Best Buy, Citigroup, Qualcomm Up; Red Hat Down

Mayank Mehta
25 Mar, 2010
New York City

Best Buy Co. soared after it reported higher than expected sales and net income in the fourth quarter. ConAgra Foods declined after quarterly sales softened 1%. Citigroup Inc added after U.S. Treasury prepares to sell its 27% stake. Caterpillar and Deere book higher healthcare costs.

[R]11:05 AM New York – Best Buy Co. soared after it reported higher than expected sales and net income in the fourth quarter. ConAgra Foods declined after quarterly sales softened 1%. Citigroup Inc added after U.S. Treasury prepares to sell its 27% stake. Caterpillar and Deere book higher healthcare costs.[/R]

Of the stocks in S&P 500 index, 434 increased, 60 declined and 6 were unchanged.

Genzyme Corporation led the decliners in the S&P 500 index with a loss of 4.9% followed by losses in ConAgra Foods, Inc of 3.9% and in Red Hat Inc of 3.9%, in Paychex, Inc of 2.5% and in McCormick & Company, Incorporated of 2.3%.

Qualcomm Incorporated led gainers in the S&P 500 index with a rise of 7.8% followed by gains in Best Buy Co., Inc 7.2%, in eBay Inc of 3.4% and in Lennar Corporation 3.1%.

Other Movers

AGL Resources Inc. ((AGL)) closed unchanged at $37.79 after the seller and distributor of natural gas announced it has reached a definitive agreement to sell its AGL Networks dark-fiber telecommunications business to Colorado-based Zayo Group, LLC.

Best Buy Co., Inc ((BBY)) gained 7.6% or $3.18 to $44.36 after the retailer of consumer electronics reported fourth quarter sales rose 12% to $16.5 billion from $14.7 billion a year ago. Net income in the quarter rose 36.6% to $779 million or $1.82 per diluted share compared to net income of $570 million or $1.35 per share a year ago.

ConAgra Foods, Inc ((CAG)) fell 2.3% or 60 cents to $25.50 after the packaged foods maker reported third quarter sales fell 1% to $3.1 billion from $3.13 billion a year ago. Net income in the quarter rose 19% to $229.6 million or 51 cents per diluted share compared to net income of $193.2 million or 43 cents per share a year ago.

Caterpillar Inc ((CAT)) rose 0.3% or 24 cents to $62.30 and said in a regulatory filing that its healthcare cost will increase $100 million with the passage of new healthcare bill.

Citigroup Inc ((C)) added 2.8% or 12 cents to $4.27 after media reports suggested that the U.S. Treasury is preparing to sell its 27% stake in the bank on a pre-arranged schedule.

CKE Restaurants, Inc ((CKR)) rose 0.09% or 1 cent to $11.26 after the restaurant chain said fourth quarter sales fell 5% to $311.7 million from $327.5 million a year ago. Net income in the quarter rose 492% to $15.4 million or 28 cents per diluted share compared to net income of $2.6 million or 5 cents per share a year ago.

eBay Inc ((EBAY)) increased 3.0% or 81 cents to $27.75 after the e-commerce marketplace operator was upgraded to “outperform” from “neutral” at Credit Suisse Group AG.

ESCO Technologies Inc ((ESE)) the provider of special- purpose communication systems for utility services rose 1.9% or 59 cents to $30.87.

First Solar, Inc ((FSLR)) climbed 4.1% or $4.55 to $114.00 after the maker of thin-film solar cells was upgraded “overweight” in new coverage at Morgan Stanley.

Fred’s, Inc. ((FRED)) traded unchanged at $11.35 after the discount general merchandise store reported fourth quarter sales rose 1% to $473.1 million from $469.4 million a year ago. Net income in the quarter rose 148% to $5.7 million or 15 cents per diluted share compared to net income of $2.3 million or 6 cents per share a year ago.

GenCorp Inc. ((GY)) closed unchanged at $4.63 an aerospace and defense products maker reported first quarter sales rose 9.3% to $186.8 million from $170.9 million a year ago. Net loss in the quarter was $8.9 million or 15 cents per diluted share compared to net income of $19.4 million or 31 cents per share a year ago.

Genzyme Corporation ((GENZ)) dropped 2.8% or $1.58 to $53.75 after the maker of enzyme-replacement therapies was downgraded to “underweight” from “neutral” at JPMorgan Chase & Co.

