U.S. Bancorp Sees Q3 Profit Short of Expectations
U.S. Bancorp (USB ) was lower after the Midwest bank said Q3 will fall short of Street estimates, and include $655M after-tax incremental provision from loan losses, beyond expected levels. The company also sees $0.41 Q3 EPS from operations, exluding provision for loan losses.
Anheuser-Busch (BUD ) was down after UBS Warburg downgraded the company to hold from strong buy.
TJX Cos. (TJX) was off after Goldman Sachs downgrades the retailer and Ross Stores (ROST ) to market perform from market outperform.
Sun Microsystems (SUNW ) was flat after CS First Boston and Goldman Sachs cut their estimates for the company. On Friday, the company said it anticipates wider than expected Q1 loss, and will cut 9% of its workforce.
AT&T Wireless (AWE ) agrees to acquire the rest of TeleCorp PCS ( TLCP ) that it doesn't own in all-stock deal valued at $4.7 billion. In the deal, AWE will obtain the remaining 77% own for $2.4 billion, assume $2.1 billion in debt and about $221 million preferred securities.
In a lawsuit filed against Boston Scientific (BSX ) alleging violations of terms of a 1995 consent order by the Federal Trade Commission, a federal district court dismisses 3 claims, and grants summary judgment of liability on two claims.
Newport News' (NNS ) board is in talks with Northrop Grumman (NOC ) that could result in NOC making offer to acquire NNS that would currently value NNS at $72.67 per share. Offer would be superior to General Dynamic's (GD ) $67.50 a share cash offer.
CS First Boston downgraded Swift Transportation (SWFT ) to buy from strong buy.
Vysis (VYSI ) sees better than expected $0.03-$0.06 Q3 EPS from continuing operations, citing strong sales of genomic, prenatal, and ASR/research products.
Prudential downgraded Alcan (AL ) and Nucor (NUE ) to sell from hold.