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Market Overview

Unusual Movements Expected In These Shares (ES, GSK, HOLX, USB, WAG)

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EnergySolutions, Inc. (NYSE: ES), a provider of technology-based nuclear services, announced that it expects an EPS of 69 cents at most this year. According to a Bloomberg survey, the consensus EPS estimate is also of 69 cents.

Two US senators said GlaxoSmithKline Plc (ADR) (NYSE: GSK), which makes the drug Avandia, knew of possible heart damage because of the drug many years before such a risk was documented by a study, and demanded to know why the medicine was allowed to remain on shelves by the Food and Drug Administration (FDA).

The acquisition of Fomento Economico Mexicano SAB’s (ADR) (NYSE: FMX) unit Cerveza for $ 8billion by Heineken NV (ADR) (OTC: HINKY) may raise the company’s U.S. traded shares to $40 within a period of three years, according to Barron’s, citing Bernstein Research.

Hologic, Inc. (NASDAQ: HOLX), announced that it will record charges of $12.5 million due to its patent-infringement settlement with Johnson & Johnson’s (NYSE: JNJ) Ethicon Endo-Surgery unit.

The rating of U.S. Bancorp (NYSE: USB), the largest lender in Minnesota, was raised to “buy” from “neutral” by Rochdale Securities analyst Dick Bove due to expected rise in the bank’s margins backed by possible higher interest rates.

According to Barron’s, citing BB&T Capital Markets analyst Andrew Wolf, shares of Walgreen Co. (NYSE: WAG), the largest U.S. drugstore chain may increase to $50 as its purchase of Duane Reade Holdings, Inc. for $1.1 billion is expected to help the company to expand its revenue in metropolitan New York, and reduce costs.

 

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Posted-In: Pre-Market Outlook