Textron Drops; Jones Lang, CB Richard Surge

Mayank Mehta
04 Feb, 2009
New York City

Textron led the decliners after it was forced to tap in the credit line to boost its liquidity and repay its commercial paper debt. CB Richard Ellis and Jones Lang LaSalle surged after JLL exceeded the earnings expectations.

[R]2:30PM New York – Textron led the decliners after it was forced to tap in the credit line to boost its liquidity and repay its commercial paper debt. CB Richard Ellis and Jones Lang LaSalle surged after JLL exceeded the earnings expectations.[/R]

Of the stocks in S&P 500 index, 223 increased, 276 declined and 1 was unchanged.

Textron Inc led decliners in the S&P 500 index with a fall of 18.4% followed by losses in Huntington Bancorp of 17.8%, in SLM Corp of 12.4%, in Massey Energy Company of 11.5%, in Ryder Systems Inc of 10.8%, in Bank of America of 10% and in Kraft Foods Inc of 9.3%.

CB Richard Ellis led gainers in the S&P 500 index with a rise of 13% followed by increases in Freeport McMoran of 9.7%, in Electronic Arts of 9.7%, in Nisource Inc of 7.5%, in AK Steel Holdings of 7%.

Other Movers

ACE Limited ((ACE)) dropped 4.1% or $1.77 to $41.00 after the property and casualty insurance company said fourth quarter net premiums rose 5% to $3.2 billion from $3.06 billion a year ago. Net income in the quarter fell 96% to $20 million or 6 cents per diluted share compared to net income of $572 million or $1.69 per share a year ago.

Archer Daniels Midland Company ((ADM)) fell 5.6% or $1.57 to $26.02 after the agricultural commodities based company was downgraded at JPMorgan to “neutral from “overweight” based on caution about outlook.

Alcatel Lucent ((ALU)) rose 4.2% or 8 cents to $1.96 after the world''s largest maker of telecom equipment reported fourth quarter revenues fell 5.3% to €4.95 billion from €5.23 billion a year ago. Net loss in the quarter was €3.89 billion or €1.72 per diluted share compared to net loss of €2.58 billion or €1.14 per share a year ago.

Arthur J. Gallagher & Co ((AJG)) fell 7.4% or $1.76 to 22.00 after the largest insurance brokerages said fourth quarter revenues rose 0.5% to $412.1 million from $410 million a year ago. Net income in the quarter fell 80% to $4.7 million or 5 cents per diluted share compared to net income of $23.4 million or 25 cents per share a year ago.

CB Richard Ellis Group, Inc ((CBG)) rose 14.8% or 53 cents to $4.11 after the competitor Jones LaSalle reported better than expected reported. JLL ((JLL)) reported excluding one time items earnings of $1.85 a share.

Centex Corporation ((CTX)) added 10.3% or 86 cents to $9.18 after the third-largest U.S. homebuilder said third quarter revenues fell 53% to $872.2 million from $1.9 billion a year ago. Net loss in the quarter was $663.9 million or $5.34 per diluted share compared to net loss of $975.2 million or $7.94 per share a year ago.

Costco Wholesale Corporation ((COST)) fell 7.6% or $3.51 to $42.61 the largest U.S. warehouse-club chain warned second quarter earnings per share will be “substantially below” analysts'' 70 cents consensus estimates and will not provide earnings for the rest of the year. Comparable same store sales companywide declined 2% and were flat at the domestic locations.

Electronic Arts Inc ((ERTS)) rose 4.3% or 64 cents to $15.50 after the video game publisher said third quarter revenues rose 10% to $1.65 billion from $1.50 billion a year ago. Net loss in the quarter was $641 million or 2 cents per diluted share compared to net loss of $33 million or 10 cents per share a year ago.

Freeport-McMoran Copper & Gold Inc ((FCX)) the copper, gold and molybdenum mining company rose 9.7% or $2.45 to $27.60 on speculation in media.

Fiserv, Inc ((FISV)) climbed 3.5% or $1.12 to $32.94 after the financial technology company said fourth quarter revenues fell 4% to $1.06 billion from $1.11 billion a year ago. Net income in the quarter fell 35% to $62 million or 39 cents per diluted share compared to net income of $96 million or 58 cents per share a year ago.

