Earnings: Amazon, Aflac and Western Union

123jump.com Staff
24 Apr, 2007
New York City

More than forty companies reported earnings after the market close. Amazon.com reported that earnings in the quarter doubled on a strong rise in revenue. Western Union earnings fell on higher operating costs. Supplemntal insurance company Aflac earnings advanced to 84 cents vs 74 cents a year ago. Arthur J Gallagher earnings increased to 20 cents per share on revenue rise of 19%.

[R]5:30PM NY – Earnings Release after the market close.[/R]

RF Micro Devices ((RFMD)), radio systems and applications developer, reported fourth quarter of fiscal 2007 earnings of 14 cents compared to a loss of 1 cent a year ago. The company reported sales of $257.3 million, a rise of 14% from a year ago. Gross margin rose to 35.2% from 33.6% from a year ago.

Sigma Designs ((SIGM)), maker of digital processor and consumer applications, reported fourth quarter fiscal 2007 earnings of $4.6 million. The company reported for the fiscal year 2007 revenue gain of 174% to $91.2 million and earnings of 24 cents vs. a loss of 7 cents per share.

Bidz.com, Inc reported first quarter earnings of 14 cents per share same as year ago on revenue 29% to $44.7 million. The auctioneer reported 8% rise in average selling price and 14% rise in average orders per day from a year ago. The company attracted 9% less new buyers from a year ago totaling 58,000.

Western Union Co. ((WU)), money transfer service provider, reported first quarter profit of 25 cents per share vs. 29 cents per share a year ago on revenue growth of 8% to $1.1 billion. The company incurred $15 million of expenses in the quarter related to its spin-off from First Data Corp. The company lowered the annual revenue guidance to 10% and 11% from 11% and 13% of previous estimate.

Amazon.com ((AMZN)), the Internet based retailer reported first quarter earnings of 26 cents vs. 12 cents per share a year ago. The revenue in the quarter rose 32% to $3.02 billion. Domestic sales in the U.S. rose 30% to $1.62 billion and international sales rose 35% to $1.39 billion not adjusting for foreign exchange rates. After the adjustments international sales rose 27%. The company raised its outlook for the annual sales between $13.4 billion and $14 billion from $13 billion and $13.7 billion. The stock rose nearly 9% in the after hours trading.

Arthur J Gallagher ((AJC)), the insurance broker and risk manager, reported first quarter earnings of 20 cents per share compared to 17 cents a year ago on revenue rise of 19% to $388 million. The company completed seven acquisitions in the quarter. The company reported pre-tax margin of 16%, flat compared to a year ago.


Aflac Inc. ((AFL)), supplement life and health insurance provider in Japan and the U.S. reported first quarter profit of 84 cents vs. 74 cents a year ago on revenue rise of 5% to $3.75 billion. The insurance company also reported investment gain of $9 million or 2 cents in both the quarters. When measured in the U.S. dollar premiums in Japan rose 3% and in the U.S. advanced 11%. The total sales in Japan fell 11%, higher than estimated by analysts. The net income in the quarter was reported at $416 million and operating income was at $407 million.


[R]4:15PM NY; 10:15PM Frankfurt; 1:45AM Mumbai - GLOBAL MARKETS[/R]

Major averages in New York traded sideway on a day when existing home sales and consumer confidence report showed declines. Home sales in March fell 11.3% from a year ago and 8.4% from February. Home prices declined on both coasts. U.S. consumer confidence declined according to a private report. Rise in earnings and talk of share buyback from several companies lifted Dow and S&P 500, but broader market failed to join the rally. Real estate and construction stocks fall weighed on European indexes at close. In Asian trading India rebounded on Reserve Bank of India leaving short term rates unchanged. Brazil lost on a decline in banking stocks.

Yield on 10-year bond closed at 4.619% and the 30-year bond closed at 4.803%.

Gold lost $6.500 to close at $687.700 a troy ounce, silver decreased 26.8 cents to end at $13.782 a troy ounce and copper gained $56.000 to close at $8043.000 per metric ton.

Oil lost $1.310 to close at $64.580 a barrel and heating oil declined 4.830 cents to finish at 184.600 cents a gallon. Natural gas increased 3.6 cents to close at $7.598 per MMBtu. Gasoline went up 1.820 cents to end at 220.890 cents a gallon.

