BUZZ-U.S. Stocks on the Move-Kraton, Vertex, XG Tech, Zhaopin

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U.S. stocks inched lower at the open on Tuesday, suggesting investors continued to search for direction following a sharp rally that took indexes to records last week. The Dow Jones industrial average was up 0.02 percent at 16,940.88, the S&P 500 was up 0.04 percent at 1,963.35 and the Nasdaq Composite was up 0.71 points, or 0.02 percent, to 4,369.39.

** VERTEX PHARMACEUTICALS INC, $92.89, +39.45 pct

A combination of the drug developer's cystic fibrosis drug and its experimental lung infection drug succeeded in improving lung function in late-stage clinical trials. The company said it would file applications for U.S. and European approval for the combination in the fourth quarter.

** XG TECHNOLOGY INC (NasdaqCM: XGTI - news) , $2.57, +38.92 pct

The Radio technology company was selected as a subcontractor to provide communications and network services to the U.S. Army. XG will work with main contractor Science Applications International Corp on the five-year deal

The contract has a ceiling value of $497 million. XG, which had a market cap of about $45 million as of Monday, had first quarter revenue of just $250,000.

** CTRIP.COM INTERNATIONAL LTD, $56.54, -4.30 pct

Brokerage Stifel Nicolaus downgraded the China-based travel services provider's stock to "hold" from "buy", citing Air China's announcement to reduce base air-ticketing commission to 2 percent from 3 percent.

Other airliners, particularly the top two - China Southern Airlines Co and China Eastern Airlines Corp - may follow suit, Stifel analyst George Askew said.

** ISIS PHARMA, $36.39, +0.30 pct

The drugmaker earned a $1 million milestone payment from GlaxoSmithKline Plc (Other OTC: GLAXF - news) . The payment relates to advancement of the mid-stage and late-stage trials of Isis' experimental drug, codenamed ISIS-TTR, which is being developed to treat transthyretin amyloidosis, a rare genetic disease.

** DIAMONDBACK ENERGY INC (NasdaqGS: FANG - news) , $89.8101, -1.75 pct

The oil and gas producer priced its underwritten public offering of 2 million shares at $90.04 per share, at a 1.5 pct discount to the stock's Monday close on the Nasdaq. Entities controlled by Wexford Capital LP and Gulfport Energy Corp (NasdaqGS: GPOR - news) are selling the shares, the company said.

** KRATON PERFORMANCE POLYMERS INC (NYSE: KRA - news) , $22.94, -8.71 pct

The polymer maker said it expects to earn a profit of $1.50-$1.60 per share on an adjusted basis for the full year 2014, missing analysts' average estimate of $1.82 per share. (http://1.usa.gov/1qGSedm)

** Endo International Plc (NasdaqGS: ENDP - news) , $71.475, +3.89 pct

The drugmaker said it would buy privately owned DAVA Pharmaceuticals Inc for $575 million in cash. The deal, expected to add to Endo's 2014 adjusted earnings per share, has an additional cash consideration of up to $25 million, on achieving certain sales milestones.

** ELIZABETH ARDEN INC (NasdaqGS: RDEN - news) , $27.475, -2.92 pct

The cosmetics company said it would exit low-return businesses and brands to improve gross margins and profitability, disappointing investors who had hoped for a sale of the company. The company expects a related non-cash charge of $85million-$95 million for the fourth quarter ending June 30.

** PALO ALTO NETWORKS (NYSE: PANW - news) , $79.46, -0.89 pct

The cyber security software maker announced $500 million offering of convertible senior notes due 2019

** STATE BANK FINANCIAL CORP, $16.725, -0.21 pct

The bank holding company will buy Georgia-Carolina Bancshares Inc and its wholly owned unit First Bank (NasdaqGM: FRBA - news) of Georgia, for about $82 million, or $22.35 per share.

** SALLY BEAUTY HOLDINGS INC, $24.8, +1.02 pct

The beauty products retailer and distributor's shares are set to rise, as Morgan Stanley (Xetra: DWD.DE - news) started coverage of the stock with "overweight", according to Theflyonthewall.com.

** WIX.COM LTD, $18.81, +5.85 pct

The Israel-based builder and operator of websites said its worldwide user base surpassed 50 million registered users.

** WALGREEN CO (NYSE: WAG - news) , $72.23, -2.03 pct

The largest drug retailer in the United States reported a 15.7 percent rise in quarterly profit, helped by strong growth in prescription sales. Prescription sales, which make up for nearly 65 percent of the company's total sales, rose 8.4 percent in the third quarter.

For a graphic on Walgreen's results, click (http://link.reuters.com/qej32w)

** CARNIVAL CORP, $38.57, -2.13 pct

The world's largest cruise operator, said its quarterly profit more than doubled as costs fell. Net income rose to $106 million, or 14 cents per share, in the second quarter ended May 31, from $41 million, or 5 cents per share, a year earlier. Excluding items, the company earned 10 cents per share. Revenue rose 4 percent to $3.63 billion.

** MICRON TECHNOLOGY INC (NasdaqGS: MU - news) , $32.68, +4.54 pct

The memory chipmaker's shares were down even after at least three brokerages raised their price targets on the stock. Fiscal third quarter results were above expectations, and the company said pent-up demand for personal computers is bolstering demand for its DRAM chips. Quarterly revenue forecast also exceeded analyst estimates.

JP Morgan (Other OTC: JPYYL - news) raised the company's price target to $36 from $24, saying it expects the company to "continue to drive a profitable growth profile".

** DEAN FOODS CO, $17.63, +0.46 pct

The milk processor is facing a subpoena from U.S. authorities, the Wall Street Journal reported on Monday. Authorities have sought information from the company in connection with an insider-trading investigation of billionaire investor Carl Icahn, the report said.

** SONIC CORP (NasdaqGS: SONC - news) , $22.61, -0.18 pct

The drive-in restaurant chain operator reported better-than-expected third quarter sales, helped by a 5.3 percent rise in same-store sales.

Sonic said it expects same-store sales to grow in low single digits in 2014, and drive-in margins to improve 75-125 basis points. Wunderlich raised price target to $26 from $25 with a "buy" rating.

** LORAL SPACE & COMMUNICATIONS INC (NasdaqGS: LORL - news) , $70.7, -3.38 pct

The satellite manufacturer's efforts to sell itself and its main asset Telesat Holdings Inc broke down after the company failed to agree on a potential $7 billion deal with the buyer group, people familiar with the matter said.

Loral rejected an offer from a consortium involving Ontario Teachers Pension Plan and another Telesat shareholder, Canada's Public Sector Pension Investment Board, which valued Loral at more $80 per share and Telesat at roughly $7 billion including debt, the people said.

** ZHAOPIN LTD (NYSE: ZPIN - news) , $16.66, +13.88 pct

Tiger Global Investments reported an 18.6 percent "passive" stake in the Chinese career website operator. (http://1.usa.gov/T54hlW)

** OHR PHARMACEUTICAL INC (NasdaqCM: OHRP - news) , $10.93, -4.12 pct

The drug developer said its experimental eye drop did not show significant benefit over a placebo in reducing the number of injections of another drug directly into the eye, but improved patients' visual clarity.

The drug, Squalamine, was being tested in a mid-stage trial in patients with age-related blindness. (Compiled by Amrutha Gayathri in Bangalore; Editing by Joyjeet Das)