Apple, Carnival Rise; RiM Drops

Mayank Mehta
19 Jun, 2009
New York City

CarMax reported first quarter sales declined 17% and earnings fell 2.7%. Carnival Corp advanced after the cruise operator indicated higher prices for tours. E*Trade raised more than expected in a public offering priced at 23% discount. Research in Motion quarterly sales jump 53%.

[R]11:00AM New York – CarMax traded higher after it reported first quarter sales declined 17% and earnings fell 2.7%. Carnival Corp advanced after the cruise operator indicated higher prices for tours. E*Trade raised more than expected in a public offering that was priced at 23% discount. Research in Motion quarterly sales increased 53% and earnings gained 33%.[/R]

Of the stocks in S&P 500 index, 425 increased, 67 declined and 8 were unchanged.

E*TRADE Financial Corporation led the decliners in the S&P 500 index with a loss of 14.6% followed by losses in Xerox Corporation of 1.4%, in Precision Castparts Corp of 1.2%, in FirstEnergy Corp of 1.0% and in Northeast Utilities of 1.0%.

Genworth Financial, Inc led gainers in the S&P 500 index with a rise of 8.3% followed by gains in Carnival Corporation 7.3%, in Hospira, Inc of 5.7% and in Eastman Kodak Company of 4.9%.

Other Movers

Apple Inc ((AAPL)) added 2.2% or $3.10 to $139.05 after the latest version of iPhone released today may have attracted less than expected positive sales climate on the first day.

CarMax, Inc ((KMX)) added 7.4% or 97 cents to $14.06 after the auto retailer reported first quarter sales fell 17% to $1.83 billion from $2.21 billion a year ago. Net income in the quarter fell 2.7% to $28.7 million or 13 cents per share compared to net income of $29.6 million or 13 cents per share a year ago.

Carnival Corporation ((CCL)) added 6.3% or $1.56 to $26.33 after the biggest cruise-line operator reported better than expected second-quarter profit as the cruise operator continued to cut costs and increased prices from the lowest levels in eight years.

China Medical Technologies Inc surged 13.3% to $25.92 after it reported preliminary fourth quarter revenues increase of 37% to Rmb 248 million or $36 million and adjusted operating income of Rmb116 million or $17 million. For the quarter the adjusted quarterly earnings were 60 cents per American Depository Share.

Microsoft Corporation ((MSFT)) gained 3.3% or 78 cents to $24.28 after the world’s largest software maker was upgraded to “conviction buy” from “buy” at Goldman Sachs Group Inc.

Research In Motion Limited ((RIMM)) declined 2.0% or $1.38 to $75.17 after the Blackberry maker said first quarter revenues rose 53% to $3.42 billion from $2.24 billion a year ago. Net income in the quarter rose 33% to $643 million or $1.12 per diluted share compared to net income of $482.5 million or 84 cents per share a year ago.

Sealy Corporation ((ZZ)) surged 20.5% or 37 cents to $2.17 after the world’s largest bedding manufacturer said it expects a second quarter gross profit margin of 40.1% to 41.1% and operating income of $28 million to $30 million. The company anticipates revenue of $294 million to $301 million.

Smith & Wesson Holding Corporation ((SWHC)) jumped 16.6% or 82 cents to $5.75 after the 157 year old gun maker said that it has agreed to acquire Universal Safety Response, Inc. a privately held full-service security systems solutions provider for up to 9.7 million shares of common stock and up to $26.2 million in cash.

Teekay Tankers Ltd ((TNK)) fell 13.6% or $1.44 to $9.17 after the oil tanker fleet operator priced 7 million shares of Class A common stock at $9.80 per share. The offering is expected to close on June 24, 2009. The Company expects to use the net offering proceeds to acquire a 2003-built Suezmax tanker from Teekay Corporation for $57 million and to repay a portion of its outstanding debt under its revolving credit facility.