Noticias USA (28/01/2005)

[News]

On worse-than-expected earnings for the fourth quarter, Beckman Coulter (BEC) gapped open to the downside Friday. The stock traded in a range through the morning and into the early afternoon, but has dropped off in the past few minutes with a pick up in volume.

Beckman Coulter is currently down $5.48 to $65.70, coming off a multi-year peak set on Thursday and moving below a 50-day moving average for the first time since October.

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The broader indices have spent the past hour bouncing around near their lows. The Nasdaq remains the worst performer among the major averages, posting a decline of 0.9%. Dow -62.59, Nasdaq -18.63, S&P 500 -6.29. NYSE Adv/Dec 1280/1927, Nasdaq Adv/Dec 1010/1931.

The drug sector declined sharply through the late morning and early afternoon as Merck (MRK) sold off. The space is off its lows now, but still down about 1.3%. Technology continues to be a notable drag on the markets as well, including losses in the software, semiconductor and Internet spaces.

The airline space had a choppy morning, but has been drifting higher recently. The sector is off highs reached in the mid-morning and is up about 1%.

CE Franklin (CFK) is one of the best performers on the session on quarterly results released after the close on Thursday. The stock is currently posting a gain of about $1.30, or 33%.

Earnings-related news is having the opposite impact on Insituform Technology (INSU), which said Thursday that it now expects a loss for the fourth quarter due to losses in its tunneling segment. The stock is currently down $4.30, or 21%.

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Verizon Communications (VZ) drifted slightly higher in the first 90 minutes of trading, but reversed course in the late morning. The stock has declined steadily since, accelerating to the downside recently with a pick up in volume.

Verizon is currently down 43 cents to $35.44, moving below a recent trading range and to its lowest level since late July.

[News]

Merck Says U.S. Court Of Appeals For Federal Circuit Found Its Patent On FOSAMAX Invalid - Update [MRK]

1/28/2005 2:04:26 PM Merck & Co. Inc. (MRK) announced that the U.S. Court of Appeals for the Federal Circuit in Washington, D.C., vacated the August 2003 decision of the U.S. District Court in Delaware, and found its patent claims for once-weekly administration of FOSAMAX to be invalid.

The company said that the U.S District Court held its U.S. patent for once-weekly administration of FOSAMAX to be valid and infringed by Teva Pharmaceuticals Inc's Abbreviated New Drug Application filing in August 2003.

Merck said that its basic patent for the administration of FOSAMAX, which covers both once-weekly and once-daily administration of FOSAMAX would expire in August 2007.

Further, the company said that it is entitled to an additional six months of marketing exclusivity following patent expiration. The company noted that the earliest date for marketing of any generic alendronate is February 2008.

MRK is currently trading at $27.51, up $3.67

[News]

By Michael J. Martinez, AP Business Writer
Dow, Nasdaq Slip in Afternoon Trading on News of P&G-Gillette Merger, Release of GDP Report

NEW YORK (AP) -- Slower than expected growth in the nation's gross domestic product revived economic worries on Wall Street Friday, pushing stocks lower despite strong earnings from Microsoft and another big merger announcement.

Investors were cheered by Procter & Gamble Co.'s $57 billion bid for Gillette Co. as well as a very strong earnings report from Microsoft, which saw its profits double from a year ago.

However, surprisingly weak economic data robbed the markets of any buying momentum. The Labor Department reported that the nation's gross domestic product -- the value of all goods and services produced in the United States -- rose at an annual rate of just 3.1 percent in the fourth quarter, the lowest gain in seven quarters. Economists had expected a 3.5 percent rise.

"I definitely think the GDP backdrop is troubling. I think oil prices had a much bigger impact on the economy than people thought, and oil prices actually went down in the quarter," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago. "I thought a 3.5 percent increase was in the bag. Now we'll see what the Federal Reserve thinks next week."

In early afternoon trading, the Dow Jones industrial average fell 75.59, or 0.7 percent, to 10,391.81.

Broader stock indicators also gave ground. The Standard & Poor's 500 index was down 8.10, or 0.7 percent, at 1,166.45, and the Nasdaq composite index lost 19.75, or 1 percent, to 2,027.40.

