Tuesday, September 18, 2012

Afternoon Movers: Goldman et al Buck Regulation Fears; Halliburton Falls, Steel Makers Rise

The Dow has reversed a declining streak this afternoon, adding 64 points at 10,236.92. Weaker-than-expected sales of existing homes in the U.S. in December have been offset by positive news flow about Ben Bernanke’s prospects to remain chair of the Federal Reserve. Some of the stocks making news:

Goldman Sachs (GS) and other financials are generally higher this afternoon, despite the variety of ominous sounds coming from Washington on bank regulation. FBR Capital analysts today write that the Bulge Bracket could continue to be under pressure from financial reform this year, and Raymond James analysts downgraded JP Morgan Chase (JPM) to “Outperform” from “Strong Buy,” cutting the stock’s price target to $50 from $60. Nevertheless, JP Morgan is up a penny at $39.17 while Goldman is higher by $2.75, or 2%, at $156.87.

Following on AK Steel Holding’s (AKS) earnings surprise this morning, steel makers U.S. Steel (X) and Nuecor (NUE) are higher, rising 2% to $55.86 and 30 cents to $44.49, respectively. AKS is now up $1.26, or 6%, at $21.45. Citigroup and UBS Securities analysts both had extensive comments out today about the metals and mining sector.

Shares of medical device maker Medtronic (MDT) are up 94 cents, or 2%, at $44.24, after the company this morning said it will spend $350 million up front to purchase privately held Invatec, which makes technology to treat cardiovascular disease. The deal involves follow-on payments of as much as $150 million if the products meet milestone agreements.

Quest Diagnostics (DGX) is off $2.13, or 3.6%, at $56.67 after the $10.5 billion maker of lab tests this morning beat Q4 profit estimates by a penny, at 97 cents a share, but fell short on revenue at $1.85 billion versus $1.87 billion expected.

Halliburton (HAL) is off 57 cents, or 2%, at $30.59 despite the company this morning beating Q4 sales and profit estimates, and despite quite positive comments about the oil and gas services business, including a 14% increase in the “rig count” in the U.S. in December quarter. Management, however, said spending by oil and gas E&P firms was being pushed to the back half of this year.

$3.2 billion (market cap) food packager Sealed Air (SEE) is off 49 cents, or 2.4%, at $19.95 after the company this morning reported Q4 sales fell 2% to $1.15 billion, below the $1.18 billion expected, while profit per share, excluding some costs, beat by a penny at 40 cents. The company forecast 2010 profit per share of $1.50 to $1.70, in line with the $1.64 average estimate of analysts.

Cruise operator Royal Caribbean (RCL) is off 33 cents, or 1.3%, at $25.09 after Wedbush Morgan downgraded the stock to “Neutral” from “Outperform” on concerns pricing could be weak this year even as passengers per trip increase. Royal Caribbean will have a conference call to discuss Q4 earnings this Thursday morning.

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