U.S. stocks closed higher Friday as the Dow Jones Industrial Average rose 1.2% to 11285, the Standard & Poor's 500 climbed 1.5% to 1177 and the Nasdaq Composite added 2.5% to 2480. Among the companies whose shares were actively trading in the after-hours session is Taseko Mines Ltd. (TGB).
Taseko Mines Ltd. (TGB) said the Canadian Environmental Assessment Agency has formally accepted its new proposal for a $1 billion New Prosperity gold-copper mine in British Columbia's central interior. The company said acceptance of the project description ensures the government's environmental assessment of New Prosperity will begin on or before Nov. 7. Shares of Taseko Mines surged 17% to $3.86 Friday afternoon during regular-session trading, and continued trading up after-hours, adding 2.6% to $3.96.
Regular-Session Movers:
Tiffany & Co.'s (TIF, $69.01, +$5.90, +9.35%) fiscal second-quarter earnings rose 33% on double-digit sales growth in all geographies, led by the Asia-Pacific region, and results easily beat views. The high-end jewelry retailer also raised its full-year earnings estimate.
OmniVision Technologies Inc.'s (OVTI, $17.27, -$7.55, -30.42%) fiscal first-quarter earnings more than doubled on its continued sales and margin strength, but the imaging-technology company predicted a paltry performance in the current quarter relative to analysts' expectations.
Pandora Media Inc. (P, $13.41, +$0.94, +7.54%) posted a loss in the fiscal second quarter as growth in costs outstripped that of revenue in the Internet-radio operator's first quarterly report as a publicly traded company. But shares were up as Pandora reported an unexpected core profit on a stronger-than-expected top line.
Aruba Networks Inc.'s (ARUN, $20.55, +$3.41, +19.89%) fiscal fourth-quarter earnings soared over last year's slight profit as the telecommunications-equipment maker continued to benefit from strong demand for its business-oriented offerings. Its peer in the high-growth networking space Riverbed Technology Inc. (RVBD, $22.76, +$1.94, +9.32%) also rose.
Bank of America Corp. (BAC, $7.76, +$0.11, +1.44%) is in the final stages of negotiating the sale of at least half of its 10% stake in China Construction Bank Corp. (0939.HK) to a group of sovereign-wealth funds and institutions from the U.S., China, Malaysia and the Middle East, CNBC's Kate Kelly reported Friday, citing a person familiar with the matter. A deal on the sale, which could raise about $8.5 billion to $9 billion, could be concluded as early as Monday in Hong Kong, according to the report.
Standard & Poor's Equity Research upgraded its stock-investment rating on Dean Foods Co. (DF, $8.35, +$0.30, +3.73%) to hold from sell noting the dairy processor and distributor is expected to continue to benefit from cost reductions and will post earnings growth in the second half of 2011. S&P also said Dean Foods' stock price appropriately reflects concerns about the prospect of volume declines in conventional fluid milk.
Collins Stewart upgraded its stock-investment rating on First Solar Inc. (FSLR, $100.71, +$4.22, +4.37%) to buy from neutral, citing the company's highly profitable utility-scale solar backlog and additional contracts for large solar projects in Nevada and California. The firm also noted the progress of First Solar's systems division, which sees more profit and greater visibility than sales at its module division.
Hercules Offshore Inc.'s (HERO, $3.75, +$0.53, +16.46%) shares surge as the shallow-water driller reports increases in dayrates and backlog and a reduction in idle rigs. Hercules' U.S. Gulf activity "continues to surprise to the upside," says Global Hunter. Firm says supply-demand imbalance in the Gulf should prompt "continued utilization and pricing strength," pushing shares toward its target.
HollyFrontier Corp. (HFC, $70.68, +$4.68, +7.09%) said its board approved a nearly 17% increase to the refiner's quarterly dividend, joining a growing list of companies looking to return value to shareholders.
KBR Inc. (KBR, $28.62, +$1.95, +7.31%), Quanex Building Products Corp. (NX, $12.03, +$1.37, +12.85%) and Varian Medical Systems Inc. (VAR, $55.61, +$1.41, +2.60%) unveiled stock-repurchase plans Friday, adding them to a growing list of companies seeking to bolster investor confidence and take advantage of lower share prices. Engineering, construction and defense-services provider KBR plans to repurchase up to 10 million common shares, Quanex, which sells aluminum and products like window screens, added 1 million shares to its buyback plans, and Varian agreed to repurchase $250 million of its stock from Bank of America Corp. (BAC, $7.76, +$0.11, +1.44%) under an accelerated share-repurchase program.
