Nokia, Sears, Cheesecake Drop

123jump.com Staff
14 Nov, 2008
New York City

Retailers fell after the October sales declined. Nordstrom, Kohls, JC Penney and Abercrombie & Fitch fell on earnings. Qualcomm, Motorola and Nokia fell after Nokia lowered industry unit sales estimates. American Express dropped below $20. Cheesecake Factory fell below $6.

[R]1:00PM New York – Sears Holdings led the decliners in the retail stocks. Financial and real estate stocks declined.[/R]

Stocks declined after October retail sales declined 2.8% from September and dragged retail, consumer and financial stocks declined.

Of the S&P 500 index stocks, 35 increased, 463 rose and 1 was unchanged.

Abercrombie & Fitch Co ((ANF)) fell 14% or $2.87 to $19.55 after it reported third quarter net income of $63.9 million and earnings per share of $0.72 compared to net income of $117.6 million and earnings per diluted share of $1.29 a year ago.

The stock has declined from $49.30 of peak in October 2007 to the low last seen October 2002.

Agilent Technologies, Inc ((A)) fell 1% or $0.23 to $20.74 after the electronic measurement business reported 2% revenues increase to $1.48 billion for the fourth fiscal quarter. Fourth quarter net income was $231 million or $0.64 per diluted share compared to $180 million or $0.46 per share a year ago.

American Express ((AXP)) dropped 58 cents to $20.22 after financial stocks fell sharply in the trading. CIT Group Inc ((CIT)) dropped 33 cents to $3.92, Bank of America declined 56 cents to $16.51, Goldman Sachs dropped $2.82 to $67.20 Morgan Stanley ((MS)) declined 89 cents to $12.34.

Citigroup Inc ((C)) dropped 48 cents to $8.98 after the Wall Street Journal reported that the company plans to lay off 10,000 staff.

Cheesecake Factory ((CAKE)) dropped 6% or 44 cents to $6.83 and stock has fallen to the level last seen in March 1999.

Genworth Financial, Inc ((GNW)) climbed 5.1% or 7 cents to $1.60 after the company announced it borrowed $930 million of its $1.7 billion available credit facilities to repay $1.1 billion of senior notes maturing in second quarter 2009.

The Estee Lauder Companies Inc ((EL)) dropped 4.0% or $1.27 to $30.56 after analysts downgrade on the worries that company may suffer in the current decline in retail sales with most discretionary consumer spending falling sharply.

Hewitt Associates, Inc ((HEW)) rose 6.4% or $1.63 to $26.05 after the human resources services provider reported Friday it expects to earn between $2.35 and $2.45 per share in 2009. Revenues and operating earnings are expected to rise in low single digits in the year.

J. C. Penney Company, Inc ((JCP)) dropped 9% or $1.67 cents to $17.61 after the retailer with 1,067 JCPenney department stores reported earnings per share from continuing operations of $0.55 for the third quarter compared with $1.17 a year ago. Net income in the third quarter was $124 million versus $261 million last year.

Lee Enterprises, Incorporated ((LEE)) plunged 19.7% or 35 cents to $1.40 after the newspaper publisher of the St. Louis Post Dispatch and other papers reported fourth quarter net profit fell 73% to $5.4 million or 12 cents a share.

Nokia Corporation ((NOK)) decreased 12.2% or $1.73 to $12.45 after the maker of mobile phone on Friday issued a profit warning for the fourth quarter and said it expected handset sales to fall in 2008 to 1.24 billion for the industry and fall again in 2009.

Nordstrom, Inc ((JWN)) plunged 7.2% or 98 cents to $11.98 after the department store chain lowered its 2008 profit estimate. The company earned $71 million, or $0.33 per diluted share, compared to $166 million or $0.68 per diluted share a year ago. Sales for the quarter dropped 8.4% to $1.81 billion.

QUALCOMM Incorporated ((QCOM)) lost 4.8% or $1.68 to $33.14 after the stock has hit a low of $32.36. The stock has declined nearly 40% from its recent high of $55 in August.

Sprint Nextel Corporation ((S)) gained 12.5% or 14 cents to $2.38, recently it reported third quarter net revenues of $8.8 billion and a diluted loss per share of 11 cents. As of Sept. 30, the company had $4.1 billion of cash and cash equivalents. I

Sears Holdings Corporation ((SHLD)) fell 10% or $4.94 to $39.66 after October retail sales dropped 2.8%.