Unusual 11 Mid-Day Movers 10/13: RRI, MS, APWR, GNW Higher; NWY, AXL, EEV, AFFX Lower

October 13, 2008 1:20 PM EDT

Reliant Energy (NYSE: RRI) 66.8% HIGHER; today announced that it has entered into a definitive agreement with an affiliate of First Reserve Corporation related to Reliant's previously announced commitment for the issuance of $350 million of Reliant convertible preferred stock to First Reserve.

Morgan Stanley (NYSE: MS) 65.2% HIGHER; Mitsubishi UFJ Financial Group, Inc. (NYSE: MTU) closed its $9 billion equity investment in Morgan Stanley, which gives Mitsubishi UFJ a 21% ownership interest in Morgan Stanley.

A-Power Energy Generation Systems (Nasdaq: APWR) 61.9% HIGHER; shares have already taken back all their loses and then some from last week's market-wide sell-off. With about 20.9% of its float shorted at the beginning of October, today's move could be getting intensified by shorts covering their downside bets.

New York & Company, Inc. (NYSE: NWY) 39.2% LOWER; Friday after the close, the company provided a revision to its diluted EPS guidance for Q308. In Q3, comparable store sales declined by 10.6%, which is significantly lower than the Company's expectations. As a result, the Company now expects to realize a loss of $4.5-$7.0 million, or $0.08-$0.12 for Q3. (Consensus is $0.11 profit)

Genworth Financial (NYSE: GNW) 38.9% HIGHER; with the Dow up nearly 600 points, investors are buying any financial stock today.

General Motors (NYSE: GM) 32.9% HIGHER; shares are bouncing this week after falling more than 45% last week amid an extremely concerning credit environment.

Eagle Bulk Shipping (Nasdaq: EGLE) 30% HIGHER; the entire dry bulk shipping group is moving substantially higher today as the industry has been beaten up recently as many of these shippers have been a great way to play the global slowdown trade.

American Axle (NYSE: AXL) 23.1% LOWER; Merrill Lynch downgrades American Axle from Neutral to Underperform.

UltraShort FTSE/Xinhua China 25 ProShares (AMEX: EEV) 21.9% LOWER; markets around the world responded positively to the US's stronger-than-usual market on Friday, as well as developments over the weekend. Europe's Stoxx 600 rose 9.1%, the largest intraday advance on record.

Affymetrix, Inc. (Nasdaq: AFFX) 20% LOWER; expects total revenue for the third quarter of 2008 to be approximately $75 million, below the consensus of $90.1 million. Affymetrix said global sales fell below expectations for the quarter driven by increased competition for academic research funding and continued softness in industrial spending.

UltraShort Oil & Gas ProShares (AMEX: DUG) 16.6% LOWER; this ETF allows investors to play the downside of oil & gas, meaning as oil moves higher, the fund moves lower. With a barrel trading about $4 higher today, and marking one of the first up days so far in October, investors are jumping back into the industry today after a much needed correction to under $100 per barrel.

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Related Entities

• Morgan Stanley
• Merrill Lynch
• First Reserve Corporation

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