Stocks-News August-17-09

Advancers

Aetna Inc. (AET) and other health-insurance companies posted gains, amid signs that the Obama administration may be backing away from including a "public option" as part of its legislative proposal for overhauling the nation's health-care system. Shares of Aetna rose 5.4%, while Humana Inc. (HUM) added 3.1% and Cigna Corp. (CI) gained 4.6%. See related story.

Align Technology Inc. (ALGN) shares jumped 21% after the dental products company announced Danaher Corp. (DHR) will receive approximately 10% ownership in Align as part of a patent settlement with Ormco Corp., one of Danaher's subsidiaries. The companies agreed to enter an exclusive seven-year collaboration to develop and market an orthodontic product using Align's clear removable teeth-straightening appliances as well as Ormco's orthodontic brackets and arch wires systems and to end patent litigation.

CIT Group (CIT) shares rose 7% to $1.51, erasing weakness earlier Monday. The commercial-finance firm said it has completed a tender offer for debt due to mature Aug. 17. The company said nearly 60% of the total $1 billion outstanding in floating-rate senior secured notes were validly tendered and not withdrawn, an amount in excess of the minimum condition.

Protalix BioTherapeutics Inc. (PLX) shares jumped 9.9%. The Israel-based company announced that the Food and Drug Administration had granted temporary approval of its drug candidate prGCD, a treatment for the rare genetic disorder Gaucher disease. The approval was granted because of an acute shortage of Genzyme Corp.'s (GENZ) Cerezyme, the leading therapy to treat the disorder. Read more on Biotech Stocks.

Decliners

BB&T Corp. (BBT) shares fell 4.4%. The company said it's commenced a public offering of $750 million of common stock, proceeds from which will qualify as tangible common equity and Tier 1 regulatory capital and will be used for general corporate purposes. BB&T, which on Friday agreed to acquire Colonial BancGroup in the biggest U.S. bank failure of 2009, said the underwriters in the equity offering will have a 30-day option to purchase up to an additional 15% of the offered amount if demand warrants.

InterDigital Inc. (IDCC) shares slumped 23%. Late Friday, the wireless-technology developer said a chief administrative law judge with the International Trade Commission determined that Nokia Corp.'s (NOK) 3G WCDMA handsets didn't infringe on InterDigital technology. InterDigital also announced on Monday that it expects third-quarter revenue to be between $73.5 million and $75.5 million. "Based on the sales reports it appears that the declines in overall handset sales have stabilized in second quarter 2009 and indeed some of our key licenses have reported increases in sales," said Scott McQuilkin, InterDigital's chief financial officer, in a statement. Read more on Tech Stocks.

Lowe's Cos. (LOW) shares tumbled 9.3%. The company reported a second-quarter profit that fell a worse-than-expected 19%. The No. 2 U.S. home-improvement retailer also gave second-half forecasts that came up shy of Wall Street expectations and scaled back on its store-expansion plans. Read more on Retail Stocks.

Weakness in metal stocks in the Asian markets affected the metals and mining sector with lower commodity prices, continuing worries over tightening bank loans and weak economic data. Shares of United States Steel Corp. (X) fell 8%, while Century Aluminum Co. (CENX) dropped 6.6%, AK Steel Holding Corp. (AKS) lost 7.6% and Titanium Metals Corp. (TIE) traded off 5.7%. Also hit hard, shares of blue-chip aluminum producer Alcoa Inc. (AA) fell 6.4%.

Rosetta Stone Inc. (RST) shares slumped 23% after the company, which offers language-learning software, announced it won't proceed with its previously announced public offering of shares because of greater-than-expected operating expenses for the current quarter. "While we continue to have confidence in our sales performance, we no longer believe that we will achieve the third quarter profitability targets that we guided to on our previous earnings release," said Brian Helman, chief financial officer of Rosetta Stone, in a statement. The losses erased much of Rosetta Stone's gains since the company's initial public offering, priced at $18 a share, last April.
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