Bank of America, Ford, HGSI, GSK, EAC, DNR, DF, BBT Popular Stocks
U.S. stocks traded mixed Monday as the Dow Jones Industrial Average rose 15 points to 9727, the S&P 500 fell 1 point to 1035 and the Nasdaq Composite droped 7 points to 2038.
The $2.027 billion Bank of America (NYSE:BAC, $14.29, -$0.29, -1.99%) Auto Trust deal, eligible for a Federal Reserve program, has sold, according to a person familiar with the deal. The self-led deal, dubbed BAAT 2009-3, sold a day ahead of the next loan application deadline for the central bank’s Term Asset-Backed Securities Loan Facility, or TALF. The largest triple-A rated tranche of the auto sector deal, worth $723 million, sold at 38 basis points over a short-term futures benchmark.
Ford (NYSE:F, $7.50, +$0.50, 7.14%) reported a third-quarter profit and said it would be “solidly profitable” in 2011 on cost cutting and a turnaround in its North American business. The North American unit recorded its first operating profit in more than four years, helped by higher pricing and market share, though Ford warned that the end of government incentives in Europe could severely dent industry sales next year.
Human Genome Sciences (NASDAQ:HGSI, $24.72, +$6.03, 32.26%) and GlaxoSmithKline PLC (NYSE:GSK, $40.55, -$0.61, -1.48%) said their experimental drug Benlysta met the goal of a second late-stage study in treating lupus, increasing the drug’s chances of becoming the first treatment in decades for the hard-to-treat autoimmune disease. Human Genome shares hit their highest level since March 2002.
Texas-based Denbury Resources Inc. (NYSE:DNR, $13.01, -$1.59, -10.89%) has agreed to purchase Encore Acquisition Corp. (NYSE:EAC, $44.87, +$7.80, 21.04%) in a $4.5 billion transaction that will create one of the largest independent oil exploration and production companies in North America. Encore shares climbed to a 52-week high Monday, while Denbury dropped on investor concerns about the “substantial premium” it’s paying for Encore.
Dean Foods Co.’s (NYSE:DF, $16.69, -$1.54, -8.45%) third-quarter profit rose 32% as margins surged because of cost cuts, helping earnings top analysts’ expectations. But shares fell as the fourth-quarter earnings forecast was short of Street estimates and the company warned of higher milk costs.
BB&T Corp.’s (NYSE:BBT, $24.42, +$0.51, 2.13%) shares rose after three upgrades. Sterne Agee boosted its rating to buy from neutral, while both Stifel Nicolaus and Sandler O’Neill raise their ratings to hold from sell. The firm cite the stock’s pullback in recent months, with Sterne Agee saying risk/reward is compelling given strong pre-provision earnings, capital position and TARP-free balance sheet. Sterne also thinks BB&T will be one of the first banks in the Southeast or the industry to begin lifting its dividend back to pre-crisis levels. Sandler thinks BB&T could benefit as a consolidator as regulators shut down weak banks in the region.
Related Posts
