Stocks rose modestly Wednesday even after meeting minutes from the Federal Reserve’s July meeting revealed the central bank’s members believe an interest rate hike could be warranted. However, the Fed gave no indication as to when it would look boost borrowing costs, which it has yet to do this year.
Lumber Liquidators Holdings Inc (LL)
Shares of Lumber Liquidators Holdings gained 3.4% on more than triple the average daily volume after received a favorable court ruling. A California court ruled that two groups suing LL did not adequately support their claims. The court also said the groups must pay LL $100,000 in costs.
The groups alleged Lumber Liquidators failed to properly warn customers of potential health risks associated with some of its flooring products.
Last year, 60 Minutes reported some LL “Chinese-made laminate flooring contained high levels of the carcinogen formaldehyde. Since then, it has stopped selling Chinese-made laminate floors and offered customers free air testing kits,” according to the Associated Press.
Urban Outfitters, Inc. (URBN)
Apparel retailer Urban Outfitters, Inc. jumped 15.4% on more than six times the usual turnover after delivering better-than-expected second-quarter results.
For the second quarter, URBN earned 66 cents a share, easily beating the 56 cents a share analysts expected. Sales rose to $890.6 million from $867.5 million a year earlier. Analysts expected URBN to post sales of $889 million. The company’s Urban Outfitters and Free People brands helped boost sales while revenue at URBN’s Anthropologie Group fell.
“Comparable retail segment net sales rose 5% at Urban Outfitters, remained flat at the Free People, but declined 3% at Anthropologie Group,” according to Zacks.
Valeant Pharmaceuticals Intl Inc (VRX)
Shares of Valeant Pharmaceuticals Intl Inc, the controversial specialty pharmaceuticals maker, soared 12.8% on nearly triple the average daily volume after Morgan Stanley upgraded the stock.
Morgan Stanley upgraded VRX to “overweight” while lifting its price target on the shares to $42 from $33. The bank said the risk/reward outlook on VRX is turning for the better.
Valeant is working to shore up its balance sheet so it does not run afoul of bank covenants, and that effort could include asset sales.
VRX could deliver combined free cash flow of $9 billion from 2017 through 2020, according to Morgan Stanley, reports the Wall Street Journal.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.