Hartford, BlackRock Fall; E*Trade Surges

Mayank Mehta
12 Jun, 2009
New York City

Ameriprise completed its 36 million shares public offering. Hartford Financial declined after it agreed to receive $3.4 billion in TARP funds and raise $750 million in an offering. BlackRock agreed to acquire Barclays investment management unit for $13 billion. E*Trade surged.

[R]12:40 PM New York – Ameriprise completed its 36 million shares public offering. Hartford Financial declined after it agreed to receive $3.4 billion in TARP funds and raise $750 million in an offering. BlackRock agreed to acquire Barclays investment management unit for $13 billion. E*Trade surged on speculation of investment from its largest investor.[/R]

Of the stocks in S&P 500 index, 92 increased, 401 declined and 7 were unchanged.

National Semiconductor Corporation led the decliners in the S&P 500 index with a loss of 7.2% followed by losses in The Hartford Financial Services Group, Inc of 6.9%, in Lincoln National Corporation of 4.8%, in CenturyTel, Inc of 4.1% and in AK Steel Holding Corporation of 3.8%.

Bank of America Corporation led gainers in the S&P 500 index with a rise of 4.4% followed by gains in of Regions Financial Corporation 3.6%, in Vulcan Materials Company of 3.6% and SLM Corporation of 3.4%.

Other Movers

Ameriprise Financial, Inc ((AMP)) declined 3.3% to $24.84 after it completed the public offering of 36 million shares at $25 a share.

ArcSight, Inc ((ARST)) dropped 4.4% or 80 cents to $17.27 after the developer of computer security software estimated net income for the first quarter of fiscal 2010 to be between $1.0 million and $2.9 million or 3 cents to 8 cents a diluted share.

BlackRock, Inc ((BLK)) fell 6.0% or $11.06 to $171.54 an investment management firm said it has executed a purchase agreement to acquire Barclays Global Investors including exchange traded funds division iShares from Barclays PLC. Barclays will hold 19.9% in the new company named BlackRock Global Investors.

Del Monte Foods Company ((DLM)) added 8.7% or 67 cents to $8.32 after the producer and distributor of canned food and pet products said fourth quarter sales rose 20% to $1.06 billion from $875.8 million a year ago. Net income in the quarter rose 42% to $71.5 million or 36 cents per diluted share compared to net income of $50.4 million or 25 cents per a year ago.

Duckwall-ALCO Stores, Inc ((DUCK)) rose 2.0% or 33 cents to $18.07 after the discount-store operator reported first quarter revenues rose 9% to $115.5 million from $105.7 million a year ago. Net loss in the quarter was $50,000 or 1 cent a diluted share compared to net loss of $5.9 million or $1.54 per share a year ago.

EZCORP, Inc ((EZPW)) slid 14.8% or $1.91 to $10.98 after the short- term cash lender lowered its 2009 earnings guidance due to weaker than expected demand for its loans and used merchandise. The company now expects earnings in the fiscal third quarter of 29 cents to 31 cents per share down from previous guidance of 34 cents a share.

E*Trade Financial Corporation ((ETFC)) increased 16.4% to $1.93 after Ken C. Griffin joined the board of directors stoking speculations that Citadel Investment Group will offer additional financing to the company.

Finisar Corporation ((FNSR)) fell 8.2% or 0.07 cents to $0.78 after the fiber optic solutions provider for high speed networks said fourth quarter revenues fell 3.6% to $116.7 million from $121.0 million a year ago. Net loss in the quarter was $24.2 million or 5 cents per diluted share compared to net loss of $44.1 million or 14 cents per a year ago.

Hartford Financial Services Group ((HIG)) decreased 8.2% to $12.93 after it agreed to take $3.4 billion in government bailout funds and also raise $750 million in equity offering.

Hoku Scientific, Inc ((HOKU)) dropped 39.5% or $1.73 to $2.65 after the fuel cell maker said fourth quarter revenues fell 12% to $0.11 million from $0.62 million a year ago. Net loss in the quarter was $0.90 million or 4 cents per diluted share compared to net loss of $2.1 million or 12 cents per a year ago.

Melco Crown Entertainment Limited ((MPEL)) the operator of casino gaming and entertainment resort facilities plunged 8.6% or 47 cents to $4.96.

National Semiconductor Corporation ((NSM)) declined 2.0% or 24 cents to $14.47 after the chip maker said fourth quarter revenues fell 39.2% to $280.8 million from $462.0 million a year ago. Net loss in the quarter was $63.7 million or 28 cents per diluted share compared to net income of $83.2 million or 34 cents per a year ago.

Rambus Inc ((RMBS)) jumped 16.3% or $2.48 to $17.57 after the designer of high-speed computer-memory chips said Friday that European Union antitrust regulators had provisionally agreed to drop a probe and any fines if the company reduced its royalty rates for DRAM memory chip patents.

Saks Incorporated ((SKS)) advanced 17.6% or 67 cents to $4.43 after the luxury retailer was upgraded to “buy” from “hold” at Deutsche Bank.

Synovus Financial Corp ((SNV)) rose 8.6% or 29 cents to $3.66 after the diversified financial services company said that it has declared a dividend of $0.01 per share. The dividend will be payable on July 1, 2009 to shareholders of record as of June 18, 2009.