Asian markets closed ended mostly lower with Japan closing slightly lower amid concerns over rising oil prices and Hong Kong finishing higher by a fraction on gains in the property sector. The decliners were led by Philippines with a loss of 0.82%, Singapore with a decrease of 0.41% and Indonesia with a decline of 0.26%. The advancers were led by India with a gain of 1.50%, South Korea with an advance of 0.80% and Taiwan with an increase of 0.43%. Australia lost 0.31%.

European markets finished lower hurt by weaker-than-expected U.S. consumer confidence and housing data. The decliners were led by Spain with a decline of 2.73%, Germany with a decrease of 0.89% and U.K. with a loss of 0.77%. There were no advancers.

Latin America markets finished lower. The decliners were led by Argentina with a decline of 0.45% and Mexico with a loss of 0.01%. Brazil lost 0.7%. Petrobras and banking stocks led the decliners. Cemex in Mexico fell on lower than expected earnings. Canada lost 0.34% as gains in energy stocks were offset by losses in the financial services and materials groups.

[R]2:30PM NY, U.S. Market Movers[/R]

Corn Products International Inc. ((CPO)) shares climbed 9.5% after the company lifted its outlook and said that its first-quarter profit more than doubled on pricing power in most parts of the world. For the quarter, the company posted net income of $50 million, or 66 cents per share, compared with $23.4 million, or 31 cents per share, in the prior-year period. The company reported revenue of $761.9 million, up 24% from $614.8 million, a year earlier.

Whirlpool Corp. ((WHR)) said its first-quarter profit dipped 1% due to higher costs for materials and lower demand for appliances in the United States because of the slumping housing market. Earnings edged lower to $117 million, or $1.46 per share, from $118 million, or $1.70 per share in the previous year. Quarterly revenue climbed 24% to $4.39 billion from $3.54 billion in the prior year on strong international results and the addition of Maytag. Excluding the acquisition and the benefits from foreign exchange rates, sales rose about 2%. Shares climbed 11.4%.

Snap-on Inc. ((SNA)) shares rose more than 14.5% after the toolmaker posted a 76% rise in quarterly profit on increased tool sales. First-quarter net profit was $39 million, or 66 cents a share, up from $22.1 million, or 37 cents a share, a year earlier. Net sales rose almost 20% from last year to $709.7 million, above the $686.6 million analysts had expected.

Everest Re Group Ltd. ((RE)), the reinsurance company, said its first-quarter net income surged, thanks to favorable underwriting year trends, coupled with the lack of big losses. Everest earned $297.6 million, or $4.59 per share, up 77% from $168.4 million, or $2.57 per share, during the same period a year ago. Operating income, which excludes realized capital gains and losses, was $267.9 million, or $4.13 per share, up 70% from $157.9 million, or $2.41 per share. Shares climbed 6.55%.

Energizer Holdings Inc. ((ENR)), maker of batteries and Schick razors, shares rose 6.8% after the company said that its second-quarter earnings rose sharply as pricing and market share withstood cost pressures. Net income jumped to $66.6 million, or $1.14 per share, from $50 million, or 78 cents per share, a year ago. The latest quarter included a restructuring charge of $3 million, or 5 cents per share. Sales added 16% to $730.9 million from $629.5 million last year and surpassed Street expectations for $673 million.

International Business Machines Corp. ((IBM)) said it will raise its quarterly dividend by a third and its stock buyback program by $15 billion. Shares of the company climbed 5%. As a result of the higher share buyback, 2007 earnings per share growth excluding any gain from the recently announced sale of its printer business could be 12% to 14%, which is one to three points more than its previous estimates, IBM said.

McGraw-Hill Cos. ((MHP)), owner of BusinessWeek magazine and the Standard & Poor''s ratings and index business, said that first-quarter profit nearly doubled on strong results in its financial services and education segments. Net income leaped to $143.8 million, or 40 cents per share, compared with $74.2 million, or 20 cents per share, in the previous year. Revenue for the quarter rose 14% to $1.3 billion from $1.14 billion a year ago. Shares climbed 4.40%.

Chicago Mercantile Exchange Holdings Inc. ((CME)) said that its first-quarter earnings rose 42% on sharply higher volume. For the quarter profit rose to $130 million, or $3.69 per share, compared with $91.4 million, or $2.61 per share, a year ago. Revenue climbed 32% to $332.3 million from $251.7 million in the prior-year period, driven by a jump in clearing and transaction fees to $258.2 million and processing services to $34.8 million. Shares fell 2.12%.

