Baidu, Sunpower Surge; Amazon, Microsoft Fall

Mayank Mehta
24 Jul, 2009
New York City

Chinese search engine company Baidu.com surged 7% after it estimated higher revenues next quarter. Amazon.com, Microsoft and American Express declined after earnings. Broadcom plunged 10% after its net plunged. Sunpower soared on better than expected earning.

[R]11:50 AM New York – Chinese search engine company Baidu.com surged 7% after it estimated higher revenues next quarter. Amazon.com, Microsoft and American Express declined after earnings. Broadcom plunged 10% after its net plunged. Sunpower soared on better than expected earning.[/R]

Stocks in New York trading edged lower after rallying sharply yesterday. S&P 500 index decreased 0.5% to 971.18 and Dow Jones Industrial Average dropped 0.3% to 9,042.81. Nasdaq declined 24.46 or 1.24% to 1,949.36.

Other Movers

Amazon.com Inc ((AMZN)) decreased 8.6% to $85.81 after second quarter net sales increased 14% to $4.65 billion and net income declined 10% to $142 million or 32 cents a share.

American Express Company ((AXP)) decreased 1.4% to $29.03 after second quarter revenues declined 18% to $6.09 billion and net income fell 48% to $337 million from a year ago quarter. Return on common equity declined to 12% from 30.9% in the quarter a year ago.

Baidu, Inc ((BIDU)) surged 7% $356.69 after it reported second quarter revenues surged 37% to Rmb 1,097.5 million and net income increased Rmb 383.3 million or $56.1 million. Diluted earnings per share were $1.61 or Rmb 11.02.

Baidu estimates third quarter revenues to increase between 15% and 18% sequentially to between Rmb1,260 million ($184 million) and Rmb1,290 million ($189 million).

The Black & Decker Corp ((BKD)) soared 10.3% to $37.20 after it reported second quarter earnings of $38.3 million or 63 cents a share compared $96.7 million or $1.56 a share. The company also declared quarterly dividend of 12 cents a share.

Broadcom Corp ((BRCM)) plunged 10.2% to $26.21 after the communication chip maker reported net revenues for the second quarter increased 13.4% to $1.04 billion compared to a year ago quarter. Net income in the quarter plunged to $13.4 million or 3 cents a share compared to $134.8 million or 25 cents a share.

The company guided net revenues in the third quarter to increase between 7% and 14% from the second quarter and product gross margin to increase around 125 basis points compared to second quarter.

Chubb Corp ((CB)) increased 5.7% to $45.03 after the insurance company reported net earnings of $551 million or $1.54 a share compared to $469 million or $1.27 a share. Net premium written in the quarter declined 7% to $2.8 billion.

Ingersoll-Rand Corp ((IR)) surged 11.03% to $26.75 reported second quarter revenues declined 23% to $3.4 billion and earnings per share from continuing operations of 50 cents excluding restructuring costs

Microsoft Corp ((MSFT)) decreased 9.5% to $23.14 after fourth quarter revenues declined 17% to $13.1 billion and net income declined 29% to $3.05 billion and earnings per share fell 26% to 34 cents.

Sunpower Corp ((SPWR)) soared 24.9% to $31.05 after the company reported second quarter revenues increased 39% to $297 million and net income of $24.17 million or 27 cents a share compared to a loss of $4.78 million or 6 cents a share.