U.S. stocks traded higher Wednesday as the Dow Jones Industrial Average gained 1% to 11678, the Standard & Poor's 500 added 1.1% to 1227 and the Nasdaq Composite rose 24 points to 2600. Among the companies whose shares are actively trading in the session are Joy Global Inc. (JOYG), PVH Corp. (PVH) and Lions Gate Entertainment Corp. (LGF).
Joy Global's ($86.45, +$4.09, +4.96%) fiscal third-quarter profit jumped 46% as sales climbed in the company's underground mining equipment business and bookings increased. Citing a favorable impact of LeTourneau's mining equipment business, the company again lifted its full-year view.
PVH ($67.75, +$2.85, +4.39%) swung to a fiscal second-quarter profit as the apparel company posted better-than-expected results lifted by strong performance in its Calvin Klein business and Tommy Hilfiger label. The company also lifted its full-year outlook.
Activist investor Carl Icahn and his son Brett have reached an agreement with Lions Gate ($7.29, -$0.23, -3.06%) to sell substantially all of their stake in the company, while also agreeing to dismiss all outstanding litigation and claims between the two parties.
Jos. A. Bank Clothiers Inc.'s (JOSB, $52.51, +$5.24, +11.09%) fiscal second-quarter earnings rose 25%, marking 21 consecutive quarters of earnings growth for the men's clothing retailer, though margins slipped on higher costs. Fellow retailer Men's Wearhouse Inc. (MW, $29.79, +$1.30, +4.56%) also rose.
DryShips Inc.'s (DRYS, $3.03, -$0.14, -4.42%) swung to a sharp loss in its fiscal second-quarter as write-downs from the sale of several ships and higher interest-rate swaps losses weighed down a bottom line pressured by weak revenue.
Other Stocks In Focus:
ADA-ES Inc. (ADES, $14.99, +$1.25, +9.10%) said it reached a $40.5 million settlement with Norit International N.V.'s Americas unit, effectively ending a lawsuit over sales and trade secrets.
Amkor Technology Inc. (AMKR, $4.42, +$0.14, +3.27%) plans to repurchase up to $150 million worth of the company's stock in a buyback effort that represents nearly a fifth of the company's current market capitalization.
CardioNet Inc. (BEAT, $3.17, -$0.60, -15.92%) disclosed late Tuesday that it has received a civil investigative demand from the U.S. Department of Justice related to allegations the company may have used inappropriate codes with Medicare claims for its heart-monitoring services.
Ceradyne Inc. (CRDN, $31.60, +$0.57, +1.84%), a maker of ceramics used in body and vehicle armor, said its board authorized the repurchase of up to $100 million in stock, becoming the latest company to take advantage of the recent stock market volatility to return value to shareholders.
Piper Jaffray cut its stock-investment rating on Cognex Corp. (CGNX, $33.93, -$1.73, -4.85%) to neutral, based on valuation. The maker of vision software, sensors and inspection systems noted on its last call that closing large deals in North America is becoming more challenging, the firm said, adding it thinks the macro uncertainty has likely created a pause in the demand for machine vision.
Wunderlich Securities initiated coverage of Concur Technologies Inc. (CNQR, $42.44, +$2.25, +5.60%) with a stock-investment rating of buy, noting it is the only globally scaled on-demand travel and expense management vendor. It added that as a sector dominator, Concur's accelerated revenue and earnings growth, combined with its recurring and predictable financial model, create a compelling investment that should well outperform the broader market.
Goldman Sachs expects demand for metal to remain "fairly healthy," driven by emerging markets, and says the recent pullback in metals and mining stocks has created a "particularly attractive entry point for select names." The firm remains bullish on copper fundamentals and recommends that investors continue to buy Freeport-McMoRan Copper & Gold Inc. (FCX, $48.34, +$1.73, +3.71%). Although not as bullish on aluminum, Goldman raises Century Aluminum Co. (CENX, $12.38, +$0.59, +5.00%) to neutral from sell on valuation and recommends Alcoa Inc. (AA, $12.82, +$0.46, +3.72%) as de-linking of aluminum prices and Alcoa's aerospace exposure could act as strong earnings drivers over coming years.
Fresh Market Inc.'s (TFM, $38.41, +$3.57, +10.25%) fiscal second-quarter earnings fell 7% as charges and rising food costs masked the specialty grocer's sales growth and improved margins. The company raised its full-year earnings estimate.
