AOL Opens Lower; Pall, Costco Rise

Mayank Mehta
10 Dec, 2009
New York City

AOL Inc declined 2.5% after it was spinoff from Time Warner Inc. Ciena Corp declined after its quarterly loss increased. Costco Wholesale Corp fiscal first quarter net meets analysts

[R]11:45 AM New York – AOL Inc declined 2.5% after it was spinoff from Time Warner Inc. Ciena Corp declined after its quarterly loss increased. Costco Wholesael Corp fiscal first quarter net meets analysts’ expectations. Pall Corp gains after quarterly net increases 55%. Lululemon Athletica edged lower after quarterly net jumped 50%.[/R]

Of the stocks in S&P 500 index, 451 increased, 46 declined and 3 were unchanged.

Ciena Corporation led the decliners in the S&P 500 index with a loss of 6.5% followed by losses in Eli Lilly and Company of 3.8% and in MBIA Inc of 1.6%, in Legg Mason, Inc of 1.3% and in The PNC Financial Services Group, Inc of 1.0%.

Pall Corporation led gainers in the S&P 500 index with a rise of 7.5% followed by gains in Time Warner Inc 3.7%, in Gannett Co., Inc of 3.6% and in The Western Union Company of 3.4%.

Other Movers

AOL Inc ((AOL)) declined 2.5% to $23.09 after the Internet portal and access provider was spun off from Time Warner Inc. The Internet content and access provider had merged with Time Warner in 2000 that many view as a peak of the dot com bubble.

The failed merger between the two companies was valued at $124 billion that spawned record losses and sank Time Warner stock and caused significant management changes at the publishing company. AOL in the spinoff is valued at $2.44 billion.

Anadarko Petroleum Corporation ((APC)) added 2% or $1.16 to $58.27 after the producer of natural gas today announced a discovery at the Lucius exploration well in Keathley Canyon block 875.

Apollo Investment Corporation ((AINV)) fell 0.2% or 3 cents to $9.79 after the publicly traded credit fund owned by Leon Black controlled private-equity firm said that it has priced its public offering of 10 million shares of its common stock at an offering price of $9.82 per share, raising $98.2 million.

Ciena Corporation ((CIEN)) fell 2.7% or 36 cents to $12.87 after the network equipment maker reported fourth quarter revenues fell 2% to $176.3 million from $179.7 million a year ago. Net loss in the quarter was $26.7 million or 29 cents per diluted share compared to net loss of $25.4 million or 28 cents per share a year ago.

Citigroup Inc ((C)) advanced 0.6% or 2 cents to $3.89.

Costco Wholesale Corporation ((COST)) advanced 1.0% or 59 cents to $59.25 after the wholesale-club operator reported first quarter revenues rose 5.5% to $17.3 billion from $16.4 billion a year ago. Net income in the quarter rose 1.1% to $266 million or 60 cents per diluted share compared to net income of $263 million or 60 cents per share a year ago.

Cytokinetics, Incorporated ((CYTK)) fell 1.9% or 6 cents to $3.07 after the biopharmaceutical company said that it has agreed with GlaxoSmithKline to terminate their collaboration and license agreement, effective February 28, 2010. As a result, all rights for GSK-923295, an inhibitor of centromere-associated protein E (CENP-E), will revert to Cytokinetics effective February 28, 2010.

Greif, Inc ((GEF)) decreased 7.7% or $4.45 to $53.01 after the maker of industrial packaging products said fourth quarter sales fell 22.5% to $760.5 million from $981.8 million a year ago. Net income in the quarter rose 31.3% to $79.3 million or $1.35 per diluted share compared to net income of $60.4 million or $1.03 per share a year ago.

Lululemon Athletica Inc ((LULU)) dropped 1.7% or 47 cents to $27.20 after the clothing retailer said third quarter revenues increased 30% to $112.9 million from $87.0 million a year ago.

Oxford Industries, Inc ((OXM)) surged 13.8% or $2.91 to $23.98 after the maker of Tommy Bahama clothing said third quarter sales declined to $200.5 million from $244.2 million a year ago.

Pall Corporation ((PLL)) increased 8% or $2.51 to $33.90 after the maker of purification systems for hospitals said first quarter sales fell 5.4% to $546.9 million from $578.0 million a year ago. Net income in the quarter rose 55.5% to $67 million or 56 cents per diluted share compared to net income of $43.1 million or 36 cents per share a year ago.

SL Green Realty Corp ((SLG)) rose 0.04% or 2 cents to $47.03 after the owner of office buildings said that it has acquired the first mortgage loan secured by the property at 510 Madison Avenue in New York City from The Union Labor Life Insurance Company.

Smithfield Foods, Inc ((SFD)) added 1.0% or 18 cents to $16.86 after the pork processor and hog producer reported second quarter sales fell 14.6% to $2.69 billion from $3.15 billion a year ago. Net loss in the quarter was $26.4 million or 17 cents per diluted share compared to net income of $1.7 million or 1 cent per share a year ago.