Wyeth Surges on Pfizer Bid; MasterCard, GE Drop

123jump.com Staff
23 Jan, 2009
New York City

Advanced Micro dropped more than 10% on 33% fall in sales and a net loss. Barclays declined for the ninth day in a row. Caterpillar dropped on the worries that sales and earnings will be lower than expected. Wyeth rose 8% after Pfizer is expected to launch a rival bid.

[R]3:00PM New York – U.S. stocks rose in weak trading. MBIA rose after Pershing Square hedge fund abandoned the short position.[/R]

Of the S&P 500 index, 315 increased, 181 fell and 4 were unchanged.

Southwest Air led decliners in the S&P 500 index with a loss of 18% followed by losses in Capital One Financial of 11.6%, in General Electric of 11%, in Xerox Corp of 7.7% and in Harley Davidson of 7.4%.

MBIA Inc led gainers in the S&P 500 index with a rise of 17.5% followed by increase in Hartford Financial Services of 15.7%, in Wyeth of 13.3%, in Comerica Inc 13.1%, in CIT Group Inc of 12.3% and in SunTrust Banks of 11.1%.

Other Movers

Advanced Micro Devices, Inc ((AMD)) fell 10.2% or 23 cents to $2.02 after the global semiconductor company said fourth quarter sales fell 33% to $1.16 billion from $1.74 billion a year ago. Net loss in the quarter was $1.42 billion or $2.34 per diluted share compared to net loss of $1.77 billion or $3.06 per share a year ago.

American Express Company ((AXP)) the charge and credit card company fell 6.6% or $1.09 to $14.96.

Barclays PLC ((BCS)) slid 14.4% or 49 cents to $2.90 after the U.K. bank shares fell early Friday for the ninth consecutive day despite assurances from Chief Executive John Varley that the bank is doing what it can to “create the conditions” that will allow its stock to rise over time.

The Barclays stock has tumbled almost 70% in the eight days on rising concerns that it may need to access capital from the government as it increase the write-down of the assets.

Capital One Financial Corporation ((COF)) dropped 7.7% or $1.70 to $20.24 after the bank and credit-card issuer said fourth quarter revenues fell 19% to $3.17 billion from $3.92 billion a year ago. Net loss in the quarter was $1.4 billion or $3.74 per diluted share compared to net income of $226.6 million or 60 cents per share a year.

Caterpillar Inc ((CAT)) fell 4.4% or $1.66 to $35.57 after the world’s largest maker of construction equipment is likely to announce a decline in sales and profit.

Fifth Third Bancorp ((FITB)) dropped 8.0% or 23 cents to $2.62. The diversified financial services company dropped after CIT Group Inc., Huntington Bancshares Inc. and Capital One posted quarterly losses as the credit environment weakens further and more borrowers fall behind payments.

Forestar Group, Inc ((FOR)) jumped 35.9% or $3.32 to $12.56 after the manager of land with oil and gas said it received an unsolicited letter from Holland M. Ware to buy the company for $15 a share in cash or $535.5 million for the entire company.

General Electric Company ((GE)) fell 3.9% or 53 cents to $12.95 after the world''s largest maker of jet engines and electric turbines reported fourth quarter revenues fell 5% to $46.2 billion from $48.5 billion a year ago. Net income in the quarter fell 44% to $3.72 billion or 35 cents per diluted share compared to net income of $6.7 billion or 66 cents per share a year ago.

Geron Corporation ((GERN)) rallied 55.4% or $2.83 to $8.04 after the biotech company plans to start a clinical trial that will attempt to use stem cells to energize growth in nerve tissue in patients with spinal cord injuries.

Google Inc ((GOOG)) lost 3.0% or $8.18 to $298.32 after fourth quarter revenues rose 18% to $5.70 billion from $4.83 billion a year ago. Net income in the quarter fell 68% to $382 million or $1.21 per diluted share compared to net income of $1.21 billion or $3.79 per share a year.

Harley-Davidson, Inc ((HOG)) slipped 16.7% or $2.08 to $10.32 after the motorcycles maker said it will cut about 1,100 jobs or about 11% of its work force over the next two years. The fourth quarter net income fell 58% on weak demand and weak financing environment.

The company expects the job cuts to result in charges of $110 million to $140 million over 2009 and 2010 and expects to save $60 million to $70 million a year.

MasterCard Incorporated ((MA)) lost 4.2% or $5.46 to $123.39 after the world’s second-biggest electronic payment processor was rated “sell” in a research note at Citigroup Inc.

Microsoft Corporation ((MSFT)) slid 11.7% or $2.27 to $17.11 said second quarter revenues rose 1% to $16.6 billion from $16.4 billion a year ago. Net income in the quarter fell 11% to $4.17 billion or 47 cents per diluted share compared to net income of $4.71 billion or 50 cents per share a year.

ProLogis ((PLD)) decreased 8.7% or 98 cents to $10.27 after the global provider of distribution facilities announced today that it has leased more than 140,000 square feet in Bratislava, Slovakia, to Tesco International Clothing Brand s.r.o., a division of Tesco plc, one of the world''s largest food and general merchandise retailers.

People''s United Financial, Inc ((PBCT)) gained 5.5% or 90 cents to $17.27 after the savings and loan institution reported a net income of $139.5 million or 42 cents per share for 2008 compared to $150.7 million or 52 cents per share for 2007.

For the fourth quarter in 2008, the bank reported a net income of $35.4 million or 11 cents a share compared to $46 million or 16 cents a share for the fourth quarter of 2007.

Schlumberger Limited ((SLB)) slid 3.0% or $1.02 to $36.25 after the world''s largest oilfield services company reported fourth quarter revenues rose 10% to $6.87 billion from $6.25 billion a year ago. Net income in the quarter fell 17% to $1.15 billion or 95 cents a diluted share compared to net income of $1.38 billion or $1.12 per share a year ago.

Webster Financial Corporation ((WBS)) declined 18.9% or $1.01 to $4.32 after the bank company reported fourth quarter net interest income rose 3% to $126.1 million from $122.7 million a year ago. Net loss in the quarter was $300.5 million or $5.91 per diluted share compared to net loss of $8.7 million or 16 cents per share a year ago.

Wyeth ((WYE)) added 8.2% or $3.22 to $42.05 after the rival drug giant Pfizer is considering to launch a bid to buy the company for $60 billion.

Xerox Corporation ((XRX)) lost 5.2% or 40 cents to $7.19 after the technology and services enterprise reported fourth quarter revenues fell 10% to $4.37 billion from $4.88 billion a year ago. Net income in the quarter fell 100% to $1 million or break even per diluted share compared to net income of $382 million or 41 cents per share a year ago.