Monday’s big movers; Apple rallies to reclaim $565
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By Sue Chang and Greg Morcroft, MarketWatch
SAN FRANCISCO (MarketWatch) — Shares of Tyson Foods Inc., Lowe’s Cos. and Apple Inc. made big moves during a U.S. trading session Monday, while Intel Corp. and Best Buy Co. were among top trending tickers.
Top trending tickers
$INTC: Intel Corp. INTC +0.30% shares seesawed following the announcement before the bell that Paul Otellini will step down as the blue chip’s chief executive in May. The company has launched a search for his successor and will consider internal and external candidates.
“Paul Otellini has been a very strong leader, only the fifth CEO in the company’s great 45-year history, and one who has managed the company through challenging times and market transitions,” Andy Bryant, chairman of the board, said in a statement.
Intel CEO to retire in May
Intel said CEO Paul Otellini intends to retire in May, ending a nearly 40-year career with the chip maker. Ben Pimentel reports on Markets Hub. Photo: Reuters.
Otellini’s retirement could be “an opportunity for the board to bring in new talent to right the course of one the best technology companies in the semiconductor industry,” said Betsy Van Hees, analyst at Wedbush Securities.Intel faces challenges as Otellini prepares to step down
$BBY: Best Buy Co. BBY 0.00% was trending after a McClatchy Tribune report that CEO Hubert Joly and company founder Richard Schulze will meet this week as the latter prepared to make a buyout offer for the struggling retailer of consumer electronics.
Gainers
Abercrombie & Fitch Co. ANF +7.17% shares climbed 7.2% ahead of its ex-dividend date of Nov. 21. The retailer last week had declared a dividend of 17.5 cents a share, payable on Dec. 11. Investors who buy Abercrombie & Fitch stock before Wednesday will be eligible to receive the dividend.
Shares of Apple Inc. AAPL +7.21% rallied 7.2% to $565.73, its highest close since Nov. 6. Scott Craig, analyst at Bank of America Merrill Lynch, maintained a buy rating on Apple but cut his price target to $780 from $840, Barron’s reported. The shares topped $700 in early September but have dropped sharply since.
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• The Tell: Market news and analysis • U.S. and Canada markets | Canada section
• European and Middle Eastern markets
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• Latin America: Brazil, Argentina, Mexico, more
TOOLS AND DATA | Markets data menu
• My Portfolio: Know where your funds are?
• Real-time currency exchange rates
• After-hours stock screener
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Lowe’s Cos. LOW +6.19% shares gained 6.2%. The home-improvement retailer reported third-quarter earnings surged 76% to $396 million, or 35 cents a share, as sales and comparable-store sales increased. Lowe’s Q3 profit jumps 76%
Tyson Foods Inc. TSN +10.90% shares stood out as one of the best performers within the S&P 500 index, climbing 11%. Before the bell, the meat processor said fourth-quarter earnings jumped 91% as its chicken business returned to profitability. Tyson’s quarterly profit rose to $185 million, or 51 cents a share, from $97 million, or 26 cents a share, a year earlier. Excluding items, earnings were 55 cents a share. See: Tyson earnings soar 91%.
United States Steel Corp. X +5.43% shares advanced 5.4% following a report from Credit Suisse that steel stocks have room to rise in the next three months.
“We believe the recent selloff of high beta, risky assets has resulted in oversold levels in some of the steel stocks. While volatility will remain extreme heading into the ‘Fiscal Cliff,’ we believe steel stocks have already priced in some of the downside. With fundamentals set to improve in the coming months, we believe investors with a 3 to 6 month time horizon should consider this as a trading opportunity,” said Richard Garchitorena at Credit Suisse in a report.
Urban Outfitters Inc. URBN +5.76% shares rose more than 5.8%. After the closing bell, the retailer said it earned 40 cents a share in the third quarter, below the 41 cents a share forecast by analysts in a FactSet survey.
Yelp Inc. YELP +8.55% shares added 8.6%. Investment website Seeking Alpha suggested Yahoo Inc. YHOO +2.80% should consider buying Yelp as part of its effort to rejuvenate its business and repackage itself as an “exciting, innovative company.” The rationale behind this proposal is that Yahoo’s Marissa Mayer knows all about Yelp as the former vice president Google Local. Top 5 M&A ideas that could reinvent Yahoo
Decliners
Diamond Foods Inc. DMND -11.83% shares sank 12%. Analysts at Jefferies & Co. downgraded the company’s rating Monday morning. Last Wednesday, Diamond Foods reported results for the first three quarters of fiscal 2012 and said it had completed restatements for fiscal years 2010 and 2011.
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