SLM, Apollo, ITT Edu Fall; CarMax, Carnival Rise

Mayank Mehta
22 Sep, 2009
New York City

Student loan lenders declined after the U.S. House passed the bill to eliminate the private lenders. SLM Corp, Apollo Group, ITT Educational Services and Corinthian Colleges declined more than 4%. Carnival and CarMax traded higher after earnings releases.

[R]12:45 PM New York – Student loan lenders declined after the U.S. House passed the bill to eliminate the private lenders. SLM Corp, Apollo Group, ITT Educational Services and Corinthian Colleges declined more than 4%. Carnival and CarMax traded higher ater earnings.[/R]

Of the stocks in S&P 500 index, 356 increased, 135 declined and 9 were unchanged.

Apollo Group, Inc led the decliners in the S&P 500 index with a loss of 3.6% followed by losses in Vulcan Materials Company of 2.7%, in DeVry Inc of 2.5%, in Xcel Energy Inc of 2.2% and in UnitedHealth Group Incorporated of 1.7%.

American International Group, Inc led gainers in the S&P 500 index with a rise of 11.2% followed by gains in Carnival Corporation 7.0%, in Macy''s, Inc of 5.7% and in JDS Uniphase Corporation of 5.2%.

Other Movers

Adolor Corporation ((ADLR)) rose 2.4% or 4 cents to $1.70 after the drugmaker today announced that it has acquired from Eli Lilly and Company the exclusive worldwide rights to OpRA III, a clinical-stage product candidate.

Apollo Group, Inc ((APOL)) the private education provider decreased 5.0% or $3.74 to $71.00.

Student loans lenders and private education colleges fell after the U.S. House passed a bill that will eliminate the private lending activity in the student loan market. All loans will be administered by the US Department of Education.

ITT Educational Services fell 5.4%, SLM Corp declined 1.5%, Corinthian Colleges fell 4.3% and Apollo Group decreased 4.7%.

AMR Corporation ((AMR)) declined 5.8% or 53 cents to $8.50 after the parent company of American Airlines said that it intends to make concurrent offerings subject to market and other conditions, of $30 million shares of its common stock and $250 million principal amount of its convertible senior notes due 2014.

CarMax, Inc ((KMX)) climbed 7.6% or $1.47 to $20.93 after the car dealership chain reported second quarter sales rose 13% to $2.08 billion from $1.84 billion a year ago. Net income in the quarter rose 636% to $103 million or 46 cents per diluted share compared to net income of $14 million or 6 cents per share a year ago.

Carnival Corporation ((CCL)) increased 6.5% or $2.11 to $34.11 after the cruise line company reported third quarter revenues fell 14% to $4.14 billion from $4.81 billion a year ago. Net income in the quarter fell 19.5% to $1.07 billion or $1.33 per diluted share compared to net income of $1.33 billion or $1.65 per share a year ago.

ConAgra Foods, Inc ((CAG)) fell 1.1% or 26 cents to $22.12 after the food company reported first quarter sales fell 3.2% to $2.96 billion from $3.06 billion a year ago. Net income in the quarter fell 62.5% to $165.9 million or 37 cents per diluted share compared to net income of $442.4 million or 94 cents per share a year ago.

FactSet Research Systems Inc ((FDS)) surged 10.2% or $6.25 to $68.60 after the provider of integrated financial information reported fourth quarter revenues rose 1.1% to $155.5 million from $153.7 million a year ago. Net income in the quarter rose 8% to $36.3 million or 74 cents per diluted share compared to net income of $33.6 million or 67 cents per share a year ago.

FreightCar America, Inc ((RAIL)) jumped 18.9% or $3.90 to $24.29 after the manufacturer of aluminum-bodied railcars reported second quarter revenues fell 26.2% to $104.3 million from $141.3 million a year ago. Net income in the quarter was $7 million or 59 cents per diluted share compared to net loss of $368,000 or 3 cents per share a year ago.

Louisiana-Pacific Corporation ((LPX)) added 4.9% or 36 cents to $7.57 after the maker of pressed-wood panels said that it plans to publicly offer 18,000,000 shares of its common stock. Goldman, Sachs & Co. will act as the sole book-running agent for the offering.

Macy''s, Inc ((M)) rose 6.1% or $1.10 to $18.89 after the department-store chain was upgraded to “buy” from “hold” at Citigroup Inc.

Progress Software Corporation ((PRGS)) rose 0.8% or 19 cents to $22.90 after the software provider reported third quarter revenues fell 5.7% to $119.4 million from $126.6 million a year ago. Net income in the quarter fell 56% to $5.5 million or 13 cents per diluted share compared to net income of $12.5 million or 30 cents per share a year ago.

SYNNEX Corporation ((SNX)) increased 2.5% or 80 cents $32.14 after the business services provider said third quarter revenues fell 2% to $2.01 billion from $2.05 billion a year ago. Net income in the quarter rose 4.5% to $23.1 million or 67 cents per diluted share compared to net income of $22.1 million or 66 cents per share a year ago.