Higher costs weighed on Hovnanians second quarter earnings. The homebuilder’s loss was wider than expected as its expenses more than offset an increase in net contracts and revenue. The company maintained a positive outlook for the housing sector. Still, shares tumbled two percent to $4.48.
Medtronic & Smith & Nephew
More merger talk in the health care space. Medical device maker Medtronic is reportedly looking at a takeover of London-based Smith & Nephew. The move overseas could help the company lower its taxes. Last week there was reports that Stryker made a bid for Smith & Nephew, but Stryker denied its interest. Shares of Medtronic popped more than 3.5 percent to $63.22, Smith & Nephew rose even more, up 12 percent to $97.27.
UnitedHealth Group upped its quarterly dividend by 34 percent and renewed its share buyback program. The payout of almost 38 cents will be made to shareholders at the end of the month. Shares rose a fraction to $80.51.
Share of Coach were in the red after a downgrade. Sterne Agee lowered its rating on the luxury retailer to “neutral” from “buy” citing lackluster sales trends and a lower probability of a turnaround in North America. The stock fell 2.5 percent to $38.99.
Shares of Pandora were down today after the Justice Department announced plans to review music licensing rules. The company could be impacted and royalty fees could rise. Separately, the online radio service says its listeners hours were up 28 percent in May and active listeners also increased. The stock fell a fraction to $24.52.
And after the market close PVH reported disappointing earnings. The parent company Tommy Hilfiger and Calvin Klein missed on the top and bottom lines. The company also cut its full-year earnings guidance. That sent shares down after hours. During the regular session the stock rose a fraction to $130.68.