AIG, CVS, GSI, SBUX, VRSN, CHH, ZIOP, BGP Popular Stocks
U.S. stocks traded mixed Friday as the Dow Jones Industrial Average fell 0.75 points to 10005 but the S&P 500 gained 2 points to 1069 and the Nasdaq Composite increased 5 points to 2111.
American International Group, Inc. (NYSE:AIG, $35.64, -$3.64, -9.27%) posted in the third quarter its second consecutive quarterly profit, driven more by reversals of prior asset write-downs rather than any sign of a turnaround by the core insurance units that must carry the company forward. But the company indicated that turning a profit in the fourth quarter might be tough, with an expected $5 billion charge connected with its special-purpose vehicles and a $1.4 billion after-tax loss to be reported when its sale of Nan Shan Life Insurance closes.
CVS Caremark Corp. (NYSE:CVS, $29.61, +$0.74, 2.56%) disclosed more multibillion dollar contract losses in its pharmacy benefits management business and said the head of the unit will depart. In total, the company lost about $2 billion in 2010 revenue in the last three months. It now believes Caremark has lost $4.8 billion in contracts for next year.
General Steel Holdings Inc.’s (NYSE:GSI, $4.29, +$0.37, 9.44%) third-quarter profit dropped 49% in the wake of a year-earlier gain as increased shipment volumes from a joint-venture project helped the steelmaker weather the economic downturn. Earnings passed analysts’ expectations as the steelmaker posted record revenue and shipments, topping the records set in the prior quarter on the back of Chinese government spending plans.
Starbucks Corp.’s (NASDAQ:SBUX, $20.97, +$1.27, 6.45%) fiscal fourth-quarter profit soared as the coffee retailer continued its turnaround and exceeded its targets for cost reductions. That strength led the company to raise its earnings guidance for the New Year.
VeriSign Inc. (NASDAQ:VRSN, $22.99, -$1.01, -4.21%) reported GAAP net income attributable to the company and subsidiaries of $54 million or $0.28 per share for the third quarter, compared to a loss of $201 million or $1.03 per share in the prior year quarter. Revenues for the third quarter increased to $258.0 million from $245.9 million in the previous year quarter.
Choice Hotels International Inc.’s (NYSE:CHH, $31.76, +$0.17, 0.54%) third-quarter profit dropped 8.7% as the franchiser of Comfort Inn and Econo Lodge hotels posted another decline in revenue per room and royalty fees.
Ziopharm Oncology Inc. (NASDAQ:ZIOP, $3.30, +$0.23, 7.49%) provided more detailed, encouraging data from a midstage trial of its soft-tissue-cancer treatment Zymafos, also known as palifosfamide. The company affirmed its report last month that adding Zymafos to chemotherapy treatment doxorubicin didn’t increase toxicity.
Borders Group Inc. (NYSE:BGP, $2.11, $0.00, 0.00%) said it plans to close about 200 Waldenbooks Stores in January amid its efforts to “right size” the mall retailer. The company also will cut about 1,500 jobs as a result of the store closures, which will not include Border’s superstores nor its seasonal mall-kiosk business.
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