Movers: Monsanto, InfoSpace, SunCom Wireless, Newell Rubbermaid
Monsanto Company (MON) raises fiscal year 2007 ongoing EPS guidance to $2.00, vs. previous estimate of $1.75-$1.80.
Investment banking and brokerage stocks are under pressure as British bank Northern Rock's issues continue to escalate. Apparently, scores of customers withdrew savings from North Rock after it sought emergency funding from the Bank of England last Friday.
Automobile manufacturers are up on news that General Motors (GM) and the UAW are making strides in their contract negotiations. Separately, Ford (F) was upgraded by Bear Stearns as Bear believes F shares look more appealing.
RadioShack (RSH) falls after Credit Suisse says it is questionable whether the company's video games category entry will answer the larger merchandising questions the company faces; it maintains hold.
Audible (ADBL) falls after following news that privately held eMusic, which operates the world's second-largest digital music service, announced it has launched a new audiobooks offering. S&P sees the new competitor as a negative, and reiterates hold.
InfoSpace (INSP) shares jump on news that it will sell its online directory business, including its online yellow and white pages services, to Idearc Inc. for $225 million in cash. The transaction is expected to be completed by the end of 2007.
SunCom Wireless Holdings (TPC) agrees to be acquired by Deutsche Telekom AG's (DT) T-Mobile unit in the U.S. for $2.4 billion deal, including assumed debt. Terms: $27 cash per TPC share.
Newell Rubbermaid (NWL) raises third quarter sales growth guidance to high end of previously announced range of 5%-7% due to strength in Home & Family, Tools & Hardware segments, as well as favorable forex. It raises gross margin expansion est. to range of 125-175 basis points, normalized EPS to range of $0.48-$0.50.
Central Garden & Pet (CENT) withdraws previous fourth quarter guidance. Separately, it postpones its planned public offering of Class A stock.
Business Objects S.A. (BOBJ) rises as French paper Le Figaro reportedly said the company is up for sale and will be retaining Goldman Sachs as an adviser.
iRobot (IRBT) falls as JP Morgan views the Dept. of Defense's X-Bot contract award to Robotic FX as significant setback for IRBT; the broker trims 2008-09 estimates, maintains overweight.
EDO Corp. (EDO) agrees to be acquired by ITT Corp. (ITT) for $56 per share in cash.
A European court dismisses Microsoft's (MSFT) antitrust appeal on most points and upholds fine. Microsoft says it looks forward to continued efforts to implement and comply with today's decision.
Leap Wireless International (LEAP) says its board of directors, in consultation with its financial and legal advisors, has concluded that unsolicited proposal from MetroPCS Communications to merge with LEAP in a stock-for-stock merger transaction is not in the best interests of LEAP and its shareholders.
Time Warner (TWX) plans to move its AOL corporate headquarters to New York City from Dulles, Va., and combine its various advertising business into a new subsidiary.
Marsh & McLennan Companies (MMC) announces that CEO Brian M. Storms is stepping down from his position as chief executive officer of Marsh, Inc., MMC's insurance broking subsidiary, effective immediately. Citigroup downgrades to hold from buy.
AmeriSourceBergen (ABC) says Kurt J. Hilzinger resigns as president and COO to join private equity firm. It names CEO David Yost to additional position of president. It reaffirms $2.50-$2.58 fiscal year 2007 EPS from continuing operations forecast.
Illinois Tool Works (ITW) posts 15.9% rise in operating revenue for the three months ended Aug. 31, 2007. It reaffirms $0.85-$0.90 third quarter and $3.31-$3.41 2007 EPS guidance.
Angiotech Pharmaceuticals (ANPI) reaches agreement with Johnson & Johnson (JNJ) to settle outstanding patent litigation.
Applera Corp.-Celera Group (CRA) enters into research collaboration with Merck (MRK) to develop biomarker and pharmacogenomic tests for cancer patients. CRA will receive an undisclosed payment for this collaboration, which is expected to be completed by the end of CRA's fiscal year 2008.
Cognizant Technology Solutions (CTSH) declares two-for-one stock split. In addition, sets share repurchase program of up to $100 million of company's common stock over the next 12 months.