ResMed Inc. ((RMD)) shares sank 10.27% on lower-than-expected fiscal third-quarter results and the recall of about 300,000 sleep apnea devices because of short-circuits problems. The company said that it fell to a loss of $15.4 million, or 20 cents per share, from a year-earlier profit of $26.3 million, or 34 cents per share. Revenue rose 13% to $183 million versus $162.3 million last year.

II-VI Inc. ((IIVI)) shares dropped 22.76% after the maker of optical and electronic instruments gave an outlook for the fourth quarter below analysts'' estimates and cut its full-year revenue view. The company forecasted fourth quarter earnings of 30 cents to 33 cents on revenue of $67.5 million to $69.5 million, which is below analysts'' estimates. The company said it now sees fiscal year 2007 earnings of $1.19 to $1.22 a share on revenue of $259 million to $261 million. It earlier forecast earnings of $1.15 to $1.22 a share on revenue of $263 million to $266 million for fiscal year 2007.

Universal Stainless & Alloy Products Inc. ((USAP)) said that its first-quarter profit jumped 70%, aided by strong aerospace sales and a lower income tax rate. Quarterly earnings rose to $6.8 million, or $1 per share, from $4 million, or 61 cents per share, in the prior-year period. Sales grew to $56.2 million against $44.9 million in the same period a year earlier. In January, the company projected first-quarter earnings per share of 82 cents to 87 cents on sales of $52 million to $57 million. Shares fell 6.08%.

Express Scripts Inc. ((ESRX)) shares climbed 9.37% after the pharmacy benefit manger reported a 49% jump in first-quarter profit. The company said it earnings $133.7 million, or 97 cents per share, for the quarter ended March 31. Revenue increased 3%, to $4.54 billion. The company raised its earnings outlook to a range of $4.29 to $4.41 per share.

Woodward Governor Co. ((WGOV)), aerospace manufacturer, shares jumped 18% after the company said its fiscal second-quarter profit nearly doubled, and raised its full-year profit outlook. The company said its net income for the quarter rose to $22 million, or 63 cents per share, from $11.5 million or 32 cents per share, in the same period last year. Revenue grew 23%, to $256.3 million versus $208.9 million a year ago.

Transcend Services Inc. ((TRCR)) shares surged 31.58% after the provider of transcription and editing services said that its first-quarter net income increased to $1.3 million, or 15 cents per share, compared with $150,000, or 2 cents per share, in the year-ago period. Revenue climbed to $10.4 million versus $8.01 million in the comparabel period last year.

Paccar Inc. ((PCAR)) shares climbed 10.09% after the company, which makes and markets commercial trucks and parts, said its first-quarter profit rose 7%, as international sales growth offset weak demand for newly mandated, lower-emission engines in the U.S. and Canada. Quarterly earnings increased to $365.6 million, or $1.46 per share, from $342 million, or $1.35 per share a year ago. Results for the most recent quarter included a gain of $21.7 million, or about 9 cents per share based, from the sale of property. Excluding the item, Paccar earned $1.37 per share in the quarter. Revenue grew 2% to $3.72 billion from $3.54 billion last year.

Symbion Inc. ((SMBI)), which owns and operates short-stay surgical facilities, said it has agreed to be acquired by New York-based private equity firm Crestview Partners LP for about $488 million. The transaction is valued at about $637 million, including the assumption of debt. Symbion reported about 21.7 million shares outstanding at the close of 2006, bringing the stock portion of the deal to $485.7 million.

Synalloy Corp. ((SYNL)) producer of specialty chemicals, stainless steel pipe and other products, said Friday its first-quarter profit more than quintupled, as higher metals prices offset a decline in chemical sales. Quarterly earnings jumped to $3.5 million, or 56 cents per share, from $698,000, or 11 cents per share, in the prior-year period. Sales rose to $44.4 million from $36.2 million last year.

[R]1:00AM NY, 5:00 PM Frankfurt European stocks closed down, dragged by weak Spanish construction stocks and U.S. data.[/R]
European stock markets finished in the negative on Tuesday, dragged down by sharp declines in Spanish construction stocks and weaker-than-expected U.S. consumer confidence and housing data. In Spain, shares of Sacyr Vallehermo slipped 7.8%, Acciona dropped 5%, Fomento Construction lost 6.8% and ACS fell 4.4%. The weakness among construction stocks was caused spillover from the real-estate sector which was pressured by property developer Astroc Mediterrano, down 10%.

