June 18, 2009 / 12:26 PM / 10 years ago

STOCKS NEWS US-J&J, Shire win backing of European court

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 For U.S. stock market report double-click [.N] 0819 ET 18June2009-J&J, Shire win backing of European court ———————————————————————————————————————
 Johnson & Johnson (JNJ.N) and Shire Plc SHP.L on Thursday won the backing of Europe’s highest court in their battle for data exclusivity against a generic rival for Alzheimer’s drug Reminyl, the court said.
 The decision represents a wider victory for originator drug companies, since a ruling against Shire and J&J could have opened the door to generic versions of other medicines developed in relatively new European Union member states.
 For details, see [ID:nLI79267]
 Shares of J&J, a Dow component, closed Wednesday at $55.20.
 Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0813 ET 18June2009-Baird expects YRC to eventually go bankrupt ———————————————————————————————————————
 Robert W. Baird on Thursday downgraded YRC Worldwide (YRCW.O) to underperform, expecting the trucking company to eventually go bankrupt, though that could take several months or quarters.
 Cash flow analysis suggests YRC would violate its $100 million liquidity covenant in the middle of the second half of 2009, with a negative cash balance in the first half of 2010 given required debt repayments, the firm wrote, expecting the bankruptcy within nine months.
 For details, see [ID:nBNG479250]
 Shares sank 7.8 percent to $2 in premarket trading.
 Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0746 ET 18June2009-Sallie Mae stock rises on U.S. contract ———————————————————————————————————————
 Shares of SLM Corp SLM.N, better known as Sallie Mae, rallied in premarket trading on Thursday, a day after the Department of Education said it awarded a contract to the company to service its $550 billion student loan portfolio.
 The contract was also awarded to three other companies.
 The news came as the government prepares to shift much of the nation’s student lending into a direct loan program.
 For details, see [ID:nN17354927]
 Shares surged 17.9 percent to $9.07.
 Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0737 ET 18June2009-JPMorgan downgrades two payroll firms, ups one ———————————————————————————————————————
 JPMorgan downgraded two companies in the payroll and human resource outsourcing subsector on Thursday, writing that “given current valuations, we think there are better ways to play an economic recovery and less expensive ways to invest more defensively.”
 Automatic Data Processing Inc (ADP.O) was downgraded to “neutral,” while Paychex Inc (PAYX.O) was cut to “underweight.”
 Paychex was downgraded, the firm said, “as we believe defensiveness has served its purpose; we continue to prefer Automatic Data, and valuation appears too high given the outlook.”
 JPMorgan upgraded Hewitt Associates Inc HEW.N to “neutral,” saying it was seen as “likely to benefit from regulatory changes in retirement and healthcare, and we believe segment performance has started to reflect the more difficult environment (some downside risks remain).”
 Shares of Automatic Data slid 1.5 percent to $35.65 in premarket trading, while Paychex closed Wednesday at $26.89, and Hewitt closed at $29.72.
 Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 0730 ET 18June2009-Futures flat ahead of data, Geithner testimony ———————————————————————————————————————
 U.S. index futures were flat on Thursday, as investors looked ahead to weekly jobless claims for guidance on the market. They also awaited testimony from Treasury Secretary Timothy Geithner, who will speak before two Congressional panels on the Obama administration’s proposed financial regulatory reform.
 For details, see [ID:nN18378164]
 Dow Jones industrial average futures DJc2 rose 11 points, while S&P 500 futures SPc2 gained 2.3 points, and Nasdaq 100 futures NDc2 were down 0.5 points.
 Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 

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