Freeport McMoran Rises; Caterpillar Plunges

Mayank Mehta
26 Jan, 2009
New York City

Earnings and merger news dominated movers in trading. Caterpillar and Deere & Company dropped on earnings outlook. Morgan Stanley and Bank of America rose after earnings fees for arranging a merger between Pfizer and Wyeth. Lennar surged after an analyst upgraded the stock.

[R]2:00PM New York – Earnings and merger news dominated movers in trading. Caterpillar and Deere & Company dropped on earnings outlook. Morgan Stanley and Bank of America rose after earnings fees for arranging a merger between Pfizer and Wyeth.[/R]

Of the S&P 500 index, 261 decline, 234 increased and 5 are unchanged.

Aflac Inc led decliners in the S&P 50 index with a loss of 13.4% followed by losses in Rohm & Haas of 13.4%, in U.S. Bancorp of 13.3%, in Regions Financial of 13%, in Zions Bancorp of 11.9% and in Pfizer Inc of 10.5%.

Lennar Corp led gainers in the S&P 500 index with a rise of 10.3% followed by increase in Ford Motor Company of 9.5%, in Freeport McMoran of 9.3%, in Noble Corp 8%, in Danaher Corp of 7.8% and in Quest Diagnostic of 7.5%.

Other Movers

Alberto Culver Company ((ACV)) added 8.8% or $2.09 to $26.42 after the manufacturer and marketer of personal care products reported first quarter sales rose 2.8% to $352.8 million from $343.2 million a year ago. Net income in the quarter rose 2.6% to $31.7 million or $32 cents per diluted share compared to net income of $30.9 million or 31 cents per share a year ago.

Bank of America Corporation ((BAC)) rose 7.5% or 47 cents to $6.71. The mega deal between Pfizer and Wyeth will earn the bank more than $100 million fees and the bank also arranged debt of $22 billion for the purchase.

Caterpillar Inc ((CAT)) declined 9.9% or $3.58 to $32.08 after the world''s largest maker of mining and construction equipment reported fourth quarter revenues rose 6% to $12.92 billion from $12.14 billion a year ago. Net income in the quarter fell 32% to $661 million or $1.08 per diluted share compared to net income of $975 million or $1.50 per share a year ago.

Deere & Company ((DE)) plunged 4.6% or $1.69 to $34.93 after the farm-equipment maker says it will lay off almost 700 workers at factories in Brazil and Iowa. The Illinois based company announced a lay off of 502 workers at an agricultural harvesting equipment plant in Brazil.

Danaher Corporation ((DHR)) gained 8.3% or $4.30 to $55.65 after the industrial and consumer products that fourth quarter profit slipped 4.5%. Net income fell to $305.7 million or 92 cents per share from $320.2 million or 97 per share in the fourth quarter of 2007.

Revenue for the quarter ending December 31 was $3.18 billion up 1% from $3.14 billion in the year-ago period.

Freeport-McMoran Copper & Gold Inc ((FCX)) jumped 13.1% or $3.00 to $25.81 after the copper, gold and molybdenum mining company registered shelf offering of $750 million with distribution agreement with JP Morgan securities inc.

Ford Motor Company ((F)) gained 7.7% or 14 cents to $1.94 after the second-largest U.S. automaker projected that the domestic sales of light trucks and cars will be about the same in January as in December.

Halliburton Company ((HAL)) gained 6.2% or $1.14 to $19.39 after the oilfield services provider reported fourth quarter revenues rose 17% to $4.91 billion from $4.18 billion a year ago. Net income in the quarter fell 32% to $468 million or 53 cents per diluted share compared to net income of $690 million or 75 cents per share a year ago.

Lennar Corporation ((LEN)) climbed 23.1% or $1.57 to $8.44 after the homebuilder was upgraded by an analyst citing that the recent decline in the stock was overdone on the worries that the company may have engage in transactions with executives without disclosing them. The company denies the allegations.

Morgan Stanley ((MS)) surged 9.5% or $1.79 to $20.50. Investment banks including Morgan Stanley and Bank of America Corp. may share in $205 million in fees in advising Pfizer Inc takeover of Wyeth Inc.

Pfizer Inc ((PFE)) lost 6.8% or $1.20 to $16.25 after the pharmaceutical company plans to cut 15% of the combined workforce after the merger with Wyeth. The move will eliminate 19,000 jobs.

Quest Diagnostics Incorporated ((DGX)) rose 7.5% or $3.52 to $50.10 after the provider of diagnostic testing, information and services reported earnings per share of 87 cents compared to 79 cents a year ago, fourth quarter Earnings per share from continuing operations on 1.7% higher revenues. The company authorized $500 million in stock repurchase and estimated 3% rise in revenues and earnings between $3.50 and $3.70 a share in the current year.

Rohm & Haas Company ((ROH)) fell 11.8% or $7.80 to $58.02 after the specialty materials company said that Dow Chemical does not intend to close its pending acquisition on or before tomorrow.

Tyson Foods, Inc ((TSN)) surged 10.5% or 91 cents to $9.57 after the meat protein and food production company reported first quarter sales rose 0.6% to $6.52 billion from $6.48 billion a year ago. Net loss in the quarter was $112 million or $30 cents per diluted share compared to net income of $34 million or 10 cents per share a year ago.

Weatherford International Ltd ((WFT)) rose 7.7% or 84 cents to $11.69 after the Houston based oil services firm reported fourth quarter revenues rose 20% to $2.63 billion from $2.19 billion a year ago. Net income in the quarter rose 5% to $348.1 million or 50 cents per diluted share compared to net income of $331 million or 47 cents per share a year ago.