NEW YORK (CNN/Money) -
Medco Health Solutions is among the stocks to watch Tuesday following news it renewed a multi-billion dollar contract with UnitedHealth Group.
Technology stocks led the Nasdaq to a fresh 2-1/2 year high on Monday and boosted the Dow and S&P ahead of a torrent of earnings reports due later this week.
Pharmacy benefits company Medco Health Solutions Inc. renewed a contract worth $7 billion with health insurer UnitedHealth Group Inc. (UNH: Research, Estimates), the nation's largest health plan.
Medco, which acts as a middleman between drugmakers and health care payers, said the five-year deal accounts for more than $7 billion in projected 2004 revenues.
Shares of Medco (MHS: Research, Estimates) closed 4.4 percent higher to $34.40 on the New York Stock Exchange.
Other stocks to watch include Curis Inc., StorageTek Corp., and FARO Technologies Inc.
Curis announced a strategic partnership with Wyeth Pharmaceuticals, a division of Wyeth (WYE: Research, Estimates), to develop drugs for neurological disorders in a deal valued at $170 million.
Under the terms of the agreement, Wyeth Pharmaceuticals will pay Curis a license fee in both cash and equity, provide financial support for the research, and make additional cash payments pending successful clinical trials and drug approval.
The news pushed Curis (CRIS: Research, Estimates) shares up 26 percent from its $5.19 closing price on the Nasdaq to $6.53 on Instinet.
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StorageTek Corp. (STK: Research, Estimates) said it sees stronger-than-anticipated fourth-quarter results, sending its shares up 16.5 percent from its $27.80 closing price the New York Stock Exchange to $32.40 on Instinet.
Analysts surveyed by Reuters Research expect StorageTek to earn 50 cents per share for the quarter, but the data storage company forecasted earnings at 55 cents per share on revenue in excess of $650 million.
FARO Technologies, Inc. (FARO: Research, Estimates) beat Wall Street's fourth-quarter revenue expectations, according to preliminary sales figures released by the company, raising its share price 7.4 percent to $34.11. Its shares closed at $31.75 on the Nasdaq.
FARO, which makes 3-D measurement systems, reported sales of approximately $22.5 million for the quarter, a 49 percent increase from $15.1 million in the year-ago period. Wall Street expected the company to earn $19.6 million for the quarter.
--from staff and wire reports
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