Bank of America, Huntington, Regions Fall

Mayank Mehta
02 Feb, 2009
New York City

U.S. stocks traded sideways. Bank of America faced more skepticism for its recent purchase of Merrill Lynch and the bank may be forced to raise more than $85 billion in bailout from the government. Rockwell Automation dropped on lowered earnings outlook. Piper Jaffray and Mattel dropped on earnings.

[R]4:20PM New York – U.S. stocks traded sideways as more worries arise for the economy and banking industry.[/R]

Of the stocks in S&P 500 index, 150 stocks increased, 347 declined and 3 were unchanged.

Huntington Bancorp led decliners in the S&P 500 index with a loss of 30% followed by losses in Regions Financial of 22%, in Mattel Inc of 15.4%, in International Paper of 15.4%, in Office Depot of 15.3% and in Marshall & Ilsley of 15%.

Bank of America, Charles Schwab and Rockwell Automation declined 10%.

Hartford Financial Services led gainers in the S&P 500 index with a rise of 14%, in Humana Inc of 6.8%, in Supervalu Inc of 5.6%, in Apollo Group of 5.2%, in Akamai Technologies Inc of 5.1% and in Sysco Corp of 5%.

Other Movers

ADC Telecommunications, Inc ((ADCT)) fell 28.9% or $1.47 to $$3.60 after the maker of phone equipment expects to report a first quarter loss between 17 cents to 23 cents per share on net sales of $240 million to $255 million.

Banco Bradesco S.A. ((BBD)) fell 4.0% or 36 cents to $8.59 after the Brazil based private-sector bank reported fourth quarter net income in the quarter fell 1% to R$1.8 billion or compared to net income of R$2.2 billion a year ago. Net income for the fiscal year 2008 rose 5% to R$7.6 billion compared to net income of R$7.2 billion a year ago.

BE Aerospace, Inc ((BEAV)) added 10.3% or $1.00 to $10.67 after the world''s biggest plane seat maker reported fourth quarter sales increased 14% to $526.8 million from $463.5 million a year ago. Net loss in the quarter was $253.6 million or $2.59 per diluted share compared to net income of $42.3 million or 46 cents per share a year ago.

Bank of America Corp ((BAC)) plunged 8% or 58 cents to $6.00 as more worries arise on the health of the banking sector. 123jump.com earlier estimated that the largest bank in the U.S. may need as much as $85 billion in government bailout for its ill-timed purchase of Merrill Lynch and sub prime mortgage lender Countrywide Financial.

Corn Products International, Inc ((CPO)) fell 7.5% or $1.75 to $21.35 after the producer of high-fructose corn syrup announced that for fiscal 2009 it expects diluted earnings per share to be in the range of $2.10 to $2.60. According to Thomson Reuters Estimates, analysts were expecting the company to report earnings per share of $3.10 for the same period.

DSP Group, Inc ((DSPG)) dropped 20.7% or $1.35 to $5.16 after the semiconductor designer and developer reported fourth quarter revenues fell 16% to $71.6 million from $85.2 million a year ago. Net loss in the quarter was $194.4 million or $7.23 per diluted share compared to net loss of $1.6 million or 5 cents per share a year ago.

The Hartford Financial Services Group, Inc ((HIG)) gained 7.8% or 98 cents to $14.15 after the insurance and financial services company on media coverage of speculation by Morgan Stanley analyst. The analysts speculated that the improvements in the markets could lead to a multiple expansion of the company. The speculation was first reported in Barron’s attributing to analyst Nigel Dally.

Humana Inc ((HUM)) gained 4.0% or $1.49 to $39.42 after the health insurer reported fourth quarter revenues rose 18% to $7.5 billion from $6.3 billion a year ago. Net income in the quarter fell 28% to $174.1 million or $1.03 per diluted share compared to net income of $243.2 million or $1.43 per share a year ago.

Hasbro, Inc ((HAS)) the world’s second-biggest toymaker, lost 8.0% or $1.93 to $22.20. Mattel reported 11% sales decline.

International Paper Company ((IP)) fell 10.5% or 96 cents to $8.16 after the company was cut to “sell” from “neutral” at Goldman Sachs. Goldman downgrades International Paper to reflect fourth quarter 2008 earnings shortfall in company’s core business and forecasted 2009 loss and speculated dividend cut.

Mattel, Inc ((MAT)) plunged 15.0% or $2.14 to $12.05 after the maker of Barbie and hot wheels reported fourth quarter sales fell 11% to $1.94 billion from $2.19 billion a year ago. Net income in the quarter fell 46% to $176.4 million or 49 cents per diluted share compared to net income of $328.5 million or 89 cents per share a year ago.

NYSE Euronext ((NYX)) fell 12.9% or $2.84 to $19.15 after the stock market operator in New York and Europe was downgraded to “sell” from “neutral” at Goldman Sachs Group Inc.

Odyssey Marine Exploration, Inc ((OMEX)) rose 11.6% or 42 cents to $4.40 after the exploration and recovery of shipwrecks said it may have discovered the long-sought shipwreck of HMS Victory lost in 1744, without citing the exact location of the find. The company said the ship is located within 100 kilometer from its original location where it was expected to have been lost and where no other nation has claimed a territory.

Piper Jaffray Companies ((PJC)) lost 11.2% or $3.23 to $25.48 after the middle-market investment bank and institutional securities firm reported fourth quarter revenues fell 60% to $59.4 million from $147.9 million a year ago. Net loss in the quarter was $153.3 million or $9.78 per diluted share compared to net loss of $28.2 million or $1.79 per share a year ago.

Rockwell Automation, Inc ((ROK)) lost 12.1% or $3.15 to $22.89 after the maker of factory-automation equipment slashed its fiscal 2009 guidance due to the weak economic environment. The weakness in automotive and mining equipment industries is likely to lower demand for the company’s products.

Sysco Corporation ((SYY)) rose 3.0% or 66 cents to $22.95 after the North American distributor of food and related products reported second quarter sales fell 1% to $9.15 billion from $9.24 billion a year ago. Net income in the quarter fell 10% to $237.7 million or 40 cents per diluted share compared to net income of $264.1 million or 43 cents per share a year ago.