Assured Guaranty and SanDisk Plunge

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

U.S. stocks struggled in the early afternoon as investors digest a barrage of earnings. American Express second quarter earnings fell 38% on 8% rise in sales. SanDisk plunged 25% after it reported second quarter revenue decline and a loss in the quarter. The company will also delay start of new fabrication facility to lower the supply of storage products in the market. Assured Guaranty plunged 47% after Moodys may review its credit rating.

[R]12:40 PM New York – U.S. stocks traded mixed after higher than expected loss from Wachovia and more than 9% decline in American Express and Apple Inc. SanDisk plunged 25%.[/R]

The latest earnings from Wachovia, American Express, Apple, UPS and Caterpillar were on the top of the investors mind. Wachovia reported nearly $9 billion in losses and American Express second quarter revenue rose 8% and net income fell 38% dragging the stock lower. Storage memory card maker SanDisk plunged 25% after second quarter revenue fell 1% and reported a loss of $68 million or 30 cents per share.

Dow Jones Industrial Average gained 29.16 or 0.28% to 11,496.18 and S&P 500 added 0.72 or 0.04% to 1,260.68.

Dow Gainers & Losers

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

American Express led the decliners in the Dow Jones Industrial Average with a loss of 9.22% or $3.77, to $37.13 followed by losses in Merck & Co of 8.18% or $2.89, to $32.44, in America International Group of 3.13% or $0.83, to $25.70, in Bank of America of 2.49% or $0.71, to $27.85, and in Citigroup Inc of 2.13% or $0.42, to $19.27.

Coca Cola Co led the gainers in the Dow Jones Industrial Average index with a rise of 3.13% or $1.55, to $51.15 followed by increases in Caterpillar of 3.02% or $2.21, to $75.44, in du Pont of 2.29% or $1.01, to $45.06, in Wal-Mart Stores of 1.97% or $1.13 to $58.44 and in Home Depot Inc of 1.60% or $0.37 to $23.49.

Stock Movers

American Express Co. the global payments and travel company fell by 11% to $36.38 after the second quarter profit fell 37% as a result of consumer defaults that were worse than forecasted. The company had to add $600 million to the loan loss reserves.

American Express ((AXP)) in the last one year traded as high as $65.49 in October 2007 and as low as $35.55 in July 2008. Based on the yesterday’s closing price the company has a market cap of $42.33 billion.

Apple Inc. fell 9.8% to $149.95 as the concerns for Steve Job’s health coupled with less than expected earnings rise in the latest quarter of 31% turned sentiment negative.

Apple Inc ((AAPL)) in the last one year traded as high as $202.96 in January 2008 and as low as $111.62 in August 2007. Based on the yesterday’s closing price the company has a market cap of $133.49 billion.

Assured Guaranty fell 47% or $8.90 to $9.85 after the rating agency Moody’s said that it may downgrade the rating on the company’s debt. Assured Guaranty Ltd is one the two financial companies that have retained the highest credit rating from three agencies.

Assured Guaranty Ltd ((AGO)) in the last one year traded as high as $30.22 in October 2007 and as low as $7.95 in July 2008. Based on the yesterday’s closing price the company has a market cap of $884.77 billion.

S&P Movers

Of the stocks in S&P 500 index, 175 increased 318 declined and 7 remained unchanged.

SanDisk Corp led the decliners in the S&P 500 index with a loss of 23.70% or $4.25, to $13.68 followed by in losses in Regions Financial of 21.64% or $2.25, to $8.15, in Texas Instrument of 15.29% or $4.36, to $24.16, in National City Corp of 11.59% or $0.51, to $3.89 and in WaMu Inc of 11.31% or $0.62, to $4.86.

BJ Services led the gainers in the S&P 500 index with a rise of 8.46% or $2.54, to $32.55 followed by increases in Wyndham Worldwide of 7.53% or $1.28, to $18.27, in Western Union of 7.46% or $1.87, to $26.94, in CME Group Inc of 6.69% or $21.77 to $347.30. WellPoint Inc of 6.64% or $3.03 to $48.69.