Bloomberg News

Chevron, Nvidia, Transocean, Zillow: U.S. Equity Movers

November 21, 2011

Nov. 21 (Bloomberg) -- Shares of the following companies are having unusual moves in U.S. trading. Stock symbols are in parentheses and prices are as of 1:45 p.m. in New York.

Alleghany Corp. (Y US) fell 7.5 percent to $290.56 after dropping as much as 10 percent, the most intraday since December 2008. The property and liability insurer agreed to buy reinsurer Transatlantic Holdings Inc. (TRH US) for $3.4 billion in cash and stock and said it would appoint a former Berkshire Hathaway Inc. executive as chairman of the target company.

Amazon.com Inc. (AMZN US) slipped 5.1 percent to $187.13 and declined to $185.05 earlier, the lowest intraday price since Aug. 23. The world’s largest Internet retailer’s shares signaled “a major change in trend,” as the stock traded below its average price in the past 150 days and volume “remains heavy” on days when prices are lower, according to Carter Worth, chief market technician at Oppenheimer & Co.

Chevron Corp. (CVX US) lost 3 percent to $94.91 and slipped to $94.45 earlier, the lowest intraday price since Oct. 7. The second-largest U.S. energy company was fined 50 million reais ($28 million) by Brazil’s environmental regulator, known as Ibama, after an offshore oil spill, said Curt Trennepohl, the president of the agency. The oil regulator said Chevron may lose its status as a “class A” operator, which allows it to develop deep-water fields.

Transocean Ltd. (RIG US), the company hired by Chevron to drill the offshore oil well that has been leaking in Brazil’s Frade field for more than a week, will be banned from operating in Rio de Janeiro state and fined as much as 50 million reais, the state’s environment secretary said. Transocean fell 6.1 percent to $44.57.

Clearwire Corp. (CLWR US) rose 4.8 percent to $1.54 after jumping as much as 15 percent, the most intraday since Nov. 4. The wholesale wireless carrier’s warning that it could skip a debt payment coming due on Dec. 1 may be a “ploy” to win financial support from partner Sprint Nextel Corp. (S US) or another company, said John Fruit, manager of the Nuveen High Income Bond Fund.

Cooper Industries Plc (CBE US) rose 3 percent to $53.70 and climbed 6 percent earlier, the most intraday since Oct. 27. The Houston-based maker of electrical distribution equipment will replace Janus Capital Group Inc. (JNS US) in the Standard & Poor’s 500 Index after the close of trading on Nov. 22. Janus will join the S&P MidCap 400 Index, taking DPL Inc.’s (DPL US) place, S&P said.

Dendreon Corp. (DNDN US) rose 5 percent to $8.76 and climbed to $9.09 earlier, the highest intraday price since Nov. 2. The maker of the prostate-cancer drug Provenge said the Centers for Medicare and Medicaid Services will cover infusion costs associated with the administration of the medicine.

ELong Inc. (LONG US) rallied 10 percent to $15.41 after jumping as much as 24 percent, the most intraday since May 17. Expedia Inc. (EXPE US) said it bought Renren Inc.’s (RENN US) stake in the Chinese online-travel company for $72.4 million. Renren retreated 5.4 percent to $4.05.

Gilead Sciences Inc. (GILD US) slid 10 percent, the most in the Standard & Poor’s 500 Index, to $35.71. The world’s biggest seller of AIDS medicines agreed to buy Pharmasset Inc. (VRUS US) for about $11 billion in cash to add experimental treatments for the hepatitis C virus. Gilead will pay $137 a share in cash, 89 percent above the closing price for Pharmasset shares on Nov. 18. Pharmasset surged 85 percent to $134.30.

Inhibitex Inc. (INHX US), which is also developing a hepatitis C treatment, soared 20 percent to $10.74.

Hewlett-Packard Co. (HPQ US) fell 4.4 percent to $26.75, after falling 6.1 percent, the most intraday since Sept. 22. The largest computer maker is likely to cut its forecast for fiscal 2012 when announcing fourth-quarter results today, according to Robert W. Baird & Co.

Nvidia Corp. (NVDA US) climbed 3.1 percent, the biggest gain in the Standard & Poor’s 500 Index, to $14.37. The maker of three-dimensional graphics processors will supply the next round of graphics processing units for Apple Inc.’s MacBooks, according to SemiAccurate, which didn’t cite a source.

Regeneron Pharmaceuticals Inc. (REGN US) gained 13 percent to $56.20 and rallied 14 percent earlier, the most intraday since Sept. 21. The drugmaker said the Food and Drug Administration on Nov. 18 approved Eylea, a treatment for a common cause of blindness in elderly that will rival Roche Holding AG’s Lucentis. The Tarrytown, New York-based company was raised to “neutral” from “underperform” at Bank of America Corp.

Research in Motion Ltd. (RIMM US) fell 4.1 percent to $17.45 and dropped to $16.93 earlier, the lowest intraday price since May 2004. The smartphone maker had its profit estimates cut by analysts at Royal Bank of Canada and JMP Securities, citing increased competition, and said some customers couldn’t turn on their BlackBerry Bold devices.

Zillow Inc. (Z US) sank 17 percent, the biggest decline in the Russell 2000 Index, to $22.56. The real estate website that had its initial public offering in July “is being pressured by sales from pre-IPO investors now that a lock-up period has ended,” Justin Patterson, an analyst at Morgan Keegan & Co., said in e-mail.

--With assistance from Kaitlyn Kiernan and Dawn Kopecki in New York. Editor: Stephen Kleege

To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net

To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net


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