CSX Rises; MGM Resorts Drops

Bikram Pandey
13 Oct, 2010
New York City

U.S. stocks traded sideways in a choppy trading. CSX Corp traded higher after the rail network operator reported higher than expected earnings. Intel and JPMorgan Chase edged lower after reporting earnings. MGM Resorts plunged nearly 10% after it plans to raise as much as $500 million.

[R]1:30 PM New York – U.S. stocks traded higher. CSX Corp traded higher after the rail network operator reported higher than expected earnings. Intel and JPMorgan Chase edged lower after reporting earnings. MGM Resorts plunged nearly 10% after it plans to raise as much as $500 million.[/R]

Of the stocks in the Dow, 26 increased, 6 decreased and none were unchanged.

Of the 30 stocks in the Dow Jones Industrial Average, Caterpillar Inc. led the gainers with a rise of 1.99% followed by increase in The Boeing Company of 1.81%, in Cisco Systems, Inc. of 1.65%, in Merck & Co., Inc. of 1.47%, The Walt Disney Company of 1.45%.

Chevron Corporation led the decliners with a fall of 0.67% followed by decline in Verizon Communications Inc. of 0.49%, in Intel Corporation of 0.46%, in JPMorgan Chase & Co. of 0.32%, in Bank of America Corporation of 0.30%.

Other Movers

Apple Inc ((AAPL)) increased nearly 1% to $300.85 after the company confirmed it will sell a version of its iPhone model with Verizon Communications Inc according to a report in the Wall Street Journal that did not cite any people.

Adtran, Inc. ((ADTN)) declined 3.4% or $1.23 to $34.29 after the networking and communications equipments maker said third quarter sales rose 27% to $162.96 million from $128.06 million in the prior-year quarter. Net income in the quarter soared 49% to $32.1 million or 50 cents per diluted share, compared to net income of $21.6 million or 34 cents per share for the year-ago quarter.

Cantel Medical Corp. ((CMN)) gained 2.1% or 36 cent to $17.12 after the healthcare provider reported fiscal fourth quarter net sales was $69.8 million compared to $66.8 million for the same period a year ago. Net income was $4.6 million or 27 cent per diluted share compared to net income of $4.3 million or 26 cent per diluted share in the same quarter a year ago.

For the fiscal year revenue were $273.9 million compared to $260.0 million for the same period a year ago. Net income was $19.9 million or $1.18 per diluted share compared to net income of $15.6 million or 94 cent per diluted share same period a year ago.

Chevron Corporation ((CVX)) plunged 1% or 90 cent to $82.94 after the said that it expects profit for the third quarter to be lower than the previous quarter due to a weaker U.S. dollar, higher expenses and a decline in crude oil realizations. The company did not provide any specific numbers.

Clearwire Corp ((CLWR)) increased more than 5% to $6.78 after the carrier is looking to raise between $2.5 billion and $5 billion in an auction of wireless spectrum that may attract the largest telecom and cable companies.

CSX Corporation ((CSX)) increased 3.3% or $1.91 to $59.17 after the railroad operator third quarter revenue increased 16% to nearly $2.7 billion from $2.3 billion in the same quarter last year due to a 10% overall growth in volume. Net earnings in the quarter soared 43% to $414 million or $1.08 per diluted share, compared to net earnings of $290 million or 73 cents per share in the prior-year quarter.

Healthcare Services Group, Inc. ((HCSG)) gained 1.5% or 39 cent to $24.87 after the provider of housekeeping and food services to hospitals and nursing homes reported third quarter revenues rose 9% to $195.11 million from $178.83 million last year. Net income in the quarter increased 12% to $9.17 million or 21 cents per diluted share, compared with net income of $8.22 million or 19 cents per share in the previous year.

Host Hotels & Resorts, Inc. ((HST)) rose 1.5% or 24 cent to $16.05 after the hospitality real estate company reported third quarter total revenues grew 11.4% to $1.006 billion from $903 million in the prior-year quarter. Net loss in the quarter widened 1.8% to $58 million or 9 cents per diluted share, compared to a net loss of $57 million or 9 cents per share in the previous year.

Funds from operations rose 14% to $75 million or 11 cents per share, compared to $66 million or 11 cents per share last year.

iGATE Corporation ((IGTE)) plunged 3.4% or 63 cent to $17.74 after the outsourcing solutions provider reported third quarter revenues soared 52.6% to $74.85 million, from $49.06 million in the same period a year ago. Net income in the quarter increased 61% to $14.27 million or 25 cents per diluted share, compared to net income of $8.88 million or 16 cents per share in the prior-year quarter.

Intel Corporation ((INTC)) fell 0.4% or 8 cent to $19.69 after the semiconductor chip maker said third quarter revenue rose 18% to $11.10 billion from $9.39 billion in the same quarter last year. Net income in the quarter surged 59% to $2.96 billion or 52 cents per diluted share, compared to net income of $1.86 billion or 33 cents per share for the year-ago quarter.

Intel said that its third quarter profit rose, as revenue increased and margins improved due to solid demand from corporate customers, sales of its leadership products and continued growth in emerging markets.

JPMorgan Chase & Co. ((JPM)) fell 0.5% or 21 cent to $40.19 after the financial services provider reported third quarter total revenues declined 11% to $23.82 billion, from $26.62 billion in the prior-year quarter. Net income in the quarter gained 23% to $4.4 billion or $1.01 per diluted share, compared to net income of $3.6 billion or 82 cents per share in the third quarter of 2009.

Linear Technology Corporation ((LLTC)) plunged 4% or $1.28 to $30.28 after the integrated circuits maker reported first quarter revenues rose 65% to $388.59 million from $236.13 million last year. Net income in the quarter increased 126% to $137.25 million or 59 cents per diluted share, compared to net income of $60.69 million or 27 cents per share in the previous year.

MGM Resorts International ((MGM)) slumped 8.6% or $1.18 to $12.43 after the casino operator said it expects to record a loss in the third quarter on charges related to its investment in CityCenter and Borgata. The company is also looking to raise as much as $500 million.

MGM Resorts expects to record a loss in the third quarter of $0.72 per share, compared to a loss of $1.70 per share recorded in the prior year third quarter.