Market Focus

United Continental & American Airlines 

Shares of American Airlines took off today. The carrier raised its growth forecast for the second quarter. It also affirmed its capacity outlook for the full-year and said its traffic was up in June compared to last year. And after the closing bell United Continental said a key revenue measure rose more than expected in the second quarter. That sent shares of United up as much as 6.5 percent in after-hours trading. It closed the regular session at $40.07. American rose more than four percent to finish the day at $41.99.


Boeing landed a $56 billion order. Dubai’s Emirates Airline finalized its order to buy 150 of Boeing 777X Jets. It made the commitment to buy the planes last year, just weeks after scrapping an order with Boeing’s rival Airbus. The deal includes purchase rights for an additional 50 airplanes, which if it’s used, could increase the value of the sale to about $75 billion. Shares of Boeing were unchanged to $126.79.


A legal victory for Pfizer today, a long-running shareholder class action lawsuit was dismissed. The suit, which dates back to 2004 accused the drug maker of misleading investors about the safety of its Celebrex and Bextra pain-reliving drugs, alleging that the company hid test results showing the drugs caused cardiovascular risks. Despite the good news, shares fell slightly to $30.05.


Shares of Celgene were up in today’s session, despite news that its arthritis drug missed its target in a late-stage trial. The company did say it would continue to study unchanged, based on a recommendation by an independent data monitoring committee. Also Bernstein analysts remain positive on the stocks outlook. Celgene rose two percent to $87.52.


Allergan’s CEO says he’s looking at potential sizable acquisitions, this as he seeks to fight off a $53 billion hostile offer from Valeant Pharmaceuticals. The Botox maker’s chief says he’s always looking at potential targets and pointed to about $14 billion in the company’s free cash-flow. He has been trying to convince shareholders that the future value of Allergan will exceed the offer price. Shares were off a fraction to $165.20.

Seventy Seven Energy

Shares of Seventy Seven Energy popped after hours on news activist investor Carl Icahn took a nearly ten percent stake in the company. The stock was up about five percent initially after-hours. During the regular session shares fell two percent to $24.62.

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