Futures on the S&P 500 expiring in September rose 0.7 percent to 921.80 at 11:52 a.m. in London. Dow Jones Industrial Average futures gained 0.6 percent to 8,442, while Nasdaq-100 Index futures added 0.7 percent to 1,486.50. European stocks rallied, while Asian shares declined.
American International Group Inc. (AIG:US) fell the most in the Standard & Poor’s 500 Index, slumping 13 percent to $1.16. The insurer bailed out by the U.S. said that valuation declines on credit-default swaps sold to European banks could have a “material adverse effect” on the company’s results.
Apollo Group Inc. (APOL:US) had the second-biggest gain in the S&P 500, climbing 7.8 percent to $71.12. The owner of the University of Phoenix reported third-quarter profit that beat analysts’ estimates and said it will increase its share buyback to $500 million.
Other for-profit education companies also advanced. DeVry Inc. (DV:US) added 4.7 percent to $50.04. Career Education Corp. (CECO:US) increased 4.7 percent to $24.89. ITT Educational Services Inc. (ESI:US) rose 5.9 percent to $100.66.
Associated Banc-Corp (ASBC:US) slipped 6.5 percent to $12.50, the biggest drop since June 5. The Green Bay, Wisconsin- based bank said it may report a loss in the second quarter because of increase provision related to bad loans.
Marshall & Ilsley Corp. (MI:US), another Wisconsin bank, sank 3.4 percent to $4.80.
Deere & Co. (DE:US) retreated 5.2 percent, the most since May 21, to $39.95. The world’s largest maker of agricultural equipment said it would eliminate 800 jobs, causing a pretax charge of $100 million that’s double the company’s prior estimate.
Electronic Arts Inc. (ERTS:US) added 4.4 percent, the most since May 15, to $21.72. The world’s second-largest video-game publisher was raised to “buy” from “neutral” at Bank of America Corp., which cited an “expected upside to consensus estimates.”
Emulex Corp. (ELX:US) dropped the most since Dec. 1, falling 10 percent to $9.78. The chipmaker retreated on concern that management will reject a sweetened bid from rival Broadcom Corp.
Exco Resources Inc. (XCO:US) rallied the most in the Russell 1000 Index, jumping 16 percent to $12.92. The oil and gas explorer sold some assets to BG Group Plc, the U.K.’s third- largest natural-gas company, for $1.06 billion.
Geron Corp. (GERN:US) surged 15 percent to $7.67, the highest price since Feb. 12. The drugmaker and GE Healthcare, a unit of General Electric Co., said they have agreed to develop products based on human embryonic stem cells for use in drug discovery, development and toxicity screening.
H&R Block Inc. (HRB:US) had the steepest gain in the S&P 500, advancing 10 percent to $17.23. The biggest U.S. tax preparer said fourth-quarter profit from continuing operations was $2.09 a share, topping the average analyst estimate by 2 percent, as fees from consumer financial services increased.
International Paper Co. (IP:US) gained 4.9 percent to $15.13, the fourth-steepest climb in the S&P 500. Chip Dillon, an analyst at Credit Suisse Group AG, said a potential merger of Smurfit-Stone Container Corp. and Georgia-Pacific LLC would increase International Paper’s influence in the industry.
LSI Industries Inc. (LYTS:US) added 13 percent, the most since March 23, to $5.45. The lighting fixtures maker said it won a contract to upgrade the lighting system for a petroleum and convenience store retailer. The first phase of the project will bring in revenue of as much as $23 million, the company said.
Navistar International Corp. (NAV:US) slumped 5.8 percent, the most since May 13, to $43.60. The fourth-largest maker of heavy trucks may eliminate 90 percent of its workforce in Canada, Reuters reported, citing the Canadian Auto Workers union.
Raser Technologies Inc. (RZ:US) fell 27 percent, the steepest drop since August 2006, to $2.80. The designer of electric motors for power generation said it agreed to sell $25.5 million of stock and warrants to some institutional investors.
Schnitzer Steel Industries Inc. (SCHN:US) posted the second-steepest decline in the Russell 1000 Index, dropping 12 percent to $52.86. The recycler of scrap steel reported a third- quarter loss of 5 cents a share. Analysts surveyed by Bloomberg had estimated the company earned 16 cents a share, on average.
Southern Co. (SO:US) dropped 2.2 percent to $31.16, the biggest decline since April 30. The largest U.S. power producer was cut to “hold” from “buy” by Citigroup Inc.
Sunrise Senior Living Inc. (SRZ:US) fell 23 percent to $1.65, the lowest price since April 28. The manager of more than 450 retirement communities was sued by HCP Inc. (HCP:US) over contract claims involving 64 Sunrise-owned properties.
Vical Inc. (VICL:US) rallied 23 percent, the most since May 2, to $2.70. The drugmaker said its vaccine against swine flu, also knows as the H1N1 virus, produced “robust immune responses” in mice and rabbits tested during a trial.
Courtesy: Bloomberg
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