Wall Street had expected the economy to slow somewhat from the 4 percent annual pace posted in the third quarter of 2004, but the latest reading showed far more of a slowdown than analysts had believed. That raises concerns about profit growth for future quarters as well as the health of the labor market.

The Federal Reserve is scheduled to meet next Tuesday and Wednesday, and is widely expected to raise the nation's benchmark interest rate to 2.5 percent from the current 2.25 percent. While there have been concerns about rising prices and inflation, slower economic growth could keep the Fed from a more aggressive rate policy.

With economic uncertainty continuing, American corporations are holding fast to large reserves of cash, hoping for a better economic environment in which to expand. And as the recent merger activity has shown, many companies are opting to use that cash to buy other companies.

Procter & Gamble's bid for Gillette would create a consumer products maker with a wide swath of brand names in healthcare products, food and other consumer staples. Berkshire Hathaway founder Warren Buffett, a major Gillette shareholder, called the merger "a dream deal," and said he would buy up P&G shares as well. P&G dropped $1.56 to $53.76 on the news, while Gillette surged $5.48, or 12 percent, to $51.16.

Microsoft slipped a penny to $26.10 after its earnings, announced late Thursday, surpassed Wall Street's profit forecasts by 2 cents per share. The software giant and Dow component also reported its first profitable quarter for its home and entertainment division, thanks to strong sales of its Xbox Live online game service and the video game hit Halo2.

Fellow Dow industrial McDonald's Corp. saw its fourth-quarter profits triple from a year ago, though the fast-food chain fell short of Wall Street profit estimates by a penny per share. Revenues rose 10 percent from the year-ago quarter. McDonald's was down 11 cents at $32.01.

ChevronTexaco Corp. lost 36 cents to $53.70 after it beat Wall Street profit expectations by 23 cents per share. High oil prices and strong demand helped double the company's profits from last year's quarter.

The Boeing Co. scored a major coup over rival aircraft manufacturer Airbus SAS with a $7.3 billion deal to provide six Chinese airlines with 60 of the company's new 7E7 Dreamliner passenger jets. It was the biggest order yet for Boeing's newest jet. Boeing nonetheless fell $1.38 to $49.59.

Merck & Co. plunged $3.31, or 10.62 percent, to $27.87 after a federal court ruled that the drug maker will lose patent protection on Fosamax, the company's second best-selling drug, in 2008 instead of 2018. The U.S. Securities and Exchange Commission also announced a probe into the company's marketing of the discredited arthritis drug Vioxx.

Declining issues outnumbered advancers by nearly 2 to 1 on the New York Stock Exchange, where volume came to 890.81 million shares, compared to 847.51 million at the same point on Thursday.

The Russell 2000 index of smaller companies was down 4.99, or 0.8 percent, at 611.91.

Overseas, Japan's Nikkei stock average fell 0.18 percent. In Europe, Britain's FTSE 100 closed down 0.42 percent, France's CAC-40 dropped 0.54 percent for the session, and Germany's DAX index lost 0.35 percent in late trading.

New York Stock Exchange: http://www.nyse.com

Nasdaq Stock Market: http://www.nasdaq.com

[News]

Eli Lilly (LLY) announced Friday that it has withdrawn its application for FDA approval of duloxetine hydrochloride for the treatment of stress urinary incontinence. On the news, the stock ticked lower at the open and has continued to decline steadily throughout the session, accelerating to the downside lately with increased volume.

Eli Lilly is currently down $2.31 to $53.26, breaking below a multi-week trading range to test support last encountered in mid-December.

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Teva Pharmaceutical Receives FDA Approval For Its ANDA For Glyburide And Metformin HCl Tablets - Quick Facts [TEVA]

1/28/2005 2:12:41 PM Teva Pharmaceutical Industries Ltd. (TEVA) announced that the FDA has granted final approval for its ANDA for Glyburide and Metformin HCl Tablets, 1.25 mg/250 mg, 2.5 mg/500 mg and 5 mg/500 mg. Shipment of this product is expected to begin shortly.

