Stocks in the news: Intel, Abbott Labs, Gannett
Intel (INTC) reported upbeat second-quarter results on Tuesday after the market close. While it reported a loss due to a fine from the European Union, excluding that fine, Intel earned $1 billion, or 18 cents per share, topping estimates for earnings of 8 cents a share. Not only that, it also issued a positive second-half outlook. The results bolster the company's position that the computer business is on the mend after its roughest patch in years. Shares climbed about 7.5 percent ahead of the bell.
Abbott Labs (ABT) reported a 3 percent decline in second-quarter profit to $1.29 billion, or 83 cents per share. Excluding charges, earnings were 89 cents per share, inline with estimates. Blockbuster drug Humira continued gaining ground in the market. Shares declined about 1.5 percent in pre-market trade.
CIT Group (CIT) still teeters on the brink of collapse. Representatives from the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corp. were locked in tense meetings Tuesday about whether to bail out the firm and how. Shares were weaker ahead of the bell.
Gannett (GCI) shares soared about 20 percent in pre-market trade after despite reporting a 56-percent drop in quarterly profit because of a plunge in advertising revenue. Still results beat Wall Street estimates.
Reporting today are AMR Corp. (AMR) and Xilinx (XLNX).
Yum Brands (YUM) said its profit rose 35 percent, as it managed to top analyst estimates. It reiterated its annual earnings target as it reported a 1 percent decline in U.S. same-store sales. YUM shares declined over 4 percent in pre-market trade.
American International Group Inc. (AIG)'s consumer lender will receive as much as $975 million selling mortgage-backed certificates to Credit Suisse Group AG (CS) after losing access to its usual sources of funding. Meanwhile, Franklin Templeton Investments Inc., the lead bidders for AIG's asset-management unit have dropped out of the process, according to the Wall Street Journal.ALU) was upgraded at Merrill Lynch from Underperform to Buy and maintains their $2.80 price target. Shares jumped over 12 percent in pre-market trading.
Goldman Sachs Group Inc. (GS) was once again upgraded today, this time by analysts at Keefe, Bruyette & Woods, who upgraded shares of the investment bank to Outperform from Market Perform.