US HOT STOCKS: CBOE, Delta Pete, FMC Technologies, Genzyme -2-

26th Jul 2010 22:01

CBOE Holdings Inc. (CBOE, $26.50, -$0.65, -2.39%) shares fell just over a month after the company went public as several Wall Street analysts initiated coverage of the stock; most agreed that the exchange's dominant position in options is a key asset, but said competition and light trading volume will keep a lid on already pricey shares. Air carriers continued to rise Monday after a strong earnings season for the group, with Continental Airlines Inc. (CAL, $25.65, +$1.40, +5.77%), US Airways Group Inc. (LCC, $10.91, +$0.56, +5.41%), Delta Air Lines Inc. (DAL, $11.98, +$0.53, +4.63%), AMR Corp. (AMR, $7.26, +$0.37, +5.37%), Southwest Airlines Co. (LUV, $12.07, +$0.25, +2.12%) and UAL Corp. (UAUA, $24.25, +$1.29, +5.62%) all touching at-least 52-week highs during Monday's gains. Delta Petroleum Corp. (DPTR, $0.87, +$0.07, +9.25%) agreed to sell some non-core assets in Colorado, Wyoming, Nebraska and Texas to privately held Wapiti Oil & Gas LLC for $130 million as the energy company continues its effort to reduce its debt and shifts its focus to its Vega properties in Colorado. Enbridge Energy Partners LP (EEP, $59.49, +$1.42, +2.45%) reported better-than-expected second-quarter results and boosted its year guidance as the energy company benefited from its strong liquid and natural-gas segment and from cost-cutting last year. First Interstate BancSystem Inc. (FIBK, $13.16, -$1.10, -7.71%) missed expectations for its second-quarter earnings as the Montana-based regional bank said credit costs and higher loan-loss provisions remain troubling. DA Davidson downgraded the shares to neutral from buy saying the loss provisions are pushing out recovery. FMC Technologies Inc.'s (FTI, $61.82, -$1.92, -3.01%) second-quarter earnings fell a less-than-feared 9.2% as revenue dropped, missing expectations, even as backlog increased sequentially at the maker of oil-and-gas drilling equipment. France's Sanofi-Aventis SA (SNY, $29.82, +$0.47, +1.60%) may not be the only large drug maker to set its eyes on struggling biotechnology company Genzyme Corp. (GENZ, $67.38, +$4.86, +7.77%). After news of Sanofi's interest in the U.S. company became public Friday, investors and bankers are scrambling to find out whether Sanofi's rivals could also be interested in making a play for Genzyme, which makes drugs for rare, inherited disorders. Britain's GlaxoSmithKline PLC (GSK, $36.74, +$0.24, +0.66%) and New Jersey-based Johnson & Johnson (JNJ, $57.74, +$0.11, +0.19%) are seen as the most logical suitors for Genzyme, bankers and analysts said. Shares of home builders rose after a better-than-expected report on the ailing housing sector showed home buying surged in June after a May plunge caused by the end of a government tax credit. Hovnanian Enterprises Inc. (HOV, $4.57, +$0.28, +6.53%) and PulteGroup Inc. (PHM, $9.07, +$0.41, +4.73%) were among the biggest gainers. Standard Pacific Corp. (SPF, $3.98, +$0.17, +4.46%) and Toll Brothers Inc. (TOL, $17.89, +$0.42, +2.40%) also climbed. Inergy Holdings L.P. (NRGP, $30.24, +$1.01, +3.46%), a propane company, raised its quarterly cash distribution to 34 cents a quarter from 32.5 cents. Deutsche Bank cut its stock-investment rating on ITT Educational Services Inc. (ESI, $84.48, -$0.96, -1.12%) to hold from buy, saying the Department of Education's gainful employment proposal will restrict a significant proportion of ITT's programs. The firm added it believes ITT will have to increase its admission criteria over time to increase its repayment rates. The restrictions, plus the need to raise admission criteria, will make it difficult for ITT to grow, the firm said. Luxury eye wear company Luxottica SpA (LUX, $26.69, +$0.62, +2.38%) said net profit in the second quarter rose 30% on strong sales of its Ray-Ban and Oakley brands, the rebounding U.S. market and improved profitability in both wholesale and retail channels. Jefferies boosted its rating on Patterson-UTI Energy Inc. (PTEN, $16.06, +$0.40, +2.55%) to buy from hold, saying the company should see better upside than many of its land-rig peers due to the changing quality of its active asset base. (MORE TO FOLLOW) Dow Jones Newswires July 26, 2010 17:01 ET (21:01 GMT)