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Bank of America, CIT Group, Citigroup: U.S. Equity Movers

By Elizabeth Stanton

Oct. 30 (Bloomberg) -- Shares of the following companies had unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 4 p.m. in New York.

Banks fell after the chairman of the U.S. House Financial Services Committee said he will support requiring them to pay into a fund used to unwind large firms that fail. Legislation will be amended to create an assessment on institutions with more than $10 billion of assets, Barney Frank, a Massachusetts Democrat, said today in an interview on Bloomberg Television’s “Political Capital with Al Hunt” being broadcast this weekend.

Bank of America Corp. (BAC US) fell 7.3 percent to $14.58 for the biggest drop in the Dow Jones Industrial Average. JPMorgan Chase & Co. (JPM US) fell 5.8 percent to $41.77. Morgan Stanley (MS US) declined 4.6 percent to $32.12.

Citigroup Inc. (C US) fell 5.1 percent to $4.09. The lender 34 percent owned by the U.S. government may have a $10 billion writedown of deferred tax assets in the fourth quarter, CNBC reported, citing comments on a conference call by Michael Mayo, an analyst with Calyon Securities USA Inc.

Alcatel-Lucent SA (ALU US) slumped 12 percent, the most since May 13, to $3.69. The world’s largest supplier of fixed- line phone networks posted a third-quarter net loss of 182 million euros ($270 million), wider than the 174.4 million-euro loss average of eight estimates compiled by Bloomberg.

Aon Corp. (AOC US) lost 6.5 percent, the most since May 1, to $38.51. The world’s largest insurance broker posted a 25 percent profit decline as the company spent $99 million on costs tied to its restructuring program and acquisition of Benfield Group Ltd.

CEC Entertainment Inc. (CEC US) advanced 15 percent, the most since July 23, to $29.21. The owner of Chuck E. Cheese’s restaurants boosted its 2009 forecast, saying it expects to earn as much as $2.67 a share.

CIT Group Inc. (CIT US) dropped 24 percent to 72 cents, the biggest drop in the Russell 1000 Index. The 101-year-old commercial lender trying to avoid collapse reached a deal with Goldman Sachs Group Inc. to reduce a $3 billion credit facility to $2.13 billion and keep the line open should CIT file for bankruptcy.

CIT also announced an agreement with billionaire investor Carl Icahn to support its restructuring plan. Icahn will supply a $1 billion credit line that can be used as bankruptcy financing, the company said.

Curtiss-Wright Corp. (CW US) dropped 12 percent to $29.82, the lowest price since July 14. The maker of precision components for commercial and military systems projected it will have earnings for 2009 of no more than $2.15 a share, lower than the average analyst estimate of $2.37 in a survey by Bloomberg.

Cummins Inc. (CMI US) declined 6.2 percent, the most since May 13, to $43.06. The largest maker of heavy-duty diesel truck engines in North America said sales in most markets won’t increase next year.

Domtar Corp. (UFS US) gained 5.9 percent to $41.89, rising for a second day. North America’s largest maker of paper for copiers and envelopes reported third-quarter profit that topped analysts’ estimates as costs declined and pulp shipments increased.

Estee Lauder Cos. (EL US) gained 3.3 percent to $42.50, the biggest gain in two weeks. The maker of Clinique and Bobbi Brown cosmetics reported first-quarter profit that topped analysts’ estimates after reducing expenses.

GFI Group Inc. (GFIG US) declined 23 percent, the most since September 2008, to $5.15. The New York-based inter-dealer broker of derivatives and securities posted earnings excluding some items of 6 cents a share in the third quarter, missing the average analyst estimate by 30 percent.

Harman International Industries Inc. (HAR US) rose the most in Standard & Poor’s 500 Index, surging 14 percent to $37.61. The maker of audio systems for homes and vehicles reported a loss of 5 cents per share, better than the average analyst estimate of a 25-cent loss in a Bloomberg survey.

ITT Corp. (ITT US) dropped 6.7 percent, the most since March 2, to $50.70. The maker of military night vision goggles disappointed investors by failing to disclose any information on mergers or acquisitions when announcing its third-quarter results, and giving a fourth-quarter forecast that missed expectations, according to Deutsche Bank AG.

Lincoln Electric Holdings Inc. (LECO US) climbed 7.1 percent, the most since July 28, to $47.44. The world’s largest welding-equipment maker reported adjusted earnings of 63 cents per share, 55 percent better than the average analyst estimate.

Manitowoc Co. (MTW US) slid 13 percent to $9.14 for the second-biggest drop in the Russell 1000 Index. The maker of cranes and machinery reported third-quarter sales, adjusted net income and adjusted earnings that missed analysts’ estimates. The company reported a quarterly loss of 4 cents a share, compared with the average analyst estimate of 7 cents in profit.

McAfee Inc. (MFE US) fell 4.3 percent, the most since July 30, to $41.88. The second-biggest maker of security software reported third-quarter sales that fell short of some analysts’ estimates as the company took fewer clients from rival Symantec Corp.

MetLife Inc. (MET US) fell 7.6 percent, the most since May 13, to $34.03. The biggest U.S. life insurer posted its third straight loss as the bond market rally that helped restore profits at smaller rivals weighed on results.

MicroStrategy Inc. (MSTR US) climbed the most since October 2004, rising 19 percent to $87.27. The maker of analytical software for Citigroup Inc. said it had third-quarter earnings of $1.73 per share, 83 percent higher than the average analyst estimate in a Bloomberg survey.

Novatel Wireless Inc. (NVTL US) fell the most in the Russell 2000 Index, plunging 27 percent to $8.92. The maker of wireless data-access cards for personal computers forecast sales of $95 million at most in the fourth quarter. That trailed the average analyst estimate of $95.5 million, according to Bloomberg data.

Stanley Inc. (SXE US) gained 9.5 percent, the most in a year, to $28.25. The contractor for the U.S. State Department was raised to “outperform” from “market perform” and its price estimate raised to $34 from $31 at Wells Fargo, which cited better-than-expected third quarter revenue.

Syntel Inc. (SYNT US) sank 14 percent, the most since February 2003, to $35.83. The manager of software projects for other companies was cut to “sell” from “hold” at Deutsche Bank AG, which said the company’s profit margins have peaked.

Tessera Technologies Inc. (TSRA US) plunged 18 percent, the most since Dec. 2, to $22.11. The maker of semiconductor technology predicted fourth-quarter sales of no more than $62 million, missing the average analyst forecast of $68.9 million, according to data compiled by Bloomberg.

Wright Medical Group Inc. (WMGI US) climbed 5.5 percent to $16.25, the biggest gain since Aug. 4. The maker of hip and knee implants posted third-quarter profit excluding some items of 19 cents a share, exceeding the average analyst estimate by 23 percent, according to Bloomberg data.

YRC Worldwide Inc. (YRCW US) slipped 10 percent to $3.65, the steepest drop since Oct. 9. The largest U.S. trucking company posted a loss excluding some items of $2.66 a share in the third quarter, 63 percent wider than the average analyst estimate.

Zale Corp. (ZLC US) slumped 26 percent, the most since Jan. 21, to $4.73. The biggest U.S. jewelry chain reported a loss in the fiscal fourth quarter and said same-store sales have declined 8 percent in the current fiscal year. Reuters reported that Zale said on a conference call that the U.S. Securities and Exchange Commission is investigating accounting issues that led to the restatement of 2008 and 2009 earnings.

To contact the reporter on this story: Elizabeth Stanton in New York at estanton@bloomberg.net

Last Updated: October 30, 2009 17:03 EDT

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