U.S. Movers: AIG, Arch Coal, Cliffs Natural, Lululeon, Zale

Mukesh Buch
12 Jan, 2011
New York City

American International Group agree to sell its 97.6% interest in Nan Shan Life Insurance for $2.16 billion in cash. Cliffs Natural agreed to acquire Canada based Consolidated Thompson for $4.9 billion. ITT boar approved to split in three companies. Synnex Corp fourth quarter revenue increased 12.3%.

[R]10:30 AM New York – American International Group agree to sell its 97.6% interest in Nan Shan Life Insurance for $2.16 billion in cash. Cliffs Natural agreed to acquire Canada based Consolidated Thompson for $4.9 billion. ITT boar approved to split in three companies. Synnex Corp. fourth quarter revenue increased 12.3%.[/R]

Of 30 the stocks in the Dow, 27 increased and 3 decreased.

Of the stocks in the Dow Jones Industrial Average, JPMorgan Chase & Co. led the gainers with a rise of 1.65% followed by increase in Bank of America Corporation of 1.34%, in The Boeing Company of 1.33%, in American Express Company of 1.09% in United Technologies Corporation of 0.95%.

General Electric Company led the decliners with a fall of 0.48%, followed by decline in The Home Depot, Inc. of 0.34%, in Alcoa Inc. of 0.19%.

Other Movers

American International Group, Inc. ((AIG)) rose 0.1% or 11 cents to $59.15 after the holding company after second attempt agree to sell its 97.6% interest in Nan Shan Life Insurance Company to Ruen Chen Investment Holding Co. owned 80% of Ruentex Group, for $2.16 billion in cash.

American Axle & Manufacturing Holdings, Inc. ((AXL)) increased 2.8% or 43 cents to $15.75 after the company that manufactures transmission systems said it estimates full-year 2010 sales to be around $2.28 billion.

Arch Coal, Inc. ((ACI)) slumped 4.9% or $1.77 to $33.76 after the coal company estimated its 2010 earnings per diluted per share in the range of $0.94 per to $0.98 and full year earnings in the range of $1.11 to $1.15. The company blamed on lower shipments partially driven by poor eastern rail service.

Chevron Corporation ((CVX)) rose 0.7% or 65 cents to $92.48 after the integrated oil company said it currently expects fourth quarter earnings to be higher than that of the third quarter on expected improvements in upstream and downstream results.

Cliffs Natural Resources Inc. ((CLF)) gained 2.5% or $2.18 to $87.14 after the iron ore producer agreed to acquire Consolidated Thompson Iron Mines Limited for C$4.9 billion or C$17.25 per share. The transaction expected to close by early second quarter 2011.

Genzyme Corporation ((GENZ)) fell 0.07% or 5 cents to $72.29 after the biotechnology firm cut its fourth quarter earnings outlook, due to lower than-expected sales of its key drugs Cerezyme and Fabrazyme.

The company said it now estimates fourth quarter non-GAAP earnings to be $0.80 to $0.85 per share, compared to its prior guidance of $0.90 to $0.95 per share.

Hurco Companies, Inc. ((HURC)) declined 3.9% or 98 cents to $24.19 after the industrial technology company reported fourth quarter sales increased 50% to $34.7 million from $23.2 million a year ago. Net loss in the quarter was $1.16 million or 18 cents per diluted share compared to $1.16 million or 18 cents of per share a year ago.

For the full year, revenues surged 16% to $105.9 million from $91.0 million a year ago. Net loss in the period increased to $5.7 million or 89 cents per diluted share compared to $2.3 million or 36 cents per share a year ago.

H.B. Fuller Company ((FUL)) surged 12.8% or $2.57 to $22.55 after the adhesives and specialty chemicals maker said fourth quarter net revenue for rose 5.5% to $360.24 million from $341.57 million in the same quarter last year. Net income in the quarter declined 11% to $21.9 million or 44 cents per diluted share, compared to net income of $24.6 million or 50 cents per share for the year-ago quarter.

ITT Corporation ((ITT)) soared 18% or $9.45 to $62.25 after the engineering and manufacturing company board approved the plan to separate company’s businesses into three distinct, publicly traded companies. Pro forma 2011 revenue of the future ITT Corporation estimated to $2.1 billion. Pro forma 2011 revenue for the future water technology business is estimated at $3.6 billion, revenue for the new defense and information solutions business estimated at $5.8 billion and pro forma revenue for the future ITT Corporation is estimated at $2.1 billion.

Leapfrog Enterprises Inc ((LF)) plunged 22% to $4.07 after the educational toys maker reported 2010 earnings of no more than 6 cents.

Lululemon Atheltica Inc ((LULU)) soared 7% after the Canada based athletic apparel retailer estimated fourth quarter net of at least 55 cents a share compared to its previous estimate of 48 cents a share.

Mistras Group, Inc. ((MG)) surged 8.2% or $1.14 to $14.99 after the technology company said second quarter revenue increased 24% to $88.8 million from $71.9 million in the same quarter last year. Net income in the quarter soared 59% to $5.7 million or 21 cents per diluted share, compared to $3.5 million or 14 cents per share in the prior-year quarter.

SYNNEX Corporation ((SNX)) gained 2.9% or $1.00 to $34.74 after the business process services company reported fourth quarter revenue increased 12.3% to $2.47 billion from $2.20 billion last year. Net income in the quarter rose 26.4% to $37.53 million or $1.04 per diluted share, compared to net income of $29.68 million or 85 cents per share in the previous year.

Zale Corp ((ZLC)) soared as much as 40% to $5.55 after the third largest jeweler retailer said comparable sales at the holiday period rose 8.5%.