By Ben Eisen, MarketWatch
An earlier version of this story incorrectly described Frontier’s deal with AT&T. Frontier purchased AT&T’s Connecticut wireline business The story has been corrected.
NEW YORK (MarketWatch) — Shares of Facebook Inc. gained Tuesday after the social media company said it would test new video advertisements. Rockwell Medical Inc. tanked after a gloomy analyst report.
Facebook Inc. /zigman2/quotes/205064656/composite FB -3.64% shares were up 2% after news that the social network company is testing video ads that would automatically appear onscreen.
Campbell Soup Co. /zigman2/quotes/202107764/composite CPB -1.28% gained 4.3% Tuesday after reports surfaced that the food company could be in the sight lines of Warren Buffett. Buffet’s Berkshire Hathaway Inc. may target the company for acquisition , Bloomberg reported.
How a video gamer got a U.S. visa for pro athletes
South Korean Dong-hwan Kim was rejected three times for a student visa in the U.S. before becoming the first professional StarCraft2 player to receive a P-1 visa, which is normally given to professional sports athletes. Mr. Kim tells the WSJ's Ramy Inocencio how it all happened.
Seagate Technology Inc. /zigman2/quotes/201824240/composite STX -2.00% closed 3.2% higher after analysts at J.P. Morgan raised the stock rating to neutral from underweight . The analysts set the price target at $55, up from $36. The stock closed at $52.95.
Boeing /zigman2/quotes/208579720/composite BA -5.62% was up 0.9% after the firm boosted its quarterly dividend by 50% to 73 cents a share. The aircraft manufacturer also pleased shareholders by approving a $10 billion buyback plan.
Shares of Hewlett-Packard Co. /zigman2/quotes/203461582/composite HPQ +0.79% were up 2% Tuesday after J.P. Morgan analysts upgraded the stock to outperform, noting stabilization in the personal-computer market and signs of improvement in the printer market.
Analyst Mark Moskowitz wrote in a research report: “While our revised 2014 PC growth forecast is not suggesting a major recovery in the making, we believe the potential of market conditions stabilizing after a year of meaningful deterioration could be enough of a catalyst to revive investor interest in PC-related stocks such as HP.”
Frontier Communications Corp. , which already operates in 27 states, will pay $2 billion for AT&T Inc.’s /zigman2/quotes/203165245/composite T -2.55% residential, commercial and wholesale customer wireline relationships in Connecticut. The firm said the acquisition would be accretive to its adjusted free cash flow per share, as well as increase its dividend payout ratio by more than 5 percentage points. Shares were up 8.9% and AT&T was down 0.1%.
Rockwell Medical Inc. /zigman2/quotes/208743423/composite RMTI -6.04% shares tanked nearly 20% after Brean Capital LLC initiated coverage of the pharmaceutical company with a sell rating. Brean Analyst Jonathan Aschoff set a $4 price target, far below the recent trading price of $10.42.
Aschoff wrote that he believes the Food and Drug Administration will reject the firm’s new drug: “We include only revenue from currently approved kidney disease drugs, as we believe the FDA will reject Triferic due to poor clinical trial design and questionable efficacy. Sales of Rockwell’s drugs have been stagnant and we project flat future growth.”
Targacept Inc. plummeted over 34% on Tuesday after the biopharmaceutical company reported lackluster results in its investigational secondary treatment for schizophrenia, which prompted it to drop development of the therapy for mental illness and Alzheimer’s Disease. Shares were down 33% in afterhours trading late Monday.
Shares of Herbalife Ltd. /zigman2/quotes/201199224/composite HLF -1.41% gained 1.3% following the release of new audits for the nutritional-supplements company. The new audits for 2010, 2011, and 2012 were conducted because the previous auditor resigned due to unlawful conduct, but the newly released documents showed no material changes.
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