AIG, MBIA and Dynegy Drop

Mayank Mehta
11 Aug, 2009
New York City

MBIA Inc plunged after negative comments and a rating downgrade from JP Morgan. AIG dropped as well after the stock surged in the last ten days of trading. Yum! Brands, Sprint and Dynegy declined on lowered ratings from analysts.

[R]11:40AM New York – MBIA Inc plunged after negative comments and a rating downgrade from JP Morgan. AIG dropped as well after the stock surged in the last ten days of trading. Yum! Brands, Sprint and Dynegy declined on lowered ratings from analysts.[/R]

Of the stocks in S&P 500 index, 104 increased, 391 declined and 5 were unchanged.

Dynegy Inc led the decliners in the S&P 500 index with a loss of 8.9% followed by losses in MBIA Inc of 7.9%, in Zions Bancorporation of 7.7%, in Fluor Corporation of 5.8% and in American International Group, Inc of 5.7%.

QLogic Corporation led gainers in the S&P 500 index with a rise of 6.5% followed by gains in Tellabs, Inc 5.0%, in Coventry Health Care, Inc of 2.2% and Micron Technology, Inc of 2.2%.

Other Movers

American International Group ((AIG)) decreased 11.6% or $3.32 to $25.38 on the weakness in financial stocks. AIG has nearly doubled in the last ten trading days.

Array BioPharma Inc ((ARRY)) added 6.5% or 29 cents to $4.74 after the biopharmaceutical company said fourth quarter revenues fell 10% to $5.5 million from $6.09 million a year ago. Net loss in the quarter was $26.7 million or 55 cents per diluted share compared to net loss of $32.4 million or 68 cents per share a year ago.

Air Transport Services Group Inc ((ATSG)) slid 5.1% or 15 cents to $2.75 after the diversified family of air cargo related businesses reported second quarter sales fell 40.5% to $235.1 million from $394.9 million a year ago. Net income in the quarter was $8.1 million or 13 cents per diluted share compared to net loss of $526,000 or 1 cent per share a year ago.

Bridgepoint Education, Inc ((BPI)) jumped 4.5% or 88 cents to $20.22 after the for-profit college said total student enrollment increased 101.3% year- over-year to 45,504 at the end of the quarter.

Bunge Limited ((BG)) slid 6.4% or $4.56 to $66.28 after fertilizer sellers to farmers and logistics manager said that it has commenced an underwritten public offering of 10 million common shares with the 1.5 million shares overallotment option to underwriters. Morgan Stanley and Credit Suisse are acting as joint book-running managers.

Clear Channel Outdoor Holdings, Inc ((CCO)) advanced 4.2% or 28 cents to $6.85 after the billboard and outdoor advertising company said second quarter revenues fell 24% to $692.1 million from $914.8 million a year ago. Net loss in the quarter was $689.1 million or $1.94 per diluted share compared to net income of $80.3 million or 23 cents per share a year ago.

Cornerstone Therapeutics Inc ((CRTX)) plunged 12.1% or $1.19 to $8.60 after the specialty pharmaceutical company reported second quarter sales rose 77% to $25 million from $14.1 million a year ago. Net income in the quarter fell 22.7% to $1.7 million or 13 cents per diluted share compared to net profit of $2.2 million or 31 cents per share a year ago.

Dynegy Inc ((DYN)) declined 7.6% or 17 cents to $2.06 after the power producer was downgraded from “buy” to “hold” at Deutsche Securities.

Energy Transfer Equity, L.P ((ETE)) gained 0.03% or 1 cent to $28.92 an energy company said second quarter revenues fell 56.6% to $1.15 billion from $2.65 billion a year ago. Net income in the quarter fell 13.3% to $104.05 million or 47 cents per diluted share compared to net income of $120.02 million or 54 cents per share a year ago.

Fluor Corporation ((FLR)) dropped 1.2% or 72 cents to $57.49 an engineering and construction firm said second quarter revenues fell 8.3% to $5.29 billion from $5.77 billion a year ago. Net income in the quarter fell 18.6% to $169.3 million or 93 cents per diluted share compared to net income of $208.0 million or $1.12 per share a year ago.

Fossil, Inc ((FOSL)) declined 0.8% or 23 cents to $27.49 after the watchmaker reported second quarter sales fell 11% to $315.9 million from $353.2 million a year ago. Net income in the quarter fell 34% to $16.6 million or 25 cents per diluted share compared to net profit of $25.1 million or 36 cents per share a year ago.

MBIA Inc ((MBI)) dropped 14.6% or 90 cents to $5.27 after JP Morgan lowered the rating on the company to “underweight” and cited that the common stock may be worthless as losses mount in the mortgage markets.

McDermott International, Inc ((MDR)) dropped 0.9% or 20 cents to $21.32 after the energy infrastructure company said second quarter revenues fell 13% to $1.56 billion from $1.79 billion a year ago. Net income in the quarter fell 48% to $92.6 million or 40 cents per diluted share compared to net income of $177.5 million or 77 cents per share a year ago.

Nuance Communications, Inc ((NUAN)) fell 3.6% or 52 cents to $13.70 after the provider of speech recognition technology said third quarter revenues rose 11% to $241 million from $216.7 billion a year ago. Net loss in the quarter was $1 million or break even per diluted share compared to net loss of $9.9 million or 5 cents per share a year ago.

Qiagen N.V ((QGEN)) rose 6.6% or $1.26 to $20.25 after the supplier of tests for the human papilloma virus said second quarter revenues rose 10% to $240.2 million from $217.9 million a year ago. Net income in the quarter rose 33% to $30.9 million or 15 cents per diluted share compared to net income of $23.2 million or 11 cents per share a year ago.

Schawk, Inc ((SGK)) surged 3.0% or 25 cents to $8.33 after the provider of brand point management services said second quarter revenues fell 16% to $112.0 million from $133.4 million a year ago. Net income in the quarter rose 500% to $4.8 million or 19 cents per diluted share compared to net income of $0.8 million or 3 cents per share a year ago.

Stifel Financial Corp ((SF)) rose 2.4% or $1.23 to $52.50 after the financial services company said second quarter revenues rose 25% to $261.5 million from $209.0 million a year ago. Net income in the quarter rose 28.5% to $15.8 million or 51 cents per diluted share compared to net income of $12.3 million or 45 cents per share a year ago.

YUM! Brands, Inc ((YUM)) declined 3.9% or $1.45 to $35.08 after the fast food restaurant operator was downgraded from “buy” to “neutral” at UBS.