Morning Movers 10/07: AMD (AMD) Up on New Manufacturing Venture; First Solar (FSLR) Slammed On Downgrade

October 7, 2008 9:34 AM EDT

StreetInsider.com Morning Movers:

AMD (NYSE: AMD) 30% HIGHER; The company and Advanced Technology Investment Company of Abu Dhabi announced the creation of a U.S.-headquartered, leading-edge semiconductor manufacturing company.

Royal Bank of Scotland (NYSE: RBS) 25% LOWER; speculation the company will need government assistance. The company denied this.

First Solar, Inc. (Nasdaq: FSLR) 15% LOWER Goldman downgraes to Sell

Sonus Networks (Nasdaq: SONS) 15% LOWER; expects to report a significant decrease in year-over-year revenue for the third quarter ended September 30, 2008. The Company further expects that its year-over-year revenue for the full year 2008 will decrease from the full year 2007.

Fred's Inc. (NASDAQ: FRED) 13% LOWER; said September comparable store sales for the month increased 1.1%. Fred's total sales for the month were $161.3 million, up slightly from $161.1 million in September 2007. Fred's is lowering Q3 EPS guidance to a range of $0.14 to $0.16 per diluted share. The consensus is $0.17.

SunPower Corporation (Nasdaq: SPWR) 11% LOWER; Goldman downgraes to Sell

Bank of America (NYSE: BAC) 9% LOWER; reported third quarter net income of $0.15 per share, below the consensus of $0.62 and $0.82 last year. The company also announced two initiatives to raise capital, targeting an 8 percent Tier 1 capital ratio. The company intends to sell common stock with a target of raising $10 billion. In addition, the Board of Directors has declared a quarterly dividend on common stock of $0.32 to be paid on December 26, 2008 to shareholders of record on December 5, 2008. The dividend was reduced from $0.64.

Advance Auto Parts, Inc. (NYSE: AAP) 9% LOWER; said lower than anticipated sales growth will result in Q3 EPS to be approximately flat as compared to the fiscal 2007 EPS of $0.57, below the consensus of $0.66. In addition, the Company believes the third quarter sales trends will continue through the balance of the fiscal year as customers further adjust to the challenging economic environment.

TRW Automotive Holdings Corp. (NYSE: TRW) 9% LOWER; announced the withdrawal of its Full-Year 2008 sales and earnings guidance provided on July 31, 2008. In addition, the Company now expects a net loss for its 2008 third quarter on lower than anticipated sales, significantly higher restructuring expenses and increased commodity costs. The consensus is a $0.03 profit.

American International Group, Inc. (NYSE: AIG) 8% HIGHER; Prospects for assets sales

Merrill Lynch (NYSE: MER) 7% LOWER; Merger partner BofA reports smaller profit, raising capital, cuts dividend.

SAP AG (NYSE: SAP) 6% LOWER; Lower-than-expected software and service revenue

Yamana Gold, Inc. (NYSE: AUY) 5% HIGHER; Gold continues higher as a safe-haven

Sovereign Bancorp (NYSE: SOV) 4.8% LOWER; BofA reports smaller profit.

General Electric Co. (NYSE: GE) 4% HIGHER; Fed to purchase commercial paper through new special unit

Goldcorp Inc. (NYSE: GG) 4% HIGHER; Gold continues higher as a safe-haven

Freeport-McMoRan (NYSE: FCX) 4% HIGHER; Friedman Billings upgrades to Outperform

Salesforce.com (NYSE: CRM) 4% LOWER; Roth Capital downgrades to Hold

SPDR Gold Shares (NYSE: GLD) 3% HIGHER; Gold continues higher as a safe-haven

Calgon Carbon Corp. (NYSE: CCC) 3% HIGHER;will replace Allscripts Healthcare Solutions Inc. (NASDAQ: MDRX) in the S&P SmallCap 600 after the close of trading on Friday, October 10. Allscripts is undergoing a corporate restructuring that will leave it majority-controlled by S&P Global 1200 constituent Misys Plc in a deal expected to close on or about that date, pending final approvals.

Wells Fargo (NYSE: WFC) 2.4% LOWER; Wachovia, Citigroup, and Wells Fargo Announce Litigation Standstill

Citigroup (NYSE: C) 1% LOWER; Wachovia, Citigroup, and Wells Fargo Announce Litigation Standstill

Walt Disney Co. (NYSE: DIS) 1% LOWER; Merrill Lynch downgrades to Underperform

Illinois Tool Works Inc. (NYSE: ITW) INDICATED LOWER; lowers its Q3 adj-EPS guidance to $0.86-$0.90 and its FY08 non-adj-EPS guidance to $3.22-$3.34. The Street estimates are currently $0.94 for Q3 and $3.65 for FY08.

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• Standard & Poor's
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