Infosys, Google Rise; Aeropostale Falls

Mayank Mehta
09 Oct, 2009
New York City

Tech stocks led the charge in the morning trading. IBM, Google and Research in Motion gained on broker recommendations. Tata Motors completed its $750 million offering. Infosys fell after quarterly net income fell 1%. Sunrise Senior Living surged 24% after it sold nursing home care facilities.

[R]12:30 PM New York – Tech stocks led the charge in the morning trading. IBM, Google and Research in Motion gained on broker recommendations. Tata Motors completed its $750 million offering. Infosys fell after quarterly net income fell 1%. Sunrise Senior Living surged 24% after it sold nursing home care facilities.[/R]

Of the stocks in S&P 500 index, 247 increased, 243 declined and 10 were unchanged.

Supervalu Inc led the decliners in the S&P 500 index with a loss of 3.9% followed by losses in Akamai Technologies, Inc of 2.6%, in Starwood Hotels & Resorts Worldwide, Inc of 2.5%, in Assurant, Inc of 2.5% and in Limited Brands, Inc of 2.0%.

Spectra Energy Corp led gainers in the S&P 500 index with a rise of 4.1% followed by gains in LSI Corporation 3.3%, in National Semiconductor Corporation of 2.9% and in NetApp, Inc of 2.9%.

Other Movers

Acorda Therapeutics, Inc ((ACOR)) plunged 16.2% or $3.62 to 18.66 after the FDA posted comments on its Web site that raised doubts about the effectiveness of drug Fampridine-SR that helps with people with multiple sclerosis.

Aeropostale, Inc ((ARO)) fell 2.5% or $1.08 to $41.69 after the teen retailer was downgraded to “sell” from “neutral” at Goldman Sachs.

AK Steel Holding Corporation ((AKS)) rose 3.0% or 60 cents to $20.04 after the steelmaker was upgraded to “buy” from “hold” at Deutsche Bank.

Akamai Technologies, Inc ((AKAM)) declined 0.7% or 16 cents to $20.08 after the Internet infrastructure provider was downgraded to “market weight” from “overweight” at Thomas Weisel Partners.

CalAmp Corp ((CAMP)) surged 20.9% or 46 cents to $2.66 after the provider of wireless communications solutions said second quarter revenues rose 2.6% to $23.9 million from $23.3 million a year ago. Net loss in the quarter was $4.2 million or 17 cents per diluted share compared to net loss of $1.5 million or 6 cents per share a year ago.

ConocoPhillips ((COP)) the oil company fell 1.5% or 78 cents to $50.63.

El Paso Corporation ((EP)) fell 1.9% or 21 cents to $10.35 after the owner of the network of natural-gas pipelines was downgraded to “neutral” from “buy” at Goldman Sachs.

Google Inc ((GOOG)) the most popular Internet search engine gained 1.1% or $5.65 to $519.83 after Credit Suisse recommended the stock.

Hertz Global Holdings, Inc ((HTZ)) the rental-car company increased 7.2% or 74 cents to $10.90 after widely followed commentator on CNBC recommended the stock.

Infosys Technologies Limited ((INFY)) decreased 4.8% or $2.38 to $49.48 after the software company reported second quarter revenues fell 5.7% to $1.15 billion from $1.22 billion a year ago. Net income in the quarter fell 1% to $317 million or 56 cents per diluted share compared to net income of $320 million or 56 cents per share a year ago.

LSI Corporation ((LSI)) climbed 1.8% or 10 cents to $5.54 after the computer-chip maker was upgraded to “equal weight” from “underweight” at Barclays Capital.

Nokia Corporation ((NOK)) rose 1.7% or 26 cents to $14.65 after the mobile phone and other gadget maker release new applications for its digital devices.

Nu Horizons Electronic Corp ((NUHC)) increased 5.5% or 22 cents to $4.17 after the distributor of active and passive electronic components said second quarter sales fell 26% to $156.6 million from $211.8 million a year ago. Net income in the quarter rose 183% to $543,000 or 3 cents per diluted share compared to net income of $192,000 or 1 cent per share a year ago.

Sunrise Senior Living Inc ((SRZ)) surged 24.5% to $4.12 after it agreed to sell 21 assisted living communities for $204 million to Brookdale Senior Living. The deal is expected to close by November 16 and the company estimates to book one-time gain of $50 million.

Supervalu Inc ((SVU)) fell 3.7% or 55 cents to $15.10 after the grocery retail chain was downgraded to “equal weight” from “overweight” at Barclays.

Tata Motors Ltd decreased 5.8% to $12.14 after it completed securities sale to raise $750 million. The company sold stocks and convertible notes of $375 million each in global deposit receipts or GDR to finish the payment for the debt it took on while acquiring Jaguar Land Rover from Ford Motor Company.

India based truck maker sold 29.9 million GDRs at $12.54 and convertible notes that pay 4% and due in 2014. The company with the final payment repaid the total of $3 billion loan to pay for the purchase of Jaguar Land Rover.

Threshold Pharmaceuticals, Inc ((THLD)) added 5.2% or 13 cents to $2.55 after the biotech company said that results of clinical trial to treat melanoma with its experimental drug, TH-302 showed stable or better disease conditions.