Lowe's, M&I, First Solar Fall; Global Source Up

Mayank Mehta
17 Aug, 2009
New York City

Marshall & Ilsley declined after it booked a charge related to bad mortgage loans. BB&T filed to raise $750 million after it agreed to acquire Colonial BancGroup. First Solar fell on accounting issues. Global Sources Ltd surged after net fell 39%. Healthcare insurance provider increased.

[R]11:55 AM New York – Humana Inc led gainers in the S&P 500 index with a rise of 4.2%. Global Sources profit slumps 40% on weak exports. Lowe’s Companies, Inc shares drop after second quarter result. Valspar third quarter profit rises 40% on cost cutting.[/R]

Of the stocks in S&P 500 index, 21 increased, 477 declined and 2 were unchanged.

Marshall & Ilsley Corporation led the decliners in the S&P 500 index with a loss of 10.3% followed by losses in Lowe’s Companies, Inc of 9.7%, in The Manitowoc Company, Inc of 9.5%, in AK Steel Holding Corporation of 8.7% and in Genworth Financial, Inc of 8.7%.

Humana Inc led gainers in the S&P 500 index with a rise of 4.2% followed by gains in Cigna Corporation 3.8%, in Coventry Health Care, Inc of 3.2% and WellPoint, Inc of 2.8%.

Other Movers

BB&T Corporation ((BBT)) lost 4.1% or $1.18 to $27.05 after the U.S. lender announced today that it has commenced a public offering of $750 million of its common stock for sale to the public.

Biosante Pharmaceuticals, Inc ((BPAX)) jumped 14.8% or 29 cents to $2.25 after the pharmaceutical developer said the vaccine BioVant showed promising results in the preliminary tests for swine flu.

Capital One Financial Corporation ((COF)) declined 0.1% or 4 cents to $35.04.

First Solar, Inc ((FSLR)) the maker of thin-film solar power modules slid 4.0% or $5.76 to $136.02.

Freeport-McMoran Copper & Gold Inc ((FCX)) declined 6.1% or $3.89 to $59.76 after the publicly traded copper and gold miner is embroiled in feud with Democratic Republic of Congo that may cost the miner $16 million.

Global Sources Ltd ((GSOL)) added 8.9% or 61 cents to $7.42 after the business-to-business media company reported second quarter revenues fell 14.9% to $54.2 million from $63.7 million a year ago. Net income in the quarter fell 39.3% to $5.1 million or 11 cents per diluted share compared to net income of $8.4 million or 16 cents per share a year ago.

Goldleaf Financial Solutions, Inc ((GFSI)) the computer software developer rallied 36% to 95 cents after the software developer agreed to be acquired by Jack Henry & Associates Inc.

Humana Inc ((HUM)) the health and supplemental benefits company rose 4.2% or $1.56 to $36.25. Health insurance stocks gained in the morning trading. UnitedHealth Group, Aetna, WellPoint and Cigna increased between 3% and 4%.

Ingersoll-Rand plc ((IR)) the maker of Thermo King and Hussmann refrigeration equipment dropped 2.70% or 78 cents to $28.13.

Lowe’s Companies, Inc ((LOW)) plunged 10.2% or $2.33 to $20.50 after the home improvement retailer reported second quarter revenues fell 5% to $13.84 billion from $14.51 billion a year ago. Net income in the quarter fell 19% to $759 million or 51 cents per diluted share compared to net income of $938 million or 63 cents per share a year ago.

Marshall & Ilsley Corporation ((MI)) fell 10.3% or 47 cents to $6.79 after it sold off bad mortgage loan portfolio of $295 million. About two third of loans are in Arizona, one of the states hit the hardest with housing market collapse. The bank also noted that third quarter loan losses will be lower after the sale of troubled loans.

Rosetta Stone Inc ((RST)) plunged 24% to $21.59 after the language course marketing company revised the quarterly earnings to a range of $4.9 million and $5.3 million and earnings per share between 22 cents and 24 cents. The previous earnings estimate was between $4.9 million and $5.3 million or earnings per share between 30 cents and 32 cents.

The Valspar Corporation ((VAL)) advanced 4.1% or $1.09 to $26.41 after the global coating and paints manufacture reported third quarter revenues fell 17% to $794.6 million from $957.7 million a year ago. Net income in the quarter rose 40.3% to $61.6 million or 61 cents per diluted share compared to net income of $43.9 million or 44 cents per share a year ago.