American Express, Dollar Tree, JPMorgan: U.S. Equity Movers
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.
Adtran Inc. (ADTN US) rose 6.5 percent to $42.25, the highest price since it went public in 1994. The maker of high- speed digital transmission products reported fourth-quarter sales of $165.3 million, beating the average analyst estimate of $156 million in a Bloomberg survey.
American Express Co. (AXP US) sank 2.4 percent, the most since Dec. 20, to $45.24. The biggest U.S. credit-card issuer by purchases said fourth-quarter net income will be less than some analysts estimated as it disclosed costs tied to job cuts in its servicing network.
China Shen Zhou Mining & Resources Inc. (SHZ US) fell 19 percent, the most since Oct. 22, to $6.61. The mining company said it agreed to sell 2.84 million shares at $7.05 each to several institutional investors.
Cree Inc. (CREE US) tumbled 14 percent to $53.63 for the biggest decline in the Russell 1000 Index. The maker of energy- efficient lighting products forecast third-quarter profit, excluding some items, of as little as 38 cents a share. Analysts are forecasting 58 cents a share on average, according to a Bloomberg survey.
DepoMed Inc. (DEPO US) plunged 14 percent, the most since Feb. 18, to $5.66. The drugmaker disclosed a dispute with Abbott Laboratories (ABT US), which said it’s not obliged to commercialize the drug DM 1796 under a licensing agreement. DM- 1796 was developed by DEPO, licensed to Abbott Products in the U.S., Canada and Mexico for the treatment of pain.
Dollar Tree Inc. (DLTR US) rose 3 percent, the most since Aug. 19, to $51.87. The biggest retailer of items costing $1 or less was upgraded to “overweight” from “equal-weight” at Morgan Stanley.
Goldman Sachs Group Inc. (GS US) slumped 4.7 percent, the most since April 30, to $166.49. The most profitable Wall Street firm said fourth-quarter net income fell to $3.79 a share from $8.20 a year earlier. Estimates of 22 analysts surveyed by Bloomberg averaged $3.79 per share, and ranged from $3 to $4.31.
Other bank shares also fell. Bank of America Corp. (BAC US) dropped 4.2 percent to $14.37. JPMorgan Chase & Co. (JPM US) declined 2.3 percent to $43.71.
Hudson City Bancorp Inc. (HCBK US) fell the most in the S&P 500, sinking 8.5 percent to $12.04. The savings and loan company said its allowance for loan losses surged to $236.6 million in the fourth quarter and it expects conditions in the mortgage market and low interest rates to “significantly hinder” future earnings growth.
International Business Machines Corp. (IBM US) rose 3.4 percent to $155.69 for the biggest increase in the Dow Jones Industrial Average. The world’s largest computer-services provider posted fourth-quarter profit of $4.18 a share, topping the $4.08 average estimate of analysts’ surveyed by Bloomberg. Full-year profit this year, excluding some costs, will be at least $13 a share, IBM said.
Linear Technology Corp. (LLTC US) declined 4.4 percent, the most since Nov. 11, to $34.56. The maker of integrated circuits forecast third-quarter revenue of about $360.6 million at most, less than the average analyst forecast $371.6 million.
LodgeNet Interactive Corp. (LNET US) fell 18 percent, the most since July 30, to $3.38. The provider of television and Internet access for hotels was reduced to “neutral” from “accumulate” by Craig Hallum Capital Group LLC.
MGIC Investment Corp. (MTG US) dropped 21 percent, the most since March 2009, to $9.26. The largest U.S. mortgage insurer posted a fourth-quarter loss excluding some items that was twice as wide as the average analyst estimate.
Other mortgage insurers also declined. Radian Group Inc. (RDN US) decreased 15 percent to $8.19. PMI Group Inc. (PMI US) slid 18 percent to $3.29.
Mosaic Co. (MOS US) fell 10 percent, the most since March 2009, to $76.15. The second-largest fertilizer producer in North America is less likely to be bought in the next two years after Cargill Inc. divests its $24.3 billion stake in the company, Goldman Sachs Group Inc. said.
Motorola Mobility Holdings Inc. (MMI US) rose the most in the S&P 500, climbing 3.7 percent to $36.34. The smartphone maker spun off from Motorola Inc. was rated “buy” in new coverage by MKM Partners.
Nektar Therapeutics (NKTR US) dropped 7.3 percent to $11.43, the lowest price since June 8. The biotechnology company said it is offering 19 million shares. Additional stock can dilute the value of existing shares.
Northern Trust Corp. (NTRS US) fell 5.7 percent, the most since Oct. 21, to $52.49. The third-largest U.S. independent custody bank reported a 22 percent drop in fourth-quarter net income as low interest rates reduced lending and money-market revenue. Net income fell to 64 cents a share from 82 cents a share a year earlier. Profit missed the 71-cent average estimate of 14 analysts surveyed by Bloomberg.
Pearson Plc (PSO US) rose 4.8 percent, the most since July 26, to $16.91. The owner of the Financial Times raised its 2010 profit forecast for the third time, citing growth in emerging markets and digital services. Adjusted earnings will be about 76 pence per share, a 16 percent rise.
Pernix Therapeutics Holdings Inc. (PTX US) advanced 8.2 percent to $8.55, the highest price since May 2002. The pharmaceutical company specialized in pediatric products said the U.S. Food and Drug Administration approved Natroba Topical Suspension for the treatment of head lice.
State Street Corp. (STT US) declined 4.1 percent, the most since Aug. 11, to $48. The third-largest custody bank said net income fell 84 percent in the fourth quarter because of costs stemming from job cuts and the sale of securities to bolster capital. Operating profit was 87 cents a share, beating the 86- cent average estimate of 20 analysts surveyed by Bloomberg.
Tessco Technologies Inc. (TESS US) dropped 18 percent to $13.30 for the biggest retreat since January 2009. The provider of equipment and services for wireless communications reduced its earnings forecast for fiscal 2011 to $1.27 a share at most, citing lower volumes and growing pricing pressure.
U.S. Steel Corp. (X US) fell 5.9 percent to $52.33, the lowest price since Dec. 8. The producer of the metal was downgraded to “hold” from “buy” at Deutsche Bank AG. The 12- month share-price estimate is $57.
To contact the reporters on this story: Jennifer A. Johnson in New York at Jjohnson156@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at email@example.com.