U.S. stocks were trading lower Monday, as the Dow Jones
Industrial Average lost 116 points to 13893, the Standard &
Poor's 500 Index fell 11 points to 1502, and the Nasdaq Composite
shed 16 points to 3162. Among the companies with shares trading
actively in Monday's session are Herbalife Ltd. (HLF), Acme Packet
Inc. (APKT) and MWI Veterinary Supply Inc. (MWIV).
Herbalife Ltd. may be under investigation by the Federal Trade
Commission, The New York Post reported Monday, citing documents.
The nutritional-supplements maker has been embroiled in a public
battle over its business model, defending itself against criticism
from hedge fund manager William Ackman who argues it is a pyramid
scheme.
Oracle Corp. (ORCL) agreed to buy Acme Packet Inc. for roughly
$1.98 billion in cash, a deal the technology heavyweight said will
accelerate the deployment of all-IP networks. Oracle will pay
Acme's shareholders a per-share cash price of $29.25, a premium of
22% over Friday's close. Word of the deal lit a fire under
networking names, namely fellow-broadband equipment maker Sonus
Networks Inc. (SONS), BroadSoft Inc. (BSFT) and Procera Networks
Inc. (PKT).
MWI Veterinary Supply Inc.'s sizeable fiscal first-quarter
beat-and-raise, coupled with cash flow more than doubling, shows
why the company's stock has been an investor favorite, surging
nearly six-fold the past four years. A strong IPO Friday for Pfizer
Inc.'s (PFE) animal-health business Zoetis Inc. (ZTS) further
highlights the big money and investor optimism for the space.
Other Stocks to Watch:
Brown & Brown Inc.'s (BRO) fourth-quarter earnings rose 17%
as the insurance agency and brokerage firm continued to report
top-line growth from commissions and fees. Results beat Wall Street
expectations.
Clorox Co.'s (CLX) fiscal second-quarter earnings rose 17% as
price increases pushed the consumer-products company's sales and
margins higher. The company also raised its targets for the
year.
Comfort Systems USA Inc.'s (FIX) 20% run over the last three
months led BB&T to cut its rating to hold from buy, noting the
valuation feels "full" and its sees tough times in the near future
for the HVAC installation and maintenance provider. "While we
continue to believe that nonresidential construction spending could
recover more fully late this year or early next, we doubt that
Comfort's [first half] outlook has improved since November," the
firm said.
Humana Inc. (HUM) kept an upbeat outlook for 2014 at its
investor day Monday, as 2014 will be an important year for health
insurers as major changes under the health-care law click into
place.
Mercury General Corp. (MCY) swung to a surprise fourth-quarter
loss as the insurance company recorded lower revenue driven by
investment losses, while its catastrophe losses nearly tripled due
to Hurricane Sandy. Results missed Wall Street estimates.
Standard & Poor's downgraded its rating on NII Holdings Inc.
(NIHD) one notch further into speculative territory, noting the
wireless carrier's credit measures have deteriorated from factors
including a delay in deploying 3G networks in its markets,
primarily Brazil.
Royal Caribbean Cruises Ltd. (RCL) swung to a fourth-quarter
loss as the cruise ship company recorded a massive impairment
charge, although net yields--a key industry metric measuring
revenue per available cruise day--beat expectations. For the year
ahead, the company projected earnings well below Wall Street
forecasts.
Moody's Investors Service placed its rating on Scientific Games
Corp. (SGMS) on review for a possible downgrade, noting the
company's plans to buy gaming-machine maker WMS Industries Inc.
(WMS) for $1.5 billion will increase its leverage.
After jumping more than 15% since late-December, Tiffany &
Co. (TIF) retreats Monday after Monness Crespi Hardt cuts the
jeweler to neutral due to the rally and an "uncertain retail
environment." The investment bank expects shares to be at current
levels later this year.
Wet Seal Inc. (WTSLA) unveiled a series of cost-reduction
efforts, including the elimination of the chief operating officer
position, that will save the teen-clothing retailer about $5.5
million this year.
Yahoo Inc.'s (YHOO) biggest shareholder has sold 11 million
shares, as it seeks to maintain a consistent percentage holding in
the Internet firm amid Yahoo's aggressive stock buyback
program.
Write to Mia Lamar at mia.lamar@dowjones.com
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