US HOT STOCKS: Amylin, Saks, US Airways, Wendy's/Arby's





U.S. stocks traded higher Thursday as the Dow Jones Industrial Average gained 1.5% to 12246, the Standard & Poor's 500 increased 1.6% to 1329 and the Nasdaq Composite rose 1.9% to 2799. Among the companies whose shares are actively trading in the session are Amylin Pharmaceuticals Inc. (AMLN), Saks Inc. (SKS) and US Airways Group Inc. (LCC).

A diabetes drug taken weekly and being developed by Eli Lilly & Co. (LLY, $34.42, +$0.14, +0.41%), Amylin Pharmaceuticals ($11.40, -$3.61, -24.05%) and Alkermes Inc. (ALKS, $12.39, -$1.71, -12.13%) suffered another setback as it failed to prove as effective as a different once-daily treatment.

Shoppers had a spring in their step during February, with retail sales for the month showing solid spending. High-end department stores continued to outperform, with Saks Inc.'s (SKS, $12.43, +$0.70, +5.97%) and Nordstrom Inc.'s (JWN, $44.95, +$0.74, +1.67%) February same-store sales topping Wall Street's expectations. Teen retailer Zumiez Inc. (ZUMZ, $27.45, +$1.51, +5.82%) saw gains in customer traffic and continued its strong sales performance. Fellow teen retailer Hot Topic Inc. (HOTT, $5.59, +$0.31, +5.87%) posted a smaller-than-expected drop in same-store sales.

US Airways ($8.49, +$0.52, +6.52%) said traffic rose 4.5% in February from a year earlier amid an "exceptionally strong" demand environment, as a key industry performance measure continued to improve. The metric of passenger revenue per available seat mile climbed about 10%.

Wendy's/Arby's Group Inc.'s (WEN, $5.07, +$0.33, +6.96%) fourth-quarter loss narrowed amid modest sales gains at both of its restaurant chains and lower overhead and interest costs. The quick-service company has plans to grow its Wendy's burger brand with new products and international development as it "explores strategic alternatives" for its Arby's sandwich chain, including a possible sale.

The U.K. government Thursday approved News Corp.'s (NWS, $18.55, +$0.40, +2.18%) proposed GBP7.8 billion takeover of British Sky Broadcasting Group PLC (BSYBY, $53.75, +$1.10, +2.09%) (BSY.LN) after the media giant agreed to spin off 24-hour news channel, Sky News, into a separate company to avoid a prolonged investigation by the nation's competition regulator. News Corp. owns Dow Jones & Co., publisher of this newswire.


Other Stocks In Focus:


Big Lots Inc.'s (BIG, $41.09, +$1.20, +3.01%) fiscal fourth-quarter earnings rose a better-than-expected 4.5% as the closeout retailer reported sales growth and gave a mostly upbeat view for the current quarter and fiscal year.

Clearwater Paper Corp.'s (CLW, $81.11, +$3.34, +4.29%) fourth-quarter earnings beat the Street's forecast as the producer of tissue and paperboard products' net sales increased 3.3% year-over-year.

Piper Jaffray raised its stock-investment rating on Cognex Corp. (CGNX, $29.10, +$2.29, +8.54%) to overweight from neutral, noting that its shares have pulled back 24% since it reported earnings in mid-February. The firm said it sees earnings growing more rapidly than revenue due to more opportunities for margin expansion.

Stifel Nicolaus raised its view on three health insurers based on a mix of improving fundamentals and 2011 guidance that looks beatable. It upgraded its stock investment ratings on Coventry Health Care (CVH, $32.46, +$1.89, +6.18%), UnitedHealth Group Inc. (UNH, $44.69, +$1.26, +2.89%) and WellPoint Inc. (WLP, $68.98, +$2.17, +3.25%) to buy from hold. Stifel says insurers set a low bar for earnings estimates amid worries about claims-cost regulations, which now appear manageable. "We believe that 2011 is shaping up as a 'beat-and-raise' year across the industry."

The owner of the Applebee's and IHOP restaurant chains DineEquity Inc.'s (DIN, $56.71, +$1.30, +2.35%) fourth-quarter loss widened sharply as revenue fell more than expected and a $111.6-million charge on the extinguishment of debt and preferred stock weighed on the bottom line.

Intel-GE Care Innovations LLC, the newly-formed joint venture from General Electric Co. (GE, $20.83, +$0.51, +2.51%) and Intel Corp. (INTC, $21.82, +$0.33, +1.54%), received U.S. Food and Drug Administration market clearance for its virtual care coordination platform.

Gerber Scientific Inc.'s (GRB, $9.09, +$1.26, +16.09%) fiscal third-quarter's results slightly beat analysts' expectations as its profit increased on higher volume and a higher mix of apparel and industrial sales. The company lifted its 2011 fiscal year forecast, citing its strong quarterly performance and more stable outlook.

Global Defense Technology & Systems Inc. (GTEC, $24.15, +$8.07, +50.19%) agreed to be acquired by private-equity firm Ares Management LLC in a deal valued at $223.1 million, the latest in a series of companies being taken private in recent months. Shareholders of Global Defense, which went public in November 2009, will receive $24.25 a share, a 51% premium over Wednesday's close.

Goldman Sachs added Hologic Inc. (HOLX, $21.04, +$1.06, +5.31%) to its Americas Conviction list, noting that the market underappreciates Hologic's new product cycle in tomosynthesis, which represents a major advance in breast-cancer detection.

