AIG Plunges; Chattem, KB Home, Sands Rise

123jump.com Staff
09 Jul, 2009
New York City

American International Group, Inc led the decliners in the S&P 500 index with a loss of 10.8%. Alcoa Inc low orders cause second quarter to post loss. Chattem, Inc second quarter net rises. Nu Horizons Electronic Corp first quarter post net loss.

[R]11:30AM New York – American International Group, Inc led the decliners in the S&P 500 index with a loss of 10.8%. Alcoa Inc low orders cause second quarter to post loss. Chattem, Inc second quarter net rises. Nu Horizons Electronic Corp first quarter post net loss.[/R]

Of the stocks in S&P 500 index, 278 increased, 215 declined and 7 were unchanged.

American International Group, Inc led the decliners in the S&P 500 index with a loss of 10.8% followed by losses in Limited Brands, Inc of 8.0%, in Allegheny Technologies Incorporated of 4.4%, in J. C. Penney Company, Inc of 4.3% and in Merck & Co., Inc of 2.8%.

Huntington Bancshares Incorporated led gainers in the S&P 500 index with a rise of 6.7% followed by gains in KB Home 4.4%, in The Western Union Company of 4.0% and Target Corporation of 4.0%.

Retailers Fall on Weak Same Store Sales

Discounters, luxury stores, department stores and apparel retailers reported weak June same store sales.

Costco Wholesale Corp ((COST)) decreased 1.4% to $45.39 after it reported same-store sales declined 6% in June. The discount wholesaler had benefited in the past year month when stimulus checks sustained consumer spending.

Wal-Mart ((WMT)) does not report monthly sales and declined 0.5% to $48.11. Target Corp ((TGT)) increased 4.2% to $38.81 after it reported June same-store sales declined 6.2%.

Apparel retailers’ sales dropped the most as teenagers held fewer jobs this summer season.

Abercrombie & Fitch ((ANF)) decreased 3.6% to $23.13 after same-store sales in June declined 32% and Children’s Place sales fell 12% in the month. Limited Brands plunged 7% to $10.53.

J.C. Penney Co. ((JCP)) decreased 4.1% to $26.40 after same store sales dropped 8.2%, Dillard’s Inc decreased 0.7% to $8.22 and Macy’s ((M)) increased 0.8% to $10.77.

Other Movers

3Com Corporation ((COMS)) rose 1.2% or 6 cents to $4.76 after the networking solutions provider reported fourth quarter sales fell 8.2% to $295.1 million from $321.3 million a year ago. Net income in the quarter was $20.2 million or 5 cents per diluted share compared to net loss of $166.7 million or 41 cents per share a year ago.

American International Group, Inc ((AIG)) fell 10.8% or $2.10 to $11.00 after the Citigroup analyst estimated that the company may be worthless after repaying the U.S. government and the Fed. The research comments were first reported by Bloomberg News and Reuters.

Alcoa Inc ((AA)) added 4.0% or 38 cents to $9.84 after the largest aluminum producer said second quarter revenues fell 41% to $4.24 billion from $7.2 billion a year ago. Net loss in the quarter was $454 million or 47 cents per diluted share compared to net income of $546 million or 66 cents per share a year ago.

bebe stores, inc ((BEBE)) the California based retailer of women’s apparel and accessories slipped 1.3% or 8 cents to $6.11.

Chattem, Inc ((CHTT)) increased 4.0% or $2.58 to $65.50 after the marketer and manufacturer of branded consumer products reported second quarter revenues rose 4.4% to $121.8 million from $116.7 million a year ago. Net income in the quarter rose 17% to $24.2 million or $1.26 per diluted share compared to net income of $20.7 million or $1.06 per share a year ago.

Concur Technologies, Inc ((CNQR)) fell 1.0% or 32 cents to $29.93 after the maker of software for managing travel expenses was downgraded to “hold” from “buy” at Deutsche Bank.

The Corporate Executive Board ((EXBD)) fell 10.1% or $1.93 to $17.06 after the business consulting company was downgraded from “neutral” to “underperform” at Robert W. Baird.

Data Domain, Inc ((DDUP)) fell 1.3% or 47 cents to $33.43 after the maker of technology that conserves storage space said that it has entered into a definitive merger agreement with EMC Corporation that will acquire all of the outstanding shares for $33.50 per share in cash.

The Goldman Sachs Group, Inc ((GS)) climbed 3.2% or $4.52 to $143.07 after Bank of America raised its rating on the investment bank and trading house on the higher expectation of earnings.

Helen of Troy Limited ((HELE)) gained 2.0% or 32 cents to $18.40 after the personal care and household products company reported first quarter revenues fell 0.8% to $143.9 million from $145 million a year ago. Net income in the quarter rose 159% to $14.5 million or 47 cents per diluted share compared to net income of $5.6 million or 18 cents per share a year ago.

Human Genome Sciences ((HGSI)) rose 4.6% or 11 cents to $2.50 after the biopharmaceutical company today announced publication by The New England Journal of Medicine of the results of two pivotal animal efficacy studies which showed the life saving potential of the company’s human monoclonal antibody drug raxibacumab as well as the results of human safety studies which supported the use of raxibacumab in the event of life threatening inhalation anthrax disease.

KB Home ((KBH)) climbed 7.3% or 84 cents to $12.22 after the Los Angeles based homebuilder was upgraded from “neutral” to “outperform” at Credit Suisse.

Kennametal Inc ((KMT)) the mining and energy industries tool maker fell 8.5% or $1.46 to $15.69. The company plans to raise $100 million by selling 6.5 million shares to lower its debt.

Las Vegas Sands Corp ((LVS)) rose 8.7% to $7.23 a day after it reported a plan to raise between $3 billion and $4 billion to restart the construction at a casino in Macau, China.

Nu Horizons Electronic Corp ((NUHC)) rose 3.0% or 9 cents to $3.25 after the distributor of active and passive electronic components said first quarter revenues fell 26.2% to $147.8 million from $200.2 million a year ago. Net loss in the quarter was $944,000 or 5 cents per diluted share compared to net income of $1.16 million or 6 cents per share a year ago.

Verigy Ltd ((VRGY)) fell 9.2% or $1.05 to $10.20 after the maker of semiconductor testing equipment said its intention to offer $110 million aggregate principal amount of convertible senior notes due 2014.

WD-40 Company ((WDFC)) declined 1.2% or 36 cents to $28.08 after the consumer products maker said third quarter revenues fell 16% to $68.8 million from $82.1 million a year ago. Net income in the quarter fell 15% to $6.9 million or 41 cents per diluted share compared to net income of $8.1 million or 49 cents per share a year ago.