Gold, Silver Miners Rise; AIG, Kraft Fall

Mayank Mehta
08 Sep, 2009
New York City

Gold miners scaled higher after gold crossed $1,000 price and silver traded at 13-month high above $16 an ounce. Allegheny Technologies gained after it signed ten year contract with Rolls Royce. Kraft declined after it offered $16.5 billion for Cadbury Plc. Odyssey Re surged on unsolicited offer.

[R]12:00 PM New York – Gold miners scaled higher after gold crossed $1,000 price and silver traded at 13-month high above $16 an ounce. Allegheny Technologies gained after it signed ten year contract with Rolls Royce. Kraft declined after it offered $16.5 billion for Cadbury Plc. Odyssey Re surged on unsolicited offer.[/R]

Of the stocks in S&P 500 index, 347 increased, 145 declined and 8 were unchanged.

American International Group, Inc led the decliners in the S&P 500 index with a loss of 7.5% followed by losses in Kraft Foods Inc of 5.6%, in UnitedHealth Group Incorporated of 4.1%, in Aetna Inc of 3.4% and in Moody’s Corporation of 3.1%.

Harley-Davidson,Inc led gainers in the S&P 500 index with a rise of 6.1% followed by gains in Carnival Corporation 4.9%, in QLogic Corporation of 4.8% and in Allegheny Technologies Incorporated of 4.6%.

A rally in gold and silver lifted mining companies stock. Coeur d’Alene Mines Corp surged 9.8% to $18.86, Hecla Mining Company increased 8% to $3.73 and NovaGold Resources increased 3.8% to $4.74 and Lihir Gold Limited added 0.7% to $25.72. Harmony Gold Mining increased 4.9% to $11.19.

Other Movers

Aetna Inc ((AET)) the diversified healthcare benefits company edged lower 1.8% or 58 cents to $28.80.

Allegheny Technologies Incorporated ((ATI)) added 6.0% or $1.81 to $31.59 after the diversified specialty metals producer announced that it has signed a ten year sourcing agreement with Rolls Royce plc for the supply of nickel-based super alloy disc-quality products for commercial jet engine applications that may generate as much as $1 billion.

American International Group, Inc ((AIG)) declined 9.3% or $3.76 to $36.17.

Carnival Corporation ((CCL)) the cruise and vacation company rose 5.3% or $1.58 to $30.93.

C&D Technologies, Inc ((CHD)) traded unchanged at $2.12 after the producer and marketer of electrical power storage and conversion systems reported second quarter revenues rose 11.9% to $82.4 million from $92.5 million a year ago. Net loss for the quarter was $5.62 million or 21 cents per diluted share compared to net loss of $1.43 million or 6 cents per share a year ago.

Kraft Foods Inc ((KFT)) fell 5.1% or $1.44 to $26.66 said after its cash-and-stock takeover bid of more than $16 billion was rejected by Cadbury Plc.

Harley-Davidson, Inc ((HOG)) added 5.2% or $1.23 to $24.55 after the motorcycle maker rating was lifted to “hold” from “sell” at Citigroup Inc and set its stock target price on the stock to $26 from $14, citing an improvement in sales.

Las Vegas Sands ((LVS)) increased 3.8% to $16.10 after the company completed the exchangeable bond offering of $600 million ahead of its listing in Hong Kong.

Moody’s Corporation ((MCO)) the provider of credit ratings and related research fell 0.9% or 23 cents to $24.19.

Odyssey Re Holdings Corp ((ORH)) surged 24.8% to $62.51 after Fairfax Financial Holdings Ltd ((FFH)) offered to acquire rest of the company stock that it does not own for $60. Fairfax in an unsolicited proposal offered $60 a share for the 27.4% of the stock it does not own.

QLogic Corporation ((QLGC)) the designer and supplier of storage networking advanced 4.6% or 76 cents to $17.12.

Smithfield Foods, Inc ((SFD)) decreased 1.0% or 14 cents to $13.04 after the hog producer and pork processor reported first quarter revenues fell 14% to $2.72 billion from $3.14 billion a year ago. Net loss for the quarter was $107.7 million or 75 cents per diluted share compared to net loss of $13.2 million or 10 cents per share a year ago.

UnitedHealth Group Incorporated ((UNH)) the diversified health insurer edged lower 1.3% or 38 cents to $28.50.