U.S. stocks traded higher Monday as the Dow Jones Industrial Average recently gained 1.7% to 11476, the Standard & Poor's 500 rose 2% to 1200 and the Nasdaq Composite increased 2.2% to 2535. Among the companies whose shares were actively trading in the session were Pfizer Inc. (PFE), Allstate Corp. (ALL) and Northgate Minerals Corp. (NXG).
A drug being developed by Bristol-Myers Squibb Co. (BMY, $29.30, +$0.58, +2.02%) and Pfizer ($18.80, +$0.59, +3.24%) significantly outperformed warfarin in a major stroke-prevention study, boosting the drug's prospects in an emerging multibillion market for new blood thinners.
For all its fury, Irene might have given something of a break to the property-insurance industry, which has paid out billions of dollars in natural-disaster claims in recent months. The massive storm downed trees and power lines, ripped off roof shingles and dislodged siding from homes. But wind-speed monitors in the storm's path have generally shown that ground-level winds were significantly slower than what were reported by the hurricane-hunter aircraft tracking Irene's progress as it moved north, according to disaster experts who monitored the storm. Insurers Allstate ($25.97, +$1.73, +7.14%), Travelers Cos. (TRV, $50.59, +$2.29, +4.74%) and Tower Group Inc. (TWGP, $22.66, +$0.87, +3.99%) all traded higher.
AuRico Gold Inc. (AUQ, $12.22, -$1.70, -12.21%) has agreed to buy fellow Canadian gold mining company Northgate Minerals ($4.34, +$1.19, +37.78%) as consolidation among gold miners continues in the wake of record gold prices. The deal scuttles Northgate's previous plan to buy Primero Mining Corp. (PPP, $3.45, -$0.77, -18.25%) for C$370 million. AuRico, a Toronto-based gold and silver producer with mines and projects in Mexico, is offering 0.365 of a share for each Northgate share.
Venoco Inc. (VQ, $11.94, +$2.96, +32.96%) received a takeover offer valuing the oil-and-gas explorer at $770 million from its chief executive and majority shareholder. The nonbinding offer from CEO Timothy Marquez, worth $12.50 a share in cash, is a 39% premium over Friday's close.
Bank of America Corp. (BAC, $8.12, +$0.36, +4.64%) agreed to sell about half its stake in China Construction Bank Corp. (0939.HK) for cash proceeds of about $8.3 billion, a deal that further improves the bank's liquidity position and helps it meet regulatory standards.
Other Stocks In Focus:
BB&T Capital Markets upgraded its stock-investment rating on Barnes Group Inc. (B, $23.16, +$1.46, +6.73%) to buy from hold, saying the company's long-cycle, high-margin aerospace business has entered a sustainable period of strength and as such, it doesn't see the valuation as overly expensive. The firm added that the company's proposed sale of its European distribution is potentially more impactful than currently recognized.
Brinker International Inc. (EAT, $23.10, +$0.54, +2.39%) lifted its quarterly dividend payout by 2 cents, joining a growing list of companies aiming to deliver greater return to investors.
Cimarex Energy Co. (XEC, $65.86, +$1.72, +2.68%) unveiled its succession plan, saying current President and Chief Executive F.H. Merelli will retain his title as chairman to focus on long-term strategy.
Computer Sciences Corp. (CSC, $29.69, +$0.86, +2.98%) will provide management, operational and logistical support for two U.S. Postal Service locations under a contract valued at up to $83 million.
Corporate Executive Board Co. (EXBD, $31.07, +$0.89, +2.93%) said its board approved a new $50 million stock buyback program, joining a growing list of companies looking to take advantage of a beaten-down stock price to add shareholder value.
Donaldson Co.'s (DCI, $58.04, +$4.43, +8.26%) fiscal fourth-quarter earnings jumped 29% as the company posted better-than-expected revenue helped by strong performance in its engine and industrial products segments.
Dresser-Rand Group Inc. (DRC, $41.74, +$4.23, +11.28%) said its board has authorized a $150 million share-repurchase program, which represents about 5% of the company's outstanding stock.
