U.S. Movers: Bank of America, Google, Lowe's, Sysco, Time Warner, Grainger

Mukesh Buch
15 Aug, 2011
New York City

Bank of America agree to sell its credit card business to TD Bank for $8.6 billion. Google agreed to acquire Motorola Mobility at 64% premium for $12.5 billion. Lowe''s second quarter net earnings declined 0.2% to $830 million. Time Warner will acquire Insight Communications for $3 billion in cash.

[R]11:45 AM New York – Bank of America agree to sell its credit card business to TD Bank for $8.6 billion. Google agreed to acquire Motorola Mobility at 64% premium for $12.5 billion. Lowe''s second quarter net earnings declined 0.2% to $830 million. Time Warner will acquire Insight Communications for $3 billion in cash.[/R]

Of 30 the stocks in the Dow, 26 increased and 4 decreased.

Of the stocks in the Dow Jones Industrial Average, Bank of America Corporation led the gainers with a rise of 4.2% followed by increase in Caterpillar Inc. of 3%, in General Electric Company of 3%, in Chevron Corporation of 2.80%, in Exxon Mobil Corporation of 2.73%.

Wal-Mart Stores, Inc. led the decliners with a fall of 0.4%, followed by decline in The Boeing Company of 0.3%, in Cisco Systems, Inc. of 0.03%, in McDonald’s Corporation of 0.03%.

Other Movers

Bank of America Corporation ((BAC)) increased 4.4% or 32 cents to $7.51 after the bank agreed to sell its credit card business in Canada for $8.6 billion Canadian credit card portfolio to TD Bank Group and will exit credit card businesses in U.K. and Ireland.

Google Inc. ((GOOG)) decreased 2.1% or $12.26 to $551.52 after the online content provider will acquire Motorola Mobility Holdings, Inc. ((MMI)) for $40 a share in cash or total of $12.5 billion, premium of 63% of the closing price on August 12. Google will run Motorola Mobility as separate business. The transaction expected to be close by end of either 2011 or early 2012.

Lowe''s Companies, Inc. ((LOW)) slipped 1.3% or 27 cents to $19.24 after the home improvement retailer reported second quarter net sales rose 1.3% to $14.54 billion from $14.36 billion in the comparable period on comparable-store sales fall of 0.3%.

Net earnings in the quarter declined 0.2% to $830 million or 64 cents per diluted share compared to net earnings of $832 million or 58 cents per share last year.

SYSCO Corporation ((SYY)) decreased 5.6% or $1.63 to $27.63 after the distributor of food and related products stated fourth quarter sales edged higher 0.7% to $10.42 billion compared with $10.35 billion in the fourth quarter of fiscal 2010 on comparable sales rise of 8.5%.

Net earnings in the quarter dipped 0.4% to $336.31 million compared with net earnings of $337.78 million in the prior-year quarter. Earnings per share for the recent quarter remained flat at 57 cents per diluted share.

The Estee Lauder Companies Inc. ((EL)) slumped 7.8% or $7.86 to $92.99 after the cosmetics company fourth quarter net sales increased 12% to $2.06 billion from $1.84 billion in the comparable prior-year period. Net earnings in the quarter surged 72% to $41.1 million or 20 cents per diluted share compared to net earnings of $23.9 million or 12 cents per share last year.

Time Warner Cable Inc. ((TWC)) fell 0.9% or 62 cents to $64.89 after the cable operator said it will acquire Insight Communications for $3 billion in cash. Insight serves more than 750,000 customers in Indiana, Kentucky and Ohio.

Transocean Ltd. ((RIG)) gained 3% or $1.70 to $57.31 after the Switzerland based oil and gas drilling company voluntary offer for 100% of the shares of Aker Drilling ASA for NOK 26.50 per share. On August 14, Transocean made irrevocable agreement with Aker Capital AS to acquire 41% of the outstanding shares of Aker Drilling. The offer price indicates market capitalization of approximately NOK 7.93 billion, or $1.43 billion.

W.W. Grainger, Inc. ((GWW)) rose 0.9% or $1.27 to $137.11 after the appliance distributor said it intention to acquire Fabory Group a European distributor of fasteners and related MRO products for $344 million or euro 242 million. The transaction is expected to be completed in the third quarter of 2011.