Market Snapshot October 26, 2009, 4:35PM EST

Stocks End Solidly Lower

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In company news Monday, Rochdale analyst Dick Bove downgraded SunTrust Banks (STI) and Fifth Third Bancorp (FITB) to sell from neutral. The firm also downgraded U.S. Bancorp (USB) to neutral from buy. Last week, SunTrust reported a third-quarter loss of 76 cents per share and Fifth Third posted a 20-cent loss, while USB posted operating earnings per share (EPS) of 30 cents.

Carl Icahn announced that he informed the board of directors of Yahoo (YHOO) that he was resigning as a director of the firm. Icahn told the board that in his view there was not a need at this time for an activist director at Yahoo.

In earnings news, Verizon Communications (VZ) posted third-quarter adjusted earnings per share of 60 cents, vs. 66 cents EPS one year earlier, as higher operating expenses offset a 10% operating revenue rise. Wall Street was looking for EPS of 59 cents.

Corning (GLW) posted third-quarter non-GAAP EPS of 42 cents, 46 cents EPS one year earlier, on a 4.9% sales drop. Wall Street was looking for EPS of 39 cents. Corning said the improvement it has seen over the past two quarters has increased its optimism for the fourth quarter.

RadioShack (RSH) reported third-quarrter EPS of 30 cents, vs. 38 cents EPS one year earlier, on a 3.1% revenue drop. The company said its financial performance improved in the latter part of the third quarter, primarily driven by its strong mobility business combined with an economy showing some signs of potential stabilization.

The McGraw-Hill Companies (MHP) posted third-quarter EPS of $1.07, vs. $1.23 EPS one year earlier, on an 8.4% revenue decline. Wall Street was looking for EPS of $1.05. With market conditions continuing to weaken in school education and advertising, McGraw-Hill expects 2009 revenue to decline by about 7% vs. previous its forecast of a 5.5% to 6.5% drop. But, with stringent cost controls, the company now expects to achieve the top end of its 2009 EPS guidance of $2.20-$2.25 (excluding items), vs. its prior expectation of coming in at the low end of that range. (BusinessWeek is a unit of The McGraw-Hill Companies.)