CIT, GS, AHC, B, CCC, CLF, GFIG Popular Stocks
Friday’s declines in U.S. stocks steepened by the afternoon, wiping out Thursday’s huge gains as a herd mentality had more sellers piling in before the month closes out, hitting the financial and materials sectors the hardest. The Dow Jones Industrial Average slid 247 points to 9715, while the S&P 500 lost 29 points to 1037 and the Nasdaq Composite dropped 51 points to 2047.
CIT Group Inc. (NYSE:CIT, $0.80, -$0.15, -15.83%) said it has reached an agreement with Goldman Sachs Group Inc. (NYSE:GS, $172.10, -$6.48, -3.63%) to amend a $3 billion loan, ending weeks of strained negotiations over a $1 billion payment Goldman was poised to receive if CIT files for bankruptcy. The deal calls for the loan size to fall to $2.13 billion, effectively eliminating the unused portion of the financing. Also, the struggling lender paid Goldman nearly $285 million as a termination fee as required under the deal’s original terms.
A.H. Belo Corp.’s (NYSE:AHC, $3.98, +$0.57, 16.72%) third-quarter loss narrowed on cost cuts as the newspaper publisher posted large write-downs offset partly by tax benefits. Advertising revenue slumped 27%.
Barnes Group Inc. (NYSE:B, $15.96, -$1.29, -7.48%) third-quarter earnings slumped 61% on lower sales volumes as the aerospace and auto-parts manufacturer said it hasn’t yet seen a turnaround in the global economy.
Calgon Carbon Corp.’s (NYSE:CCC, $15.62, +$0.65, 4.34%) third-quarter profit surged on prior-year items and higher costs as the supplier of water- and air-treatment systems saw increased sales and topped expectations.
Cliffs Natural Resources Inc.’s (NYSE:CLF, $35.59, +$0.72, 2.06%) third-quarter profit plummeted 66% on lower volumes in North America and weaker pricing for iron ore, but the company said conditions had shown “marked improvement” from the first half of the year.
GFI Group Inc. (NASDAQ:GFIG, $5.12, -$1.54, -23.12%) swung to a third-quarter profit after shedding charges from a year ago, but revenue slumped for the inter-bank brokerage as results missed expectations. And on a conference call with analysts, executives predicted revenue for the current quarter would fall 3% to 7% year-over-year, which had analysts disappointed and projecting weaker earnings as well.
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