Master Card, Visa Rise, Bank of America Plunges

Mayank Mehta
05 Feb, 2009
New York City

Bank stocks remained weak in trading. Fifth Third, Huntington, Regions Financial declined. Bank of America fell further as the expectations of the bank nationalization gathered momentum. Akamai Technologies surged on better than expected results.

[R]3:00PM New York – Bank stocks remained weak in trading. Fifth Third, Huntington, Regions Financial declined. Bank of America fell further as the expectations of the bank nationalization gathered momentum. Akamai Technologies surged on better than expected results.[/R]

U.S. stocks edged higher with the S&P 500 index gained 2.03% to 849.14. Of the stocks in S&P 500 index, 424 increased, 75 declined and 1 was unchanged.

Akamai led gainers in the index with a rise of 18% followed increases in Abercrombie & Fitch with a rise of 11%, in Aflac Inc of 11.6% and Fifth Third Bancorp of 9%.

Harman International led decliners in the S&P 500 index with a loss of 13% followed by losses in Sunoco of 7%, in Sprint Nextel and Textron of 4%, in General Electric, Hewlett Packard and HJ Heinz of 2%.

Other Movers

Akamai Technologies, Inc ((AKAM)) added 7.0% or $1.00 to $15.17 after the Internet content delivery infrastructure provider said fourth quarter revenues rose 16% to $212.6 million from $183.2 million a year ago. Net income in the quarter rose 13% to $40.5 million or 22 cents per diluted share compared to net income of $35.9 million or 20 cents per share a year ago.

Assurant, Inc ((AIZ)) declined 3.6% or $1.00 to $26.15 after the specialty insurer said fourth quarter revenues rose 2% to $2.22 billion from $2.18 billion a year ago. Net income in the quarter rose 51% to $182.4 million or $1.55 per diluted share compared to net income of $120.8 million or $1.01 per share a year ago.

Atmel Corporation ((ATML)) dropped 3.7% or 13 cents to $3.35 after the chip maker said fourth quarter revenues fell 21% to $334.6 million from $425.6 million a year ago. Net loss in the quarter was $24.4 million or 5 cents per diluted share compared to net income of $1.7 million or break even per share a year ago.

Bank of America Corporation ((BAC)) plunged 10.9% or 51 cents to $4.15 on the fears tha the bank may be nationalized as the recently acquired Merrill Lynch and Countrywide continue to generate losses well above the expectations. Ken Lewis, the current CEO may be replaced with a management that is less acquisitive.

Banco Santander SA ((STD)) fell 3.3% or 26 cents to $7.46 after the Spain based financial group reported fourth quarter net income in the quarter fell 62% to €1.94 billion or compared to net income of €2.5 billion a year ago.

Blackboard Inc ((BBBB)) jumped 9.0% or $2.20 to $26.53 after the educational software company said fourth quarter revenues rose 35% to $85 million from $63.2 million a year ago. Net income in the quarter fell 28.6% to $3 million or 9 cents per diluted share compared to net income of $4.2 million or 14 cents per share a year ago.

BMC Software, Inc ((BMC)) rose 4.6% or $1.21 to $27.10 after the enterprise software maker said third quarter revenues rose 6% to $488.4 million from $459 million a year ago. Net income in the quarter fell 0.2% to $83.8 million or 45 cents per diluted share compared to net income of $84 million or 42 cents per share a year ago.

CARBO Ceramics Inc ((CRR)) gained 10.9% or $3.63 to $36.80 after the world''s largest supplier of ceramic proppant and provider of fracture design reported fourth quarter revenues rose 30% to $105.6 million from $81 million a year ago. Net income in the quarter rose 371% to $64.1 million or $2.66 per diluted share compared to net income of $13.6 million or 56 cents per share a year ago.

CIGNA Corporation ((CI)) added 11.4% or $2.07 to $20.09 after the health insurer posted a fourth quarter loss but management forecasted 2009 earnings higher than expected by analysts.

Cisco Systems, Inc ((CSCO)) fell 4.3% or 69 cents to $15.15 after it designs chips used in network equipment said second quarter revenues fell 7% to $9.1 billion from $9.8 billion a year ago. Net income in the quarter fell 28.6% to $1.5 billion or 26 cents per diluted share compared to net income of $2.1 billion or 33 cents per share a year ago.

