US HOT STOCKS: Jabil Circuit, Adobe, Active In Late Trading

22nd Jun 2010 21:53

U.S. stocks fell Tuesday as the Dow Jones Industrial Average dropped 149 points to 10294, the S&P 500 slipped 18 points to 1095 and the Nasdaq Composite dropped 27 points to 2262. Among the companies whose shares were actively trading in the after-hours session are Jabil Circuit Inc. (JBL), Adobe Systems Inc. (ADBE) and Red Hat Inc. (RHT) Jabil Circuit swung to a fiscal third-quarter profit on double-digit percentage sales growth and higher margins, and the company predicted a record fiscal year. Shares jumped 7.2%, to $14.57 in after-hours trading, as the electronics-component maker's results topped its guidance and it predicted fourth-quarter results above analysts' estimates. Adobe's fiscal second-quarter profit climbed 18% as the graphics-software company benefited from strong sales of its flagship Creative Suite 5 product. The company also forecast third-quarter earnings of 46 cents to 50 cents a share on revenue of $950 million to $1 billion. Analysts surveyed by Thomson Reuters projected earnings of 48 cents a share and revenue of $959 million. Shares slipped 1.8% to $32.16 in late trading. Red Hat's fiscal first-quarter earnings rose 30% on stronger-than-expected sales growth. The open-source business-software company, and parent of Linux, reported earnings of 18 cents a share, excluding items, meeting the top end of its forecast. Still, shares fell 3% to $29.95 in after-hours trading. Chimera Investment Corp. (CIM) said it plans to offer 100 million shares of common stock to raise money it intends to use for buying residential mortgage-backed securities and other real-estate investment vehicles. The specialty finance company has about 768 million shares outstanding now. The shares fell 3.1% to $3.70 in after-hours action. Regular Session Movers: Walgreen Co.'s (WAG, $28.17, -$1.97, -6.54%) fiscal third-quarter earnings fell 11%, hurt by the elimination of a tax benefit due to the health-care overhaul, costs from its acquisition of Duane Reade and weakened consumer spending. Profit was short of analysts' expectations as Walgreen's same-store sales, which exclude Duane Reade, rose 0.7% amid continued consumer weakness, a slowdown in generic-drug introductions and a milder flu season. Rival CVS Caremark Corp. (CVS, $31.40, -$0.38, -1.20%) shares also fell on the weakness. Jefferies Group Inc. (JEF, $24.17, +$1.30, +5.68%) posted a fiscal second-quarter profit that topped analysts' estimates as the financial group continued to see strong performance from its investment-banking arm, which reported record quarterly revenue. Executive Committee Chairman Brian Friedman said the investment bank's mergers-and-acquisition and strategic-advisory business has "continued to pick up." Patriot Coal Corp. (PCX, $13.48, -$2.72, -16.79%) said it would permanently shut down a mine in West Virginia that it closed last week because of a roof collapse. The closure of the Harris mine, which produces metallurgical coal used in steel production, is expected to eat into profits for this year and next year. Brean Murray Carret cut its 2010 and 2011 earnings estimates, and dropped the target price on shares to $26 from $30. Sonic Corp.'s (SONC, $8.52, -$0.77, -8.29%) fiscal third-quarter earnings fell 35%, as the drive-in restaurant chain's sales weakness continued, and earnings dropped much further than analysts expected. Carnival Corp. (CCL, $33.19, -$1.55, -4.46%) reported better-than-expected fiscal second-quarter earnings, but projected third-quarter earnings below estimates. The cruise-ship operator said unfavorable changes in currency exchange rates have hurt earnings, and fuel costs for the third quarter are expected to cost 9 cents a share more than in the previous year. A federal judge in Louisiana Tuesday ruled against the Obama administration's temporary ban on deepwater offshore drilling, dealing a blow to the administration's response to a Gulf of Mexico oil spill that continues to grow. The White House responded by saying it would immediately appeal the injunction. The Justice Department could as early as Tuesday request the judge stay the injunction, pending appeals. Shares of BP PLC (BP, $29.68, -$0.65, -2.14%) remained down, as did those of Transocean Ltd. (RIG, $52.49, -$1.42, -2.63%), while offshore-drilling companies immediately climbed but then fell back as the appeal would likely delay relief. Among them were Diamond Offshore Drilling Inc. (DO, $62.85, -$1.89, -2.92%), Hercules Offshore Inc. (HERO, $2.83, -$0.15, -5.03%) and Pride International Inc. (PDE, $24.01, -$1.11, -4.42%). Shares of gas companies dropped as natural-gas futures were pressured by profit-taking and concerns about excess supply. Among the biggest decliners were Range Resources Corp. (RRC, $45.52, -$2.59, -5.38%), Pioneer Natural Resources Co. (PXD, $66.97, -$4.06, -5.72%), SM Energy Co. (SM, $44.56, -$2.61, -5.53%) and Southern Union Co. (SUG, $22.48, -$1.01, -4.30%). Pacific Crest upgraded lithium-ion battery maker A123 Systems Inc. (AONE, $8.76, +$0.19, +2.22%) to outperform from sector perform, saying "it is time for investors to step in front of an increasing policy focus on electrified transportation in the wake of the Gulf oil spill and increased enthusiasm around EVs coinciding with successful new product launches." Affymax Inc. (AFFY, $7.32, +$0.14, +1.95%), a biopharmaceutical company, said it received a $30 million milestone payment from Japanese partner Takeda Pharmaceutical Co. (TKPYY, $20.95, -$0.45, -2.10%) for Affymax's investigational drug that treats anemia in patients with chronic renal failure. Structural cracks discovered recently on at least two American Airlines Boeing 767 jetliners, including one jet that air-safety regulators believe could easily have lost an engine, are prompting concerns that some of the problems may turn out to be more widespread. AMR Corp.'s (AMR, $7.92, -$0.32, -3.88%) American, with oversight from the Federal Aviation Administration, has checked the bulk of its wide-body 767 fleet to look for possible cracks in critical components that attach engines to the wings. On Monday, the FAA said problems were found on three planes. Delta Air Lines Inc. (DAL, $12.67, -$0.82, -6.08%), Continental Airlines Inc. (CAL, $23.18, -$1.13, -4.65%), US Airways Group Inc. (LCC, $9.47, -$0.53, -5.30%) and UAL Corp. (UAUA, $22.10, -$1.14, -4.91%) were all trading lower. Apple Inc. (AAPL, $273.85, +$3.68, +1.36%) sold its three millionth iPad Monday, 80 days after the tablet computer's introduction in the U.S. and giving further insight on how the device will boost current-quarter results for the tech giant. Media and marketing research firm Arbitron Inc. (ARB, $28.72, +$0.55, +1.95%) said it acquired the technology portfolio, patents and trade name from Integrated Media Measurement Inc., now known as Audience Measurement Technologies Inc. The IMMI technologies acquired by Arbitron include IMMI's cellular phone-based technology, designed to capture consumer cross-platform media usage. Ascent Solar Technologies Inc. (ASTI, $2.89, +$0.00, +0.00%) a thin-film solar module developer, won a 4.5-year, multi-million-dollar contract from the Defense Advanced Research Projects Agency for developing low-cost light-weight photovoltaics that can hold up in battle conditions. The first phase of the contract is expected to take 18 months and is valued at $3.8 million. (MORE TO FOLLOW) Dow Jones Newswires June 22, 2010 16:53 ET (20:53 GMT)