Genesco Inc.'s (GCO, $53.85, +$4.87, +9.94%) fiscal second-quarter loss narrowed as the hat and footwear retailer saw same-store sales climb at its Journeys and Lids Sports Group stores. The company again lifted its full-year earnings guidance.
Gordmans Stores' (GMAN, $14.89, -$0.41, -2.68%) fiscal second-quarter profit fell 10% as sales growth slowed and store openings added to expenses. The company raised its full-year earnings forecast.
Laboratory Corp. of America (LH, $84.35, +$1.18, +1.42%) agreed to pay California $49.5 million to settle a competitor's accusations it overcharged the state's Medicaid program, the latest firm to cut a deal with health-care authorities in recent months to resolve lawsuits over allegedly excessive billings.
Wunderlich Securities initiated coverage of LivePerson Inc. (LPSN, $11.65, +$0.36, +3.19%) with a stock-investment rating of buy, noting that the company is the leading provider of chat-centric, SaaS-based sales, and service solutions for real-time online conversion and communications. The firm added that as the company is focused on increasing revenues and lowering costs, "its strong value proposition should lead to solid penetration in the enterprise market building on early adopter successes."
LTX-Credence Corp.'s (LTXC, $5.40, -$1.21, -18.31%) fiscal fourth-quarter earnings declined 12% as the maker of automatic electronics-testing equipment posted a double-digit slump on its top line. The company offered a downbeat outlook for its first fiscal quarter.
Propane company NGL Energy Partners LP (NGL, $21.00, +$0.60, +2.94%) has struck a deal with SemStream L.P, a unit of SemGroup Corp. (SEMG, $22.59, +$1.89, +9.13%), to acquire SemStream's natural gas liquids and assets for about $283 million, a move that will sharply expand the NGL's midstream business.
Omnova Solutions (OMN, $4.24, -$0.66, -13.51%) cut its full-year earnings forecast, citing rising commodity costs and weakening global demand for many of its products. The specialty-chemicals maker now expects adjusted per-share earnings between 40 cents and 44 cents, down from the estimate of about 60 cents executives provided during a June conference call.
Wells Fargo initiated coverage of Red Hat Inc. (RHT, $39.33, +$1.47, +3.87%) with a stock-investment rating of outperform, saying the company has evolved over the years from providing OS software into a broad-based provider of infrastructure stack solutions. It is well positioned to benefit from secular trends in open source TCO projects, virtualization and cloud management, the firm added.
Supply-demand fundamentals for steel should remain challenged as the industry is now more fragmented and mill margins remain pressured by "stubbornly high" input costs, Goldman says. The firm prefers service-center stocks over mill stocks and upgrades Reliance Steel & Aluminum Co. (RS, $43.27, +$2.31, +5.64%) to buy from neutral. Goldman also believes Worthington Industries Inc.'s (WOR, $16.32, -$0.37, -2.22%) high flat-steel exposure and pressure cylinder business with significant European and retail components presents a drag on earnings. It cuts Worthington to sell from neutral.
Rex American Resources Corp.'s (REX, $17.43, +$1.20, +7.39%) fiscal second-quarter earnings rose 90% as the ethanol producer saw a 62% jump in average ethanol prices, though margins dropped on lower ethanol production.
RBC raised its stock-investment rating on Tesoro Corp. (TSO, $24.61, +$1.08, +4.59%) to outperform from sector perform, saying it expects a very high level of West Coast maintenance planned in October to increase refining margins in the region and Tesoro should benefit the most.
Timken Co. (TKR, $39.45, +$1.39, +3.65%) agreed to acquire Drives LLC, a maker of engineered drive-chains and precision augers, for $92 million in cash to further expand its power-transmission line.
Vera Bradley's (VRA, $34.07, +$3.50, +11.43%) fiscal second-quarter earnings jumped 49% as climbing direct sales and a favorable product assortment lifted the bottom line. The results were better than expected and the company also raised its full-year earnings guidance for the second time.
Zale Corp.'s (ZLC, $4.35, -$0.40, -8.42%) fiscal fourth-quarter loss widened, absent a large tax benefit a year earlier, as higher commodity costs masked the jewelry retailer's improved sales.
