Plus more stocks making headlines in Wednesday's market
By Lu Wang
Dec. 2 (Bloomberg) -- Shares of the following companies are having unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 10:50 a.m. in New York.
U.S. airline shares rose after the sector was upgraded to "attractive" from "in-line" at Morgan Stanley, which said investors would be "hard-pressed to identify a better entry- point" in the coming months. Morgan Stanley raised its recommendation for AMR Corp. (AMR), the parent of American airlines, and UAL Corp. (UAUA), which owns United Airlines, to "overweight" from "equal weight."
AMR increased 6.2 percent to $6.68. UAL jumped 8.8 percent to $8.99. Delta Air Lines Inc. (DAL), the world's largest airline, added 5.5 percent to $9.09.
Ciena Corp. (CIEN) rose the most in the Standard & Poor's 500 Index, climbing 7.4 percent to $13.20. Nokia Siemens Networks challenged Ciena's bid for Nortel Networks Corp.'s optical-networking business and submitted a new bid of $810 million in cash for the assets.
Constellation Brands Inc. (STZ) slid 5.5 percent to $16.31 after dropping as much as 6 percent, the most intraday since April 8. The maker of Clos du Bois and Robert Mondavi wine was downgraded to "sell" from "neutral" by Goldman Sachs Group Inc.
Cummins Inc. (CMI) declined 5.1 percent to $44.77 and lost 5.2 percent earlier, the most intraday since Oct. 30. The largest maker of heavy-duty diesel truck engines in North America said it plans to temporarily cut about 400 jobs at its Jamestown, New York, plant starting in January.
Dyax Corp. (DYAX) surged 21 percent to $4.25 and climbed earlier to $4.69, the highest intraday price since September 2008. The Cambridge, Massachusetts-based biopharmaceutical company said it gained U.S. regulatory approval for its treatment of hereditary angioedema, a rare immune disease that causes dangerous swelling.
GameStop Corp. (GME) fell the most in the S&P 500, sinking 8 percent to $21.94. The world's largest video-game retailer may be forced to lower prices after Wal-Mart Stores Inc. (WMT) offered discounts on its top video games, according to Tony Wible, an analyst with Janney Montgomery Scott LLC.
G-III Apparel Group Ltd. (GIII) rose 9.5 percent to $19.16 and advanced 11 percent earlier, the most intraday since Aug. 21. The maker of the Cole Haan and Jones New York apparel brands boosted its 2010 forecast, saying it expects earnings excluding some items of at least $1.31 a share. The company previously projected $1.05 at most.
Hemispherx Biopharma Inc. (HEB) had the steepest decline in Russell 2000 Index, tumbling 39 percent to 73 cents. The maker of a treatment for genital warts said regulators requested more research on its experimental treatment Ampligen.
Jos. A. Bank Clothiers Inc. (JOSB) rose 3.3 percent to $44.21 and advanced earlier to $44.57, the highest intraday price since Nov. 17. The maker of men's apparel reported third- quarter profit excluding some items of 63 cents a share, beating the average analyst estimate by 13 percent.
Regency Energy Partners LP (RGNC) dropped 5.6 percent to $18.84 and slipped 6 percent earlier, the most intraday since Aug. 10. The natural-gas processor controlled by General Electric Co. (GE) sold 10.5 million common units. More units may dilute the value of existing equity.
Rino International Corp. (RINO) declined 7.7 percent to $30.71 and erased 9.5 percent earlier, the most intraday since Oct. 30. The provider of water treatment systems for steelmakers said it will sell warrants and $100 million of shares to several institutional investors. The stock sale was priced at $30.75 each.
Santarus Inc. (SNTS) surged 22 percent to $5.22 for the biggest gain in Russell 2000 Index. The maker of a fast-acting acid-reflux drug said it earned $20 million after the U.S. Food and Drug Administration approved Merck & Co.'s (MRK) application to market Zegerid capsules as an over-the-counter treatment for frequent heartburn.
Satyam Computer Services Ltd. (SAY) jumped 11 percent to $4.90 after rallying 12 percent earlier, the most intraday since Oct. 29. The Indian software company was upgraded to "overweight" from "neutral" by JPMorgan Chase & Co., which said the stock is trading at 9 times estimated 2011 earnings, "a significant discount" to peers.
Walgreen Co. (WAG) fell 3.4 percent to $38.03 and dropped 5.4 percent earlier, the most intraday since June 22. The second-largest U.S. drugstore chain said November sales increased 8.7 percent and same-store sales rose 3.9 percent from same period last year.
To contact the reporter on this story: Lu Wang in New York at firstname.lastname@example.org