U.S. stocks were trading up Monday as the Dow Jones Industrial Average recently rose 83 points to 13179, the Standard & Poor's 500-stock index rose eight
points to 1399, and the Nasdaq Composite rose 32 points to 3000. Among the companies with shares actively trading are Best Buy Co. (BBY), Knight Capital
Group Inc. (KCG), HCA Holdings Inc. (HCA) and Cognizant Technology Solutions Corp. (CTSH).
Shares of consumer electronics retailer Best Buy ($19.63, +$1.99, +11.28%) jumped as Richard Schulze, the company's founder and former chairman, offered to
buy the remaining shares of the company that he doesn't already own in a deal that values the retailer at up to $8.84 billion, or $24 to $26 a share. The
company called the proposal "unsolicited" and "highly conditional."
Shares of Knight Capital ($3.15, -$0.90, -22.22%) continued to fall amid confirmation from the company that the embattled brokerage had agreed to a $400
million rescue plan that would help fill a hole left by errant trading last week. In a statement, Knight said as a result of the loss it "experienced reduced
order flow and liquidity pressures, and its capital base was severely impacted."
HCA's ($24.89, -$1.71, -6.43%) shares fell despite positive second-quarter earnings, after Chief Executive Richard Bracken took a minute during the second-
quarter conference call to warn about an apparent coming news story about the largest U.S. hospital operator. Based on feedback and questions from The New
York Times, Bracken said the article could touch on issues like HCA'S ownership structure, its approach to care for the uninsured and the medical necessity
for cardiac services at certain Florida hospitals. On the final point, HCA disclosed that federal prosecutors have requested information. The news weighed on
the whole hospital sector as investors worry that the investigation could have a longer reach. Shares of Health Management Associates Inc. (HMA, $6.53, -
$0.14, -2.10%) and Tenet Healthcare Corp. (THC, $4.59, -$0.10, -2.13%) also traded lower.
Cognizant's ($64.76, +$6.90, +11.93%) second-quarter profit rose 21% as revenue saw double-digit growth in all of its segments. The information technology
company raised its full-year earnings guidance and affirmed its revenue view.
Other Stocks to Watch:
AES Corp.'s (AES, $11.67, -$0.58, -4.73%) second-quarter profit fell 20% as the power and utilities company saw a double-digit decline in revenue from its
key Latin American utilities business. Results missed expectations and AES said it expects per-share earnings for the year to come in at the low end of its
May guidance.
Chinese online game developer Changyou.com Ltd.'s (CYOU, $22.57, +$3.20, +16.52%) (K3JD.SG) second-quarter results beat analysts' estimates. The company also
said its majority-owned web games subsidiary 7Road.com Ltd. plans to file a request with the U.S. Securities and Exchange Commission for a possible initial
public offering of American depositary shares. Shares of Changyou.com's majority shareholder, Sohu.com Inc. (SOHU, $39.49, +$4.79, +13.80%) also rose amid
reporting strong growth at the company's video game and online search units.
Citigroup Inc. (C, $28.48, +$1.08, +3.94%) has finally gained access to China's fast-growing capital market, with a Monday launch of an investment banking
joint venture in the country. Stephen Bird, chief executive of Citi Asia Pacific, said the joint venture with Shanghai-based Orient Securities Co. aims to be
a leading investment bank in China.
CompuCredit Holdings Corp. (CCRT, $5.12, +$0.69, +15.58%) said it sold its debt-recovery business to equity investment firm Flexpoint Ford LLC for about
$130.5 million, giving the specialty finance company new funds to expand other parts of its business.
Benchmark Capital downgraded CryoLife Inc. (CRY, $5.10, -$0.11, -2.11%) to hold from buy and lowered its price target to $6, citing a delayed clinical trial
and second-quarter results for the tissue-processing and medical-device company. Enrollment in PerClot's U.S. Food and Drug Administration clinical trial was
delayed from mid-2012 to early 2013, and Benchmark said in a note to clients that "this shift is benefiting 2012 results through lower R&D expenditures, at
the expense of 2013." Benchmark said it now forecasts "meaningful earnings expansion beginning in 2014."
Exelixis Inc. (EXEL, $5.01, -$0.57, -10.22%) plans to offer 20 million shares of its common stock and $225 million in debt to raise funds for clinical trials
and other general corporate purposes. The biotechnology company, which focuses on developing small molecule therapies for the treatment of cancer, said it
expects to raise about $105.6 million in net proceeds from the common stock offering, based on an assumed offering price of $5.58 a share.
Shares of advertising and marketing services firm Interpublic Group of Cos. (IPG, $10.03, -$0.95, -8.61%) fell after French advertising and communications
firm Publicis Groupe SA (PUBGY, $12.80, +$0.21, +1.67%)(PUB.FR) denied it had approached IPG about a possible a merger. IPG shares had traded higher Friday
after the Financial Times' Alphaville blog had said Publicis was weighing a bid.
Israeli stem-cell developer Pluristem Therapeutics Inc. (PSTI, $4.05, +$0.74, +22.36%) said it has saved the life of a second patient with aplastic bone
marrow--a condition in which the patient's bone marrow doesn't produce new blood cells--by using an injection of Pluristem's cells. The company has applied
for orphan drug status from the U.S. Food and Drug Administration for its treatment. Orphan drug status, reserved for treatments of rare diseases, gives drug
developers certain benefits, including government-subsidized research, exclusive marketing agreements and other financial incentives.
Standard Motor Products Inc. (SMP, $16.85, +$2.78, +19.76%), an automotive replacement parts manufacturer and distributor, reported second-quarter earnings
beat analysts' expectations.
Shares of medical device maker Sunshine Heart Inc. (SSH, $9.64, +$1.17, +13.81%) rose as the company said it has received conditional approval from the U.S.
Food and Drug Administration for its next generation C-Pulse system driver, used in the treatment of heart failure.
Tyson Foods Inc.'s (TSN, $14.43, -$0.97, -6.30%) fiscal third-quarter profit fell 61% amid $167 million in early debt-extinguishment charges as the meat
processor continued to have challenges at its beef and pork businesses, as well as rising grain prices. The company also lowered its revenue estimate for the
fiscal year.
United Fire Group Inc. (UFCS, $21.30, +$2.53, +13.48%) reported second-quarter earnings that beat analysts' estimates, thanks to what the company calls
"solid growth." With net premiums earned up about 12%, the insurer's Chief Executive Officer Randy Ramlo said "We are pleased to see a good portion of that
growth is the result of rate increases" and that the company continues to experience "solid retention rates while also picking up new business from other
carriers who are employing across-the-board rate increases."
Video-ringtone company Vringo Inc. (VRNG, $3.61, +$0.49, +15.70%) said AOL Inc. (AOL, $33.88, +$1.25, +3.83%) agreed to settle part of a patent dispute
brought by Vringo, giving Vringo another potential win in its ongoing lawsuit against some of the biggest names in the technology sector. Details of the
settlement were confidential and Vringo declined to comment.
Youku Inc.'s (YOKU, $17.64, +$1.27, +7.76%) second-quarter loss widened as the Chinese online television company saw its operating expenses nearly double.
Still, the company's loss wasn't as much as analysts expected and revenue increased 96%, in line with the company's revenue growth estimate.
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