Bank of America, Microsoft, RealD, Riverbed: 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.
Technology companies gained after a survey by International Data Corp. said spending on information technology by companies and governments in the U.S. will grow 5.6 percent in 2011, about double the estimated increase for gross domestic product.
Microsoft Corp. (MNKD) , the world’s biggest software maker, jumped 3.7 percent to $25.20 for the largest gain in the Dow Jones Industrial Average. Standard & Poor’s analyst Jim Yin reiterated the “buy” recommendation on the world’s biggest software company, citing potential revenue for cloud computing.
Banks advanced after global regulators announced rules to safeguard the financial system. Huntington Bancshares Inc. (HBAN) climbed 3.6 percent to $6.32. Hudson City Bancorp Inc. (HCBK) rose 1.9 percent to $8.09. M&T Bank Corp. (MTB) advanced 1.6 percent to $86.72.
Bank of America Corp. (BAC US) rose 3.1 percent, the second-biggest gain in the Dow Jones Industrial Average, to $10.85. The lender was “massively undervalued” as the stock traded for less than the cash on its balance sheet is worth, said Richard Bove, an analyst with Rochdale Securities LLC.
Amazon.com Inc. (AMZN) added 4.5 percent, the most since April 27, to $210.25. The world’s largest online retailer may report fourth-quarter sales that beat analysts’ estimates, according to Morgan Stanley, which added the stock to its “Best Ideas” list.
Continucare Corp. (CNU US) rallied 31 percent, the biggest gain in the Russell 2000 Index, to $6.25. Metropolitan Health Networks Inc. (MDF US) agreed to buy the provider of outpatient health care in a cash and stock transaction worth $416 million. Metropolitan Health slipped 2.7 percent to $4.75.
Exco Resources Inc. (XCO) fell 7.1 percent to $17.44, the lowest price since Oct. 29. Douglas Miller, chief executive officer of the natural gas producer, is considering buying part of the company after financing problems prevented him from taking it private, The Wall Street Journal said, citing people familiar with the situation.
Garmin Ltd. (GRMN) fell 3.7 percent, the most since Nov. 3, to $32.22. The global-positioning equipment manufacturer fell after TomTom NV (TOM2) , Europe’s biggest maker of portable navigation devices, forecast a 30 percent decrease in the North American personal navigation device market for the year.
Pain Therapeutics Inc. (PTIE) fell the most in the Russell 2000 Index, slumping 26 percent to $3.93. The Austin, Texas-based company said manufacturing issues for a painkiller developed with Pfizer Inc. may delay regulatory approval by a year or “significantly longer.”
Durect Corp. (DRRX) , another partner with Pain Therapeutics, declined 8.9 percent to $1.94.
RealD Inc. (RLD) slipped 5.9 percent, the most since June 10, to $23.16. The maker of equipment cinemas use to show movies in 3-D dropped after “Cars 2,” a sequel to a 2006 film, generated 40 percent of its sales from 3-D and Imax Corp. (IMAX) widescreen viewings during its opening weekend. Stifel Nicolaus & Co. had expected premium format to contribute around half of the movie’s box office.
Republic Airways Holdings Inc. (RJET) jumped 22 percent, the most since June 2009, to $5.67. Evercore Partners equity analyst Duane Pfennigwerth raised the Indianapolis-based airline to “overweight” from “equal weight” and increased the share-price estimate to $9, citing continued profitability, steps to reduce costs and pessimism in the current share price.
Universal Forest Products Inc. (UFPI) sank 9.7 percent, the most since December 2008, to $23.80. The maker of do-it-yourself lumber products said it is cutting jobs because of weaker-than-expected sales in the first five months of the year. Net sales through May dropped 9.5 percent to $765 million from a year earlier, the company said in a statement on Business Wire.
Yellow Media Inc. (YLWPF US) tumbled 18 percent, the most since November 2006, to $2.46. The publisher of directories was cut to “underperform” from “neutral” at Credit Suisse Group AG, which cited a potential dividend cut and an accelerating decline in print business.
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