Discover Financial, Hertz, J M Smucker Rise

Mayank Mehta
18 Jun, 2009
New York City

Fertilizer stocks declined for the second day in a row on weak sales and pricing outlook. The J.M. Smucker surged after it offered positive outlook and reported better than expected sales and earnings. Clarcor Inc fell after earnings declined.

[R]11:45 AM New York – Fertilizer stocks declined for the second day in a row on weak sales and pricing outlook. The J.M. Smucker surged after it offered positive outlook and reported better than expected sales and earnings. Clarcor Inc fell after earnings declined.[/R]


General Electric led the decliners in the S&P 500 index with a loss of 5.7%. CLARCOR Inc second quarter net down 32% on lower sales. IHS Inc second quarter net up 37% on higher sales. The J.M. Smucker Company tops fourth quarter eatimates.[/R]

Of the stocks in S&P 500 index, 171 increased, 320 declined and 9 were unchanged.

General Electric Company led the decliners in the S&P 500 index with a loss of 5.7% followed by losses in SanDisk Corporation of 5.1%, in Johnson Controls, Inc of 4.3%, in Macy''s, Inc of 3.8% and in D.R. Horton, Inc of 3.5%.

The J.M. Smucker Company led gainers in the S&P 500 index with a rise of 10.5% followed by gains in SLM Corporation7.9%, in Discover Financial Services of 6.8% and Carnival Corporation of 4.3%.

Other Movers

Agrium Inc ((AGU)) declined 2.2% to $41.86, Intrepid Potash ((IPI)) closed up 0.5% to $26.47 and Potash Corp of Saskatchewan ((POT)) dropped as low as $94.41 after K+S in Germany lowered its estimate of price for fertilizer products for the second half and lowered its sales target.

CLARCOR Inc ((CLC)) fell 7.1% or $2.19 to $28.38 after the filter system maker said second quarter sales fell 14% to $229.4 million from $267.1 million a year ago. Net income in the quarter fell 32% to $16.8 million or 33 cents per diluted share compared to net income of $24.6 million or 48 cents per a year ago.

Coca-Cola FEMSA, S.A.B. de C.V. ((KOF)) rose 3.2% or $1.27 to $40.00 after Latin America’s largest soft-drink producer was upgraded to “hold” from “sell” at Deutsche Bank AG.

Discover Financial Services ((DFS)) climbed 6.6% or 59 cents to $9.50 after the credit card issuer and electronic payment Services Company reported second quarter net interest income rose 80% to $538 million from $298.8 million a year ago. Net income in the quarter fell 10.6% to $209.2 million or 43 cents per diluted share compared to net income of $234.1 million or 48 cents per share a year ago.

Hertz Global Holdings, Inc ((HTZ)) added 3.4% or 23 cents to $6.99 after the second-largest U.S. rental car company was raised to “outperform” from “market perform” at Wachovia.

IHS Inc ((IHS)) added 2.0% or 73 cents to $49.47 after the provider of global source of information said second quarter revenues rose 14% to $235.3 million from $207.2 million a year ago. Net income in the quarter rose 37.3% to $32.0 million or 50 cents per diluted share compared to net income of $23.3 million or 37 cents per a year ago.

ING Groep N.V ((ING)) added 7.3% or 69 cents to $10.08 after the largest Dutch financial-services company was raised to “buy” from “neutral” at Goldman Sachs Group Inc.

The J.M. Smucker Company ((SJM)) surged 9.2% or $4.02 to $47.64 after the maker of jams, jellies and peanut butter reported fourth quarter sales rose 81% to $1.07 billion from $590 million a year ago. Net income in the quarter rose 154% to $94.3 million or 80 cents per diluted share compared to net income of $37.1 million or 67 cents per share a year ago.

Excluding the impact of acquisitions and foreign exchange net sales in the fourth quarter increased 3% and in the year 9%.

Lions Gate Entertainment Corp ((LGF)) advanced 7.2% or 38 cents to $5.60 after activist investor Carl Icahn failed to convince bond holders to sell debt to an investment fund controlled by him. Since June 3, he has bought 1.8 million additional shares for $9.6 million.

Liz Claiborne, Inc ((LIZ)) declined 13.0% or 52 cents to $3.50 after the maker of Kate Spade handbags n Thursday projected a wider second quarter loss than analysts’ forecast.

Level 3 Communications, Inc ((LVLT)) climbed 3.8% or 5 cents to $1.35 after the network operator reached a 20-year contract with a “major multinational customer” that will generate at least $140 million in revenue in the first four years of the contract.

Pier 1 Imports, Inc ((PIR)) rose 14.9% or 29 cents to $2.23 after the home furnishings company reported first quarter sales fell 9% to $281.1 million from $310 million a year ago. Net income in the quarter fell 10.7% to $29.3 million or 32 cents per diluted share compared to net income of $32.8 million or 37 cents per share a year ago.

Wimm-Bill-Dann Foods OJSC ((WBD)) dropped 2.3% or $1.02 to $53.79 after the Russian dairy products and juice producer reported first quarter sales fell 29.4% to $516.8 million from $731.9 million a year ago. Net income in the quarter fell 70% to $12.6 million or 29 cents per diluted share compared to net income of $41.9 million or 95 cents per share a year ago.