Morning Movers 10/08: Stocks Lower Even After Global Rate Cut; BofA (BAC) Sinks 18% After Stock Offering

October 8, 2008 9:28 AM EDT

StreetInsider.com Morning Movers:

Stewart Enterprises (Nasdaq: STEI) 32% LOWER; Service Corporation International (NYSE: SCI) withdraws its previous proposal of $11 per share for Stewart Enterprises.

MetLife, Inc. (NYSE: MET) 30% LOWER; said operating earnings available to common shareholders for the third quarter are expected to be between $0.83 to $0.93 per diluted common share, below the consensus of $1.44. MetLife also announced a 75 million share common share offering.

Bank of America (NYSE: BAC) 18% LOWER; prices $10 billion common stock offering at $22

Merrill Lynch (NYSE: MER) 18% LOWER; Weakness in BofA

NETGEAR, Inc. (Nasdaq: NTGR) 12% LOWER; lowers its Q3 sales guidance from in the range of $208-$212 million to in the range of $173-$183 million. This compares to the Street estimate of $210.24 million. Raises non-GAAP operating margins from 9.5-10.5% to 10.3-11.3%.

Randgold Resources Ltd. (Nasdaq: GOLD) 11% HIGHER; Gold higher on global rate cut. Also upgraded at Citi

Barrick Gold Corporation (NYSE: ABX) 10% HIGHER; Gold higher on global rate cut

Harmony Gold Mining Co. Ltd. (NYSE: HMY) 10% HIGHER; Gold higher on global rate cut

Sealy Corp. (NYSE: ZZ) 10% HIGHER; reports Q3 EPS of $0.12, 4 cents better than the analyst estimate of $0.08. Revenues for the quarter were $405 million, versus the consensus of $389.82 million

Goldcorp Inc. (NYSE: GG) 8% HIGHER; Gold higher on global rate cut

Nordstrom, Inc. (NYSE: JWN) 7% LOWER; September same-store sales decreased 9.6%. Total sales were $718 million, down 5.8%. Nordstrom now expects to deliver third quarter earnings per share of $0.32 to $0.37, which is below its prior outlook of $0.49 to $0.54.

Monsanto Co. (NYSE: MON) 6% LOWER; reports a Q4 adjusted-loss of $0.03, 6 cents better than the analyst estimate of ($0.09). Revenues for the quarter were $2 billion, versus the consensus of $1.92 billion. Sees FY09 EPS guidance of $4.20-$4.40, versus the consensus of $4.62.

Target Corporation (NYSE: TGT) 6% LOWER; reported that its net sales for the month of September rose 2.5% to $5.32 billion. Same store sales for the month fell 3%. Gregg Steinhafel, Target's President and CEO, said, "Sales for the month of September were below our expectations, reflecting continued daily volatility. Challenges in the current environment, including weak top-line growth in our retail segment and higher net write-off rates in our credit card segment, have increased the likelihood that our third quarter EPS may be slightly below the current First Call median estimate of 52 cents. On balance, we currently expect 2008 full year earnings per share to meet or exceed last year's full year EPS of $3.33."

Unica Corporation (Nasdaq: UNCA) 5% LOWER; expects fourth quarter total revenue of approximately $28 million and non-GAAP diluted net income per share of approximately $0.01. This is lower than the company’s original guidance, provided on August 7, 2008, of revenue of $31.0 million to $32.0 million and non-GAAP diluted net income per share of $0.05 to $0.07. The consensus is $31.5 million and $0.06.

Kohl's Corporation (NYSE: KSS) 5% LOWER; September Comps Down 5.5%. Total sales for the five-week month ended October 4, 2008 increased 0.6%. Given current trends, the Company now expects its third quarter earnings to be at the low end of its previously announced guidance of $0.51 to $0.56 per diluted share. The consensus is $0.53.

J. C. Penney Company, Inc. (NYSE: JCP) 5% LOWER; today reported sales for the month of September were $1.446 billion, a 10.9% decrease from $1.622 billion in the same month last year. Same store sales for the month were down 12.4%. Sees October comps down low-double digits. Cuts Q3 EPS outlook from $0.70-$0.75 to $0.50-$0.60, versus the consensus of $0.70.

Alcoa Inc (NYSE: AA) 5% LOWER; reports Q3 EPS of $0.33, or $0.37 ex-items, versus the analyst estimate of $0.54. (The earnings included a $0.06 negative impact from currencies) Revenues for the quarter were $7.2 billion, versus the consensus of $7.23 billion. Suspends share buyback.

RealNetworks (Nasdaq: RNWK) 5% LOWER; Piper downgrades to Sell

SPDR Gold Shares (NYSE: GLD) 4% HIGHER; Gold higher on global rate cut

Costco (Nasdaq: COST) 4% LOWER; reports Q4 earnings of $0.97 per share, ex-items, above the consensus of $0.93. Revenues came in at $23.1 billion, versus the consensus of $23 billion. Q4 same-store sales rose 9%.

LDK Solar Co., Ltd. (NYSE: LDK) 3% HIGHER; estimates revenue to be in the range of $530 to $540 million and wafer shipments between 230 to 240 MW. This compares to its previously issued guidance for the third quarter of 2008 of revenue in the range of $486 to $496 million and wafer shipments in the range of 210 to 220 MW.

United States Steel Corp. (NYSE: X) 3% LOWER; Morgan Stanley downgrades to Equal-Weight

General Motors (NYSE: GM) 2% LOWER; Citi downgrdes to Sell

Yum! Brands, Inc. (NYSE: YUM) 2% HIGHER; reports Q3 EPS of $0.58, 4 cents better than the analyst estimate of $0.54. Revenues for the quarter were $2.84 billion, versus the consensus of $2.78 billion. Reaffirms forecast.

JPMorgan Chase (NYSE: JPM) 2% LOWER; stocks weak despite global rate cut.

Goldman Sachs (NYSE: GS) 2% LOWER; stocks weak despite global rate cut

Wal-Mart Stores, Inc. (NYSE: WMT) 1.5% HIGHER; reports sales for September came in at $36.229 billion. Same store sales for the quarter were up 2.4% without fuel and up 2.8% with fuel. Sees US same store sales for October up 1-2%. Confirms its previously issued Q3 EPS guidance of $0.73-$0.76, versus the consensus of $0.76.

Voltaire Ltd. (NASDAQ: VOLT) INDICATED LOWER; lowers its Q3 sales guidance from $17-$18 million to $14.1-$14.6 million. Cuts EPS outlook from $0.02-$0.04 to a loss of $0.02-$0.03.

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