Capella, Simon, Terra Rise; WellPoint Falls

Mayank Mehta
16 Feb, 2010
New York City

WellPoint, Inc led the decliners in the S&P 500 index after reaffirmed its 2010 earnings outlook, lower than expected. Abercrombie & Fitch earnings falls 31%. Kraft Foods sales increase 3%. PMI loss widens and loans in default continue to rise. Teva swings to profit. Terra Industries surges.

[R]11:30 AM New York – WellPoint, Inc led the decliners in the S&P 500 index after reaffirmed its 2010 earnings outlook, lower than expected. Abercrombie & Fitch earnings falls 31%. Kraft Foods sales increase 3%. PMI loss widens and loans in default continue to rise. Teva swings to profit. Terra Industries surges on a buyout offer.[/R]

Of the stocks in S&P 500 index, 415 increased, 80 declined and 5 were unchanged.

WellPoint, Inc led the decliners in the S&P 500 index with a loss of 2.8% followed by losses in Pulte Homes, Inc of 2.7% and in Cintas Corporation of 2.2%, in Kraft Foods Inc of 2.2% and in El Boston Scientific Corporation of 2.0%.

Genuine Parts Company led gainers in the S&P 500 index with a rise of 5.9% followed by gains in AK Steel Holding Corporation 5.9%, in Cliffs Natural Resources Inc of 5.4% and in United States Steel Corporation 4.8%.

Other Movers

Abercrombie & Fitch Co ((ANF)) rose 1.1% or 40 cents to $34.25 after the clothing retailer reported fourth quarter sales fell 4.5% to $936 million from $980.8 million a year ago. Net income in the quarter fell 30.5% to $47.5 million or 53 cents per diluted share compared to net income of $68.4 million or 78 cents per share a year ago.

Barclays Plc ((BCS)) surged 11% to $1.85 to $18.53 after it reported 2009 earnings that more than doubled to 9.39 billion pounds.

Brown & Brown, Inc ((BRO)) was unchanged at $17.70 after the insurance agency said fourth quarter revenues fell 7.7% to $214.2 million from $232.1 million a year ago. Net income in the quarter fell 29% to $23.7 million or 17 cents per diluted share compared to net income of $33.4 million or 24 cents per share a year ago.

Capella Education Company surged 7.2% or $5.03 to $75.58 after fiscal 2009 revenues surged 23% to $334.6 million and net income of $42.7 million or $2.51 per share. In the last quarter revenues increased 24.8% to $94.5 million and net income increased 34.4% $15 million.

El Paso Corporation ((EP)) gained 4.0% or 41 cents to $10.46 after the owner of the interstate pipeline network was upgraded to “outperform” from “market perform” at Wells Fargo & Co.

Fossil, Inc ((FOSL)) advanced 2.2% or 75 cents to $34.22 after the seller of consumer fashion accessories reported fourth quarter sales rose 13.7% to $527.8 million from $464.1 million a year ago. Net income in the quarter rose 51.2% to $70.0 million or $1.03 per diluted share compared to net income of $46.3 million or 69 cents per share a year ago.

General Growth Properties, Inc ((GGWPQ)) surged 25% or $2.40 to $11.79 after Simon Property Group, Inc ((SPG)) offered $10 billion in cash for the mall operator. The offer is not conditional to financing and will pay $6 in cash to unsecured creditors and $3 additional for the asset value.

The Gap, Inc ((GPS)) fell 2.3% or 46 cents to $19.49 after the casual apparel retailer operator was downgraded to “underweight” from “equal weight” at Morgan Stanley.

Kraft Foods Inc ((KFT)) fell 1.2% or 36 cents to $28.74 after the food maker reported fourth quarter revenues rose 3% to $11.03 billion from $10.68 billion a year ago. Net income in the quarter rose 299% to $710 million or 48 cents per diluted share compared to net income of $178 million or 12 cents per share a year ago.

Merck & Co., Inc ((MRK)) rose 2.2% or 83 cents to $37.75 after the drugmaker reported fourth quarter sales rose 67.3% to $10.09 billion from $6.03 billion a year ago. Net income in the quarter rose 306% to $6.5 billion or $2.35 per diluted share compared to net income of $1.6 billion or 78 cents per share a year ago.

NII Holdings, Inc ((NIHD)) surged 11.6% or $4.20 to $40.27 after the provider of walkie-talkie and wireless phone service in Latin America was upgraded to “buy” from “neutral” at Bank of America Corp.

Pan American Silver Corp ((PAAS)) rose 0.9% or 20 cents to $22.20 after the silver and gold miner said fourth quarter sales rose 233.4% to $154.4 million from $46.3 million a year ago. Net income in the quarter was $27.8 million or 31 cents per diluted share compared to net loss of $33.3 million or 41 cents per share a year ago.

The PMI Group, Inc ((PMI)) decreased 8.7% or 21 cents to $2.20 after the mortgage insurer reported fourth quarter revenues rose 31% to $249.8 million from $191.0 million a year ago. Net loss in the quarter was $228.2 million or $2.76 per diluted share compared to net loss of $178.8 million or $2.19 per share a year ago.

Qwest Communications International Inc ((Q)) rose 2.0% or 9 cents to $4.52 after the provider of telecom services reported fourth quarter revenues fell 9% to $3.0 billion from $3.3 billion a year ago. Net income in the quarter fell 39% to $108 million or 6 cents per diluted share compared to net income of $177 million or 10 cents per share a year ago.

Synovus Financial Corp ((SNV)) rose 4.2% or 11 cents to $2.73 after the owner of banks in the southeastern U.S. was upgraded to “outperform” from “market perform” at Morgan Keegan & Co.

Terra Industries, Inc ((TRA)) soared 22.3% to $40.67 after it agreed to be acquired for $4.1 billion or $41.10 a share by Yara International ASA of Oslo, Norway.

Teva Pharmaceutical Industries Limited ((TEVA)) fell 0.4% or 29 cents to $58.57 after the pharmaceutical company reported fourth quarter sales rose 33.3% to $3.80 billion from $2.85 billion a year ago. Net income in the quarter was $379 million or 42 cents per diluted share compared to net loss of $694 million or 88 cents per share a year ago.

The Valspar Corporation ((VAL)) closed unchanged at $26.66 after the coating and paints manufacturer and distributor reported first quarter sales rose 5% to $672.4 million from $639.5 million a year ago. Net income in the quarter rose 211% to $33.9 million or 34 cents per diluted share compared to net income of $10.9 million or 11 cents per share a year ago.

Waste Management, Inc ((WM)) rose 2.6% or 83 cents to $32.66 after the provider of integrated waste services reported fourth quarter revenues fell 3% to $3.0 billion from $3.1 billion a year ago. Net income in the quarter rose 44.5% to $315 million or 64 cents per diluted share compared to net income of $218 million or 44 cents per share a year ago.

WellPoint, Inc ((WLP)) declined 2.7% or $1.57 to $57.71 after the company reaffirmed 2010 earnings will be $6 per share, lower than the consensus estimate of $6.15. UnitedHealth Group and Aetna Inc declined nearly 2%.