Metro PCS Surge; Boeing, Rambus Plunge

Mayank Mehta
23 Jun, 2009
New York City

Boeing led the decliners in the S&P 500 index after it delayed the launch of 787 Dreamliner. Metro PCS surged after it was selected to replace Tyco Electronics in the S&P 500 index. Rambus plunged on weaker revenue guidance. Steelcase surged after it reported better than expected earnings.

[R]1:30 PM New York – E*Trade Financial Corp led gainers in the S&P 500 index with a rise of 5.8%. America’s Car-Mart, Inc net drops 15% on declining margins. The Kroger Co first quarter posts higher profit. Smith & Wesson Holding Corporation quarterly profits more than doubles.[/R]

Of the stocks in S&P 500 index, 268 increased, 218 declined and 14 were unchanged.

The Boeing Company led the decliners in the S&P 500 index with a loss of 6.6% followed by losses in Precision Castparts Corp of 4.9%, in GameStop Corp of 3.6%, in Advanced Micro Devices, Inc of 3.0% and in Dynegy Inc of 2.8%.

E*Trade Financial Corporation led gainers in the S&P 500 index with a rise of 5.8% followed by gains in of Boston Scientific Corporation 5.4%, in CB Richard Ellis Group, Inc of 5.3% and American International Group, Inc of 3.6%.

Other Movers

America’s Car-Mart, Inc ((CRMT)) added 6.4% or $1.14 to $18.80 after the auto retailer and financer reported fourth quarter revenues rose 1.7% to $77.9 million from $76.5 million a year ago. Net income in the quarter fell 15% to $5.1 million or 43 cents per diluted share compared to net income of $6.0 million or 51 cents per share a year ago.

Actuant Corporation ((ATU)) slumped 13.1% or $1.91 to $12.62 after the industrial-tools maker today announced that it has commenced an underwritten public offering of 9 million shares of its class A common stock for sale to the public.

Ashland Inc ((ASH)) rose 4.0% or 96 cents to $25.14 after the chemical maker today announced it has signed a definitive agreement to sell its global marine services business known as Drew Marine, to J. F. Lehman & Co. in a transaction valued at approximately $120 million before tax. Ashland''s after tax proceeds will be used to reduce debt.

The Boeing Company ((BA)) dropped 6.4% or $3.01 to $43.89 after the aviation and defense contractor today announced that first flight of the 787 Dreamliner will be postponed. Body surrounding the plane wings showed higher stress than predicted by the models

Commercial Metals Company ((CMC)) climbed 4.2% or 63 cents to $14.83 after the manufacturer and distributor of metal products reported third quarter sales fell 54% to $1.34 billion from $2.91 billion a year ago. Net loss in the quarter was $13.1 million or 12 cents per diluted share compared to net income of $59.5 million or 51 cents per share a year ago.

FedEx Corporation ((FDX)) added 3.0% or $1.38 to $51.42 after the package-shipping company was upgraded to “overweight” from “neutral” at J.P. Morgan Chase.

Halozyme Therapeutics, Inc ((HALO)) declined 16.0% or $1.23 to $6.28 after the biopharmaceutical company today announced that it has raised gross proceeds of $40 million through the public offering of 6.1 million newly issued shares of its common stock.

The Kroger Co ((KR)) rose 1.4% or 32 cents to $22.10 after the largest independent supermarket chain reported first quarter revenues fell 1.3% to $22.8 billion from $23.1 billion a year ago. Net income in the quarter rose 12.7% to $435.1 million or 66 cents a diluted share compared to net income of $386.0 million or 58 cents per share a year ago.

MetroPCS Communications, Inc ((PCS)) surged 7.0% or 96 cents to $14.58 after the mobile telephone service provider was selected by the S&P for its leading S&P 500 index and replace Tyco Electronics Ltd. effective June 30.

Motorola, Inc ((MOT)) gained 3.0% or 18 cents to $6.21 after the mobile handset maker was raised to ‘buy’ from ‘neutral’ at Bank of America.

Rambus Inc ((RMBS)) slumped 13.0% or $2.32 to $15.51 after the California memory-chip designer estimated revenue of $26.7 million to $27.2 million for the quarter down from its initial forecast of $27 million to $30 million.

Smith & Wesson Holding Corporation ((SWHC)) decreased 3.8% or 22 cents to $5.53 after the gun maker said fourth quarter revenues rose 20% to $99.5 million from $83.1 million a year ago. Net income in the quarter rose 124% to $7.4 million or 14 cents a diluted share compared to net income of $3.3 million or 8 cents per a year ago.

Steelcase Inc ((SCS)) surged 10.6% or 54 cents to $5.58 after the world''s largest office furniture maker reported first quarter revenues fell 33% to $545.6 million from $815.7 million a year ago. Net income in the quarter was breakeven compared to net income of $22.1 million or 16 cents per share a year ago.

Starbucks Corporation ((SBUX)) added 3.0% or 38 cents to $14.09 after it was upgraded to “outperform” from “neutral” at Robert W. Baird & Co.

Thomson Reuters Corporation ((TRI)) slid 2.2% or 66 cents to $28.43 after the financial news and data provider reaffirmed its fiscal 2009 revenue outlook of $13.4 billion.