U.S. Movers: Capital One, Lender Processing, RiM, Steel Dynamics

Mukesh Buch
17 Jun, 2011
New York City

Capital One agreed to acquire ING Direct from ING Groep in $9 billion. Lender Processing estimated second quarter earnings per share in the range of $0.54 to $0.56. Research In Motion first quarter net income declined 9.5% to $695 million and guided lower sales and earnings in the current quarter.

[R]10:55 AM New York – Capital One agreed to acquire ING Direct from ING Groep in $9 billion. Lender Processing estimated second quarter earnings per share in the range of $0.54 to $0.56. Research In Motion first quarter net income declined 9.5% to $695 million and guided lower sales and earnings in the current quarter.[/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 1.59% followed by increase in Bank of America Corporation of 1.42%, in Merck & Co., Inc. of 1.42%, in International Business Machines Corporation of 1.22%, in Microsoft Corporation of 1.15%.

Alcoa Inc. led the decliners with a fall of 0.69%, followed by decline in Intel Corporation of 0.51%, in American Express Company of 0.19%.

Other Movers

Capital One Financial Corporation ((COF)) decreased 1.1% or 57 cents to $48.44 after the financial holding company will acquire ING Direct from ING Groep in a stock and cash transaction valued of $9 billion.

Capital One will purchase ING Direct for $6.2 billion in cash and issue approx 55.9 million Capital One shares, valued at $2.8 billion. The transaction is expected to close in late 2011 or early 2012.

Lender Processing Services, Inc. ((LPS)) slumped 12.3% or $2.87 to $20.50 after the mortgage services company estimated second quarter earnings per share in the range of $0.54 to $0.56.

Research In Motion Limited ((RIMM)) declined 18.6% or $6.57 to $28.76 after the smartphone maker said first quarter revenue increased 16% to $4.9 billion from $4.2 billion in the same quarter last year.

Net income in the quarter declined 9.5% to $695 million or $1.33 per diluted share compared to net income of $769 million or $1.38 per share in the prior-year quarter.

The stocks fell in early trading after the company guided sales drop for the first time in nine years and plans to cut jobs.

The company guided sales in the quarter to be in the range of $4.2 billion to $4.8 billion and earnings per share between 75 cents and $1.05.

Steel Dynamics, Inc. ((STLD)) slipped 2% or 31 cents to $15.04 after the steel producer and metals recycler estimates second quarter earnings per share to be in the range of $0.35 to $0.40.