The Goodyear Tire & Rubber Company ((GT)) gained 10.3% or 63 cents to $6.73 ahead of high yield industry conference with JP Morgan.

JDS Uniphase Corporation ((JDSU)) the provider of communications test and measurement solutions increased 10.3% or 40 cents to $4.25.

Illumina, Inc ((ILMN)) jumped 7.1% or $2.01 to $30.00 after the genetic analysis company said fourth quarter revenues rose 43% to $160.9 million from $112.6 million a year ago. Net income in the quarter was $28.9 million or 22 cents per diluted share compared to net loss of $4.1 million or 4 cents per share a year ago.

Kraft Foods Inc ((KFT)) fell 9.2% or $2.65 to $26.06 after the manufacture and sale of packaged food reported fourth quarter revenues rose 6% to $10.77 billion from $10.14 billion a year ago. Net income in the quarter fell 72% to $163 million or 11 cents per diluted share compared to net income of $585 million or 38 cents per share a year ago.

Massey Energy Company ((MEE)) fell 5.8% or 90 cents to $14.37 after the steam and metallurgical coal miner reported adjusted fourth quarter earnings of 62 cents per share missing analyst estimates of 78 cents. Revenues in the quarter rose 29% year over year to $755 million.

National Oilwell Varco, Inc ((NOV)) gained 3.9% or $1.01 to $26.63 after provider of equipment and components used in oil and gas drilling reported fourth quarter revenues rose 5% to $3.8 billion from $2.7 billion a year ago. Net income in the quarter rose 55% to $585.0 million or $1.40 per diluted share compared to net income of $376.7 million or $1.05 per share a year ago.

Thomas & Betts Corporation ((TNB)) rose 16.0% or $3.32 to $24.03 after the electrical-component maker reported fourth quarter revenues fell 5% to $571.3 million from $602.4 million a year ago. Net income in the quarter fell 65% to $17.1 million or 31 cents per diluted share compared to net income of $48.3 million or 83 cents per share a year ago.

Time Warner Cable Inc ((TWC)) rose 4.4% or 82 cents to $19.17 after the New York-based cable operator reported fourth quarter revenues rose 8% to $4.4 billion from $4.09 billion a year ago. Net loss in the quarter was $8.16 billion or $8.36 per diluted share compared to net income of $327 million or 33 cents per share a year ago.

Travelzoo Inc ((TZOO)) gained 7.7% or 31 cents to $4.30 after the global Internet media company said fourth quarter revenues rose 4% to $19.9 million from $19.1 million a year ago. Net loss in the quarter was $129,000 or 1 cent per diluted share compared to net income of $46,000 or break even per share a year ago.

Tupperware Brands Corporation ((TUP)) jumped 3.7% or 75 cents to $20.82 after the food-storage container maker reported fourth quarter revenues fell 10% to $521.7 million from $576.9 million a year ago. Net income in the quarter rose 20% to $65.8 million or $1.06 per diluted share compared to net income of $54.9 million or 88 cents per share a year ago.

Textron Inc ((TXT)) plunged 6.9% or 55 cents to $7.42 after the helicopter maker that operates in 34 countries said it has drawn the balance of the $3 billion credit line to it and its finance unit to repay all of its commercial paper debt and boost liquidity.

The Walt Disney Company ((DIS)) dropped 7.4% or $1.54 to $19.08 after the global entertainment company said first quarter revenues fell 8% to $9.60 billion from $10.45 billion a year ago. Net income in the quarter fell 32% to $845 million or 45 cents per diluted share compared to net income of $1.25 billion or 63 cents per share a year ago.

Wynn Resorts, Limited ((WYNN)) plunged 10.3% or $2.99 to $25.83 after the operator of destination casino resorts said efficiency initiatives to be implemented immediately in Las Vegas and reductions in pay for all salaried employees reduced work. Morgan Stanley cut its earnings estimate for the quarter to 10 cents from 43 cents a share.