Activision, Carnival, EBay, Walgreen: U.S. Equity Preview

Shares of the following companies may have unusual moves in U.S. trading. Stock symbols are in parentheses, and prices are as of 7:45 a.m. in New York.

Activision Blizzard Inc. (ATVI US) rose 6 percent to $12.96. The video-game maker yesterday named Electronic Arts Inc. (ERTS US) as a defendant in a lawsuit the company filed in April against two game developers previously employed by the company, the Los Angeles Times reported, citing the suit. The suit, which seeks $400 million in damages, accused Electronic Arts of plotting to destabilize and destroy Activision’s Infinity War unit, the newspaper said.

Aeropostale Inc. (ARO US): The clothing retailer appointed Marc D. Miller as chief financial officer.

American Apparel Inc. (APP US) lost 8.5 percent to $1.51. The operator of more than 280 clothing stores said its audit committee is investigating assertions by Deloitte & Touche LLP that management withheld financial statements.

American Eagle Outfitters Inc. (AEO US) declined 1.9 percent to $14.49. The young-adult clothing retailer was cut to “neutral” from “buy” at SunTrust Banks Inc.

Carnival Corp. (CCL US) gained 1.3 percent to $45.75. The world’s biggest cruise-line operator was raised to “buy” from “hold” at Standard & Poor’s.

EBay Inc. (EBAY US): The largest e-commerce marketplace will rise over the next 45 days because concerns over a proposal to cut debit-card transaction fees are “overblown” and the stock’s short term valuation is “much more compelling” after a decline, Scott Devitt, analyst at Morgan Stanley, wrote in a note to clients.

Elan Corp. (ELN US) added 0.8 percent to $5.99. The Irish drugmaker and Biogen Idec Inc. (BIIB US) asked U.S. and EU regulators for permission to change the label of the multiple sclerosis medicine Tysabri to tell doctors and patients about a test that can predict the odds of getting a deadly brain illness from the drug.

Jacobs Engineering Group Inc. (JEC US): The third-largest listed U.S. engineering company agreed to buy some Aker Solutions ASA units for an estimated $675 million to expand its metals and mining business.

Humana Inc. (HUM US) rose 0.9 percent to $55.32. The health plan with the best-performing stock this year said 2011 consolidated earnings will be at least $5.45 a share and revenue should increase $800 million from an agreement to buy Concentra Inc.

Krispy Kreme Doughnuts Inc. (KKD US) slumped 4 percent to $7.70. The doughnut chain was cut to “sell” from “hold” at BGB Research.

Nike Inc. (NKE US) fell 5.2 percent to $87.50. The world’s largest maker of athletic shoes reported second-quarter revenue of $4.84 billion, compared with the average estimate for $4.82 billion. Future orders for December to April also rose 11 percent for a total of $7.7 billion, excluding currency fluctuations, from a year ago. That missed the 12.4 percent gain anticipated by some analysts.

Oxford Industries Inc. (OXM US) added 3.9 percent to $23.03. The maker of Tommy Bahama clothing said it bought Sugartown Worldwide Inc. for $60 million.

Priceline.com Inc. (PCLN US) gained 1.9 percent to $414.69. The online travel agency was raised to “buy” from “hold” at ThinkEquity LLC. The 12-month share-price estimate is $530.

Progress Software Corp. (PRGS US) rallied 2.4 percent to $42.15. The maker of business programs raised its 2011 earnings forecast higher than the average analyst estimate and boosted its estimate for revenue next year.

Qualcomm Inc. (QCOM US): The world’s largest maker of mobile-phone chips is Bank of Montreal’s top pick in the communications equipment industry.

Red Hat Inc. (RHT US) dropped 2.7 percent to $46.60. The largest seller of the Linux operating system had third-quarter profit of 20 cents a share, matching the average analyst forecast.

Scientific Games Corp. (SGMS US): The New York-based gaming company was awarded a contract to supply tickets and services to De Lotto, in the Netherlands. The contract begins in April.

Tibco Software Inc. (TIBX US) jumped 6.5 percent to $22.55. The software company said fourth-quarter earnings exceeded analyst estimates by 3 cents and announced a $300 million stock repurchase plan.

Verizon Communications Inc. (VZ US): The company’s Verizon Wireless unit, the largest U.S. wireless operator, will release a smartphone from Motorola Inc. (MOT US) for its new, high-speed wireless network next year.

Walter Energy Inc. (WLT US): The southern Appalachia producer of steelmaking coal said it acquired the assets of Mobile River Terminal Co., based in Mobile, Alabama. Financial terms of the deal weren’t disclosed.

Xilinx Inc. (XLNX US) slid 4.2 percent to $27.20. The semiconductor maker cut its forecast, saying the December quarter sales will be down 7 percent to 9 percent from the previous quarter. That compares with a previous estimate for revenue flat to down 4 percent.

Altera Corp. (ALTR US), the maker of programmable semiconductors, slumped 2.5 percent to $34.91.

United Continental Holdings Inc. (UAL US): The world’s largest airline said it expects passenger revenue per available seat-mile will be up 9.75 percent to 10.75 percent over the comparable period a year earlier.

Walgreen Co. (WAG US) gained 3.9 percent to $38.25. The largest U.S. drug-store chain had fiscal first-quarter profit of 62 cents a share. Analysts surveyed by Bloomberg had estimated profit of 54 cents on average.

To contact the reporter for this story: Rita Nazareth in Sao Paulo at rnazareth@bloomberg.net.

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.

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