AmEx Drops; Morgan Stanley Rises

123jump.com Staff
11 Mar, 2009
New York City

Stocks rose in the morning trading but lost the momentum in the afternoon. Banks traded volatile after UBS predicted tough market environment for the brokerage firm. American Express traded lower on rating downgrade and Morgan Stanley traded higher on an upgrade. Vail Resorts gained on earnings.

[R]11:00AM New York – American International Group, Inc led the decliners in the S&P 500 index of 6.5%. The Boston Beer Company, Inc fourth quarter net down 47%. J. Crew Group, Inc fourth quarter loss. Staples, Inc fourth quarter net down 14%.[/R]

Of the stocks in S&P 500 index, 414 increased, 81 declined and 5 were unchanged.

American International Group, Inc led the decliners in the S&P 500 index with a loss of 6.5% followed by losses in American Express Company of 4.5%, in National Semiconductor Corporation of 4.3%, in CB Richard Ellis Group, Inc of 4.1%, in E*TRADE Financial Corporation of 3.6%.

Office Depot, Inc led gainers in the S&P 500 index with a rise of 19.5% followed by gains in The Manitowoc Company, Inc of 15.6%, in Lincoln National Corporation of 14.7% and Citigroup Inc of 13.9%.

Other Movers

American Eagle Outfitters, Inc ((AEO)) slid 5.9% or 57 cents to $9.00 after the teen clothing retailer reported fourth quarter sales fell 9% to $905.7 million from $995.4 million a year ago. Net income in the quarter fell 77% to $32.7 million or 16 cents per diluted share compared to net income of $140.5 million or 66 cents per share a year ago.

American Express Company ((AXP)) dropped 6.5% or 33 cents to $11.84 after the biggest U.S. credit-card company was downgraded by Goldman Sachs Group Inc.

The Boston Beer Company, Inc ((SAM)) fell 7.4% or $1.65 to $20.50 after the company said fourth quarter revenues rose 13% to $103.8 million from $92.2 million a year ago. Net income in the quarter fell 47% to $3.6 million or 25 cents per diluted share compared to net income of $6.8 million or 46 cents per share a year ago.

China Digital TV Holding Co., Ltd ((STV)) gained 6.0% or 43 cents to $7.51 after the country’s largest supplier of smart cards for digital television access expects first quarter 2009 revenue to decline 16-21% year-on-year to between $13.5 million and $14.5 million. Smart card shipments are expected to total in he range of 2.1 and 2.3 million in the first quarter and increase 20% year-on-year in 2009.

Collective Brands, Inc ((PSS)) declined 7.2% or 70 cents to $9.00 a shoe retailer said fourth quarter sales fell 5.4% to $735.2 million from $776.8 million a year ago. Net loss in the quarter was $144 million or $2.28 per diluted share compared to net loss of $46.6 million or 73 cents per share a year ago.

ExlService Holdings, Inc ((EXLS)) lost 3.0% or 24 cents to $7.63 after the business solutions provider reported fourth quarter revenues rose 1.2% to $43.7 million from $43.2 million a year ago. Net income in the quarter fell 65% to $3.4 million or 12 cents per diluted share compared to net income of $9.8 million or 33 cents per share a year ago.

FuelCell Energy, Inc ((FCEL)) added 7.8% or 16 cents to $2.21 after the manufacturer of fuel cell power plants for electric power generation said first quarter revenues rose 45% to $21.7 million from $15.0 million a year ago. Net loss in the quarter was $20.7 million or 30 cents per diluted share compared to net loss of $19.7 million or 29 cents per share a year ago.

Hewlett-Packard Company ((HPQ)) gained 4.1% or $1.13 to $28.17.

The Hartford Financial Services Group, Inc ((HIG)) gained 4.4% or 23 cents to $5.40.

Hovnanian Enterprises, Inc ((HOV)) rose 8.0% or 0.050 cents to $0.67 after the homebuilder said first quarter revenues fell 66% to $373.8 million from $1.1 billion a year ago. Net loss in the quarter was $178.4 million or $2.29 per diluted share compared to net loss of $130.9 million or $2.07 per share a year ago.

J. Crew Group, Inc ((JCG)) rose 10.7% or $1.04 to $10.76 an apparel maker said fourth quarter revenues fell 3% to $388 million from $399.9 million a year ago. Net loss in the quarter was $13.5 million or 22 cents per diluted share compared to net income of $25.0 million or 39 cents per share a year ago.

JetBlue Airways Corporation ((JBLU)) gained 8.7% or 30 cents to $3.75 after the discount carrier was upgraded by Bank of America-Merrill Lynch to “buy” from “neutral” calling the stock the ""best defensive way"" to play the airline sector.

LDK Solar Co., Ltd ((LDK)) plunged 7.0% or 33 cents to $4.38 after the manufacturer of multi-crystalline solar wafers reported fourth quarter sales rose 121% to $426.6 million from $192.8 million a year ago. Net loss in the quarter was $133.1 million or $1.25 per ADS compared to net income of $49.2 million or 44 cents per ADS a year ago.

LHC Group, Inc ((LHCG)) climbed 9.4% or $1.72 to $19.94 after the provider of home-based health care raised its forecasts for this year, ahead of analyst expectations. LHC said it expects a profit of $2 to $2.10 per share excluding the effects of any acquisitions it makes.

Morgan Stanley ((MS)) rose 10.6% or $2.22 to $23.06 after the fifth-biggest U.S. bank was raised to “buy” from “neutral” by Goldman Sachs.

Staples, Inc ((SPLS)) dropped 4.5% or 72 cents to $15.02 after the world''s largest office products retailer reported fourth quarter sales rose 16% to $6.17 billion from $5.32 billion a year ago. Net income in the quarter fell 14% to $286 million or 40 cents per diluted share compared to net income of $333.2 million or 47 cents per share a year ago.

Take-Two Interactive Software, Inc ((TTWO)) declined 6.5% or 45 cents to $6.40 after the video game publisher said first quarter revenues rose 7% to $256.8 million from $240.4 million a year ago. Net loss in the quarter was $50.4 million or 66 cents per diluted share compared to net loss of $38 million or 52 cents per share a year ago.

Vail Resorts, Inc ((MTN)) gained 6.0% or 99 cents to $17.50 after the ski-resort operator second quarter revenues rose 8% to $388.8 million from $360.0 million a year ago. Net income in the quarter rose 18% to $60.5 million or $1.65 per diluted share compared to net income of $51.3 million or $1.31 per share a year ago.