Avocent, Cirrus, Family Dollar, Yamana Rise

Mayank Mehta
06 Oct, 2009
New York City

Avocent Corp surged 20% after it agreed to be acquired by Emerson Electric for $25 a share or $1.2 billion. St. Jude Medical dropped 11% after it lowered its adjusted third quarter earnings outlook. The Mosaic Co first quarter profit falls to $100.6 million. Pepsi Bottling quarterly net rises.

[R]12:40 PM New York – Avocent Corp surged 20% after it agreed to be acquired by Emerson Electric for $25 a share or $1.2 billion. St. Jude Medical dropped 11% after it lowered its adjusted third quarter earnings outlook. The Mosaic Co first quarter profit falls to $100.6 million. Pepsi Bottling posts higher quarterly income.[/R]

Of the stocks in S&P 500 index, 436 increased, 59 declined and 5 were unchanged.

Medtronic, Inc led the decliners in the S&P 500 index with a loss of 2.8% followed by losses in Ciena Corporation of 1.6%, in Hospira, Inc of 1.4%, in Coventry Health Care, Inc of 1.4% and in CIGNA Corporation of 1.2%.

Corning Incorporated led gainers in the S&P 500 index with a rise of 5.8% followed by gains in The Hartford Financial Services Group, Inc 5.7%, in Newmont Mining Corporation of 5.1% and in Marshall & Ilsley Corporation of 4.1%.

Other Movers

Aegon N.V ((AEG)) added 5.1% or 41 cents to $8.38 after the Dutch insurance company was upgraded to “neutral” from “sell” at UBS AG.

American International Group, Inc ((AIG)) the insurer increased 5.8% or $2.49 to $45.24.

Arris Group, Inc ((ARRS)) plunged 9.2% or $1.17 to $11.50 after the broadband-equipment maker was downgraded to “underperform” from “hold” at Jefferies.

Avocent Corporation ((AVCT)) the maker of data-center switches surged 20.9% or $4.29 to $24.91. The company agreed to be acquired by Emerson Electric for $1.2 billion or $25 a share. Emerson Electric ((EMR)) increased 1.9% to $39.41.

The Boeing Company ((BA)) fell 0.9% or 48 cents to $51.83 after the commercial-jet builder today said it expects a pre-tax charge against third-quarter results of approximately $1 billion due to increased production costs and the difficult market conditions affecting its 747-8 program.

Of the total, $640 million is related to reworking and manufacturing disruption related and $360 million is related to “challenging market conditions” and Boeing’ decision to maintain production rate of 1.5 airplanes a month nearly two years longer than previously planned and lowering it from 2 planes a month.

Century Aluminum Company ((CENX)) the metal processor advanced 5.2% or 47 cents to $9.41 after commodities prices rose and ahead of earnings from Alcoa this week. In addition, Credit Suisse raised its target price to $10 from $8.

Chattem, Inc ((CHTT)) rose 1.7% or $1.11 to $64.17 after the consumer products maker reported third quarter revenues rose 3% to $115.2 million from $111.9 million a year ago. Net income in the quarter rose 67% to $23.4 million or $1.22 per diluted share compared to net income of $14 million or 73 cents per share a year ago.

Cirrus Logic, Inc ((CRUS)) surged 11.7% or 60 cents to $5.73 after the graphics chipmaker said that the company expects net revenue for the second fiscal quarter which ended on Sept. 26, 2009, to be up 48% sequentially to approximately $55.7 million.

Corning Incorporated ((GLW)) rose 5.2% or 77 cents to $15.57 after the maker of glass for liquid-crystal display panels was upgraded to “buy” from “neutral” at UBS AG.

Extreme Networks Inc ((EXTR)) plunged 14% to $2.47 after the company guided fiscal first quarter 2010 revenues of $66 million, lower than Reuters Estimate of $80 million.

Family Dollar Stores, Inc increased 5.5% to $28.41 after BMO Capital Markets lifted its rating to “outperform” from “market perform.”

Investors Real Estate Trust ((IRET)) fell 5.4% or 47 cents to $8.24 after the real estate investment trust plans to sell 8 million newly-issued common shares at $8.25 each.

Robbins & Myers, Inc ((RBN)) decreased 7.1% or $1.65 to $23.15 an industrial equipment maker said fourth quarter sales fell 32% to $155.2 million from $227.8 million a year ago. Net income in the quarter fell 58% to $12.8 million or 39 cents per diluted share compared to net income of $30.6 million or 88 cents per share a year ago.

The Mosaic Company ((MOS)) added 0.8% or 39 cents to $46.35 after the maker of plant nutrient potash and fertilizer said first quarter sales fell 66% to $1.46 billion from $4.32 billion a year ago. Net income in the quarter fell 91.5% to $100.6 million or 23 cents per diluted share compared to net income of $1.18 billion or $2.65 per share a year ago.

Medtronic, Inc ((MDT)) decreased 2.0% or 73 cents to $35.72. St. Jude Medical Inc ((STJ)) dropped 11.1% to $34 after it lowered adjusted third quarter earnings outlook between 57 cents a share and 58 cents compared to its previous estimate between 61 cents a share and 63 cents.

The Pepsi Bottling Group, Inc ((PBG)) increased 0.08% or 3 cents to $37.34 after the Pepsi bottler reported third quarter revenues fell 4.7% to $3.63 billion from $3.81 billion a year ago. Net income in the quarter rose 10% to $254 million or $1.14 per diluted share compared to net income of $231 million or $1.06 per share a year ago.

Shire plc ((SHPGY)) fell 1.0% or 56 cents to $50.49 after the specialty biopharmaceutical company was downgraded to “neutral” from “buy” at UBS AG.

Yamana Gold Inc ((AUY)) rose 9.5% or 99 cents to $11.40 after the gold producer estimated record third quarter production of 314,200 gold equivalent ounces, a sequential increase of 9% and 16% from the first quarter.