Bank of America, JPM, SOMX, PEIX, CLRT, AIG, VPRT, AEO Popular Stocks
U.S. stocks traded lower Monday, as the Dow Jones Industrial Average fell 24 points to 10286, the S&P 500 dropped 1.06 points to 1090 and the Nasdaq Composite Index slumped 6 points to 2132.
Bank of America Corp. (NYSE:BAC, $15.59, +$0.12, 0.78%) and JPMorgan Chase & Co. (NYSE:JPM, $41.64, +$0.31, 0.75%) leading gains in the Dow Jones Industrial Average, as the cost to protect against Dubai defaulting on its debt declined. U.S. bank exposure to the U.A.E. is “a very manageable” $9.9 billion compared with European banks that have lent almost nine times as much, according to CreditSights Inc.
Somaxon Pharmaceuticals (NASDAQ:SOMX, $4.13, +$1.13, 37.67%) surged ahead of a Friday deadline for the Food and Drug Administration to approve the company’s Silenor insomnia drug. Volume topped 8.7 million shares, compared to the 50-day average daily volume of 380,000, according to the Nasdaq.
Struggling ethanol producer Pacific Ethanol (NASDAQ:PEIX, $0.600, +$0.170, 39.57%) just announced that it plans to start making ethanol again. The company plans to bring its Magic Valley plant in Idaho back online for the new year. The plant, capable of producing 60 million gallons of ethanol annually, should be back up and running in January 2010, as long as the bankruptcy court approves.
Clarient (NASDAQ:CLRT, $2.58, +$0.23, +9.77%) won the exclusive right to develop and commercialize a test to identify a protein researchers believe may be a red flag in the spread of many cancers, including breast cancer. The medical-products maker said the protein is still in the early stages but it may significantly help diagnose and select and monitor therapy in solid tumors.
Shares of AIG (NYSE:AIG, $29.19, -$4.11, -12.34%) dropped after an analyst slashed his price target 40% on concerns about the insurer’s loss reserves that could have “major ramifications” going forward. “It appears that AIG’s loss reserves are significantly deficient again, much sooner than we would have forecast two years ago,” Sanford Bernstein analyst Todd Bault said in a note as he cut AIG’s price target to $12 from $20.
Vistaprint N.V. (NASDAQ:VPRT, $56.37, +$3.27, 6.16%) cancelled its contract with Vertrue Inc., ending its membership rewards program because revenue had, as expected, slumped to a very slim part of the company’s overall revenue. Vistaprint said it had always planned to get rid of the program, but cancelled it earlier than expected. The membership program, and Vertrue, have been involved in a recent investigation by the U.S. Senate into Internet marketing strategies and the charges customers get from online membership programs. The company said its site “clearly disclosed the terms” and was “in conformity with all legal requirements.”
American Eagle Outfitters (NYSE:AEO, $15.33, +$0.30, 2.00%) was upgraded by Lazard Capital to buy from hold. The firm said the teen retailer’s sales turned positive for November during the Black Friday weekend. AEO “appeared to benefit from stronger traffic-driving promotions and improving trend-right assortments that should continue to drive accelerated sales trends,” wrote firm, adding that it sees an upside to AEO’s fourth-quarter and the first half of 2010 estimates.
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