SLM, AMR, CHRW, GILD, JEF, NUAN, PENN Popular Stocks
U.S. stocks traded lower Wednesday, with the Dow Jones Industrial Average down 85 points to 9956, the S&P 500 slipped 9 points to 1082 and the Nasdaq Composite declined 13 points to 2150.
SLM (NYSE:SLM, $10.86, +$1.96, 22.02%) swung to a third-quarter profit as interest-rate spreads returned to more normal levels. It also expects to see a decrease in charge-offs on its private student loans, indicating the number of loans it had to write off as uncollectible peaked in the third quarter and suggesting it won’t need to squirrel away as much money to protect itself against such losses.
AMR Corp. (NYSE:AMR, $6.81, -$0.85, -11.10%) returned to the red in the third quarter, after last year included gains from selling its asset-management business, as the parent company of American Airlines saw continued revenue weakness like other carriers. Shares dropped even as results edged analysts’ expectations.
C.H. Robinson Worldwide Inc.’s (NASDAQ:CHRW, $58.39, -$3.08, -5.01%) third-quarter profit climbed 2% as the trucking and logistics company again reported higher margins, offsetting sliding revenue that narrowly missed expectations.
Gilead Sciences Inc.’s (NASDAQ:GILD, $44.76, -$1.35, -2.94%) third-quarter profit soared 36% on sales growth in all its product lines as results beat analysts’ expectations. The company saw a sharp jump in royalties from flu treatment Tamiflu because of worldwide preparations for swine flu.
Jefferies Group Inc. (NYSE:JEF, $27.26, -$1.78, -6.13%) priced $300 million in 3.875% convertible senior debentures. The company had said Tuesday it planned to use the proceeds for general corporate purposes. Initially, the conversion rate will be 25.5 common shares per $1,000 principal amount of debentures, or about $39.20 a share, a 35% premium to the company’s closing price Tuesday.
Wedbush Morgan cut its rating on Nuance Communications Inc. (NASDAQ:NUAN, $14.74, -$0.84, -5.39%) to neutral from outperform, saying valuation is fair and there are limited near-term catalysts.
Penn National Gaming Inc. (NASDAQ:PENN, $28.67, +$1.32, 4.83%) rose despite an 85% slump in profit on steep charges and a forecast for fourth-quarter earnings below Street views. Analysts cited easing concerns regarding costs for buying the Fontainbleau in Las Vegas. They also said many investors had expected a disappointing quarter.
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