Chevron Falls; AIG, Cemex Plunge

123jump.com Staff
10 Oct, 2008
New York City

AIG fell after media reports suggested another need for capital infusion. Wachovia rose after Citigroup abandoned the takeover plan, clearing path for Wells Fargo. BHP Billiton, Rio Tinto and Brazil based Vale plunged 10%. Macys fell on sales warning. Chevron fell after the company raised q3 views.

[R]1:55PM New York – General Electric earnings fall. Macy’s lowers sales outlook. Morgan Stanley downgraded. Cemex dropped 21%.[/R]

American International Group, Inc ((AIG)) fell 15.9% or 37 cents to $2.01after the media reports suggested that the government controlled insurance company has drawn down $70 billion of its initial $85 billion loan facility. 123jump.com estimated that AIG may need additional $80 billion on top of $37.8 billion released this week by the New York Fed.

Audiovox Corporation ((VOXX)) fell 25.74% or $1.30 to $3.75 after the distributor consumer electronics reported second quarter revenues fell 0.74% to $147.2 million from $148.3 million a year ago. Net loss in the quarter was $2.3 million or 10 cents per diluted share compared to net income of $3.7 million or 16 cents per share, a year ago.

BHP Billiton Limited ((BHP)) plunged 9.2% or $3.55 to $35.11 after the prices of oil and other commodities dropped. Rio Tinto plc ((RTP)) plunged 11% or $19.81 to $155.03 and Vale Rio do Doce ((RIO)) declined 8.5% or $1.03 to $11.16.

Best Buy Co., Inc ((BBY)) dropped 3.65% or $1.01 to $25.31. A specialty retailer of consumer electronics, home office products, entertainment software, appliances and related services sales at its U.S. stores open at least 14 months fell about 2% Circuit City dropped fell 3 cents or 7% to 40 cents.

Cemex SAB de CV plunged 21.3% or $1.74 to $6.43 after the credit markets remain tight and economic outlook worsens. The Mexico based largest cement maker in Americas carries a large debt that the company may have harder time to roll over at the current interest rate that it pays. Cemex has fallen from a high of $32 in May of this year on the worries that the recent expensive acquisition funded by debt may hurt the earnings.

Chevron Corp ((CVX)) slid 8.39% or $5.28 to $58.72 after the company said that third quarter earnings will be higher than in the second quarter of this year and damages from Hurricane Gustav and Ike will be $400 million and permanently shut down 5,000 barrels a day of oil production in the Gulf of Mexico.

Cytec Industries Inc ((CYT)) plunged 8.62% or $2.56 to $27.15 after the chemical maker slashed its 2008 profit outlook to between $3.75 and $3.85 a share from $4.15 to $4.35 a share and blamed the short fall on a strike at Boeing and economic weakness.

Emmis Communications Corporation ((EMMS)) gained 15.5% or $0.11 to $0.82 after the radio broadcaster reported second quarter revenues decline of 1.5% to $94.2 million from $95.7 million a year ago. Net income in the quarter fell 90% to $1.23 million or 3 cents per diluted share compared to net income of $11.81 million or 31 cents per share, a year ago.

General Electric Company ((GE)) dropped 7.94% or $1.64 to $19.01 after the engineering and financial conglomerate reported third quarter revenues rise of 11% to $47.23 billion from $42.51 million a year ago. Net income in the quarter fell 22% to $4.3 million or 43 cents per diluted share compared to net income of $5.56 million or 54 cents per share, a year ago.

General Motors Corporation ((GM)) gained 3.78% or 18 cents to $4.94 after the financial analysts worried that company’s cash requirements are increasing and sales outlook for the year and next year is weakening. Analysts at Barclays and Citigroup lowered their outlook on the company and Barclays set price target of $4 for the share.

Macy''s, Inc ((M)) slid 10.2% or $1.32 to $10.14 after the apparel retailer lowered its earnings outlook and cited weaker than expected sales for the rest of the year. Third quarter same stores sales declined 5.8% and lowered its outlook for the fall season to a decline between 3% and 6% from its earlier view of flat to 1% decline.

Morgan Stanley ((MS)) fell 37% or $4.58 to $7.87 after the rating agency Moody’s put its long term debt on review with a negative outlook and also lowered the view on Goldman Sachs.

Vimpel-Communications ((VIP)) dropped 9.8% or $1.25 to $11.48 after the markets in Russia drop for the seventh session in a row.

Wachovia Corporation ((WB)) rose 35% or $1.26 to $4.86 after Citigroup abandoned pursuit of its banking operations and cleared the way for Wells Fargo purchase.