BEFORE THE BELL -2: US HOT STOCKS TO WATCHLast update: 2/3/2010 8:26:36 AM
By Donna Kardos Yesalavich
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--U.S. stock futures turned slightly positive Wednesday morning after Automatic Data Processing reported a smaller-than-expected drop in private-sector jobs for January.
Dow Jones Industrial Average futures were up 1 point recently, while Standard & Poor's 500 futures edged up less than a point and Nasdaq Composite futures climbed 2 points. Prior to the report, Dow futures had been down 10 points, while S&P 500 futures were off 2 points and Nasdaq futures were off 2 points.
The ADP survey of the private employment sector estimated 22,000 jobs were lost in January, compared to expectations for 30,000 decline. The report precedes Friday's more closely followed nonfarm payroll data from the government.
The small declines in futures prior to ADP's report followed mixed earnings reports.
The media sector was in focus as Comcast doubled its profit and News Corp. and Time Warner returned to profitability. Comcast shares were flat premarket, while Time Warner slipped 0.8% but News Corp., which owns the publisher of this report, jumped 5.3%.
Pfizer fell 1.3% premarket. The drug giant said its fourth-quarter profit more than doubled to $767 million, but the result lagged Wall Street estimates. It also scaled back 2012 revenue estimates.
In other markets, the dollar was lower against the euro but higher against the yen. Crude-oil futures edged higher, while gold futures slipped. Treasurys were lower, with the 10-year note down 7/32 to yield 3.664%. Wednesday's action comes after stocks marched higher Tuesday thanks to strong housing data, putting the market on its best two-day winning streak in nearly three months.
Still to come, the ISM service sector index for January will be released at 10 a.m., EST. -By Donna Kardos Yesalavich, Dow Jones Newswires; 212-416-2188; donna.yesalavich@dowjones.com
Among the companies whose shares are expected to actively trading in Wednesday's session are Home Diagnostics Inc. (HDIX), MetLife Inc. (MET) and News Corp. (NWS).
Home Diagnostics Inc. (HDIX), which makes diabetes testing supplies, said Wednesday it will be bought by Nipro Corp. (8086.TO) for about $215 million. Japanese medical-device maker Nipro will pay $11.50 a share for Home Diagnostics, a 90% premium to Home Diagnostics' closing price Tuesday. Shares soared 84% to $11.15 premarket.
MetLife's (MET) fourth-quarter profit plunged 70% as investment losses took their toll, but the insurer topped its expectations for operating earnings and posted double-digit growth. Shares fell 2.8% to $35.36 in after-hours trading.
News Corp. (NWS) swung to a second-quarter profit led by continued strength at its cable programming and film entertainment divisions after its prior-year results were dragged into the red by revenue declines and impairment charges. The company, which owns this newswire and The Wall Street Journal, also raised its six-month dividend for both classes of stock by 25% to 7.5 cents. Class A shares (NWSA) climbed 5.8% to $13.50 after hours, while Class B shares rose 4.3% to $15.69.
Tesoro Corp. (TSO) swung to a fourth-quarter loss as the oil refiner posted higher costs and a $43 million write-down. Shares fell 4.6% to $12.38 in late trading as the red ink was more than expected.
Ace Ltd.'s (ACE) fourth-quarter profit soared as the commercial insurer benefited from a big rebound in investments and growth in premiums. Shares rose 1.6% to $50.37 in after-hours trading as earnings topped analysts' expectations.
Alliance Data Systems Corp.'s (ADS) fourth-quarter profit fell 10% as higher revenue couldn't offset a bigger loss from discontinued operations. Shares of the loyalty-program and private-label card operator slid 4% to $59 in late trading.
AOL Inc. (AOL) swung to a fourth-quarter profit amid year-earlier charges as the company continued to see its Internet subscribers decline in its first report since it was spun off from Time Warner Inc. (TWX). Results topped analysts' expectations, sending shares up 3.2% to $25.44 premarket.
Auxilium Pharmaceuticals Inc. (AUXL) said the U.S. Food and Drug Administration has given marketing approval to its Xiaflext injection for the treatment of adult Dupuytren's contracture, a condition that affects the connective tissue that lies beneath the skin of the palm. The company expects a late-March launch of the drug. Shares rose 10% to $31 in light premarket trading.
C.H. Robinson Worldwide Inc.'s (CHRW) fourth-quarter profit slid 1.3% as the trucking and logistics company reported lower margins and revenue. Shares fell 8.6% at $52.50 in after-hours trading as the company's earnings were below expectations.
Fiserv Inc.'s (FISV) fourth-quarter earnings soared 90% as the provider of information technology to the financial and insurance industries shed prior-year charges and revenue rose slightly. Chief Executive Jeffrey Yabuki said record December sales helped drive growth in sales, which topped expectations, helping push shares up 1.8% to $47.25 in late trading.
GT Solar International Inc. (SOLR) shares jumped 8.3% to $6.50 in after-hours trading after it reported fiscal third-quarter results that topped Street estimates. GT Solar also raised the lower end of its fiscal 2010 earnings and revenue guidance.
JDS Uniphase Corp.'s (JDSU) loss in its fiscal second quarter--its eighth loss in a row--narrowed on higher margins following a prior-year $691.6 million goodwill write-down. Shares gained 2.9% to $8.61 after hours as the fiber-optic equipment company forecast fiscal third-quarter revenue above Street estimates.
Labopharm Inc. (DDSS) said the U.S. Food and Drug Administration has approved its Oleptro tablets for the treatment of major depressive disorder in adults. The drug uses Labopharm's Contramid technology that controls the release of active substances in oral medications, and is the company's second Contramid-technology-based drug the FDA has approved in a little over a year. Shares jumped 22% to $3.18 premarket.
Navios Maritime Partners LP (NMM) said it will offer 3.5 million common units and use the proceeds to fund its fleet expansion and for general partnership purposes. The offering will dilute current units outstanding by about 14%. Units fell 7.8% to $15.13 premarket.
Polo Ralph Lauren Corp. (RL) fiscal third-quarter earnings rose 5.5%, above analysts' estimates, as the apparel maker sales to department stores remained weak but its own selling improved. The company strengthened its sales outlook for the year, but shares fell 4.6% to $81.75 premarket.
Silicon Storage Technology Inc. (SSTI) has scrapped a buyout deal in favor of being acquired for about $284 million by Microchip Technology Inc. (MCHP). Silicon's shares rose 5.2% to $2.83 premarket.
Toyota Motor Corp.'s (TM) burgeoning crisis hit the shores of Japan Wednesday as Japan's transport ministry asked the embattled auto maker to investigate 14 complaints it had received related to the newest Prius hybrid model, the best-selling car in the country last year. American depositary shares fell 3.5% to $75.48 premarket.
Western Union Co. (WU) fourth-quarter earnings fell 6.6% as the company was pessimistic about business this year. Shares dropped 4.4% to $18.02 premarket as the world's largest payment transfer company expects a modest recovery in the global remittance market in 2010 but not as much as analysts did.
-Dow Jones Newswires; write to hotstocks@dowjones.com (END) Dow Jones NewswiresFebruary 03, 2010 08:26 ET (13:26 GMT)
