STOCKS NEWS US-Discovery Labs drug disappoints in trial

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0846 ET 9June2010
Discovery Labs drug disappoints in trial

Discovery Laboratories Inc said its lung drug did not show statistically significant reduction in the time of artificial breathing in children suffering from acute respiratory failure in a mid-stage study.

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The stock rose 2 cents, or 5 percent, to 42 cents in premarket trading.

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0843 ET 9June2010
Cadence to raise $300 mln via notes issue

Cadence Design Systems Inc said it intends to offer $300 million worth cash convertible senior notes due 2015 and use portions of the net proceeds to repay debt and repurchase shares.

The chip-design software maker intends to use up to $100 million of the net proceeds to repurchase a portion of its 1.375 percent convertible senior notes due December 15, 2011.

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Shares of Cadence closed Tuesday at $6.14.

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0839 ET 9June2010
OPEC says no room for more supplies

The oil market has no room for more crude supplies, OPEC said on Wednesday as it trimmed its forecast for world oil demand growth in 2010 and hiked its estimate for production from countries not in the group.

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Separately, U.S. crude oil inventories fell for the second straight time last week as imports declined, an expanded Reuters poll of analysts ahead of weekly inventory reports showed late Tuesday.

July crude futures advanced 2 percent to $73.43 per barrel on Wednesday.

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0834 ET 9June2010
Home purchase loan demand slumps for 5th week

U.S. home buying applications sank for a fifth straight week to a fresh
13
year low, the Mortgage Bankers Association said on Wednesday, suggesting that tax credits had robbed more from future sales than expected.

Demand for loans to purchase houses fell 5.7 percent in the week ended June 4 to the lowest level since February 1997, even after adjusting to account for the Memorial Day holiday.

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0832 ET 9June2010
Forest Labs in deal to buy back $500 mln of stock

Forest Laboratories Inc said it has entered into a deal with Morgan Stanley & Co to buy back about $500 million of its common shares.

Forest said it will buy these shares under its 50 million share buyback program announced in May.

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Shares of Forest closed Tuesday at $24.36 while Morgan Stanley rose 0.8 percent to $25.80 in premarket trading.

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0827 ET 9June2010
Crude oil rises after Chinese export data

July crude futures rose on Wednesday on strong Chinese exports and after an industry report showed a larger-than-expected decline in U.S. crude stocks.

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The contract gained 1.5 percent to $73.05 per barrel.

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0819 ET 9June2010
Barclays sees strong quarter for rail companies

Barclays Capital on Wednesday said forecast a strong second-quarter earnings season for rail companies, saying that 'volume strength, solid price fundamentals and evidence of cost control should drive substantial upside to the existing consensus, more than many believe.'

The firm added that the sector had less exposure to Europe that other industries.

Barclays said that Norfolk Southern Corp was its favorite company in the group and raised its price target on the stock to $65 from $62.

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