US HOT STOCKS: Bed Bath & Beyond, Pfizer, Hasbro, Discover

24th Jun 2010 18:14

U.S. stocks were lower Thursday as the Dow Jones Industrial Average lost 98 points to 10201, the S&P 500 declined 13 points to 1079 and the Nasdaq Composite slid 27 points to 2227. Among the companies whose shares are actively trading in the session are Bed Bath & Beyond Inc. (BBBY), Pfizer Inc. (PFE) and Hasbro Inc. (HAS). Bed Bath & Beyond's ($39.58, -$1.88, -4.53%) fiscal first-quarter profit climbed a larger-than-expected 58%, benefiting from improved demand for home furnishings and market-share gains tied to the liquidation of its biggest rival last year. The housewares retailer also raised its full-year earnings outlook, but the current-quarter outlook fell below analysts' estimates. Pfizer ($14.51, -$0.37, -2.49%) said it would suspend osteoarthritis trials of its pain drug tanezumab after a "small number" of reports that patients' ailments worsened to the point of needing joint replacement. The New York drug maker said the suspension followed a request by the Food and Drug Administration. Hasbro ($43.12, +$2.00, +4.86%), one of the world's largest toymakers, confirmed it has been approached by a private-equity firm about a buyout, but the company said its board has no interest in pursuing a transaction. Discover Financial Services' (DFS, $14.38, +$0.37, +2.64%) fiscal second-quarter earnings surprisingly rose 14% as the credit-card lender and payment processor reported lower delinquency rates for a second straight quarter and loan-loss provisions declined. Nike Inc.'s (NKE, $69.80, -$2.72, -3.75%) fiscal fourth-quarter profit climbed 53% on year-earlier restructuring charges, as well as a jump in margins and revenue, as the athletic shoe and apparel maker reported higher future orders. But the company's revenue growth missed analysts' expectations. Shares of Sotheby's (BID, $25.46, -$2.78, -9.84%) slumped Thursday as results from recent art auctions in London came in at the low end of expectations. Earlier this week, Sotheby's and rival auction house Christie's kicked off London's two-week round of summer art auctions, with Sotheby's hosting its auction Tuesday and Christie's holding its sale Wednesday. While results at both auctions were much better than the previous year, sales weren't quite as strong as some people had been projecting. Dell Inc. (DELL, $13.06, -$0.76, -5.50%) said it expects revenue growth in line with analysts' expectations for the rest of the year as businesses and governments continue a long-anticipated process of replacing aging computer systems. But at the company's analyst day, executives made cautious comments about demand in Europe, where they worry that consumer spending is weakening. Other Stocks In Focus Multinational defense company Allied Defense Group Inc. (ADG, $4.05, +$1.41, +53.41%) has reached a deal to sell most of its operations to Chemring Group PLC (CHG.LN) for $59.6 million, replacing a prior deal to buy the whole company. Media and marketing company Alloy Inc. (ALOY, $9.48, +$0.89, +10.36%), the outfit behind "Gossip Girl" and "The Vampire Diaries," has agreed to be bought by private-equity firm ZelnickMedia for $126.5 million. Oppenheimer cut its stock-investment rating on teen retailer American Eagle Outfitters Inc. (AEO, $12.22, -$0.49, -3.86%) to perform from outperform based on its belief that elevated second-quarter inventories may result in increased markdown pressure heading into the back-to-school season. Renewable-resources company Cadiz Inc. (CDZI, $13.30, +$1.30, +10.83%) said two Southern California water agencies have approved agreements to proceed with the Cadiz Water Conservation & Storage Project and participate in the project's environmental review. These agencies, which together serve over 650,000 customers in parts of Orange and Los Angeles Counties, have agreed to commit funds to an environmental review of the project and also grant the agencies the right to acquire a firm annual supply of water once the environmental review is complete. Solar stocks were among the weakest performers Thursday, particularly China Sunergy Co. (CSUN, $3.62, -$0.22, -5.73%) and SunPower Corp. (SPWRA, $13.40, -$0.79, -5.57%). Analysts note that it's typical for the group to underperform on weaker days, and Thursday's slump was likely more of the same. Trina Solar Ltd. (TSL, $17.52, -$1.06, -5.71%), Canadian Solar Inc. (CSIQ, $10.52, -$0.58, -5.23%) and JA Solar Holdings Co. (JASO, $4.59, -$0.18, -3.77%) also fell. Citigroup Inc. (C, $3.81, -$0.08, -2.06%) offered to buy back $2.12 billion of notes maturing within the next year in its latest effort to use its cash pile to reduce short-term debt. (MORE TO FOLLOW) Dow Jones Newswires June 24, 2010 13:14 ET (17:14 GMT)