Among other companies in focus, Alcatel-Lucent erased early losses to close up 3.4% after the company issued a positive sales forecast. The tech sector was also supported by 2.2% in shares of French-Italian chipmaker STMicroelectronics. Chemicals were the other sector trading in the green on Tuesday, boosted by well-received results from Akzo-Nobel. Company’s shares rose 3.2% after it said that its Q1 operating performance had been strong. Of peers, shares in Imperial Chemical Industries rose 0.6% and Air Liquide rose 0.8%. Among European benchmark indexes, the U.K.''s FTSE 100 slid 0.8% at 6,429.50, the German DAX 30 dropped 0.9% at 7,270.32 and the French CAC-40 lost 0.5% at 5,886.03.



[R]9:45AM U.S. markets opened higher, boosted by earnings reports.[/R]
Wall Street advanced at opening on Tuesday, with the Dow Jones moving towards the 13,000 level, on well-received earnings outlook from chip giant Texas Instruments ((TXN)) which surged 8.5%. IBM ((IBM)) was the biggest gainer among blue chips, rising 3% after the company raised its quarterly dividend and increased its stock buyback plan by $15 billion. DuPont ((DD)) also supported the blue-chip average, rising 1.5% after its earnings topped expectations.

Among other earnings-related movers, Amgen ((AMGN)) lost 0.4% after it posted Q1 profit rise to 94 cents a share, compared with 82 cents per share a year ago but lowered its annual earnings forecast. Whirlpool ((WHR)) reported a lower but better-than-expected Q1 profit as strong international appliance sales offset declining U.S. demand. Net earnings came to $1.46 a share, down from $1.70 a share a year earlier. Company''s stock climbed 8.4%.

The market sentiment dampened after the National Association of Realtors reported sales of existing homes in March had their biggest one-month decline since January 1989. In another report, the Conference Board said consumer confidence fell more than expected in April due to higher gas prices and broader economic concerns. In the first hour of trading, the Dow Jones industrial average rose 15.03, or 0.12%, to 12,934.43. The Standard & Poor''s 500 index was down 0.56, or 0.04%, at 1,480.37, and the Nasdaq composite index rose 0.76, or 0.03 %to 2,524.43. Bonds were mostly unchanged, with the yield on the benchmark 10-year Treasury note falling to 4.64% from 4.65% late Monday.


[R]9;30AM London trades lower on Tuesday on concern over Spanish real estate sector.[/R]
The UK benchmark index was lower on Tuesday. By mid-day trading, the FTSE 100 lost 51.2 points to 6,428.5.

Advancers

Aviva, owner of Norwich Union, gained 1.7 per cent after it posted record first-quarter sales of 9.2 billion pounds, up 18 per cent. Sales in the UK grew 9 per cent. The company said its US operations were its “star performer” in the period, with pro forma sales growth of 67 per cent.

Whitbread added 0.8 per cent as it reported a 24 per cent increase in interim profit of 213 million pounds, fueled by strong growth at its Costa Coffee retail chain and Premier Travel Inn hotels. In the mid-caps, Greene King added 2.1 per cent on talk that it could split its real estate and pub assets.

Decliners

Concerns over Spanish real estate company Astroc darkened sentiment towards UK real estate stocks, with Hammerson down 1.7 per cent and housebuilder Persimmon 2.9 per cent lower.

Directories publisher Yell Group led the decliners, though, down 16 per cent after increased competition in the US led it to reduce its organic growth forecast targets to 3 per cent.

AstraZeneca declined a further 2.4 per cent on continued worries about the $16 billion price tag the drugs group paid for MedImmune of the US.

Barclays lost 2 per cent as a merger deal with ABN Amro was agreed. There had been expectations by some that the deal would fail and Barclays would be bought by a US suitor.

[R]9:15AM Asian markets finish mixed with Japan lower and HK higher.[/R]
Asian markets finished mixed on Tuesday. Tokyo Nikkei 225 index swung from positive territory, to end 0.02% lower at 17,451.77. Toyota Motor declined 0.5%, having announced Tuesday that it overtook General Motors as the world top auto maker in the first three months of the year.

Mitsui & Co. announced it has sold its 51% stake in Indian iron ore mining company Sesa Goa to London-based Vedanta Resources for $981 million. The Tokyo-based trading company also stated it will book a profit of 50 billion yen. Nissan Motor said an early-retirement program has been approved at the company as the Japanese auto maker moves to revive its earnings growth. Nissan shares rose 0.7%.

