MGM Surges; Sun Micro Plunges

Mayank Mehta
06 Apr, 2009
New York City

Sun Microsystems, Inc led the decliners in the S&P 500 index with a loss of 23.7%. U.S. stocks in the morning traded lower after the negotiations between IBM and Sun Microsystems ended with no deal, weak banking stocks on analyst downgrade and Treasury Secretary Geithner comments.

[R]1:15PM New York – Sun Microsystems, Inc led the decliners in the S&P 500 index with a loss of 23.7%. U.S. stocks in the morning traded lower after the negotiations between IBM and Sun Microsystems ended with no deal, weak banking stocks on analyst downgrade and Treasury Secretary Geithner comments.[/R]

Of the stocks in S&P 500 index, 72 increased, 426 declined and 2 were unchanged.

Sun Microsystems, Inc led the decliners in the S&P 500 index with a loss of 23.7% followed by losses in Regions Financial Corporation with a loss of 9.2%, in International Paper Company of 7.4%, in Marshall & Ilsley Corporation of 7.1%, in ENSCO International Incorporated of 7.0%.

Ford Motor Company led gainers in the S&P 500 index with a rise of 6.7% followed by gains in Wynn Resorts, Limited of 5.3%, in General Motors Corporation of 4.2% and Coventry Health Care, Inc of 3.5%.

Other Movers

American Express Company ((AXP)) dropped 3.7% or 56 cents to $14.77 on a weakness in banks and financial services.

Bank of America Corporation ((BAC)) declined dropped 2.2% or 17 cents to $7.43 after an influential bank analyst downgraded stocks of several banks.

Cisco Systems, Inc ((CSCO)) dropped 5.2% or 96 cents to $17.20 after the largest maker of networking equipment was downgraded by Goldman Sachs analyst Simona Jankowski cut her rating on the stock to “neutral” from “conviction Buy.”

Citigroup Inc ((C)) declined 2.8% or 8 cents to $2.77 with banks falling on the weakness in the morning trading.

JPMorgan Chase & Co ((JPM)) the financial company fell 1.7% or 52 cents to $28.76.

Lincoln National Corporation ((LNC)) dropped 4.9% or 34 cents to $6.56 after the U.S. life insurer has two debt payments in next five weeks. The company reiterated that it has internal funds to pay $500 million debt due in less than three weeks but $375 million in commercial paper debt is due in May.

MGM Mirage ((MGM)) surged 32.0% or $1.49 to $6.14 after the casino company hired Morgan Stanley to sell stakes in several casinos. Australian and Chinese investors are likely to show interests in acquiring stakes in casinos.

Regions Financial Corporation ((RF)) lost 6.3% or 29 cents to $4.27.

Sun Microsystems, Inc ((JAVA)) plunged 23.2% or $1.97 to $6.53 after the exclusive talks between IBM and the company ended with no agreement.

Sun Micro was looking for more than $10 a share, at least 10% more than what IBM is prepared to pay. IBM also lowered its earlier offer of $9.55 a share from $9.40 a share but Sun demanded certain assurances and conditions that IBM was not prepared to abide by.

SunTrust Banks, Inc ((STI)) the diversified financial services company slumped 6.0% or 83 cents to $12.99.

Ticketmaster Entertainment, Inc ((TKTM)) fell 6.0% or 27 cents to $3.87 after a New York senator unveiled a proposal aimed at giving fans a better chance to buy concert tickets at face value before ticket resellers scoop them up and raise the prices.

U.S. Bancorp ((USB)) the financial company and a bank holding company decreased 3.3% or 53 cents to $15.44.

Wynn Resorts, Limited ((WYNN)) rose 6.9% or $2.10 to $31.74 after the biggest U.S. casino company was upgraded by UBS AG.