Krispy Kreme Doughnuts Inc.'s (KKD, $8.57, +$0.73, +9.31%) fiscal second-quarter profit soared as the doughnut chain posted higher same-store sales and a sharp increase in franchise revenue abroad, while a one-time gain also boosted the bottom line.
Kroger Co. (KR, $22.68, +$0.18, +0.80%) and Supervalu Inc. (SVU, $7.00, +$0.43, +6.54%) are seeing sales rise as customers stock up on hurricane-prep essentials on East Coast. Kroger said stores in Virginia, West Virginia and North Carolina are busy with customers buying canned goods, water, milk and beer. Supervalu, with more exposure to storm-warning states, says it has also seen a rush, but has been shipping extra items to those areas so there are still plenty of essentials left on the shelves. Hurricane Irene preparations could cause a net sales boost for supermarkets, if it isn't offset by losses from stores that are closed, damaged or inaccessible to consumers.
Janney Capital Markets upgraded its stock-investment rating on Micros Systems Inc. (MCRS, $45.95, +$4.93, +12.02%) to buy from neutral as the company continues to post improving results and gain market share. Micros, which designs and manufactures point-of-sale computer systems for the hospitality industry, also benefits from market diversification that Janney said is "difficult to replicate."
Capital One Southcoast Inc. upgraded its stock investment rating on Noble Corp. (NE, $31.78, +$1.61, +5.34%) to add from neutral, noting the driller's new contracts and plans for additional rigs. Separately, Guggenheim also upgraded its stock-investment rating on Noble to buy from neutral, citing the company's significant earnings-per-share growth in 2012 and successful fleet recapitalization.
A Barclays Capital analyst says Cheesecake Factory Inc. (CAKE, $26.79, +$0.66, +2.53%), Panera Bread Co. (PNRA, $110.95, +$3.75, +3.50%), Domino's Pizza Inc. (DPZ, $26.98, +$1.06, +4.09%) and Ruby Tuesday Inc. (RT, $8.11, +$0.31, +3.97%) have the most exposure to the states in Hurricane Irene's path. While risk of consumers being holed up at home and damage to restaurants remains a concern, evacuated families going out to eat and ordering delivery could cause a sales boost. Domino's typically benefits from bad weather, as people who don't want to drive order pizza instead. However, if the storm is bad enough to close many stores, Domino's won't be coming out ahead.
Quanex Building Product Corp.'s (NX, $12.03, +$1.37, +12.85%) fiscal third-quarter profit fell 12% on higher costs and acquisition-related impacts, masking net sales growth that exceeded analysts' expectations.
Shoe Carnival Inc.'s (SCVL, $25.97, -$0.82, -3.06%) fiscal second-quarter profit fell 34% as the retailer blamed inclement weather for softer-than-expected sales, though it issued an optimistic outlook for the current period.
An appeals court on Friday denied tobacco-products company Star Scientific Inc.'s (CIGX, $1.81, -$1.19, -39.67%) patent infringement claims against Reynolds American Inc. (RAI, $36.57, +$0.32, +0.88%) and its motion for a new trial in a case involving lawsuits filed in 2001 and 2002, affirming a lower court ruling.
Tower Group Inc. (TWGP, $21.79, -$0.91, -4.01%) was one of a slim number of stocks trading in the red today, as homeowners in the Northeast brace for Hurricane Irene to hit this weekend. The New York-based property and casualty insurer has more concentrated exposure in the New York City metropolitan area than other companies, and Tower Group is likely to see losses from wind damage, says FBR Capital Markets analyst Randy Binner.
Pacific Crest lifts its stock-investment rating on VMware Inc. (VMW, $84.77, +$4.59, +5.72%) to outperform saying "general virtualization trends remain robust" despite the weak economy. VMware shares are off 18% over the last three months to $80.18, and Pacific Crest says it would be an opportunistic buyer, saying VWM has room for increased penetration as its customers begin to transition their higher-value applications to virtualized infrastructures.
Hurricane Irene's wind and rain is lifting investors' enthusiasm for W.W. Grainger Inc. (GWW, $143.05, +$5.03, +3.64%). W.W. Grainger is North America's largest supplier of repair and cleaning supplies for commercial and industrial buildings, and its branch stores typically do a bang-up business in the aftermath of natural disasters as customers stock up on mops, pumps and generators. W.W. Grainger's competitors Fastenal Co. (FAST, $32.17, +$1.23, +3.98%) and MSC Industrial Direct Co. (MSM, $58.99, +$1.20, +2.08%) also moved higher.
