PHM, LEN, DHI, KBH, CCI, LIZ, TAP, PMACA Popular Stocks
World stock markets rose sharply Wednesday after a batch of upbeat earnings reports and expectations that the U.S. Federal Reserve would indicate it will keep its easy monetary policy for quite a while yet. The Dow Jones Industrial Average gained 116 points to 9888, the S&P 500 rose 10 points to 1055 and the Nasdaq Composite climbed 12 points to 2069.
Pulte Homes Inc.’s (NYSE:PHM, $9.79, +$0.56, 6.07%) third-quarter loss widened–and missed analysts’ expectations–due to costs related to its acquisition of builder Centex, but orders jumped 35% from last year amid the deal. Other home builders trading higher included Lennar Corp. (NYSE:LEN, $13.68, +$0.59, 4.51%), D.R. Horton Inc. (NYSE:DHI, $11.83, +$0.62, 5.53%) and KB Home (NYSE:KBH, $15.10, +$0.17, 1.17%).
Crown Castle International Corp. (NYSE:CCI, $32.73, +$1.14, 3.61%) reported a slightly narrower third-quarter loss, but the red ink was greater than expected, even as the company continued to report revenue gains on increased need to rent cell-tower antennas. Still, Benchmark Capital upgraded the stock to buy from hold on a better-than-expected cash flow outlook and improved credit cost.
Liz Claiborne Inc.’s (NYSE:LIZ, $5.61, +$0.13, 2.37%) third-quarter loss widened on a drop in revenue as the apparel maker’s eighth consecutive quarter of red ink was much wider than analysts expected. Still, the company strongly emphasized that new plans for its namesake line should return this part of the business to profitability in 2010, which could help the company itself mark earnings growth.
Shares of Molson Coors Brewing Co. (NYSE:TAP, $45.96, -$3.44, -6.97%) declined even as the company’s third-quarter earnings rose 37% on a derivative gain, cost cuts and a sharply lower tax rate. The brewer’s results topped analysts’ expectations, but the company saw a drop in global volumes and said during a conference call that it expects global beer markets to remain soft.
Oppenheimer upgraded PMA Capital Corp. (NASDAQ:PMACA, $6.19, +$1.37, 28.42%) to outperform after earnings beat views, though they fell short of Oppenheimer’s outlook, which was the highest in the range. “More importantly from our perspective,” the firm said, “the company reported that it has further defined the parameters of its runoff sale transaction” and expects a 52-cent charge at the deal’s likely fourth-quarter closing. Oppenheimer raised rating on book-value estimate of $13 after adjusting for that charge, saying without overhang from the runoff business it could raise the rating.
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