US HOT STOCKS: Halliburton, PetMed Express, ATC Tech, Tomkins

19th Jul 2010 15:26

U.S. stocks traded higher Monday as the Dow Jones Industrial Average rose 62 points to 10160, the S&P 500 was up 6.4 points to 1071 and the Nasdaq Composite rose 16 points to 2195. Among the companies whose shares are actively trading in the session are Halliburton Co. (HAL), PetMed Express Inc. (PETS) and ATC Technology Corp. (ATAC). Halliburton's ($29.11, +$1.60, +5.82%) second-quarter earnings rose 83% as the oilfield-services company reported stronger revenue and sequential growth across all its markets. Results rebounded from a weak prior-year period and beat analysts' expectations. PetMed Express' ($16.14, -$1.48, -8.40%) fiscal first-quarter results unexpectedly fell, with the pet pharmacy blaming an inability to buy television advertising at low-enough prices and reduced customer usage of products bought. ATC Technology ($24.35, +$6.92, +39.70%), which provides logistics and refurbishment services to the consumer-electronics industries and the vehicle-service parts markets, has said it agreed to be acquired by closely held GENCO Distribution System Inc. for $512.6 million, but it has a month to solicit other bids. U.K. engineering and manufacturing company Tomkins PLC (TKS, $18.30, +$4.43, +31.94%) said Monday it has received a 325 pence a share, or GBP2.86 billion ($4.36 billion), cash bid approach from Canadian private equity firm Onex Corp. and the Canada Pension Plan Investment Board. After considering the proposal terms, the company said, it has allowed the bidders to carry out due diligence which is now at an advanced stage. Hedge-fund operator Ramius LLC made public a proposal to acquire 90% of Cypress Bioscience Inc. (CYPB, $3.30, +$0.80, +32.00%) at a 60% premium to Friday's closing price, valuing the biotechnology company at about $150 million. BP PLC (BP, $35.84, -$1.26, -3.40%) said tests on a well cap that has halted the flow of oil into the Gulf of Mexico for several days continue to produce expected results, but the company's shares dropped after U.S. authorities raised concerns that hydrocarbons may be leaking from the sea bed near the Macondo well. Other Stocks In Focus American International Group Inc. (AIG, $35.10, -$0.54, -1.52%) agreed to pay $725 million to settle a long-running securities lawsuit that alleged the company several years ago engaged in insurance bid-rigging and inflated its stock price and insurance reserves. The agreement with the lead plaintiffs in the lawsuit, a group of Ohio pension funds represented by the state's attorney general, ends a protracted legal fight that began after former New York Attorney General Eliot Spitzer accused AIG and its then-Chief Executive Maurice "Hank" Greenberg of a variety of misdeeds in 2005, leading to Greenberg's departure. Amgen Inc. (AMGN, $53.11, +$0.94, +1.80%) said the Food and Drug Administration agreed to a priority review for denosumab, a drug to prevent skeletal problems in cancer patients. The FDA is scheduled to decide whether to approve the drug by Nov. 18. Analysts at Goldman Sachs Group Inc. removed Bank of America Corp. (BAC, $13.64, -$0.34, -2.41%) from their conviction buy list but maintained a buy rating on the bank Monday. Analyst Richard Ramsden said that Bank of America, which reported earnings last week, showed the least amount of credit improvement when compared with J.P. Morgan Chase & Co. (JPM, $38.57, -$0.43, -1.10%) and Citigroup Inc. (C, $3.88, -$0.02, -0.38%). Reiterating a conviction buy rating for J.P. Morgan, Ramsden said J.P. Morgan saw the most rapid credit improvement this quarter and has higher flexibility due to attractive capital ratios. At the Farnborough International Airshow, aircraft maker Boeing Co. (BA, $62.80, +$0.90, +1.45%) said the market for commercial aircraft is coming back as it announced an order for 30 of its 777 jets. Electrolux (ELUXY, $42.36, -$2.74, -6.08%) posted a rise in second-quarter profit and said its recession-struck markets were showing signs of recovery. But the Swedish maker of vacuum cleaners, fridges and dishwashers reported slightly weaker-than-expected sales and earnings before interest and taxes and said its Southern European markets look weak. Rival Whirlpool Corp. (WHR, $88.61, -$1.80, -1.99%)--the world's largest home appliance maker by sales, which will report its second-quarter results Tuesday--also was dragged down by the news. Entravision Communication Corp (EVC, $2.31, -$0.04, -1.70%) announced plans to sell $385 million of seven-year notes, using the proceeds to repay all existing bank loans, while the media operator announced plans for a new credit deal. (MORE TO FOLLOW) Dow Jones Newswires July 19, 2010 10:26 ET (14:26 GMT)