DECEMBER 22, 2010, 5:06 P.M. ET
Wall Street Journal
U.S. stocks closed higher Wednesday as the Dow Jones Industrial Average rose 26 points to 11559, the Standard & Poor's 500 gained 4.2 points to 1259, and the Nasdaq Composite increased 3.9 points to 2671. Among the companies whose shares are actively trading in the after-hours session are Bed Bath & Beyond Inc. (BBBY) and Christopher & Banks Corp. (CBK).
Bed Bath & Beyond's fiscal third-quarter earnings rose 25% in results that beat its guidance, as the housewares retailer raised its expectations for the remainder of the year. Shares were up 6.2% at $50.58 after hours. The board also approved a new $2 billion share repurchase program, representing roughly 16% of the company's current market value.
Christopher & Banks swung to a fiscal third-quarter loss on charges, as the women's clothing retailer's sharp deterioration in comparable sales and margin wasn't as bad as it had warned. Shares were down 0.9% at $5.70 after hours.
Walgreen Co.'s (WAG, $38.85, +$2.02, +5.48%) fiscal first-quarter earnings rose a much bigger-than-expected 19% as Chief Executive Greg Wasson said the drugstore operator benefited from cost controls and the slowing of new-store openings. Competitor CVS Caremark Corp. (CVS, $34.95, +$0.47, +1.37%) also gained.
Nike Inc.'s (NKE, $86.95, -$5.35, -5.80%) fiscal second-quarter earnings rose a better-than-expected 22%, as the athletic-shoe maker continues to see strong interest in future orders. Shares were down, likely on concerns about rising costs and worse-than-expected future orders. Fellow athletic retailers Under Armour Inc. (UA, $54.49, -$2.91, -5.07%) and Timberland Co. (TBL, $25.26, -$1.16, -4.39%) also traded down.
Hancock Holding Co. (HBHC, $34.58, -$2.46, -6.64%) has agreed to buy fellow Gulf Coast bank Whitney Holding Corp. (WTNY, $14.00, +$3.13, +28.79%) in a nearly $1.5 billion all-stock deal. Hancock expects to repurchase all of Whitney's Trouble Asset Relief Program preferred stock and warrants held by the U.S. Treasury at closing. The news helped push up other regional banks, including BancorpSouth Inc. (BXS, $16.11, +$1.53, +10.49%), Regions Financial Corp. (RF, $6.91, +$0.46, +7.13%), Synovus Financial Corp. (SNV, $2.65, +$0.10, +3.92%) and SunTrust Banks Inc. (STI, $28.85, +$0.99, +3.55%).
Software giant Microsoft Corp. (MSFT, $28.19, +$0.12, +0.42%) is planning to roll out a version of its Windows operating system that will complement chips designed by U.K.-based ARM Holdings PLC (ARMH, $20.43, +$0.65, +3.29%), according to media reports.
Airgas Inc.'s (ARG, $61.44, -$1.78, -2.82%) board has unanimously rejected larger rival Air Products & Chemicals Inc.'s (APD, $90.57, +$0.04, +0.04%) boosted takeover bid of nearly $5.9 billion, saying the $70-a-share offer is inadequate.
SunTrust Robinson Humphrey cut its stock-investment rating on retailer American Eagle Outfitters Inc. (AEO, $14.46, -$0.31, -2.10%) to neutral from buy, saying it believes fourth-quarter sales and estimates are running short of expectations, likely the result of ramped-up competition in the teen space.
American Greetings Corp.'s (AM, $22.84, +$0.84, +3.82%) fiscal third-quarter profit grew 8.3% on higher margins and higher international sales, although revenue fell in the greeting-card maker's larger North American business.
Berkshire Hills Bancorp Inc. (BHLB, $21.00, -$0.28, -1.32%) agreed to acquire smaller peer Legacy Bancorp Inc. (LEGC, $12.65, +$4.05, +47.09%) in a nearly $110 million deal that will further bolster its presence in western Massachusetts and neighboring New York. Berkshire also anticipates fourth-quarter earnings meeting or exceeding prior guidance.
CAMAC Energy Inc. (CAK, $2.07, -$0.57, -21.59%) said certain investors have agreed to sell in a direct offering about 9.1 million shares of the exploration and production company's common stock at a price of $2.20 a share and five-year warrants to purchase up to about 4.5 million shares with an initial exercise price of $2.20 each.
Biotechnology company Corcept Therapeutics Inc. (CORT, $3.90, -$0.29, -6.92%) announced positive results from its Phase 3 study of Corlux for the treatment of Cushing's Syndrome. Shares opened higher but later moved lower, a reversal that may have occurred as investors took advantage of the good news to lock in profits and exit the stock, Global Hunter Securities said.
The Food and Drug Administration has put off for now specialty drug company Cumberland Pharmaceuticals Inc.'s (CPIX, $6.15, -$0.75, -10.87%) effort to get an injectable treatment for nonacetaminophen acute liver failure approved.
Biopharmaceutical company Enzon Pharmaceuticals Inc. (ENZN, $12.50, +$0.29, +2.38%) said it has put in place a new $200 million stock-buyback authorization after it exhausted its last one.
Finish Line Inc.'s (FINL, $17.45, -$1.34, -7.13%) fiscal third-quarter earnings fell as a prior-year gain from ending a takeover masked the athletic outfitter's better-than-expected results. Analysts said investors were focusing on the company's comments that it expects product margin, excluding items, to be down slightly in the fourth quarter due to changes in toning.
A B. Riley analyst noted toning is only about 2% of total sales and the much-larger basketball business has started to resurge, which should offset some of the pressure.
Hovnanian Enterprises Inc. (HOV, $4.25, -$0.11, -2.52%) narrowed its fiscal fourth-quarter loss as the home builder saw lower land-related charges than a year earlier, though revenue and contracts slid.
Norwegian engineering services firm Aker Solutions (AKSO.OS) said Wednesday it has agreed to a share purchase deal with Jacobs Engineering Group Inc. (JEC, $46.32, +$2.17, +4.92%), valued at approximately 5.5 billion Norwegian kroner ($913 million), to transfer operations within its process and construction business to the U.S. professional technical services firm.