Hong Kong Hang Seng Index closed 0.08% higher to 2,0572.80, while the Shanghai Composite added 0.26% to 3,720.53. In Hong Kong, property stocks advanced while China Life outperformed on a report it may bring in a strategic investor. In the property sector, Cheung Kong gained 1%, Henderson Land finished 0.2% higher, and New World Development added 1.8%.The finance sector declined. HSBC ended 0.3% lower, China Construction Bank fell 0.4% and Bank of China ended 0.8% lower.

South Korean benchmark index, Kospi, rose 0.8% to end at 1,556.71 and Taiwan Weighted Index settled up 0.43% to 8,045.01. Australian S&P/ASX 200 finished down 0.34% to 6,188.20.


[R]9:00AM U.S. stock futures pointed higher on strong earnings and forecasts.[/R]
U.S. stock market futures pointed to a higher opening Tuesday, boosted by gains in the shares of Texas Instruments and Alcatel-Lucent which managed to offset negative sentiment, generated by lowered sales forecast from Target and some caution from Juniper Networks. Better-than-expected earnings from AT&T and DuPont also contributed to upward move.

Texas Instruments ((TXN)) shares surged 9.1% in pre-open trading after the microchip maker, which reported a 12% profit decline, posted a strong outlook, saying that its business was improving after two straight quarters of declining sales. Among other chip makers, Dow component Intel ((INTC)) gained 0.6%, while flash storage card maker Sandisk ((SNDK)) rose 3.2%. At the same time, fellow chip maker Advanced Micro Devices ((AMD)) fell 3.1% after it said that is planning to sell $1.8 billion worth of convertible debt to qualified institutional investors. Telecommunications gear maker Alcatel-Lucent ((ALU)) rose 3.8% in pre-market trading although the company reported second straight sales decline.

Dow member DuPont ((DD)) reported first-quarter earnings and revenue that beat expectations, and reiterated its outlook for 2007. Another blue-chip company, AT&T ((T)) gained 0.5% in the pre-open after the phone giant reported stronger-than-anticipated quarterly earnings.

On the side of the losers, Target ((TGT)) fell 2.9% in the pre-open after the discount retailer said that April sales will be much weaker than originally forecast. Dow component Wal-Mart ((WMT)) also moved lower, falling 1.1%. S&P 500 futures erased earlier losses to gain 1.80 points to 1,490.10 and Nasdaq 100 futures tacked on 6.50 points to 1,869.50. Dow industrial futures climbed 10 points to 12,984.


[R]8:15AM Texas Instruments surged 9% on better-than-expected earnings and upbeat forecast.[/R]
Texas Instruments Inc. ((TXN)), the world’s biggest maker of phone chips, announced after the closing bell on Monday that its quarterly profit dropped 12% from a year ago, due to the sale of a business unit and weaker demand for its chips. The company said it earned $516 million, or 35 cents per share, down from $585 million, or 36 cents per share last year. Revenue fell to $3.19 billion from $3.33 billion a year ago. The quarterly results beat expectations of 31 cents per share profit on sales of $3.15 billion. However, shares of the chipmaker surged nearly 9% in pre-market trading, as Texas Instruments issued a robust Q2 forecast and said its business is improving after two straight quarters of declining sales. The company predicted second quarter revenue would range from $3.32 billion to $3.60 billion on earnings of 39 to 45 cents per share.


[R]8:00AM NY-7:00PM Mumbai Sensex rallies on RBI decision not to hike the rates.[/R]

The Sensex on BSE finished 208.39, or 1.50%, higher at 14,136.72.

The market-breadth finished almost even as 1,274 stocks advanced, while 1,279 stocks declined and 75 stocks remained unchanged. Of the 30 stocks in the Sensex, 22 advanced, while the rest declined. The turnover on BSE was Rs 5,104 crore, compared to Rs 4,098 crore on Monday. On NSE, the turnover was Rs 10,897.9 crore, much higher than Rs 7,695.31 crore on Monday.

Economic news

Reserve Bank of India Governor Y.V. Reddy announced a new credit policy to combat inflation and maintain current economic growth. The Reserve Bank lowered the growth forecast for fiscal year 2007 to 8.5% and promised to keep the inflation close to 5%. The bank also stated that risk weight on the residential housing loans to individuals would be reduced to 50% from 75%. This policy would be applicable to loans up to Rs 20 lakhs and will be reviewed after one year. RBI kept bank rate unchanged at 6%, short term repo rate at 7.75% and cash reserve ratio at 6.5%.

The rupee continued to advance against the US dollar and hit 41.49 a dollar in late morning deals at the Interbank Foreign Exchange market. The market attributed the increase in rupee to sustained capital inflows in the economy of India.

