U.S. stocks traded lower Thursday as the Dow Jones Industrial Average recently lost 46 points to 11275, the Standard & Poor's 500 slid 2.5 points to 1175 and the Nasdaq Composite declined 13 points to 2454. Among the companies whose shares were actively trading in the session were Bank of America Corp. (BAC), Apple Inc. (AAPL) and Applied Materials Inc. (AMAT).
Warren Buffett's Berkshire Hathaway Inc. will invest $5 billion in Bank of America ($8.12, +$1.13, +16.17%), giving the nation's biggest bank a much-needed vote of confidence amid questions about the credibility of its management. The investment is buoying bank stocks across the board, with Citigroup Inc. (C, $30.21, +$1.76, +6.19%), J.P. Morgan Chase & Co. (JPM, $37.06, +$1.23, +3.43%), Goldman Sachs Group Inc. (GS, $113.10, +$2.79, +2.53%) and Morgan Stanley (MS, $17.44, +$1.11, +6.80%) all up. All four, along with Bank of America, hit multi-year lows earlier this week.
Apple's ($370.48, -$5.70, -1.52%) ailing chief executive, Steve Jobs, is officially stepping down from the helm of the company, a historic shift that hands the reins to Chief Operating Officer Tim Cook. But analysts came out in support of Apple, with J.P. Morgan, UBS and Deutsche Bank all discouraging selling shares of the company.
Applied Materials' ($10.96, -$0.41, -3.57%) fiscal third-quarter profit nearly quadrupled as improved sales in its TV display business helped improve the bottom line. But the company forecast a downbeat fourth-quarter profit.
Collective Brands Inc. (PSS, $12.45, +$2.17, +21.11%) reported Wednesday it swung to a fiscal second-quarter loss on impairment and severance charges, but announced efforts to improve shareholder value and optimize its store fleet. The company said it would "conduct a review of strategic and financial alternatives to further enhance shareholder value" and adopted a short-duration Rights Plan to protect shareholder rights.
TiVo Inc. (TIVO, $9.50, +$1.38, +17.00%) posted a narrower-than-expected loss in its fiscal second quarter as the company signed more agreements for cable companies to use its set-top-box.
Other Stocks In Focus:
A. Schulman Inc. (SHLM, $16.76, -$0.46, -2.67%) plans to close its Nashville, Tenn., plant by Feb. 29 as it realigns to meet the requirements of the high-value-added compounding market.
Semiconductor maker Advanced Micro Devices Inc. (AMD, $6.50, +$0.16, +2.52%) concluded its search for a new chief executive, naming former Lenovo Group Ltd. (LNVGY, $13.00, +$0.03, +0.23%) executive Rory P. Read to the post.
Aviat Networks Inc. (AVNW, $2.45, -$0.52, -17.51%) posted a narrower loss for its fiscal fourth quarter on strong revenue growth in Africa and North America, while the firm separately disclosed the departure of its chief financial officer.
Market fears over the effects of a potential ring fence of U.K. banks' retail activities look overly pessimistic, particularly in the case of Barclays PLC (BCS, $10.59, +$0.55, +5.48%), said Morgan Stanley in a note. The firm sees a 12% hit to 2014 pretax sector profits from a ring fence, but it expects any "radical proposals ultimately to be diluted" and implementation as late as 2019.
Medical products company Baxter International Inc. (BAX, $53.17, -$1.07, -1.97%) will pay $380 million in cash to acquire privately held Baxa Corp. in a bid to further develop its portfolio of nutrition products and drug delivery systems.
Brown Shoe Co. (BWS, $6.76, -$1.07, -13.67%) swung to a surprise fiscal second-quarter loss on higher expenses and as same-store sales at its discount footwear chains declined sharply from a strong showing a year ago. The parent of the Famous Footwear store chain also cut its full-year earnings guidance.
Clean Energy Fuels Corp. (CLNE, $13.18, +$0.35, +2.73%) has picked up $150 million in new investments, as a trio of investment firms seek to participate in the growing natural gas vehicle market.
Cracker Barrel Old Country Store Inc. (CBRL, $40.83, -$0.84, -2.01%) on Wednesday rebuffed a call from activist investor Sardar Biglari to offer a more detailed breakout of its business segments, calling the proposal "neither required nor appropriate."
Cyberonics Inc.'s (CYBX, $25.88, +$0.40, +1.57%) fiscal first-quarter earnings fell 3.9% on product-withdrawal costs, though the epilepsy-treatment company's international sales improved.
Diageo PLC (DEO, $76.32, +$2.60, +3.53%), the maker of Johnnie Walker scotch, Guinness stout and Smirnoff vodka, posted a rise in full-year profit on higher sales and volumes, driven by surging demand in emerging markets, which continued to more than offset weakness in North America and Europe.
