CIT, Red Hat, Caterpillar and Cisco Surge

Mayank Mehta
20 Jul, 2009
New York City

Tyson Foods led the decliners in the S&P 500 index with a loss of 8.6%. Eaton second quarter earnings plunged 92% and lowered its operating earnings outlook for the year. CIT surged after it arranged a rescue loan of $3 billion from its bond holders. S&P 500 index will replace CIT with Red Hat, Inc.

[R]12:10 PM New York – Tyson Foods led the decliners in the S&P 500 index with a loss of 8.6%. Eaton second quarter earnings plunged 92% and lowered its operating earnings outlook for the year. CIT surged after it arranged a rescue loan of $3 billion from its bond holders. S&P 500 index will replace CIT with Red Hat, Inc.[/R]

Of the stocks in S&P 500 index, 373 increased, 118 declined and 9 were unchanged.

Tyson Foods, Inc led the decliners in the S&P 500 index with a loss of 8.6% followed by losses in Citigroup Inc of 5.3%, in BJ Services Company of 2.4%, in Brown-Forman Corporation of 2.3% and in American International Group, Inc of 2.0%.

CIT Group Inc led gainers in the S&P 500 index with a rise of 81.4% followed by gains in Eaton Corporation 9.2%, in Johnson Controls, Inc Home of 7.4% and M&T Bank Corporation of 6.8%.

Other Movers

Astec Industries, Inc ((ASTE)) plunged 1.3% or 35 cents to $25.38 after the diversified power management company reported second quarter sales fell 32.2% to $2.9 billion from $4.28 billion a year ago. Net income in the quarter fell 92% to $29 million or 17 cents per diluted share compared to net income of $333 million or $2.03 per share a year ago.

Caterpillar Inc ((CAT)) rose 5.7% or $1.96 to $35.95 after the world’s largest maker of bulldozers and earth-moving equipment was upgraded to “buy” from “neutral” at Bank of America Corp.

CBS Corporation ((CBS)) increased 5.7% or 39 cents to $7.14 after the television network operator was upgraded to “buy” from “neutral” at Morgan Stanley.

Cisco Systems, Inc ((CSCO)) added 1.7% or 36 cents to $20.87 after the global networking giant was upgraded to “outperform” from “neutral” at Credit Suisse Group AG.

CIT Group Inc ((CIT)) the lender surged 91.4% or 64 cents to $1.34 after several media reports suggested that the lender secured emergency funding from its bond holders of as much as $3 billon to avoid bankruptcy filing for now. The wholesale loan market is still closed for the bank and access to funding at a reasonable cost is a challenge. The lender to small businesses is expected to pay more than 10% in interest rate for the $3 billion emergency loan.

The Dow Chemical Company ((DOW)) the largest U.S. chemical maker rose 3.3% or 57 cents to $17.56.

Eaton Corporation ((ETN)) gained 5.4% or $2.44 to $47.40 after the industrial equipment maker net income per share declined 92% to 17 cents for the second quarter of 2009 from a year ago. Sales in the quarter declined 32% to $2.90 billion compared to a year ago. Net income dropped to $29 million compared to $333 million in the quarter a year ago.

The company reported operating earnings of 23 cents a share compared to its guidance for the quarter of 25 cents on lower than expected sales. For the 2009 year, the company guided operating earnings per share of 2.10 compared to $6.83 and net earnings between $1.65 and $1.75 a share.

Hasbro, Inc ((HAS)) added 3.8% or 97 cents to $26.35 after the toy maker reported second quarter revenues rose 1% to $792.2 million from $784.3 million a year ago. Net income in the quarter rose 5% to $39.3 million or 26 cents per diluted share compared to net income of $37.5 million or 25 cents per share a year ago.

Johnson Controls, Inc ((JCI)) advanced 7.0% or $1.51 to $23.03 after the auto parts and building products maker reported third quarter sales fell 29% to $7 billion from $9.9 billion a year ago. Net income in the quarter fell 63% to $163 million or 26 cents per diluted share compared to net income of $439 million or 73 cents per share a year ago.

M&T Bank Corporation ((MTB)) jumped 1.4% or 81 cents to $55.25 after the bank reported second quarter net interest income rose 3% to $501.6 million from $486.6 million a year ago. Net income in the quarter fell 74.7% to $40.5 million or 36 cents per diluted share compared to net income of $160.3 million or $1.44 per share a year ago.

S&T Bancorp, Inc ((STBA)) sank 3.0% or 37 cents to $11.77 after the bank reported second quarter net interest income fell 8.6% to $37.9 million from $34.9 million a year ago. Net loss in the quarter was $10.2 million or 37 cents per diluted share compared to net income of $13.9 million or 54 cents per share a year ago.

Red Hat Inc ((RHT)) surged 8.5% to $22.35 after the company was selected to replace CIT in the S&P 500 index. The company has surged 45% in the last three trading sessions.

Weatherford International Ltd ((WFT)) lost 7.3% or $1.51 to $18.42 after an oil and gas services provider reported second quarter revenues fell 10.5% to $1.99 billion from $2.23 billion a year ago. Net income in the quarter fell 89% to $42 million or 6 cents per diluted share compared to net income of $371 million or 53 cents per share a year ago.