Trading highlights

Tata Steel was the most active stock with a turnover of Rs 241 crore followed by Indiabulls Real Estate and SBI.

Advancers

Banks led the rally, surging on the RBI decision to hold rates steady. SBI was the best performing stock, surging nearly 7% to Rs 1,133. ICICI Bank gained 3.7% to Rs 950, and HDFC Bank moved up 2.6% to Rs 1,014.

Auto stocks finished also strong today. Maruti added 3.5% to Rs 794. Maruti Udyog gained in volatile trading in the afternoon, when it announced fourth-quarter results. The stock surged 4.3% to Rs 801. The company reported 24% growth in net profit in fourth-quarter March 2007, at Rs 449 crore against Rs 361 crore a year ago. Tata Motors was up 3.5% at Rs 743 and Bajaj Auto gained 1.7% at Rs 2,449.

Bharti Airtel gained 4% to Rs 875. The company on Monday announced the pan-India launch of comprehensive telecom and networking solutions for small and medium businesses. Index heavy Reliance Industries rose nearly 1.7% to Rs 1,580 and ONGC gained 1.7% to Rs 949.

Tata Steel kept gaining, as investors neglected equity dilution concerns and instead concentrated on the attractive price of its rights issue. Tata Steel finished 3.9% to Rs 579 and Hindustan Lever ended up over 2% at Rs 207.

Gujarat Ambuja Cements gained nearly 4% to Rs 119.40 and ACC rose 2.4% to Rs 816. Holcim, the second-biggest cement maker in the world, has lifted its stake in Gujarat Ambuja Cements to nearly 30% in a deal worth approximately Rs 322 crore.

Decliners

IT stocks closed lower as the rupee hit a new high of around 41.50 per dollar today. Wipro declined over 2% to Rs 554. While TCS declined 1.6% to Rs 1,226, Satyam slipped 1% to Rs 475 and Infosys was down 0.5% at Rs 2,058.


[R]6:30AM European markets fall Tuesday led by Spanish index Ibex.[/R]
European markets were lower on Tuesday. In Paris, the CAC 40 fell 0.6% to 5,878.52, Frankfurt Xetra Dax lost 0.9% to 7,268.35 and London FTSE 100 shed 0.7% to 6,437.1. National benchmarks fell in all 18 western European markets.

Advancers

Akzo Nobel, the Dutch chemicals group, rose 3.7% after reporting an 18.4% rise in operating profit, on growth in its Chinese operations. The company announced a 1.6 billion euros share buyback for May.

Decliners

The real estate sector was under pressure. Spanish group Astroc fell 13.3%, having lost around 60% in the previous three sessions on rumours some of its major shareholders were about to sell. Other companies dipped in sympathy. Inmocaral fell 10.2% while Metrovacesa shed 4.4%.

Among the construction groups, Sacyr Vallehermoso slipped 8.3%, FCC lost 4.6%, Acciona slid 4.2% and ACS slipped 3.8%.

Alcatel-Lucent dropped 1.5%. The company had a first-quarter operating loss of about 260 million euros, or $353 million, as sales fell in the wireless and traditional network units.

Shares of Yell Group tumbled 19% after the publisher said its U.S. revenue growth will slow this year as competition intensifies.

AstraZeneca fell 2.6%. The maker of the Nexium ulcer treatment has lined up $15 billion of loans to fund the proposed acquisition of U.S. biotechnology company MedImmune Inc. ING cut its recommendation on the stock to reduce from hold.

Oil and precious metals

Crude oil was little changed, trading near a three-week high in New York. Crude oil for June fell 13 cents to $65.76 a barrel in after-hours electronic trading on the New York Mercantile Exchange in early trade in London. Brent crude oil for June settlement gained 18 cents to $68.32 a barrel in electronic trading on the ICE Futures exchange in London.

Gold and silver rose, erasing earlier declines. Gold for immediate delivery advanced 95 cents to $690.10 an ounce, after falling to $3.45. Silver gained 4 cents to $14.06. Earlier, it dropped 10 cents. Palladium for immediate delivery fell $1.50 to $382.50 and platinum increased $5.75 to $1,330.

Currencies

The dollar was mixed against other major currencies in European trading Tuesday morning. The euro traded at $1.3560, down from $1.3573 late Monday in New York. The British pound traded at $1.9980, down from $2.0012. The dollar fetched 118.76 Japanese yen, up from 118.60.