Chindex, Del Monte, Palm, Human Genome Surge

Mayank Mehta
11 Jun, 2009
New York City

Bank of America gained after Morgan Stanley revised its earnings and chief executive in a testimony suggested that regulators threatened management change if Merrill Lynch deal was not completed. United Health led the decliners in S&P 500 index. ATP Oil and Vulcan Materials plan public offerings.

[R]12:30PM New York – Bank of America gained after Morgan Stanley revised its earnings and chief executive in a testimony suggested that regulators threatened management change if Merrill Lynch deal was not completed. United Health Group led the decliners in S&P 500 index. ATP Oil and Vulcan Materials plan to raise capital in public offering.[/R]

Of the stocks in S&P 500 index, 331 increased, 162 declined and 7 were unchanged.

UnitedHealth Group Incorporated led the decliners in the S&P 500 index with a loss of 8.6% followed by Vulcan Materials Company of 5.6%, in Lennar Corporation of 5.4%, in CBS Corporation of 2.7% and in Pulte Homes, Inc of 2.6%.

Regions Financial Corporation led gainers in the S&P 500 index with a rise of 5.2% followed by gains in SLM Corporation 3.9%, in Comerica Incorporated of 3.5% and Fifth Third Bancorp of 3.5%.

Other Movers

Actuant Corporation ((ATU)) fell 4.6% or 6 cents to $13.08 after the industrial-tools maker said that it has amended its credit agreement. The amendment among other things provides additional flexibility with respect to financial covenants but retains the amount of credit.

ATP Oil & Gas Corporation ((ATPG)) dropped 4.5% or 46 cents to $8.81 after the energy producer said that it has commenced an underwritten public offering of 7.25 million shares of its common stock. The underwriters for the offering will also have the option to purchase up to 1.09 million additional shares.

Bank of America Corporation ((BAC)) the largest U.S. bank gained 6.5% or 79 cents to $12.77 after Morgan Stanley revised its earnings estimate for the current year and 2010. Separately, the chief executive of the bank Ken Lewis in a testimony to the U.S. Congress said that Merrill Lynch acquisition was in the best interest of the bank and the U.S. to prevent “havoc” in the financial system.

He also said that regulators cautioned that company management may be removed if the deal with Merrill Lynch was cancelled.

Chindex International, Inc ((CHDX)) added 18.6% or $2.01 to $12.80 after the provider of healthcare products and services to China reported fourth quarter revenues rose 72% to $59.7 million from $34.6 million a year ago. Net income in the quarter was $3.4 million or 22 cents per diluted share compared to net loss of $2.7 million or 20 cents per share a year ago.

Del Monte Foods Company ((DLM)) gained 9.7% or 79 cents to $8.44 after the food canner company reported fourth quarter net sales increased 20.7% and diluted earnings per share from continuing operations of 35 cents up 75% from 20 cents in fourth quarter fiscal year 2008.

Fifth Third Bancorp ((FITB)) the diversified financial services company added 5.5% or 41 cents to $7.73 on a rally in banking stocks.

Human Genome Sciences Inc ((HGSI)) jumped 19.5% or 53 cents to $3.24 that its product Benlysta in clinical trials showed improvements in lupus erythematosus, a connective tissue disease.

Luby''s, Inc ((LUB)) decreased 13.7% or 64 cents to $4.00 after the restaurant operator said third quarter revenues fell 8% to $69 million from $74.6 million a year ago. Net loss in the quarter was $1.1 million or 4 cents per diluted share compared to net income of $949,000 or 3 cents per a year ago.

lululemon athletica inc ((LULU)) declined 10.0% or $1.53 to $13.69 after the Canadian athletic apparel maker reported first quarter sales rose 6% to $81.7 million from $77 million a year ago. Net income in the quarter fell 24% to $6.5 million or 9 cents per diluted share compared to net income of $8.5 million or 12 cents per share a year ago.

Palm, Inc ((PALM)) added 8.8% or $1.06 to $13.05 after the smart phone maker said that its board of directors has appointed Jon Rubinstein to lead the company as Chairman and CEO after the departure of Ed Colligan.

PURE Bioscience ((PURE)) fell 3.2% or 7 cents to $2.09 after the provider of pharmaceutical water purification products said third quarter revenues fell 68.8% to $129,900 from $416,500 a year ago. Net loss in the quarter was $1.5 million or 5 cents per diluted share compared to net loss of $2.5 million or 9 cents per a year ago.

School Specialty, Inc ((SCHS)) rose 8.6% or $1.72 to $21.60 an education company reported fourth quarter revenues fell 10% to $156.2 million from $173.6 million a year ago. Net loss in the quarter was $11.3 million or 60 cents per diluted share compared to net loss of $15.5 million or 81 cents per share a year ago.

STAAR Surgical Company ((STAA)) surged 113.4% or $1.70 to $3.19 after the maker of visual implants today announced that the FDA has granted 510(k) clearance for its Epiphany Injector System.

UnitedHealth Group Incorporated ((UNH)) lost 9.0% or $2.32 to $23.43 after the largest U.S. insurer was downgraded from “perform” to “underperform” at Oppenheimer.

Vulcan Materials Company ((VMC)) fell 4.3% or $1.84 to $42.13 after the largest U.S. construction materials makers planned a public offering of 11.5 million shares and cut its quarterly dividend to 25 cents a share.