KeyCorp (KEY, $9.32, +$0.28, +3.10%) shares are up on some murky takeover speculation. To be sure, the bank is often discussed as a possible takeover it's still holding TARP money and KBW listed it as a potential seller just last month. But many analysts stopped expecting a sale in November when long-term Chief Executive Henry Meyer said he plans to step down May 1. That group of analysts doubt the bank's CEO would leave during negotiations. More so, they doubt President and Chief Operating Officer Beth Mooney would take the reins only to sell.

KongZhong Corp.'s (KONG, $8.08, +$1.01, +14.20%) fourth-quarter earnings more than doubled, beating analysts' consensus estimate, as the Chinese game company predicted revenue would return to sequential growth.

Kroger Co.'s (KR, $23.03, +$0.51, +2.26%) fiscal fourth-quarter profit rose 9.2% as identical supermarket sales climbed and fuel boosted the top line. The core results beat Wall Street's views and the company's board authorized it to buy back $1 billion in shares.

LHC Group's (LHCG, $28.04, -$2.01, -6.69%) fourth-quarter earnings missed consensus estimates and its projected fiscal year 2011 revenue also fell short of expectations. Jefferies cut its stock-investment rating on LHC to hold from buy following the results, noting that it expects LHC to lag its nursing home peers given the deceleration in its growth outlook.

MakeMyTrip Ltd. (MMYT, $26.54, -$0.73, -2.68%) said it and its selling shareholders plan to offer 6 million shares, with the company using some of its proceeds to expand the India-based online travel agency's operations by acquiring or investing in various businesses or assets. The offering would increase the number of shares outstanding.

Midas Inc.'s (MDS, $8.20, +$0.76, +10.21%) shares were up 10% before being halted ahead of the announcement of an arbitration decision. The company's chief executive revealed at end of conference call to discuss the company's fourth-quarter results that the auto-shop chain just received the ruling in a spat with its master licensee in Europe. A statement is due later today with specifics of the ruling.

Motorola Mobility Holdings Inc.'s (MMI, $27.05, -$1.33, -4.69%) time in the spotlight with its Xoom tablet faded pretty quickly. While MMI was seen as the first true competitor to the iPad, Apple Inc. (AAPL, $358.51, +$6.39, +1.82%) one-upped it with its iPad 2, which will come out sooner than expected. Cowen downgraded its stock-investment rating on MMI to neutral from outperform, saying the window of opportunity to establish the Xoom is narrowing more rapidly than expected.

Biopharmaceutical and diagnostics company Opko Health Inc. (OPK, $4.27, -$0.33, -7.17%) said it plans to offer at least $100 million in common stock, saying it plans to use proceeds for general corporate purposes, which could include research and development expenses, clinical trials and acquisitions.

Perry Ellis International Inc. (PERY, $27.65, -$1.17, -4.06%) said it boosted the size of a planned debt offering and its sale of at least 2 million shares priced at $28 a share, a 2.8% discount to its Wednesday close.

Phillips-Van Heusen Corp. (PVH, $61.31, +$2.13, +3.60%) on Wednesday said it amended and restated a senior secured credit facility it entered into in May in connection with the company's $3 billion acquisition of Tommy Hilfiger.

Standard & Poor's Ratings Services upgraded data-storage company Quantum Corp. (QTM, $2.54, +$0.09, +3.67%) by a notch, citing improved performance of late despite declines in its core tape business.

Sigma Designs Inc. (SIGM, $12.04, -$1.66, -12.12%) swung to a fourth-quarter profit as the company's sales and margins improved and it booked fewer charges than a year earlier. But adjusted profit declined and Chairman and Chief Executive Thinh Tran noted that the company saw sequential revenue declines because of lower revenue in three of its market segments.

Standard Motor Products Inc.'s (SMP, $12.32, +$0.62, +5.30%) fourth-quarter results easily topped analysts' estimates. The automotive replacement parts manufacturer and distributor said its strong results were aided by an aging car population and the closing of car dealerships.

Taser International Inc. (TASR, $4.04, +$0.15, +3.86%) said its board of directors has approved a stock buy-back program that authorizes the company, which develops, assembles and markets nonlethal protection systems, to purchase up to $12.5 million of the company's common stock.

Business-data storage company Teradata Corp. (TDC, $49.76, +$2.19, +4.60%) said it has agreed to acquire the 89% of Aster Data it doesn't already own for $263 million, a move it said will increase its customers' ability to analyze large volumes of diverse data.

United Natural Foods Inc.'s (UNFI, $45.39, +$3.70, +8.88%) fiscal second-quarter earnings rose 20% as the wholesale distributor reported revenue that beat analysts' expectations. For the year, the company raised the low end of its earnings guidance and raised its net sales view based on solid performance during the first half of its fiscal year.

Valero Energy Corp. (VLO, $28.86, +$1.96, +7.29%) said it expects its first-quarter earnings to fall within the range of 15 cents to 30 cents a share, including a loss from closing out hedges that totaled about 10% of its annual production. Credit Suisse said in a note that closing the hedges removes a negative for the company, calling them a "near-term overhang."

Oil refiner and retailer Western Refining Inc. (WNR, $16.91, +$1.02, +6.42%) posted a surprise fourth-quarter loss despite improving margins and sharply lower write-downs as low volumes led to slower-than-expected sales growth. Though the company posted a loss, Chief Executive Jeff Stevens said he saw "an extraordinary refining margin environment during a time of year when we traditionally experience seasonally weaker margins."

Zagg Inc. (ZAGG, $8.18, +$1.11, +15.70%) shares rebounded Thursday after the company said some of its main products will work alongside a new cover that Apple Inc. (AAPL, $358.54, +$6.42, +1.82%) announced Wednesday for the iPad 2