Mosaic, Baidu, Best Buy Surge; Satyam Plunges

Mayank Mehta
16 Dec, 2008
New York City

Stocks surged in a broad rally after the Fed cut rates to record low. The sharper than expected rate cut lifted financials and retailers. Of the S&P 500 index stocks, 2 fell more than 3%, 413 closed above 3% and 77 rose more than 10%. Baidu surged on comments from Goldman Sachs. Best Buy gained.

[R]8:50PM New York – U.S. stocks surged more than 4% on a rally sparked by the Fed lowering rates to the record low.[/R]

Of the stocks in S&P 500 index, 484 increased, 15 decreased and one were unchanged. Of the index stocks, 2 fell more than 3%, 413 closed above 3% and 77 rose more than 10%.

Lorillard Inc led decliners in S&P 500 index with a fall of 4.7% followed by losses in Altria Group Inc of 4.4%, in Tenet Healthcare of 2.4%, in Eaton Corp of 2.2%, in Eaton Corp of 2.2% and in Reynolds America of 1.8%.

XL Capital Ltd led gainers in S&P 500 index with a surge of 27% followed by increases in Genworth Financial of 24.6%, in Hartford Financial Services of 24%, in Apartment Investments of 22% and in Prudential Financial of 21.1%.

Other Movers

Best Buy Co., Inc ((BBY)) rose 18% or $4.21 to $27.68 after the nation''s largest consumer electronics retailer reported third quarter revenues rose 16% to $11.5 billion from $9.9 billion a year ago. Net income in the quarter fell 77% to $52 million or 13 cents per diluted share compared to net income of $228 million or 53 cents per share a year ago.

Baidu.com, Inc ((BIDU)) rose 11.8% or $13.91 to $132.00 after China’s most popular Internet search engine was upgraded by Goldman Sachs. The analyst James Mitchell raised his rating on the stock to “Conviction Buy” from “neutral” but left his target price to recently lowered $145.

Bank of Montreal ((BMO)) dropped 3.9% or $1.04 to $25.34 after the Canada’s fourth-biggest bank is expected to raise C$1.1 billion by selling common shares.

CIT Group Inc ((CIT)) rose 13.4% or 55 cents to $4.65 after the commercial finance firm said it that over $1.5 billion of regulatory capital will be generated when the Equity Units Exchange and the Notes Exchange are consummated. The sharp rate cut by Fed also helped the stock in a rally in banks, brokerages and insurance stocks.

Eaton Corporation ((ETN)) fell 2.2% or $0.95 to $42.96 after the diversified industrial manufacturer lowered its fourth quarter earnings estimate between $1.00 and $1.10 per share, excluding charges. The company''s previous guidance was earnings of $1.70 to $1.80 per share and the current consensus earnings estimate is $1.71 per share for the quarter ending at the end of the year.

FactSet Research Systems Inc ((FDS)) gained 11.90% or $4.25 to $39.95 after the provider of integrated financial information reported first quarter revenues rose 16% to $155.6 million from $134.2 million a year ago. Net income in the quarter rose 21% to $35.6 million or 73 cents per diluted share compared to net income of $29.4 million or 58 cents per share a year ago.

Forgent Networks, Inc ((ASUR)) rose 4.7% or 0.010 cents to $0.220 after the provider of Web-based workforce management software reported first quarter revenues rose 47% to $2.8 million from $1.9 million a year ago. Net loss in the quarter was $1.5 million or 5 cents per diluted share compared to net loss of $0.9 million or 3 cents per share a year ago.

The Goldman Sachs Group, Inc ((GS)) surged 14.4% or $9.54 to $76.00 after the global investment bank reported fourth quarter revenues fell 85% to $1.58 billion from $10.74 billion a year ago. Net loss in the quarter was $2.12 billion or $4.97 a diluted share compared to net income of $3.22 billion or $7.01 per share a year ago. The company reported its first quarterly loss since going public nine years ago. Market was expecting a quarterly loss of as high as $6 per share.

Imperial Sugar Company ((IPSU)) increased 5.5% or 71 cents to $13.56 after the sugar refiner reported fourth quarter sales fell 43% to $124.8 million from $219.6 million a year ago. Net loss in the quarter was $5.1 million or 44 cents per diluted share compared to net income of $8.2 million or 69 cents per share a year ago.

Johnson Controls, Inc ((JCI)) decreased 1.1% or 20 cents to $18.12 after the provides automotive interiors said on Tuesday it expects a loss for the current quarter and withdrew its profit outlook for 2009 citing the """"rapid decline in global automotive production and uncertain industry conditions.""""

The Mosaic Company ((MOS)) gained 14.3% or $4.50 to $35.96 after the world’s largest maker of phosphates fertilizer was upgraded to “buy” at Merrill Lynch & Co. On the upgrade in the sector, Agrium ((AGU)) rallied 12.2% or $3.75 to $34.52 and Potash Corp ((POT)) gained 11.1% or $7.66 to $76.90.

National Technical Systems, Inc ((NTSC)) fell 9.2% but surged in the rally at a close to $3.87 or 19% after the provider of engineering and evaluation services said third quarter revenues rose 25.4% to $32.63 million from $26.03 million a year ago. Net income in the quarter rose 87% to $1.18 million or 12 cents per diluted share compared to net income of $0.63 million or 7 cents per share a year ago.

The Progressive Corporation ((PGR)) gained 1.1% or 15 cents to $14.89, the auto insurer was downgraded by Citi Investment Research analyst to """"Sell"""" from """"Hold."""" The analyst Joshua Shanker also lowered his target price on the company''s stock by $1.50 to $12 and cited recent price gains as excessive.

Smith & Wesson Holding Corporation ((SWHC)) slid 14.6% or 39 cents to $2.28 after the 156-year old gun maker reported second quarter profit of 1 cent a share. The company offered weak outlook for hunting rifles and sales of the weapon fell 41% in the quarter. Sales of revolver rose 13% in the quarter.

Satyam Computer Services Limited ((SAY)) fell 53.7% or $6.73 to $5.82 after the India’s fourth-largest software-services exporter said its board had approved taking a 51% stake in construction firm Maytas Infra and buying a sister firm for a total $1.6 billion. Promoters of Satyam, led by founder and Chairman B. Ramalinga Raju, hold 36% in Maytas Infra, a Satyam spokesman said.

STEC, Inc ((STEC)) declined 22.3% or $1.05 to $3.64 after the maker of memory chips lowered its fourth quarter revenue outlook, citing cancellation of previously expected orders worth $20 million, and forecast of weak first-quarter and 2009 revenue.

Titan Machinery Inc ((TITN)) declined 1.8% or 25 cents to $13.85 after the agricultural and construction equipment retailer said third quarter revenues rose 62% to $214.0 million from $132.2 million a year ago. Net income in the quarter rose 204% to $8.2 million or 45 cents per diluted share compared to net income of $2.7 million or 36 cents per share a year ago.

XL Capital Ltd ((XL)) rose 27% or 78 cents to $3.68 after The Bermuda-based insurer confirms that it has no current need or intention to raise additional capital. The stock surged on a rally in financials after the record rate cut by the Fed.