citing a variety of factors including sales momentum in some of its brands and a more benign commodity environment. The firm expects the snack nuts maker to continue to gain earnings momentum from the integration of its Kettle chips business and sees distribution gains across its portfolio. Energy Inc. (EGAS, $10.50, -$0.95, -8.30%) said it will sell up to 2.5 million shares to raise funds to expand its distribution systems as well as for working capital and general corporate purposes. The offering would increase the number of shares outstanding at the natural gas utility by 42%. Shares of EnteroMedics Inc. (ETRM, $0.38, -$0.10, -20.82%) fell after the developmental medical-device maker company unveiled plans for a 1-for-6 reverse stock split to comply with Nasdaq trading standards. (END) Dow Jones Newswires June 30, 2010 13:05 ET (17:05 GMT)