Deutsche Bank AG ((DB)) lost 5.7% or $1.56 to $25.80 after the global investment bank reported fourth quarter revenues was €885 million from €7.3 billion a year ago. Net loss in the quarter was €4.8 billion or €8.71 per diluted share compared to net income of €969 million or €1.93 per share a year ago.

Dolby Laboratories, Inc ((DLB)) climbed 9.7% or $2.53 to $28.40 after the audio technology licensor said first quarter revenues rose 20% to $180.3 million from $150.2 million a year ago. Net income in the quarter rose 64% to $78.1 million or 68 cents per diluted share compared to net income of $47.7 million or 42 cents per share a year ago.

Eagle Materials Inc ((EXP)) rose 14.0% or $2.52 to $20.40 after the manufacturer of basic building materials reported third quarter revenues fell 20% to $137.8 million from $173 million a year ago. Net income in the quarter fell 50% to $11.3 million or 26 cents per diluted share compared to net income of $22.5 million or 50 cents per share a year ago.

Fifth Third Bancorp ((FITB)) lost 11.0% or 17 cents to $1.37 after the mid-tier banks declined on the worries that more capital may be needed by the banks. Fifth Third, Huntington Banchshares and Regions Financial fell for the fifth straight day.

Harman International Industries, Incorporated ((HAR)) slid 12.8% or $1.92 to $13.08 after the manufactures audio and electronic products reported a loss on weak demand. The company also plans to cut more jobs.

Gartner, Inc ((IT)) fell 22.8% or $3.42 to $11.54 after the provider of research and analysis on the global information technology industry reported fourth quarter revenues rose 1% to $347.3 million from $343.2 million a year ago. Net income in the quarter fell 13% to $33.6 million or 35 cents per diluted share compared to net income of $38.8 million or 37 cents per share a year ago.

International Flavors & Fragrances Inc ((IFF)) rose 13.1% or $3.66 to $31.45 after it posted better than expected fourth quarter results on better than expected sales in Asia.

MasterCard Incorporated ((MA)) gained 6.8% or $9.57 to $149.72 after the credit card processor said Thursday its fourth quarter profit declined 21% compared with year-ago results.

M/I Homes, Inc ((MHO)) lost 18.6% or $2.03 to $8.83 after the builder of single family homes reported fourth quarter revenues fell 56% to $150.2 million from $340.5 million a year ago. Net loss in the quarter was $75.4 million or $5.38 per diluted share compared to net loss of $70.9 million or $5.06 per share a year ago.

Novellus Systems, Inc ((NVLS)) lost 6.3% or 88 cents to $12.89 after the computer chip-making equipment said fourth quarter sales fell 48% to $188.5 million from $363.5 million a year ago. Net loss in the quarter was $130.3 million or $1.36 per diluted share compared to net income of $52.9 million or 47 cents per share a year ago.

Penn National Gaming Inc ((PENN)) climbed 16.2% or $2.84 to $20.30 after the diversified, multi-jurisdictional owner and operator of gaming properties reported fourth quarter revenues fell 2.5% to $571.1 million from $585.8 million a year ago. Net loss in the quarter was $378.6 million or $4.77 per diluted share compared to net income of $32.2 million or 36 cents per share a year ago.

Scripps Network Interactive, Inc ((SNI)) gained 3.1% 65 cents to $21.40 after the media company reported fourth quarter revenues rose 3.5% to $412 million from $398 million a year ago. Net loss in the quarter was $154 million or 94 cents per diluted share compared to net loss of $299 million or $1.83 per share a year ago.

The Timberland Company ((TBL)) gained 3.1% or 33 cents to $10.83 after the engineering and marketing of premium quality footwear, apparel and accessories for consumers reported fourth quarter revenues fell 11.8% to $390.6 million from $442.7 million a year ago. Net income in the quarter fell 45.6% to $13.1 million or 23 cents per diluted share compared to net income of $24.1 million or 40 cents per share a year ago.

The Western Union Company ((WU)) fell 11.0% or $1.52 to $12.24 after the money transfer agent says its profit fell in the fourth quarter on slower demand for money transfers and bill payments. The company estimated slower growth in 2009 with sales expected to decline between 5% and 8%.

Wells Fargo & Company ((WFC)) the financial company and a bank holding company dropped 13.4% or $2.35 to $15.10 on a weakness in banking stocks.