Goodrich, VMWare, Office Depot Plunge

123jump.com Staff
08 Jul, 2008
New York City

U.S. stocks struggle as investors face higher write-offs from banks and financial brokerages. Fannie Mae and Freddie Mac were the focus of investors for the second day, after the top regulator said that it will not seek the two lenders to seek additional capital on accounting change. Office Depot plunged 32% after same store sales fell 10% in the second quarter. VMWare dropped 26% after it lowered its sales outlook and replaced its chief executive. Goodrich Petroleum commenced offering.

[R]12:10 PM New York – U.S. stocks trade lackluster fashion. Two large government mortgage lending agencies may not need additional capital according to regulators. Office, Depot, VMWare and Goodrich Petroleum fall.[/R]

Dow Jones Industrial Average lost 32.33 or 0.29% to 11,199.63 and S&P 500 lost 2.88 or 0.23% to 1,249.43.

Dow Gainers and Losers

Of the 30 stocks in Dow Jones Industrial Average 18 stocks gained and 12 declined.

Alcoa Inc led the decliners in the Dow Jones Industrial Average with a loss of 6.17% or $2.06, to $31.33 followed by losses in Walt Disney Company of 2.03% or $0.61, to $29.47, in Exxon Mobil of 1.91% or $1.66, to $85.29, in Hewlett Packard of 1.82% or $0.80, to $43.20 and in Caterpillar Inc of 1.45% or $1.03, to $69.78.

Pfizer Inc led the gainers in the Dow Jones Industrial Average index with a rise of 2.33% or $0.40, to $17.80 followed by increases in Wal-Mart Stores of 1.79% or $1.02, to $57.93, in Merck & Co of 1.78% or $0.65, to $37.25, in Proctor & Gamble of 1.41% or $0.89 to $63.80 and in United Tech Corp of 1.39% or $0.84 to $61.42.

Stock Movers

Goodrich Petroleum drops 8% or $5.86 to $64.95 after it commenced public offering of 3 million shares to replay its long term debt. Goodrich Petroleum Corporation ((GDP)) in the last one year traded as high as $80.49 in July 2008 and as low as $18.32 in July 2008. Based on the yesterday’s closing price the company has a market cap of $2.11 billion.

Office Depot stock dropped 33% or $3.41 to $6.99 after it lowered sales and earnings margin guidance. Office Depot reported same store sales declined 10% in the second quarter ending in June and expects operating earnings margin to decline 200 basis points more than previous estimate of between 200 and 250 basis points decline from a year ago. Office Depot Inc ((ODP)) in the last one year traded as high as $30.84 in July 2007 and as low as $10.41 in July 2008. Based on the yesterday’s closing price the company has a market cap of $1.9 billion.

Indy Mac drops 34 cents to 37 cents after the bank suffers steady withdrawals from depositors. Separately, Fitch Ratings lowered its rating on the bank debt after regulators said that the bank may need additional capital. Indy Mac Bancorp Inc ((IMB)) in the last one year traded as high as $31.01 in July 2007 and as low as $0.36 in July 2008. Based on the yesterday’s closing price the company has a market cap of $37.33 million.

VMWare dropped 26% or $13.49 to $39.81 after it lowered its sales outlook and said that its chief executive will leave the company. The company said that Paul Maritz former Microsoft Corp executive will take over as president and CEO of the company

VMware Inc ((VMW)) in the last one year traded as high as $124 in October 2007 and as low as $38.56 in July 2008. Based on the yesterday’s closing price the company has a market cap of $14.82 billion.

S&P Movers

Of the stocks in S&P 500 index, 320 increased, 176 declined and 4 remained unchanged.

Office Depot Inc led the decliners in the S&P 500 index with a loss of 31.99% or $3.33, to $7.08 followed by in losses in EMC Corp of 9.78% or $1.48, to $13.66, in Cabot Oil & Gas of 7.25% or $4.66, to $57.06, in Massey Energy Co of 5.89% or $4.43 to $70.79 and in Freeport-McMoran of 5.68% or $6.22, to $103.37

Fifth Third Banc led the gainers in the S&P 500 index with a rise of 5.04% or $0.52, to $10.33 followed by increases in XL Capital Ltd of 4.51% or $0.83, to $19.25, in MBIA Inc of 4.35% or $0.17, to $4.08, in Marshall & Ilsley of 4.24% or $0.53 to $13.03, in Comerica Inc of 4.16% or $0.97 to $24.26.