U.S. Movers: Bank of America, IBM, J. C. Penney, Lowe's, Boeing

Mukesh Buch
14 Nov, 2011
New York City

Bank of America agreed to sell 10.4 billion common shares of China Construction Bank. Warren Buffett said his conglomerate Berkshire bought 64 million shares or 5.6% stake worth $10.7 billion in IBM. Lowe''s third quarter net fell 44.3% to $225 million. VimpelCom third quarter net declined 79%.

[R]10:40 AM New York – Bank of America agreed to sell 10.4 billion common shares of China Construction Bank. Warren Buffett said his conglomerate Berkshire bought 64 million shares or 5.6% stake worth $10.7 billion in IBM. Lowe''s third quarter net fell 44.3% to $225 million. VimpelCom third quarter net declined 79%.[/R]

Bank of America Corporation ((BAC)) decreased 1.6% or 11 cents to $6.11 after the bank holding company agreed to sell 10.4 billion common shares of China Construction Bank Corporation through private transactions with group of investors. The sales expected to generate after-tax gain of $1.8 billion. The transactions expected to close in November 2011. The bank will hold approximately 1% common shares of CCB.

Brigus Gold Corp. ((BRD)) fell 1.3% or 2 cents to $1.44 after the Canada based mining company said third quarter revenue fell to $19.3 million from $23.7 million in the year-ago quarter. Net income in the quarter swung to $12.3 million or 6 cents per diluted share compared to net loss of $4.5 million or break even per share in the year ago period.

Ctrip.com International, Ltd. ((CTRP)) dropped 16.5% or $5.66 to $28.61 after the Chinese travel services provider reported third quarter revenues grew 20% to RMB 974.7 million from RMB 812.2 million in the year-ago quarter. Net income in the quarter rose 1.6% to RMB 325.3 million compared to net income of RMB 320.1 million in the year-ago period. Earnings per ADS rose to RMB 2.13 from RMB 2.11 in the year-ago quarter.

Dynegy Inc. ((DYN)) fell 1% or 3 cents to $2.92 after the electric utility said third quarter revenues decreased 33.4% to $516 million from $775 million in the comparable period. Net loss in the quarter widened 212.5% to $75 million or 61 cents per diluted share compared with net loss of $24 million or 20 cents per share loss in the prior-year period.

International Business Machines Corporation ((IBM)) gained 0.9% or $1.70 to $189.08 after Warren Buffett confirmed on a television interview that Berkshire Hathaway purchased 5.6% stake in the company or 64 million shares for $10.7 billion.

J. C. Penney Company, Inc. ((JCP)) fell 0.9% or 31 cents to $33.61 after the retailer reported third quarter net sales declined 4.8% to $3.99 billion from $4.19 billion in the prior-year quarter. Net loss in the quarter was $143 million or 67 cents per diluted share compared to a profit of $44 million or 19 cents per share last year.

Lowe''s Companies, Inc. ((LOW)) increased 3.6% or 84 cents to $23.95 after the home improvement retailer stated third quarter sales rose 2.3% to $11.9 billion, from $11.6 billion in the third quarter of 2010 on comparable-store sales increase of 0.7%. Net earnings in the quarter fell 44.3% to $225 million or 18 cents per diluted share compared to net earnings of $404 million or 29 cents per share in the third quarter of 2010.

The Boeing Company ((BA)) increased 2.6% or $1.75 to $68.67 after the aerospace company forecasts airlines in Middle East will need 2,520 airplanes worth $450 billion by 2030. Boeing estimates Middle East''s fleet passengers will increase 160%, current fleet of 1,040 airplanes to projected 2,710 airplanes. As of September 14, Boeing had a backlog of 300 airplanes in the Middle East.

VimpelCom Ltd. ((VIP)) decreased 2.4% or 27 cents to $10.99 after the Netherlands based communication service provider revenues soared 116% to $6.1 billion from $2.8 billion in the year-ago quarter. Net income in the quarter declined 79% to $104 million or 7 cents per diluted share compared to $496 million or 39 cents per share in the year ago earlier.