Sunday, January 27, 2013

As the Dow Dips: AXL, MEE, GS, BKS, WLP Down

The 30-point drop in the Dow Industrials following this morning’s various economic data — lower-than-expected GDP numbers, a decline in Chicago-area manufacturing activity, and mild improvement in consumer sentiment — has turned into a 135-point route of the index, currently trading at 11,033.

Some of the losers include:

Auto parts supplier American Axle (AXL), off $1.11, or 10%, at $10.63, after the company missed Q1 revenue estimates but said 2010 profit was trending higher than expected;

Massey Energy (MEE), down $4.26, or 10.4%, at $36.90, after it was reported the FBI is looking into the possibility of bribery of regulators in conjunction with a mining disaster that killed 29 employees in West Virginia earlier this month. Massey offered a statement this afternoon, saying it had “no knowledge of criminal wrongdoing.”

Goldman Sachs (GS) is down $15.28, or 10%, at $144.96 after The Wall Street Journal and other sources reported the U.S. attorney general in Manhattan is investigating potential criminal fraud, following on the SEC’s civil suit against the bank; Standard & Poor’s and Merrill Lynch analysts cut their ratings on the stock;

Barnes & Noble (BKS) was down $1.33, or 6%, at $21.89 after the company announced it would provide free express shipping to members for all online orders.

Shares of health insurer Wellpoint (WLP) were down $5.30 after the company said it had decided not to go ahead with a previously announced 39% rate hike in California following wide criticism of the plan.

Dow components were broadly lower, with the biggest percentage dip being Caterpillar (CAT), off $2.27, or 3.2%, at $68.48; Bank of America (BAC) fell 52 cents, or 3%, to $17.78; American Express (AXP) was down $1.10, or 2.3%, at $46.50; and 3M (MMM) was down 38 cents at $70.76.

Merck (MRK) managed to rise a penny to $35.26, and Procter & Gamble (PG) was up 29 cents at $62.49.

No comments:

Post a Comment