Stocks & Markets
Stocks on the Move: Adobe, Carnival, Citi, Intel
Japanese lenders rallied after government officials said banks will be given a grace period to adjust to stricter capital rules under consideration by the Basel Committee on Banking Supervision. Mizuho Financial Group Inc. (MFG) jumped 16 percent to $4.07. Sumitomo Mitsui Financial Group Inc. (SMFJY) surged 15 percent to $3.33. Mitsubishi UFJ Financial Group Inc. (MTU) added 6.2 percent to $5.32.
AAR Corp. (AIR) rose 7.2 percent to $22.55 and climbed 8.7 percent earlier for the biggest intraday gain since Sept. 23. The aircraft parts and maintenance provider reported second- quarter profit excluding some items of 34 cents a share, beating the average analyst estimate by 14 percent.
Adobe Systems Inc. (ADBE) added 4 percent to $37.80 and advanced earlier to $38.20, the highest intraday price since October 2008. The world's biggest maker of graphic-design programs reported a bigger profit than analysts estimated after the company cut jobs and a slump in orders eased.
Boston Beer Co. (SAM) added 4.7 percent to $44.67 after rising earlier to $45.50, the highest intraday price since October 2008. The maker of Samuel Adams lager raised its 2009 earnings forecast to $2.05 to $2.35 a share. Analysts surveyed by Bloomberg estimated $2.09.
Carnival Corp. (CCL) rose 1.8 percent to $34.50 and climbed earlier to $34.62, the highest intraday price since Sept. 22. The biggest cruise-line operator was raised to "overweight" from "neutral" by JPMorgan Chase & Co.
CF Industries Holdings Inc. (CF) advanced 4.7 percent to $92.45 after rising earlier to $92.97, the highest intraday price since Oct. 22. The fertilizer maker repeatedly rebuffed in attempts to take over rival Terra Industries Inc. (TRA) said it won't seek to extend $2.5 billion of financing commitments related to its acquisition efforts.
Charles Schwab Corp. (SCHW) climbed 4 percent to $18.04 and increased 4.4 percent earlier, the most intraday since Oct. 6. The largest independent brokerage by client assets in the U.S. was raised to "buy" from "hold" at Deutsche Bank AG and rated "overweight" in new coverage at Morgan Stanley.
Citigroup Inc. (C) fell 2.8 percent to $3.46 and slipped earlier to $3.44, the lowest intraday price since Aug. 5. The Abu Dhabi Investment Authority is trying to cancel an agreement to buy $7.5 billion of Citigroup stock at eight times today's price, saying the bank misled it about the investment.
Constellation Brands Inc. (STZ) fell the most in the Standard & Poor's 500 Index, erasing 7 percent to $15.04. A unit of the world's largest winemaker was sued in New York by Grupo Modelo, Mexico's biggest brewer. Modelo said it is alleging Constellation breached its obligations in the companies' U.S. distribution partnership.
EZchip Semiconductor Ltd. (EZCH) slid 7.2 percent to $11.70 and dropped 78.4 percent earlier, the most intraday since Oct. 30. The maker of network processors said it will sell shares along with its shareholders, offering 3.86 million in total.
First California Financial Group Inc. (FCAL) gained 11 percent to $2.85 and rallied as much as 16 percent, the most intraday since July 30. The provider of financial services in South California postponed a stock offering, citing market conditions
General Growth Properties Inc. (GGWPQ) tumbled 14 percent to $8.42 and declined as much as 29 percent, the most intraday since April 16. The second-largest U.S. mall owner said it won permission from a bankruptcy judge to restructure about $10.25 billion in debt at some of its shopping centers and office buildings. Intel Corp. (INTC) fell the most in the Dow Jones Industrial Average, sinking 1.5 percent to $19.49. The Federal Trade Commission sued the world's leading computer chipmaker, accusing it of illegally using its dominant market position for a decade "to stifle competition and strengthen its monopoly."
Intel's smaller rivals gained. Nvidia Corp. (NVDA) had the biggest advance in the S&P 500, jumping 6.6 percent to $16.68. Advanced Micro Devices Inc. (AMD) rose 5.2 percent to $9.28.
Mariner Energy Inc. (ME) fell the most in the Russell 1000 Index, sinking 9.4 percent to $11.63. The oil and gas company said it agreed to buy Edge Petroleum Corp. (EPEXQ) for about $215 million.
Playboy Enterprises Inc. (PLA) sank 12 percent to $3.37 and slipped earlier to $3.15, the lowest intraday price since Nov. 12. Iconix Brand Group Inc. (ICON), owner of London Fog and Danskin, is breaking off talks to buy Playboy after determining it would be too complicated to separate the Playboy brand from the company's other assets, said two people familiar with the matter.
Prudential Financial Inc. (PRU) added 4.6 percent to $51.43 and increased earlier to $51.97, the highest intraday price since Oct. 20. The second-biggest U.S. life insurer said it will record a $1.5 billion gain from the sale of a stake in a Wells Fargo & Co. (WFC) securities brokerage unit.
Roper Industries Inc. (ROP) gained 3.3 percent to $55.02 and climbed 4 percent earlier, the most intraday since June 4. The maker of radio-frequency tags and automatic meter readers was picked to replace Ensco International Inc. (ESV) in the Standard & Poor's 500 Index after the close of trading on Dec. 22, S&P said.
TW Telecom Inc. (TWTC) had the biggest gain in the Russell 1000 Index, jumping 7.3 percent to $16.90. The provider of telephone and Internet service to businesses will replace Roper in the S&P MidCap 400.
Royal Caribbean Cruises Ltd. (RCL) gained 4.9 percent to $27.20 and advanced earlier to $27.26, the highest intraday price since September 2008. The world's second-largest cruise operator was raised to "overweight" from "neutral" at JPMorgan Chase & Co.
YRC Worldwide Inc. (YRCW) rose 15 percent to 95 cents and rallied as much as 28 percent, the most intraday since Nov. 13. The biggest U.S. trucker by sales, seeking to avoid bankruptcy by exchanging equity for debt, has extended the deadline for bondholders to accept its offer to 11:59 p.m. tomorrow, after failing to reach a required threshold yesterday.
To contact the reporter on this story: Lu Wang in New York at email@example.com