Bank of America, Citigroup Surge; CSX Drops

Mayank Mehta
21 Jan, 2009
New York City

Bank stocks rebounded on the hopes of a bailout plan from the Obama administration. Commodities and metal makers declined. Bank of America surged 31%, Citigroup galloped 31.5% and Morgan Stanley and JP Morgan rose more than 25%. The railroad operator, CSX dropped on earnings.

[R]4:00PM New York – Bank stocks rebounded on the hopes of a bailout plan from the Obama administration. Commodities and metal makers declined.[/R]

Of the stocks in S&P 500 index, 457 increased, 41 declined and 2 were unchanged.

Coach Inc led decliners in the index with a loss of 7.3% followed by losses in Allegheny Technology of 6.8%, in Fifth Third Banc of 5.5%, in Johnson Controls of 5.2%, in MEMC Electric Material of 4.8%, in King Pharmaceuticals of 3.3% and in Wal-Mart Stores of 2.8%.

PNC Financial Services led gainers in the index with a rise of 38% followed by increase in Citigroup of 31.1%, in Bank of America of 31.6%, in Northern Trust of 30.9%, in Morgan Stanley of 28.7% and in JP Morgan Chase of 25%.

Other Movers

Alcoa Inc ((AA)) plunged 2.0% or 17 cents to $8.18 after the world''s third-largest aluminum producer, fell as the commodity''s price weakened further and rival Rio Tinto Alcan said it will cut 1,100 jobs in its aluminum unit and cut output.

Abbott Laboratories ((ABT)) gained 3.1% or $1.57 to $50.77 after the global health care company reported fourth quarter sales rose 11% to $8 billion from $7.22 billion a year ago. Net income in the quarter rose 25% to $1.5 billion or 98 cents per diluted share compared to net income of $1.2 billion or 77 cents per share a year ago.

ADTRAN, Inc ((ADTN)) fell 3.0% or 43 cents to $14.06 after the global provider of networking and communications equipment reported fourth quarter sales fell 5.5% to $112.4 million from $119 million a year ago. Net income in the quarter fell 8% to $16.7 million or 27 cents per diluted share compared to net income of $18.1 million or 27 cents per share a year ago.

The Bank of New York Mellon Corporation ((BK)) fell 4.2% or 80 cents to $18.20 after global financial services company said fourth quarter total net interest revenues rose 42% to $1.070 billion from $752 million a year ago. Net income in the quarter fell 95% to $28 million or 2 cents per diluted share compared to net income of $520 million or 45 cents per share a year ago.

CSX Corporation ((CSX)) dropped 6.5% or $1.95 to $27.88 after the transportation company said fourth quarter revenues rose 5% to $2.7 billion from $2.58 billion a year ago. Net income in the quarter fell 32% to $247 million or 63 cents per diluted share compared to net income of $365million or 86 cents per share a year ago.

Forest Laboratories, Inc ((FRX)) fell 3.0% or 79 cents to $24.73 after the sell both branded and generic forms of ethical drug products downgraded at Goldman Sachs to “sell” from “neutral” following recent positive move in share price. Price target lowered to $23 from $25.

International Business Machines Corporation ((IBM)) added 4.0% or $3.32 to $85.30 an information technology company said fourth quarter revenues fell 6.6% to $27.0 billion from $28.9 billion a year ago. Net income in the quarter rose 11.4% to $4.4 billion or $3.28 per diluted share compared to net income of $3.95 billion or $2.80 per share a year ago.

iGATE Corporation ((IGTE)) slipped 8.0% or 45 cents to $5.12 an integrated technology and Operations Company reported fourth quarter revenues fell 4% to $51.5 million from $53.6 million a year ago. Net income in the quarter rose 39% to $6.8 million or 12 cents per diluted share compared to net income of $4.9 million or 9 cents per share a year ago.
Morgan Stanley ((MS)) jumped 17.1% or $2.24 to $15.34 after the banks and financial services sector surged. The executives and directors at Bank of America purchased stocks of the bank.

Northern Trust Corporation ((NTRS)) climbed 22.5% or $9.91 to $53.84 in the rally of financial service sector.

Packaging Corporation of America ((PKG)) plunged 8.6% or $1.15 to $12.18 after the producer of containerboard and corrugated products in the United States said fourth quarter revenues fell 6% to $546 million from $580 million a year ago. Net income in the quarter fell 32% to $30 million or 30 cents per diluted share compared to net income of $44 million or 42 cents per share a year ago.

The PNC Financial Services Group, Inc ((PNC)) added 17.3% or $3.82 to $25.82 after the diversified financial services company said the costs of integrating the Cleveland bank, including a provision of at least $450 million for credit losses may lead to total loss in the latest quarter.

UAL Corporation ((UAUA)) slid 12.3% or $1.42 to $10.17 after the Chicago-based carrier reported fourth quarter revenues fell 9.6% to $4.55 billion from $5.03 billion a year ago. Net loss in the quarter was $1.3 billion or $9.91 per diluted share compared to net loss of $53 million or 47 cents per share a year ago.

U.S. Bancorp ((USB)) lost 12.4% or $1.91 to $13.54 after multi-state financial services company reported fourth quarter revenues rose 1% to $3.62 billion from $3.57 billion a year ago. Net income in the quarter fell 65% to $330 million or 15 cents per diluted share compared to net income of $942 million or 53 cents per share a year ago.

Woodward Governor Company ((WGOV)) rose 4.7% or 95 cents to $20.85 after it makes energy control systems for aircraft said first quarter revenues rose 27% to $344.7 million from $272.1 million a year ago. Net income in the quarter rose 72% to $27.1 million or 39 cents per diluted share compared to net income of $25.3 million or 36 cents per share a year ago.

Wipro Limited ((WIT)) declined 4.4% or 32 cents to $6.45 after the software services provider reported third quarter revenues rose 1.5% to $1.35 billion from $1.33 billion a year ago. Net income in the quarter fell 12% to $185 million or 13 cents per diluted share compared to net loss of $210 million or 14 cents per share a year ago.