Exxon, SLM Corp Rise; Biogen, State Street Drop

Mayank Mehta
29 Jun, 2009
New York City

SLM Corp led gainers in the S&P 500 index with a rise of 6.2%. Alcoa Inc continues penetration in oil and gas market. Biogen Idec Inc reports tent case of brain infection. Oil companies traded higher as crude oil price climbed.

[R]12:10 PM New York – SLM Corp led gainers in the S&P 500 index with a rise of 6.2%. Alcoa Inc continues penetration in oil and gas market. Biogen Idec Inc reports case on brain infection. Morgan Stanley estimated strong margins at JC Penney.[/R]

Of the stocks in S&P 500 index, 237 increased, 255 declined and 7 were unchanged.

Biogen Idec Inc led the decliners in the S&P 500 index with a loss of 5.5% followed by losses in Tenet Healthcare Corporation of 3.4%, in CB Richard Ellis Group, Inc of 3.0%, in Alcoa Inc of 2.8% and in Eastman Kodak Company of 2.5%.

SLM Corporation led gainers in the S&P 500 index with a rise of 6.2% followed by gains in Viacom, Inc 3.7%, in E*Trade Financial Corporation of 3.1% and Ball Corporation of 3.0%.

Energy companies traded higher after crude oil and natural prices increased. Exxon Mobil ((XOM)) increased 2.2% to $70.58, Conoco Phillips increased 0.7% to $41.91 and Valero ((VLO)) added 0.5% to $16.56. Chevron added 1.3% to $66.81.

Other Movers

Alcoa Inc ((AA)) declined 3.0% or 29 cents to $10.47 after the largest U.S. aluminum producer was downgraded from “market perform” to “underperform” at FBR Capital.

BE Aerospace, Inc ((BEAV)) fell 1.8% or 2 cents to $14.19 after the world’s largest maker of aircraft cabin interiors was placed on credit watch by S&P with negative implications.

Biogen Idec Inc ((BIIB)) declined 5.5% or $3.00 to $47.12 after Deutsche Bank downgraded stock to “hold” from “buy.” The company also said that the tenth patient developed brain infection after taking multiple sclerosis drug Tysabri. The drug was recalled in 2005 and was reintroduced with stricter safety standards in July 2006.

Encore Energy Partners LP ((ENP)) slumped 5.1% or 80 cents to $14.75 after the owner of oil and gas fields completed the previously announced acquisitions of oil and natural gas producing properties in the Williston Basin in North Dakota and Montana from Encore Acquisition Company and the purchase of natural gas producing properties in the Vinegarone Field in Val Verde County.

The acquisition was completed at a total combined purchase price of approximately $53.3 million in cash.

J. C. Penney Company, Inc ((JCP)) climbed 3.2% or 92 cents to $29.29 after the department store chain was upgraded to “overweight” from “equal-weight” at Morgan Stanley.

SLM Corporation ((SLM)) added 6.2% or 89 cents to $10.20 after FBR Capital reiterated “Outperform” ratings and raised estimates and price targets on student loan companies.

State Street Corporation ((STT)) declined 2% to $47.34 after SEC opened investigation regarding its bonds funds investment strategies.

Tenet Healthcare Corporation ((THC)) fell 3.4% or 1 cent to $2.88 after the health care services company completed previously announced cash tender offer to purchase up to $1.0 billion aggregate principal amount of its outstanding 9.875% Senior Notes due 2014.

Teppco Partners, L.P. ((TPP)) increased 4.4% to $29.95 after Enterprise Products Partners L.P. ((EPD)) agreed to acquire the pipeline operator.

Viacom, Inc ((VIA)) the global entertainment content company rose 3.7% or 74 cents to $23.16.

Watson Wyatt Worldwide, Inc ((WW)) fell 8.0% or $3.33 to $37.85 after the U.S. based human resources advising company was downgraded from “buy” to “hold” at Citigroup.

Wendy’s/Arby’s Group, Inc ((WEN)) the fast food chain gained 6.3% or 23 cents to $3.86.