Teva's Glyburide and Metformin HCl Tablets are the AB-rated generic equivalent of Bristol-Myers Squibb's Glucovance® Tablets, a product indicated as an adjunct to diet and exercise in the treatment of type 2 diabetes.

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Friday afternoon, Air T Inc. (AIRT) announced its third quarter unaudited financial results, reporting earnings that increased from last year on higher revenues.

The company reported net income for the quarter of $485 thousand, or $0.18 per diluted share, compared to $230 thousand, or $0.08 per diluted share in the same quarter of last year.

The company's consolidate revenues for the quarter were $18.33 million, up from $12.98 million recorded in the prior-year quarter. The company attributed the rise in revenues during the current quarter to increased ground equipment revenues.

For the nine-month period, the company posted net income of $1.55 million, or $0.58 per diluted share, compared to $937 thousand, or $0.34 per diluted share in the same period of last year.

The company's consolidate revenues for the nine months increased to $49.78 million from $37.65 million in the prior-year period.

AIRT is currently trading at $15.08, up $1.96

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Boeing Signs Preliminary Agreement To Sell 60 Boeing 7E7 Dreamliners To China, Valued At About $7.2 Billion, Production To Begin In 2006 - Update [BA]

1/28/2005 3:20:44 PM Friday afternoon, The Boeing Co. (BA), an aerospace company, announced signing a preliminary agreement for the purchase of 60 Boeing 7E7 Dreamliners by the Chinese Airlines.

The company stated that the agreement is valued at approximately $7.2 billion based on average list prices.

Boeing said the airplanes would be delivered to six Chinese carriers with each carrier scheduled to receive its first 7E7 in time for the Beijing Olympics.

Along with the announcement, the 7E7 was formally designated as the Boeing 787 Dreamliner. The company said that the 787 will be the most technologically advanced commercial airplane in the world with more amenities to offer our passengers, and fuel efficiency that is only surpassed by its revenue potential.

The 787 was launched in April of last year with an order of 50 airplanes from Japan's ANA. With the, agreement, the total number of announced orders and commitments for the 787 increases to 186 airplanes.

Boeing stated that the production of the 787 will begin in 2006 with the first flight expected in 2007 with certification, delivery and entry into service in 2008.

The company said that in addition to bringing big-jet ranges to mid-size airplanes, the 787 will fly at Mach 0.85, as fast as today's fastest commercial airplanes, while using much less fuel.

BA is currently trading at $49.78, down $1.19.

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MGIC Investment (MTG) dropped at the open and added to its losses during the late morning. The stock has been drifting further to the downside lately and is now down $1.54 to $62.76.

With Friday's decline, MGIC Investment has broken below a recent trading range and to its lowest level since October.

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On quarterly results released late Thursday, Ryerson Tull (RT) gapped open to the downside Friday and ticked further lower in the late morning. The stock has been adding to its losses over the past hour or so.

The stock is currently lower by $1.70 to $13.07, breaking below a 3-week trading range to reach its lowest level since late May.

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Enbridge Energy Partners LP (EEP) reported fourth quarter net income of $41.6 million, or $0.61 per unit, compared with $32.3 million, or $0.54 per unit, for the fourth quarter of the prior year.

Revenues for the quarter were $1.33 billion compared to $760.4 million in the year ago quarter.

First Call/Thomson Financial analysts expected the company to report earnings of $0.56 per share on revenues of $913.42 million.

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Friday after the bell, First Bancorp (FBNC) reported fourth quarter earnings of $5.31 million or $0.37 per diluted share, in comparison to $4.86 million or $0.34 per diluted share registered in the year-ago quarter.

The company said net income for the full year was $20.11 million or $1.40 per diluted share, compared to $19.42 million or $1.35 per diluted share, reported for 2003.

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Medtronic, Inc., (MDT) announced that its CFO Robert Ryan would retire at the end of this fiscal year, April 29, 2005. Gary L. Ellis, currently Medtronic vice president and corporate controller/treasurer, would succeed Ryan.

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Digene (DIGE) moved sideways through the morning and into the late afternoon. In the last few minutes, the stock has spiked to the upside with an increase in volume.

Digene is currently trading at $25.47, up 97 cents on the session.