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During the past 20 years, the author has watch China move from being a developing country into an industrial superpower
Money Moves, 5/24: Chocomize Co-Founder Fabian Kaempfer talks with Bloomberg’s Deirdre Bolton about the business of customizing chocolate
The president's campaign has a new rule—no cell phones allowed
In honor of remote control inventor Eugene Polley, we recognize other influential but neglected inventors who have felt the sting of stolen glory
Forget Adderall. Traders now pop chia seeds to stay focused and energized
The Italian automaker and others are adding hybrid technology to elite cars
The storied bridge that links San Francisco and Marin County changed the face of California
Schools cultivate ties with startups before they're big successes
Dave McClure's traveling venture capital show scours the world for promising startups
Get Four
|  | SEPTEMBER 30, 2004 04:32 PM
 MARKET MOVERS Merck Tumbles on Vioxx Withdrawal Micron earnings fall short of Street forecasts; Fannie Mae reportedly target of Jusrtice Dept. probe; plus more of Thursday's stocks in the news Shares of Merck (MRK ) moved sharply lower Thursday after it announced the immediate voluntary worldwide withdrawal of Vioxx. The drugmaker says a study evaluating the efficacy of Vioxx in preventing recurrence of colorectal polyps showed an increased risk for confirmed cardiovascular events. S&P downgraded the shares to avoid. Goldman put its rating and estimates under review. Micron Technologies (MU ) posted lower-than-expected fourth-quarter earnings per share of 14 cents, vs. a 20-cent loss one year earlier, on a 34% net sales rise. First Albany downgraded the stock to buy from strong buy. According to the Wall Street Journal, the U.S. Justice Department has opened a criminal investigation regarding Fannie Mae's (FNM ) accounting. S&P reiterates avoid. PepsiCo (PEP ) posted third-quarter earnings per share of 66 cents, vs. 58 cents one year earlier, on a 6% revenue rise. The company will close 4 plants at its Frito-Lay unit, which will result in 780 job cuts. PepsiCo sees at least $2.35 2004 earnings per share, vs. previous guidance of $2.29. Closure Medical (CLSR ) lowered its 2004 guidance for revenues from a range of $45 million to $47 million to a range of $40 million to $41 million, and for EPS from a range of 65 cents to 70 cens to a range of 59 cents to 62 cents. It sees third-quarter EPS of 13 cents to 14 cents. The company cites lower revenue expectations for its Dermabond and Band-Aid Liquid Bandage products. IBM Corp. (IBM ) will take a third-quarter non-recurring charge of about $320 million related to settlement of certain claims in a pension lawsuit. S&P reiterates its accumulate opinion. American International Group (AIG ) says its AIG Financial Products Corp. unit has been informed by the U.S. Justice Dept. that it is a target of an investigation involving possible violations of federal securities laws. Talbots (TLB ) cut its third-quarter earnings per share estimate to 45 cents to 50 cents on a low-to-mid-single digits decline in September same-store sales. Piper Jaffray lowered the stock to market perform from outperform. Intuit (INTU ) expects a first-quarter loss per share (GAAP) of 28 cents to 32 cents on 5% to 10% revenue growth. It fiscal 2005 revenue of $1.97 billion to $2.02 billion and $1.82 to $1.90 earnings per share (GAAP). Fresh Del Monte (FDP ) cut its 2004 earnings per share estimate to $2.05 to $2.25. The company cites weak banana pricing, lower melon profitability in U.S., high fruit cost in Costa Rica, recent hurricanes in Florida, and high commodity costs. Advanced Energy (AEIS ) cut its $103 million to $107 million third-quarter sales forecast to $91 million to $93 million. Based on the lower sales, it now expects net income to be essentially breakeven.. The company cites softening demand and customer order push-outs in the semiconductor and flat panel display industries. Hartford Financial Services (HIG ) sees third-quarter earnings per share of 85 cents to 95 cents, including an after-tax loss for recent hurricanes. Red Hat (RHAT ) agreed to acquire certain assets of Netscape Security Solutions. Arrow International (ARRO ) posted fourth-quarter earnings per share of 35 cents, vs. 33 cents, on an 11% net sales rise. Vicuron Pharmaceutical (MICU ) prices a public offering of 4.8 million shares at $14.75 per share.  All of the views expressed in this research report accurately reflect the research analyst's personal views regarding any and all of the subject securities or issuers. No part of analyst compensation was, is or will be, directly or indirectly related to the specific recommendations or views expressed in this research report. Standard & Poor's Regulatory Disclosure Any advice, analysis, or recommendations contained in articles labeled "Insight from Standard & Poor's" reflect the views of Standard & Poor's, which operates separately from and independently of BusinessWeek Online. It is possible that BWOL may from time to time publish information that is not consistent with advice, analysis, or recommendations that are published by Standard & Poor's. Standard & Poor's and BusinessWeek Online are each units of The McGraw-Hill Companies, Inc. Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
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