Stocks End Mixed on Economic Worries

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asp?symbol=FHN'>FHN) said it expects that as a result of persisting market weakness and ongoing efforts to aggressively address problem loans, 2008 net charge-offs are likely to exceed the previously expected range of $385 million to $485 million by about $100 million.

Forest Laboratories (FRX) and Laboratorios Almirall announced results from two global Phase III studies of aclidinium bromide, a novel long-acting inhaled anticholinergic for treatment of chronic obstructive pulmonary disease. The companies say studies confirm the bronchodilatory effect of aclidinium at the dose tested, although the magnitude was lower than seen in previous studies.

Corning Inc. (GLW) lowered its third-quarter earnings forecast before special items to 43 to 45 cents a share from previous guidance of 48 to 51 cents. The company said sales are now expected to be between $1.58 billion and $1.62 billion, vs. prior guidance of $1.65 billion to $1.72 billion, with the lower outlook primarily related to lower-than-expected shipments of LCD glass in its wholly-owned display business. S&P downgraded the stock to buy from strong buy.

Medivation Inc. (MDVN) and Pfizer (PFE) agreed to develop and commercialize Dimebon, Medivation's investigational drug for treatment of Alzheimer's disease and Huntington's disease. Medivation will receive an up-front cash payment of $225 million and is also eligible to receive payments of up to $500 million as development and regulatory milestones are reached, plus additional undisclosed commercial milestone payments.

MEMC Electronic Materials (WFR) said weaker demand from its semiconductor applications customers, primarily due to their inventory reduction initiatives, plus continued potential for "unanticipated" events affecting its polysilicon production output, warrant continued caution in its third quarter outlook. As a result, the company maintained its prior third quarter targets, including revenue of $560 million to $620 million and gross margin of 54% to 55%. MEMC also sees higher-than-expected operating expenses. S&P and Citigroup reiterated their buy ratings, while Friedman Billings Ramsey maintained its outperform rating.

Major European indexes traded lower Wednesday. In London, the FTSE 100 index fell 2.15% to 5,499.70. In Paris, the CAC 40 shed 2.03% to trade at 4,447.13, while Germany's DAX index was down 0.78% at 6,467.49.

In Asia, Japan's Nikkei 225 gained 0.64% to close at 12,689.59, while Hong Kong's Hang Seng index lost 2.17% to end at 20,585.06.

Treasury market

Treasury bonds gained ground on trepidation in the equities market. The 10-year note moved up to 102-16/32 for a yield of 3.70% and the 30-year bond climbed 21/32 to 103-01/32 for a yield of 4.32%.