G-III Apparel Group, Ltd. ((GIII)) increased 8.9% or $2.08 to $25.23 after the clothing maker reported fourth quarter sales rose 13.5% to $193.8 million from $170.7 million a year ago. Net income in the quarter was $9.0 million or 49 cents per diluted share compared to net loss of $32.1 million or $1.93 per share a year ago.

Health Net, Inc ((HNT)) the health-care provider rose 0.7% or 19 cents to $25.42.

Ivanhoe Mines Ltd ((IVN)) added 0.1% or 3 cents to $16.30 after the mining company announces commitment to develop world-class Kyzyl Gold Project in Kazakhstan.

lululemon athletica inc ((LULU)) surged 9.7% or $3.52 to $39.63 after the retailer of athletic apparel reported fourth quarter revenues rose 54.5% to $160.6 million from $103.9 million a year ago. Net income in the quarter rose 161.5% to $28.5 million or 40 cents per diluted share compared to net income of $10.9 million or 16 cents per share a year ago.

Marriott International, Inc ((MAR)) climbed 2.1% or 64 cents to $30.31 after the hotel chain was upgraded to “overweight” from “neutral” at JPMorgan.

McCormick & Company, Inc ((MKC)) fell 2.2% or 87 cents to $38.50 after the spice maker reported first quarter sales rose 6.4% to $764.5 million from $718.5 million a year ago. Net income in the quarter rose 17.7% to $67.9 million or 51 cents per diluted share compared to net income of $57.7 million or 44 cents per share a year ago.

Nike, Inc ((NKE)) rose 0.8% or 60 cents to $73.98 after the maker of athletic shoes was upgraded to “overweight” from “neutral” at HSBC Holdings Plc.

Omnova Solutions Inc ((OMN)) increased 6.2% or 46 cents to $7.86 after the chemical maker said first quarter sales rose 15% to $183.9 million from $160.2 million a year ago. Net income in the quarter was $7.8 million or 17 cents per diluted share compared to net loss of $0.1 million or break even per share a year ago.

Paychex, Inc ((PAYX)) rose 0.1% or 6 cents to $32.40 after the payroll and personnel services provider said third quarter sales fell 4% to $507.8 million from $528.6 million a year ago. Net income in the quarter fell 14.3% to $112.0 million or 31 cents per diluted share compared to net income of $130.8 million or 36 cents per share a year ago.

Palm, Inc ((PALM)) the maker of the Pre and Pixi smartphones fell 0.5% or 1 cent to $4.00 after a second broker lowered its target price for the company to zero.

Raytheon Company ((RTN)) advanced 1.5% or 89 cents to $58.00 after the missile maker, Board of Directors has voted to increase the Company''s annual dividend payout rate by 21% from $1.24 to $1.50 per share. The Board of Directors also authorized the repurchase of up to an additional $2.0 billion of the Company''s outstanding common stock.

Red Hat Inc ((RHT)) dropped 3.3% or $1.02 to $29.68 after the software company said fourth quarter revenues rose 18% to $195.9 million from $166.2 million a year ago. Net income in the quarter rose 44.4% to $23.4 million or 12 cents per diluted share compared to net income of $16.2 million or 8 cents per share a year ago.

Salix Pharmaceuticals, Ltd ((SLXP)) increased 8.9% or $2.99 to $36.51 after the drugmaker today announced the publication of results from the Company''s pivotal Phase 3 efficacy and safety study of XIFAXAN® (rifaximin) 550 mg tablets in The New England Journal of Medicine.

Schlumberger Limited ((SLB)) rose 1.3% or 83 cents to $63.04 after the oilfield-services provider announced the acquisition of Geoservices a privately owned French oilfield services company specialized in mud logging, slickline and production surveillance operations. The total value of the transaction, including net debt, is $1,070 million.

Starbucks Corporation ((SBUX)) fell 2.9% or 75 cents to $24.54 after the coffee-shop operator was downgraded to “neutral” from “outperform” by Robert W Baird & Co.

Texas Industries, Inc ((TXI)) dropped 1.0% or 41 cents to $37.21 after the supplier of heavy construction materials reported third quarter sales fell 34% to $117.8 million from $178.7 million a year ago. Net loss in the quarter was $27.1 million or 98 cents per diluted share compared to net income of $10.9 million or 39 cents per share a year ago.

White Mountains Insurance Group, Ltd ((WTM)) rose 0.1% or 68 cents to $358.72 after the insurer estimates that its total net losses resulting from the Chilean earthquake will be in a range of $55 million to $145 million pre-tax or $40 million or $105 million after-tax.