Apple, Prudential Surge, Banks Soar

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

Banks traded sharply higher after European government announced a bank bailout plan of $1.8 trillion. The huge fiscal support lifted markets in Europe, New York and Asia. Apple surged. Insurance companies rallied. Steel, mining and energy companies gained on a rise in metals and oil prices.

[R]3:45PM New York – Prudential Financial and other insurers surged in the market rally. Steel and energy companies rose on strong gains in metals and energy prices.[/R]

AK Steel Holding Corporation ((AKS)) rose 26.75% or $2.96 to $13.99, the flat rolled steel maker surged on rising markets and a rise in metals and commodities prices. The stock has fallen from a high of $73.07 in July or lost 75.1% for the year so far. United States Steel ((X)) gained 6.8% or $3.10 to $47.69, Nucor Corp ((NUE)) surged 15% or $4.61 to $35.30 and ArcelorMittal ((MT)) rebounded 24% or $7.03 to $36.19.

American International Group, Inc ((AIG)) gained 12.45% or 29 cents to $2.62 after market talks suggested that Philippine bank and investment group controlled by HNRY Sy is preparing to make a bid for the local insurance unit.

Apple Inc ((AAPL)) rose 10.50% or $10.21 to $107.01 after the company was upgraded by Sanford Bernstein analyst comments suggested that the stock is trading at a discount.

Bank of America Corporation ((BAC)) surged 7.38% or $1.54 to $22.41 after Central banks in Europe and the U.S. offered unlimited dollar short term loans. European government also offered 1.3 trillion euros of bank bailout plans that will support local banks and improve liquidity.

The bank bailout in Europe lifted financial stocks in the U.S. and Europe. Wells Fargo ((WFC)) added 69 cents to $29.00, Citigroup ((C)) rose 11.5% or $1.62 to $15.74 and JP Morgan Chase ((JPM)) dropped 2% or 91 cents to $40.72

Fastenal Company ((FAST)) gained 4.14% or $1.54 to $38.76 after the seller of industrial and construction supplies reported third quarter sales rise of 17.1% to $625 million from $533 million a year ago. Net income in the quarter rose 17.3% to $72.9 million or 49 cents per diluted share compared to net income of $62.1 million or 41 cents per share, a year ago.

Ford Motor Company ((F)) rose 26.13% or 52 cents to $2.52 after the merger talks between General Motors and Chrysler were reported in media. General Motors ((GM)) surged 29% or $1.42 to $6.32.

Infineon Technologies AG ((IFX)) rose 15.85% or 58 cents to $4.24 after it agreed to purchase 35.6% stake in its Inotera Memories joint venture with Nanya from a majority controlled company Qimonda.

Morgan Stanley ((MS)) gained 85.10% or $8.10 to $17.75 after Japan based Mitsubishi UFJ agreed to take 21% stake in the bank for $9 billion. The convertible and non convertible stock will pay 10% dividend and will help the bank to raise its Tier 1 capital ratio above 15%.

New York and Company, Inc ((NWY)) fell 38.48% or $2.79 to $4.46 after the company reported third quarter comparable store sales declined 10.6% and estimated loss of between 8 and 12 cents a share in the period.

Koninklijke Philips Electronics N.V. ((PHG)) fell 9.36% or $2.01 to $19.57. World’s largest lighting maker reported third quarter sales fell 2% to 6.3 billion euros from 6.4 billion euros a year ago. Net income in the quarter rose 8% to 357 million euros or 37 euro cents per diluted share compared to net income of 331 million euros or 30 euro cents per share, a year ago. The company will lower its stock buyback program to preserve cash.

Prudential Financial Group ((PRU)) surged in the market rally 39% or $13.80 to $49.93 after it has fallen 46% in the year. The stock sharply rebounded on the hopes that the company is not likely to need additional capital in the immediate future, according to the latest preliminary earnings release. Hartford Financial ((HIG)) surged 28% or $5.29 to $24.52, MetLife ((MET)) gained 19.6% or $5.93 to $36.18 and Principal Financial Group ((PFG)) advanced 21% or $3.80 to $22.00.

Qwest Communications International Inc ((Q)) gained 30.70% or 67 cents $2.86 after the company agreed to a wage increase of 12.6% over the life of the contract. Two weeks ago the labor union had voted down the three-year proposal that offered 9% increase.

Waste Management, Inc ((WMI)) gained 11.14% or $2.87 to $28.64 after the provider of integrated waste services in North America withdrew its $6.73 billion hostile offer for Republic Services Inc. and blamed it on the current market conditions. The acquisition was to be funded by bank debt.