Pepsi Bottling Surges; Eaton, Gannett Fall

Mayank Mehta
20 Apr, 2009
New York City

BB&T Corporation led the decliners in the S&P 500 index with a loss of 12.5%. Bank of America Corporation sinks despite profit beat. Coca-Cola Enterprises Inc rises on beverage industry consolidation. Weatherford International Ltd first quarter profit drops.

[R]12:10PM New York – BB&T Corporation led the decliners in the S&P 500 index with a loss of 12.5%. Bank of America Corporation sinks despite profit beat. Coca-Cola Enterprises Inc rises on beverage industry consolidation. Weatherford International Ltd first quarter profit drops.[/R]

Of the stocks in S&P 500 index, 44 increased, 453 declined and 3 were unchanged.

BB&T Corporation led the decliners in the S&P 500 index with a loss of 12.5% followed by losses in Capital One Financial Corporation with a loss of 12.2%, in Eaton Corporation of 10.2%, in Marshall & Ilsley Corporation of 9.9%, in General Motors Corporation of 9.6%.

Sun Microsystems, Inc led gainers in the S&P 500 index with a rise of 36.0% followed by gains in The Pepsi Bottling Group, Inc of 18.9%, in Coca-Cola Enterprises Inc of 7.3% and Brown-Forman Corporation of 3.1%.

Other Movers

Bank of America Corporation ((BAC)) lost 11.1% or $1.18 to $9.41 after it reported first quarter revenues rose 109.5% to $35.76 billion from $17.07 billion a year ago. Net income in the quarter rose 175.5% to $2.81 billion or 44 cents per diluted share compared to net income of $1.02 billion or 23 cents per share, a year ago. Goldman Sachs analysts estimated that banks charge offs are rising rapidly after the bank set aside $13.4 billion in reserves, an increase of 57% a year ago.

Bank of Hawaii Corporation ((BOH)) slid 6.5% or $2.40 to $34.00 after the bank company reported first quarter net interest income fell 5% to $97.1 million from $102.2 million a year ago. Net income in the quarter fell 37% to $36 million or 75 cents per diluted share compared to net income of $57.2 million or $1.18 per share, a year ago.

BB&T Corporation ((BBT)) fell 13.8% or $3.25 to $20.1% after the banks fell on rising charge offs at Bank of America.

Capital One Financial Corporation ((COF)) dropped 15.4% or $2.76 to $15.0 after the diversified banking company was downgraded at Goldman Sachs to “neutral” from “buy and lowered its price target to $17 from $18.

Coca-Cola Enterprises Inc ((CCE)) added 5.7% or 86 cents to $15.7 after the distributing non-alcoholic beverages Wal-Mart Stores Inc may have cut the amount of shelf space it gives the bottled water brands of Coca-Cola Co and PepsiCo Inc according to a prominent beverage analyst.

Eaton Corporation ((ETN)) lost 9.9% or $4.45 to $40.30 after the industrial manufacturer reported first quarter revenues fell 20% to $2.81 billion from $3.5 billion a year ago. Net loss in the quarter was $50 million or 30 cents per diluted share compared to net income of $247 million or $1.64 per share, a year ago.

Gannett Co., Inc ((GCI)) fell 13.0% or 49 cents to $3.27 after the rating agency Moody''s Investors Service said Monday it may downgrade the ratings on newspaper publisher Gannett Co. further into junk status.

Lennar Corporation ((LEN)) plunged 13.0% or $1.22 to $8.12 after the homebuilder was sued in connection with drywall that may emit various sulfur-based gases.

The Pepsi Bottling Group, Inc ((PBG)) rose 19.2% or $4.84 to $30.26 after the soft drinks and other ready-to-drink beverages first quarter net income slid 0.9%. PepsiCo Inc launched a $6 billion takeover bid for its two largest independent bottlers. The company offered to buy shares of Pepsi Bottling for $29.50 a share and $23.27 a share for PepsiAmericas Inc. ((PAS)).

Sun Microsystems, Inc ((JAVA)) gained 35.8% or $2.40 to $9.09 after the network computing infrastructure solutions agreed to acquire for $7.4 billion by Oracle after it failed to agree with IBM. Oracle ((ORCL)) declined 4%.

Weatherford International Ltd ((WFT)) plunged 7.3% or $1.08 to $13.66 after the Swiss-based, multi-national oilfield service company reported first quarter revenues rose 3% to $2.26 billion from $2.20 billion a year ago. Net income in the quarter fell 37.6% to $164.8 million or 23 cents per diluted share compared to net income of $264.2 million or 38 cents per share, a year ago.