U.S. stocks opened lower on Monday, on the heels of back-to-back weekly declines for the S&P 500 as investors grew cautious over stock valuations with indexes near record levels amid mixed economic data. The Dow Jones industrial average .DJI fell 36.34 points, or 0.22 percent, to 16,454.97, the S&P 500 .SPX lost 3.61 points, or 0.19 percent, to 1,874.25 and the Nasdaq Composite .IXIC dropped 7.96 points, or 0.19 percent, to 4,082.63.
** PFIZER INC, $29.59, +1.61 pct
** ASTRAZENECA, $71.88, -10.46 pct
Britain’s AstraZeneca rejected a sweetened and “final” offer from Pfizer, casting serious doubt on the U.S. drugmaker’s plan for a merger to create the world’s biggest pharmaceuticals group.
** AT&T INC, $35.999, -2.02 pct
** DIRECTV, $84.46, -2.00 pct
AT&T plans to pay $48.5 billion to buy DirecTV, in the latest sign that the wireless industry and the U.S. television market are set to converge as customers consume more video on their mobile devices. The deal, announced on Sunday, highlights AT&T’s pressing need for fresh avenues of growth beyond the maturing U.S. cellular business, which has become increasingly competitive.
** LIFELOCK INC, $11.31, -12.87 pct
The fraud and theft protection services provider on Friday temporarily suspended Lemon Wallet, a mobile application that allows users to store their financial information online, saying certain aspects of the application failed to meet security standards set by the payment card industry.
** STEMCELLS INC, $1.4681, +5.62 pct
The company said the interim analysis of study data evaluating its lead experimental drug showed significant post-transplant gains in sensory function in two patients suffering from chronic spinal injury, in addition to two other patients reported earlier.
** VENTRUS BIOSCIENCES INC, $1.0401, -1.88 pct
Ventrus said it would be acquired by privately held biotechnology company Assembly Biosciences Inc, in an all-stock deal worth about $24 million, to focus on Assembly’s experimental hepatitis B treatment.
** CAMPBELL SOUP CO, $43.6, -3.37 pct
Campbell cut its full-year sales forecast after posting weaker-than-expected quarterly sales as increased promotions failed to boost its U.S. soup division.
** GOGO INC, $14.669, +7.23 pct
Brokerage UBS Investment Research upgraded its rating on Gogo’s stock to “buy” from “neutral”, citing the company’s “reasonable valuation” and growth in tablet and smartphone usage that has fueled demand for constant connectivity. “We believe Gogo’s competitive advantages include its brand, ownership of all 4 MHz of U.S. ATG spectrum, and the visibility associated with long-term carrier contracts,” the analysts wrote in a note.
Gogo provides wi-fi in airplanes, largely via mobile-network technology in the United States.
** INTERMUNE INC, $37.22, +8.48 pct
The biotechnology company said on Sunday that its experimental drug to treat a fatal disorder characterized by progressive loss of lung function due to scarring, proved more effective than a placebo in a late-stage trial.
Wells Fargo analyst Brian Abrahams, who raised his target price on the stock to a range of $48-$50 from $41-$43 on Monday, said the robust results made U.S. approval for the drug, pirfenidone, “extraordinarily likely”.
** QUICKLOGIC CORP, $4.0604, -1.21 pct
The chipmaker is on the "cusp of a very robust revenue ramp" despite forecasting lower second-quarter revenue due to an inventory adjustment at it largest customer, Samsung Electronic Co Ltd, Seeking Alpha reported on Friday. (r.reuters.com/quq49v)
** GENWORTH FINANCIAL INC,$17.35, -1.64 pct
Morgan Stanley cut its price target on the life and mortgage insurer’s stock to “underweight” from “equal weight”, saying the new government-sponsored enterprises (GSE) eligibility capital standards could force Genworth to spend an additional $200 million-$500 million in its domestic mortgage insurance operations, while rising interest rates could hurt the company’s profitability.
** MICRON TECHNOLOGY INC, $26.699, +2.57 pct
RBC raised its rating on the memory chip maker’s stock to “outperform” from “sector perform”, citing higher gross margins and prices for some of its chips.
** INVENSENSE INC, $17.8, +2.06 pct
The motion-sensor chip maker said on Friday that vice president Lloyd Stephen filed with the Securities and Exchange Commission to sell about 10,000 restricted stock on May 15, 2014. The company said the filing was part of a prearranged trading plan.
** ABBOTT LABORATORIES, $39.71, +1.66 pct
The American pharmaceutical and health care products company said on Friday that it would acquire Chile’s CFR Pharmaceuticals SA in a $2.9 billion deal that will more than double its branded generic drugs business in the fast-growing Latin American market.
** MERCADOLIBRE INC, $82.78, -2.60 pct
The Latin American e-commerce technology company said it stopped using Venezuela’s SICAD 1 floating exchange rate, which is currently at 10 bolivars per U.S. dollar, and started using the SICAD 2 floating rate of about 50 bolivars per U.S. dollar. MercadoLibre also said that as a result of this change, it expected to incur a one-time re-measurement charge of about $47 million-$57 million in the second quarter due to the write-down of its bolivar-denominated assets.
Both Piper Jaffray and Credit Suisse cut their price targets on the company’s stock. (Compiled by Ankit Ajmera in Bangalore; Editing by Simon Jennings)