Eastman Chemical Plunges, Sears Gains

Mayank Mehta
02 Dec, 2008
New York City

U.S. stocks gained after banks, financials and realtors led advancers. Optimism about interest rate cuts lifted sentiment in trading. Sears surged on lower than expected loss and Staples gained after the release of earnings. Eastman Chemical plunged on earnings worries.

[R]12:40PM New York – U.S. stocks rose on the hopes that future rate cuts will contain the economic fallout.[/R]

Of the stocks in S&P 500 index, 451 declined, 49 rose and none were changed. Of the 30 stocks in Dow Jones Industrial Average, 28 gained and 2 declined.

Eastman Chemical led the decliners in the S&P 500 index with a loss of 7.6% and Prologis led gainers in the index with a rise o 26%.

CIT Group Inc ((CIT)) rose 7.7% or 22 cents to $3.07 on a rise in banks and financial stocks.

The commercial finance company will exchange an additional $1.7 billion in notes on top of last month''s $2.2 billion proposal as it looks to raise the amount of capital needed to become a bank to seek federal funding.

Eastman Chemical Company ((EMN)) lost 4.3% or $1.33 to $28.95 after the global chemical company said during the Citigroup Basic Materials Conference it now expects fourth quarter earnings to be ""significantly"" below its previous guidance of approximately 90 cents a share. The current consensus earnings estimate as surveyed by Thomson Reuters is 88 cents a share for the quarter ending December 31, 2008.

Isle of Capri Casinos, Inc ((ISLE)) dropped 15.0% or 41 cents to $2.32 after the regional casino operator reported second quarter revenues fell 8.9% to $254.1 million from $278.8 million a year ago. Net loss in the quarter was $13.5 million or 43 cents per diluted share compared to net loss of $24.6 million or 80 cents a share a year ago.

IntercontinentalExchange, Inc ((ICE)) plunged 7.4% or $4.52 to $56.15 after the operator of regulated futures exchanges, as well as global over-the-counter (OTC) markets reported an increase of 8.9% in futures trading volume as turmoil continues to roil markets.

Lincoln National Corporation ((LNC)) slid 2.1% or 25 cents to $11.60 after falling sharply in Monday’s trading with a weakness in insurance stocks. Lincoln manages $200 billion in assets and investors worry that current market volatility will force the company to seek more capital through stock offering or seek federal capital that may limit future profitability.

MBIA Inc ((MBI)) gained 10.9% or 47 cents to $5.13 after it engaged in providing financial guarantee insurance has entered into a commutation agreement, effective November 30, 2008 to commute its entire $10.6 billion portfolio of business. The commutation is part of the company''s efforts to restructure its insured portfolio.

MBIA stock has fallen from a high of $36.50 on November 30, 2007.

Nordstrom, Inc ((JWN)) fell 3.5% or 39 cents to $10.47 after the luxury retailer delayed the plan to build a Green Hills store for another year, but the company said it remains committed to opening its first store in state of Tennessee in Nashville.

ProLogis (( PLD)) rose 18.4% or 47 cents to $3.00 after the real estate investment trust said that it has closed on a RMB 723 million, or $105.8 million, financing with a syndicate of four banks, with Bank of America securities as the sole lead arranger.

Shanda Interactive Entertainment Limited ((SNDA)) added 14.5% or $2.79 to $23.87 after it interactive entertainment media company based in China said third quarter revenues rose 42.7% to Rmb 936.5 million from Rmb 656.3 million a year ago. Net income in the quarter rose 41.1% to Rmb 337.1 million or Rmb 4.62 per diluted ADS compared to net income of Rmb 238.9 million or Rmb 3.26 per ADS a year ago.

Sears Holdings Corporation ((SHLD)) gained 16.0% or $5.04 to $36.88 after the nation''s fourth largest retailer reported third quarter revenues fell 8% to $10.66 billion from $11.62 billion a year ago. Net loss in the quarter was $146 million or $1.16 per diluted share compared to net income of $4 million or 3 cents per share a year ago.

Sprint Nextel Corporation ((S)) climbed 10.9% or 23 cents to $2.34 after the global communication company appointed senior technology advisor to guide the wireless product development.

Staples, Inc ((SPLS)) rose 8.7% or $1.31 to $16.44 after the world’s largest office products retailer reported third quarter revenues rose 35% to $7.0 billion from $5.17 billion a year ago. Net income in the quarter fell 43% to $156.7 million or 22 cents per diluted share compared to net income of $274.5 million or 38 cents per share a year ago.

Tyson Foods, Inc ((TSN)) lost 8.6% or 52 cents to $5.51 after the competitor Pilgrim''s Pride''s bankruptcy filed for bankruptcy protection.