Guess Inc.'s (GES, $32.19, -$1.10, -3.30%) fiscal second-quarter profit fell 9.1% on a settlement charge, though the apparel maker posted better-than-expected revenue on double-digit sales growth in Europe and Asia. The company posted a weak outlook.
Heico Corp.'s (HEI, $52.42, +$1.44, +2.82%) (HEIA) fiscal third-quarter earnings rose 37% as the company reported its highest quarterly sales ever.
Hormel Foods Corp. (HRL, $27.32, -$1.12, -3.94%) on Thursday reported a 15% rise in third-quarter earnings as strong profits in grocery and turkey products offset weaker results in refrigerated and specialty foods. The company said it sees an uncertain outlook for demand from restaurants and food service operators as a result of growing economic worries and higher gasoline costs for consumers.
Isle of Capri Casinos Inc.'s (ISLE, $6.24, -$0.12, -1.89%) fiscal first-quarter loss narrowed slightly thanks to a bigger tax benefit, but the casino company's revenue was hurt by floods in the Midwestern U.S. that led to temporary closings at some of its operations, as well as reduced visitation.
Oxygen Biotherapeutics Inc. (OXBT, $2.25, -$0.10, -4.26%) said Chairman and Chief Executive Chris J. Stern has left the company, and it named its chief financial officer as interim CEO during its search for a permanent replacement. The developer of medical and cosmetic products said it will not pay Stern any severance "due to the circumstances surrounding his dismissal," without elaborating further.
Patterson Cos.' (PDCO, $27.08, -$2.83, -9.46%) fiscal first-quarter earnings fell 9.9% on expenses related to its employee share ownership plan, while revenue was hurt absent the additional week of sales from the year-earlier period.
Pluristem Therapeutics Inc. (PSTI, $2.68, +$0.20, +8.06%) said the U.S. Food and Drug Administration granted orphan status to its treatment for Buerger's disease, a rare and severe disease affecting the blood vessels of the extremities.
Renaissance Learning Inc. (RLRN, $15.43, +$0.91, +6.27%) said a fellow learning-software company owned by a private-equity firm has offered to buy it in a cash deal valuing it at about $455.1 million, which exceeds a bid Renaissance accepted earlier this month from a different private-equity firm. Plato Learning, which was taken private by Thoma Bravo for $143 million last year, offered to pay $15.50 a share in cash for Renaissance.
Rue21 Inc.'s (RUE, $25.05, -$1.93, -7.14%) fiscal second-quarter profit rose 20% as the value-oriented teen-apparel retailer posted double-digit sales growth. However, the company also posted flat comparable store-sales.
Payment-systems provider ACI Worldwide Inc. (ACIW, $28.57, -$0.43, -1.48%) boosted its takeover offer for e-commerce company S1 Corp. (SONE, $9.16, +$0.28, +3.10%) by about 5.7%, increasing the cash component of its offer in the wake of this month's stock market volatility.
School Specialty Inc. (SCHS, $10.13, +$1.05, +11.56%) swung to a first-quarter profit absent a year-ago impairment charge and higher sales this year. Revenue climbed 9.1% as sales in the educational resources and accelerated learning segments rose 6.1% and 16.1%, respectively. Revenue was also boosted by a shift in a high-volume shipping week to the first-quarter of this year from the second-quarter last year.
Sigma Designs Inc. (SIGM, $7.38, -$1.06, -12.56%) swung to a sharply wider-than-expected loss in its fiscal second quarter as delays in the rollout of the firm's television set-top boxes punished the top line.
Signet Jewelers Ltd. (SIG, $36.42, +$1.26, +3.58%), operator of Kay Jewelers, Jared The Galleria Of Jewelry and chains in the U.K., fiscal second-quarter earnings rose 71% as the jewelry seller offered fewer discounts.
SPX Corp. (SPW, $51.03, -$0.63, -1.22%) agreed to acquire Clydeunion Pumps for GBP700 million ($1.15 billion) in a bid to expand the manufacturing and industrial-equipment supplier's international customer portfolio.
Robert W. Baird upgraded its stock-investment rating on Synchronoss Technologies Inc. (SNCR, $26.38, -$0.44, -1.64%) to outperform from neutral, stating "strong secular trends driving SNCR should weather a potential economic downturn better than most." The company, which specializes in back-office and activation software for cellular providers and cable and other electronics companies, will benefit from continued momentum at AT&T Inc. (T, $29.28, -$0.15, -0.51%), upside at Verizon Communications Inc. (VZ, $36.26, -$0.21, -0.58%) and growing opportunities internationally and in connected devices, the firm said.
