Nordstrom, Tiffany Rise; GM Drops

Mayank Mehta
04 Dec, 2008
New York City

Bleak automakers future, weak retail sales and falling commodities and crude oil futures droves stocks lower. Tiffany and Nordstrom jumped more than 10%. General Motors dropped 16% after more lawmakers voiced their skepticism. Of the stocks in S&P 500 index, 260 dropped more than 3%.

[R]7:20PM New York – U.S. stocks declined after weak same store sales in November and a fall in commodities and crude oil prices.[/R]

Of the stocks in S&P 500 index, 87 increased, 411 decreased and 2 were unchanged. Of the index stocks, 260 fell more than 3%, 32 closed above 3% and 5 surged more than 10% and 26 dropped more than 10%.

Range Resources led decliners in the S&P 500 index with a fall of 17.6% followed by losses in Peabody Energy of 17%, in General Motors of 16%, in Chesapeake Energy of 16%, in Southwestern Energy of 15.4% and in Cognizant Technology of 15.3%.

Office Depot led gainers in the S&P 500 index with a rise of 14.8% followed by increases in CIT Group Inc of 11%, in Tiffany & Company of 11%, in Nordstrom Inc of 10% and in Lennar Corp of 9.96%.

November same store retail sales were weaker than expected. Department stores, luxury retailers and electronics stores reported sales decline of between 8% and 16%. Wal-Mart Stores sales rose 3.4%. According to survey of 37 retail chains by International Council of Shopping Centers, same store sales declined 2.7%.

Sales at Gap ((GPS)) declined 10%, Sears Holding Corp ((SHLD)) fell 8.7%, J.C. Penney declined ((JCP)) 12% and Nordstrom ((JWN)) dropped 16%.

Aeropostale, Inc ((ARO)) added 8.1% or $1.21 to $16.15 after mall-based specialty retailer of casual apparel said third quarter revenues rose 17% to $482 million from $412.6 million a year ago. Net income in the quarter rose 18% to $42.6 million or 63 cents a share compared to net income of $36.0 million or 48 cents a share a year ago.

AeroVironment, Inc ((AVAV)) fell 2.3% or $0.70 to $30.21 after the maker of unmanned aircraft systems said second quarter revenues rose 22% to $65.8 million from $53.7 million a year ago. Net income in the quarter rose 75% to $9.1 million or 41 cents per diluted share compared to net income of $5.2 million or 24 cents per share a year ago.

Alloy, Inc ((ALOY)) fell 2.3% or 10 cents after direct marketer said third quarter revenues rose 5% to $69.9 million from $66.5 million a year ago. Net income in the quarter fell 27% to $9.1 million or 67 cents per diluted share compared to net income of $12.4 million or 90 cents per share a year ago.

Accenture Limited ((ACN)) fell 5.6% or $1.74 to $29.13 after the second-largest technology consulting company was cut to “neutral” from “buy” at Goldman Sachs Group. The tech consulting company has traded between $43.04 and $24.76 in the last one year of trading.

Adobe Systems Incorporated ((ADBE)) lost 9.3% or $2.10 to $20.44 after the maker of design software lowered its fourth quarter sales target between $912 million and $915 million and earnings outlook between 45 cents and 46 cents a share.

Amazon.com, Inc ((AMZN)) rose 4.7% or $2.11 to $47.32 after the world’s largest Internet retailer was upgraded by Barclays Capital. Citigroup only a day ago lowered its outlook on the company.

Cirrus Logic, Inc ((CRUS)) dropped 31.4% or $1.33 to $2.90 after the graphics chipmaker cut its third quarter revenue forecast but maintained its gross margin and expense outlook.

Collective Brands Inc ((PSS)) dropped $1.90 or 26.7% to $9.20 after it reported third quarter earnings of 75 cents a share compared to 39 cents a year ago. Net sales in the quarter rose $32 million to $862.7 million.

Diamond Foods, Inc ((DMND)) lost 22% or $6.54 to $23.87 after the seller of nuts and snacks posted first quarter net income of $10.6 million or $0.64 per share compared to $8.3 million or $0.52 per share in the prior year quarter.

Dynamex Inc ((DDMX)) fell 21% or $3.43 to $13.01 after the provider of same-day delivery services said that it will not meet first quarter estimated of revenues and earnings. The company now expects fiscal 2009 sales to be 8% to 12% below the prior year due to unexpected declines in customer shipments.

General Motors Corporation ((GM)) slid 16.2% or 79 cents to $4.11 after The U.S. automaker along with Ford Motor and Chrysler sought $34 billion in funds from the U.S. Congress. Private economists estimated that the automakers may need between $75 billion and $125 billion. Three chief executives of the companies also showed willingness to have overnight from the government.

Intersil Corporation ((ISIL)) plunged 14% or $1.27 to $7.81 after the semiconductor maker that the company lowered revenue target between $125 million and $135 million, a decline of 38% to 43% from the previous guidance of a decline between 20% and 25%.

Jefferies Group, Inc ((JEF)) declined 14% or $1.66 to $9.97 after the brokerage specializing in mid-size companies is closing three overseas offices and cut staff in London, UK. The bank is likely to lose money for the fifth quarter in a row.

Jo-Ann Stores, Inc ((JAS)) fell 7% or $1.07 to $12.72 after the U.S. fabric retailer net sales for the third quarter were $480.1 million compared with $480.2 million in the prior year. Same-store sales decreased 1.5% versus a same-store sales increase of 2.4% last year. The company lowered its 2009 earnings per share outlook to between 75 cents and 85 cents from 95 cents to $1.05.

Synopsys, Inc ((SNPS)) rose 12% or $1.74 to $16.83 after the maker of semiconductor design software said fourth quarter revenues rose 11.9% to $352.8 million from $315.2 million a year ago. Net income in the quarter rose 13% to $46.4 million or 32 cents per diluted share compared to net income of $41 million or 27 cents per share a year ago.