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Thursday, July 09, 2009
Market Winners & Losers: KB Home, AIG
Michael Goldstein
FOXBusiness
The major indexes ended mostly unchanged, but in the green, on low volume Thursday. Better-than-expected initial jobless claims numbers were offset by disappointing retail sales results. The Dow gained 4.76 points, the S&P 500 climbed 3.12 points and the Nasdaq was up 5.38 points.
Here are some of Thursday’s winners and losers.
Winners
KB Home (KBH)
Shares of this home builder jumped after analysts at Credit Suisse upgraded the stock to “Outperform” from “Neutral” based
on the expectation that home order trends would remain “solid” for the rest of the year. The stock gained $1.06, or 9.3%,
closing at $12.44.
Huntington Bancshares Inc. (HBAN)
Much of the banking sector was on the rise Thursday after better-than-expected jobs data. Leading the way was Huntington Bancshares,
which was up 7.9% in the wake of Wednesday’s selloff. Analysts pointed out that because of the low share price, this bank
can make up significant ground when there is high volume in the sector. The stock gained 27 cents to close at $3.67.
Marshall & Ilsley Corp. (MI)
Following the general banking sector, shares of diversified financial services company Marshall & Ilsley Corp were up
after better than expected jobs data imparted some positive momentum to the industry. Shares were up 7.1% gaining 30 cents
to close at $4.50.
Wynn Resorts LTD. (WYNN)
The lodging sector saw gains Thursday after FBR Capital raised their investment rating to “Overweight”. Casino Operator Wynn
Resorts was a beneficiary of the sector momentum, gaining $2.06, or 6.9%, to close at $31.97.
Western Union Co. (WU)
Analysts at Credit Suisse upgraded Western Union shares to “Outperform” from “Neutral” on Thursday. The upgrade is based on
the expectation that money-transfer company will continue to gain market share in the next 18 months. The stock was up 5.8%,
gaining 91 cents to close at $16.49.
Losers
American International Group. (AIG)
AIG shares continued their downward spiral, shedding another 27.6% after a Citigroup analyst said there is a 70% chance that
the stock will become worthless from further credit default swap losses and management’s willingness to dispose of lines of
business at low valuations. The stock lost $3.62 and closed at $9.48.
Allegheny Technologies Inc. (ATI)
Shares of specialty-material manufacturer Allegheny Technologies were down Thursday after the company announced it expected
to post a lower than expected 3 cent per share profit for the second quarter. Analysts polled by Thomson Reuters were projecting
13 cents per share. The lower guidance is attributed to a $350M contribution the company recently made to their U.S. pension
plan. Shares were down $1.91, or 5.9%, to close at $30.23.
Abercrombie & Fitch Co. (ANF)
The retail sector was in the red Thursday after June sales data showed disappointing numbers. One of the heaviest hit was
Abercrombie & Fitch, which posted a 26% decline in consumer sales for the five-week period ended July 4, 2009 from the
same period last year. The stock was down $1.00, losing 4.2% to close at $23.00.
Limited Brands Inc. (LTD)
Another casualty of lower June retail sales numbers was Limited Brands, which had a 12% drop in sales during the 5-week period
ended July 4, 2009 compared with the same period last year. Shares lost 45 cents, down almost 4% to close at $10.89.
Merck & Co. Inc. (MRK)
Shares of Merck were down 3.8% Thursday after analysts at investment bank Natixis Bleichroeder cut its rating to “Hold” from
“Buy”, citing potential negative impact to Merck’s joint venture with Schering-Plough after trials of certain cholesterol
drugs were cancelled. The stock was down $1.03 on the day, closing at $27.01.
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