Stocks in the news: AIG, UPS, Macy's, Toll Brothers
UPS (UPS), which is often seen as a bellwether to the economy, now expects growth in its volumes next year as the global economy gradually recovers, its CEO said on Wednesday, Reuters reported. UPS will hike shipping rates for 2010. He also expects the holiday season to be slightly better than estimated. Shares rose over 2% ahead of the bell.
Macy's Inc. (M) reported a narrower third-quarter loss of $35 million, or 8 cents per share, even as revenues fell almost 4% to $5.28 billion. Macy's benefited from tight inventory controls and a move to localize merchandise by region, leading it to raise its full-year outlook, but not as much as analysts had expected. Shares dropped over 4% in premarket trade.
Toll Brothers (TOL) said Tuesday fourth-quarter orders jumped a greater-than-expected 42% from the year-ago period. While fourth-quarter revenue fell 30% to $486.6 million, the figure topped estimates. Shares of TOL also jumped more than 8% before the bell.
American Airlines parent AMR Corp (AMR) could partner with private equity firm TPG Capital in a minority investment in Japan Airlines, the CFO said. Shares gained over 3.5% in premarket trade.
McGraw-Hill (MHP) is committed to its Standard & Poor's unit, and welcomes tougher regulation aimed at further transparency and accountability in the credit ratings industry, its chairman said on Wednesday.Computer Sciences Corp. (CSC) and Applied Materials (AMAT) are two companies set to report earnings.
Best Buy (BBY) said on Wednesday that international CEO Robert Willett plans to retire at the end of the year and it does not plan to name a successor but rather trusts local teams to perform well without an international CEO.
Tyson Foods (TSN) was downgraded by J.P. Morgan to Neutral from Overweight Wednesday on valuation, recent rise in corn prices and supply issues. Shares fell 2.5% in premarket.
Adobe System (ADBE), which announced 680 job cuts, was downgraded from Outperform to Perform at Oppenheimer this morning, but Jefferies & Co upped its target price from $37 to $40.
Palm (PALM), Research in Motion (RIMM) and Apple (AAPL) shares are all higher in premarket trade. PALM's up over 4% after BofA/Merrill said Palm is well positioned for early 2010 product launches at new Tier-1 carriers and can maintain differentiation. Shares are Buy rated with a $20 price target. :theflyonthewall.com. RIMM shares are up over 1.5% as it launched easier tools for developers and Wal-Mart (WMT) is offering a $100 gift card along with the purchase of a BlackBerry phone for one week. AAPL surpassed Nokia (NOK) to become the most profitable handset vendor.