Unusual 11 Mid-Day Movers 10/3: WB, GGP, DSL, AGM Higher; FR, ARA, ISLE, KVHI Lower

October 3, 2008 1:05 PM EDT

Wachovia (NYSE: WB) 69% HIGHER; Wells Fargo and Wachovia signed a definitive agreement for the merger of the two companies including all of Wachovia's banking operations in a whole company transaction requiring no financial assistance from the FDIC or any other government agency. Since the market open, Citigroup (NYSE: C) has came out demanding that Wachovia and Wells Fargo terminate their deal as Citi says it had an exclusivity agreement following its talks with Wachovia earlier this week.

General Growth Properties, Inc. (NYSE: GGP) 42.9% HIGHER; announced the appointment of Edmund Hoyt as the Company's CFO on an interim basis. The Company also announced that it has suspended its quarterly dividend. Despite the negative news, shares are bounded to bounce after falling nearly 50% yesterday.

Downey Financial (NYSE: DSL) 36.1% HIGHER; financials are bouncing today following yesterday's decline. The US markets are extremely skittish as the condition of financial institutions is a day-to-day development. Also, in a Form 8-K, Downey disclosed its new CEO's choices for the company's Board.

Farmer Mac (NYSE: AGM) 27.5% HIGHER; although the stock did not see the same declines as other ags yesterday, it is bouncing today with the entire sector.

First Industrial Realty Trust, Inc. (NYSE: FR) 23.6% LOWER; lowers FY08 FY08 FFO guidance from $4.70-$5.00 to $3.45-$3.75, versus the consensus of $4.49. EPS guidance for the year lowered from $4.30-$4.60 to $2.05-$2.35. For FY09, First Industrial sees FFO of $3.25-$3.5, versus the consensus of $4.55.

AIG (NYSE: AIG) 19% HIGHER; AIG released a statement earlier saying that it is planning on paying back its loan that the US government recently gave it. Investors may be speculating that the company will be able to make it through this downturn and that the bailout will help AIG.

Aracruz Celulose SA (NYSE: ARA) 17.6% LOWER; late yesterday Aracruz announced that it expects to see a foreign-exchange derivative loss of $951 million.

Isle of Capri Casinos (Nasdaq: ISLE) 13.5 LOWER; the majority of the casino & gaming stocks are seeing substantial downside today as one of the larger companies in the group, Penn National Gaming (Nasdaq: PENN) lowered its Q3 sales guidance yesterday after the close.

KVH Industries, Inc., (Nasdaq: KVHI) 13.3% LOWER; sees Q3 sales in the range of $15.6-$16 million, versus the consensus of $19.78 million, taking EPS well below the previous guidance of $0.01-$0.05.

Intrepid Potash (NYSE: IPI) 10.6% HIGHER; the majority of the ag sector is bouncing today following a stunning decline in the group yesterday after Mosaic (NYSE: MOS) reported disappointing earnings and lowered its production outlook for phosphate. The popular ag names - Mosaic, Potash (NYSE: POT), Agrium (NYSE: AGU) and CF Industries (NYSE: CF) (to name just a few) - all slid more than 20% yesterday.

Citigroup (NYSE: C) 8.9% LOWER; shares are falling today as Wells Fargo announced that it reached an agreement to acquire Wachovia for $7 per share. Since the announcement, Citi has released a statement demanding that Wells Fargo and Wachovia terminate their deal as Citi says it had an exclusivity agreement with Wachovia.

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