Energy Partners Ltd. (EPL, $13.26, +$1.00, +8.16%) said its board has authorized a $20-million share repurchase program, which represents roughly 4% of the company's outstanding stock.
BB&T Capital Markets upgraded its stock-investment rating on civil contractor Granite Construction Inc. (GVA, $19.62, +$1.17, +6.34%) to buy from hold, saying business is still tough but the stock is trading below tangible book value. The firm added that while it expects the competitive environment will remain difficult for the balance of 2011 and into 2012, it believes the shares' current valuation offers an attractive opportunity for investors taking a longer term view.
Green Mountain Coffee Roasters Inc. (GMCR, $100.44, +$2.53, +2.58%) agreed to sell its Van Houtte USA Holdings Inc. office coffee-service unit to Aramark Refreshment Services LLC for $145 million in cash.
Janney Capital Markets upgraded its stock-investment rating on Insituform Technologies Inc. (INSU, $16.29, +$0.98, +6.40%) to buy from neutral, saying that despite near-term uncertainty in its North American Sewer Rehabilitation business, the company's other businesses -- Energy and Mining, European Sewer Rehabilitation, and Asia Pacific Sewer Rehabilitation -- are well-positioned to contribute to a strong second half. It added that the company generates positive free cash flow and has a strong balance sheet with a positive net cash position.
Integrated Device Technology Inc. (IDTI, $5.73, +$0.13, +2.32%) agreed to sell its Hillsboro, Ore., wafer fabrication facility and related assets for $26 million to Alpha & Omega Semiconductor Ltd.(AOSL, $8.32, +$0.15, +1.84%) as it plans to outsource manufacturing to foundry partners.
With the recovery sputtering, apparel stocks might seem a strange place to shop, Barron's reports in its latest edition. Yet Jones Group Inc. (JNY, $11.11, +$0.56, +5.31%), parent of Jones New York and other midpriced apparel and footwear brands, is fashioning a promising comeback after more than five years of disappointing results. Jones Group could rally to $20, from a recent $10, as margins widen and earnings improve, Barron's says. The stock is down about 70% in the past five years, and one money manager sees "good value."
Real-estate investment trust LaSalle Hotel Properties (LHO, $17.28, +$0.89, +5.40%) said its board of trustees has authorized a share repurchase program to acquire up to $100 million of common stock.
Maxim raised its stock-investment rating on Madison Square Garden Co. (MSG, $23.92, +$0.78, +3.37%) to buy from hold, noting that uncertainty created by arena closure is now partially quantified and probability of a continued NBA lockout is reflected in the stock. The firm cut MSG in April citing a lack of short-term catalysts and uncertainty over potential size of revenue losses due to the arena's transformation. But second-quarter results beat Street expectations on better-than-expected operating performance at MSG's media and sports segment, and Maxim says current quarter EBITDA suggests that closing the Garden hasn't been quite as expensive as anticipated.
Widely grown corn plants that Monsanto Co. (MON, $68.01, -$2.67, -3.78%) genetically modified to thwart a voracious bug are falling prey to that very pest in a few Iowa fields, the first time a major Midwest scourge has developed resistance to a genetically modified crop, the Wall Street Journal reported.
NXP Semiconductors N.V. (NXPI, $17.27, +$0.75, +4.54%) sold a patent portfolio for magnetoresistive random access memory chips, or MRAM, to privately held Crocus Technology, a move that comes as companies across the technology industry step up efforts to acquire patents.
Automotive replacement parts manufacturer and distributor Standard Motor Products Inc. (SMP, $12.96, +$1.21, +10.30%) said its board of directors has authorized the purchase of up to $5 million of its common stock in a repurchase program.
ViewPoint Financial Group (VPFG, $12.08, +$0.49, +4.23%) said it plans to repurchase up to 5% of its common stock. The company--the parent of a community bank based in Plano, Texas--said its board authorized management to make the buyback over the course of a year starting Tuesday or until the full 5% is repurchased.
World Fuel Services Corp. (INT, $36.49, +$1.40, +3.99%) said Michael J. Kasbar will become chief executive effective Jan. 1, while Paul H. Stebbins will remain executive chairman.
