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

24th Jun 2010 15:39

U.S. stocks were lower Thursday as the Dow Jones Industrial Average lost 90 points to 10208, the S&P 500 declined 1% to 1081 and the Nasdaq Composite slid 1% to 2231. 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 ($39.80, -$1.66, -4.00%) 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 ($14.65, -$0.23, -1.55%) 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 ($42.22, +$1.10, +2.68%), 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. Nike Inc.'s (NKE, $69.93, -$2.59, -3.57%) 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. Discover Financial Services' (DFS, $14.39, +$0.38, +2.71%) 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. Apollo Group Inc. (APOL, $45.35, -$0.98, -2.12%) said a federal appeals court reversed a lower court's ruling in favor of the company in securities litigation arising out of a 2003 review by the U.S. Department of Education. The Court of Appeals for the Ninth Circuit ordered the lower court to enter a judgment against Apollo according to a 2008 jury verdict, which awarded the plaintiffs about $280 million. Dell Inc. (DELL, $13.38, -$0.44, -3.18%) 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. Other Stocks In Focus: Allied Defense Group Inc. (ADG, $4.00, +$1.36, +51.52%) 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, $9.50, +$0.91, +10.59%), 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, $12.20, -$0.51, -4.01%) 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. 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 use its cash pile to reduce short-term debt. ConAgra Foods Inc.'s (CAG, $24.38, -$0.31, -1.26%) fiscal fourth-quarter earnings fell 48% on a host of charges and write-downs, with results missing analysts' expectations as its previously strong consumer segment weakened. Darden Restaurants Inc. (DRI, $40.38, -$1.52, -3.63%) fiscal fourth-quarter earnings fell 6%, missing analysts' expectations, as the casual-dining chain's same-restaurant sales resumed their decline. The owner of Olive Garden, Red Lobster and LongHorn Steakhouse chains also boosted its quarterly dividend 28% to 32 cents. (MORE TO FOLLOW) Dow Jones Newswires June 24, 2010 10:39 ET (14:39 GMT)