U.S. Hot Stocks: Hot Stocks to Watch

Among the companies with shares expected to trade actively in Friday's session are Merck & Co. (MRK), Ambarella Inc.(AMBA) and Broadcom Ltd. (AVGO).

Merck & Co. said it would discontinue developing the osteoporosis drug odanacatib and not seek regulatory approval for the treatment because of the higher risk of stroke. Shares fell 0.6% to $62.52 in premarket trading.

Alcoa Inc. (AA) and joint-venture partner Alumina Ltd. (AWCMY) have settled their dispute, ending competing litigation and removing a potential hurdle to Alcoa's plans to split into two new companies later this year.

Ambarella Inc., a key chip supplier to struggling GoPro Inc., saw shares slip after hours on Thursday with sales and profit posting a quarterly fall though results were better than expected. Shares fell 1.48% to $70.72 premarket.

Broadcom Ltd. swung to a loss in the latest quarter, but its adjusted earnings -- which excludes acquisition and restructuring-related expenses, among other items -- beat expectations. Shares fell 0.33% to $176.50 premarket.

Contact-lens company Cooper Cos. (COO) on Thursday raised its financial projections following better-than-projected third-quarter results. Separately, the company said Chief Financial Officer Gregory W. Matz, who also serves as the company's chief risk officer, plans to retire on Oct. 31, the end of Cooper's business year. He will stay on in an advisory role through March.

Dean Foods Co. (DF) on Thursday named Ralph Scozzafava as the company's new chief executive, taking over for Gregg Tanner on Jan. 1.

Gap Inc. (GPS) said same-store sales, a key industry metric, fell 3% in August, evidence that the struggling retailer still has work to do.

Lululemon Athletica Inc. (LULU) on Thursday raised its financial projections for the year, but sales in the most recent quarter were slightly weaker-than-expected.

Smith & Wesson Holding Corp.'s (SWHC) sales jumped 40% and profit more than doubled in its first quarter, leading the firearms maker to sharply raise financial projections for the year.

VeriFone Systems Inc. (PAY) issued a disappointing outlook for the current quarter Thursday as the payments-technology company's revenue missed expectations for the three months ended July, sending shares lower.

Write to Chris Wack at [e-mail] or Maria Armental at [e-mail]

(END) Dow Jones Newswires

September 02, 2016 09:27 ET (13:27 GMT)

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