SAN FRANCISCO (MarketWatch) -- Shares of the following companies made notable moves in the U.S. stock market on Monday:
Aegon NV /zigman2/quotes/201853546/composite AEG +0.98% surged 18.6%. The Hague-based insurance and pension group said it would be taking "measures to reduce risk and further release capital" and cut 150 million euros ($189 million) of costs in its major operating units in 2009. The company also said its Dutch businesses plan to boost returns. Aegon Netherlands "aims to increase its overall return on capital by at least" a percentage point by 2012, Aegon said Monday.
ArcelorMittal /zigman2/quotes/202790215/composite MT +1.07% shares jumped 19.1%. As many as 2,444 employees at its Burns Harbor, Ind., plant could be furloughed indefinitely in January, the Times of Northwest Indiana reported on its Web site, citing a company release. The recent drop in global steel production and the company's plan to reduce production in North America by 40% played into the decision, the paper reported, citing the release.
Hot Stocks Report: Airlines
Shares of major carriers posted gains Monday, as investors may be interpreting Citigroup's bailout as a sign that the economic downturn may not be quite as long or as deep as previously thought. MarketWatch's Christopher Hinton reports. (Nov. 24)
Citigroup /zigman2/quotes/207741460/composite C -0.33% skyrocketed 57.8% after it received a bailout from the U.S. government, involving a $20 billion capital infusion, guarantees of troubled assets, limits on common-stock dividends, and government control of compensation. Read the article.
Ericsson /zigman2/quotes/208932705/composite ERIC -0.09% /zigman2/quotes/207544813/delayed SE:ERIC.B +0.47% was 13.9% higher. Credit Suisse downgraded the company to underweight from overweight and cut its target price to 40 krona from 65 krona, as part of a broader note on wireless infrastructure in which it warns that carrier fundamentals are deteriorating. "This slower growth environment for carriers ... will put downward pressure on the infrastructure market over time," Credit Suisse said.
Exelixis /zigman2/quotes/204247745/composite EXEL -1.24% was up 19.2% after Bristol-Myers Squibb Co. exercised an option on Exelixis' investigational new cancer-drug candidate XL413. Under the terms, the New York health-care giant /zigman2/quotes/202559280/composite BMY +0.56% will pay Exelixis $20 million for meeting a milestone. Exelixis also has exercised its option under the companies' agreement to co-develop and co-commercialize XL413 in the U.S. Bristol-Myers will lead all global activities with the drug. The companies will split U.S. profits 50-50 and Exelixis gets "double-digit" royalties on product sales elsewhere, they said.
Foot Locker Inc. /zigman2/quotes/204092533/composite FL +0.40% ended higher after volatile trading. Standard & Poor's lowered the retailer's corporate-credit rating to BB- from BB. "The downgrade reflects our expectations that Foot Locker will be increasingly challenged by the severe drop in consumer spending," said David Kuntz, an S&P credit analyst. The outlook is negative.
Ford Motor Co. /zigman2/quotes/208911460/composite F -0.65% added 9.1%. The automaker is exploring the sale of its five corporate jets, The Wall Street Journal reported. Ford's decision comes after rival General Motors Corp. /zigman2/quotes/205226835/composite GM -1.26% said it would sell two of its five jets. The moves come after lawmakers on Capitol Hill criticized executives at the U.S. automakers for taking their corporate jets to Washington to plead for a government bailout.
Genentech Inc. was up 5.4%. The South San Francisco-based biotech major said that in a Phase III study, Avastin -- combined with taxane, anthracycline-based or capecitabine chemotherapies for first-line treatment of metastatic HER2-negative breast cancer -- "met its primary endpoint of increasing the time patients lived without their disease advancing, compared with the chemotherapies alone."
King Pharmaceuticals Inc. rallied 7.9% after it said Monday that Alpharma Inc. has accepted its revised offer to be acquired in an all-cash deal valued at $1.6 billion. See full story.
NicOx /zigman2/quotes/210460119/composite NICXF +0.39% rose 16.8% after the French firm said that a third Phase III study showed that its naproxcinod drug for hip osteoarthritis met all three co-primary endpoints without hurting blood pressure.
Omrix Biopharmaceuticals was up 17.2% after Johnson & Johnson /zigman2/quotes/201724570/composite JNJ +1.06% said it's buying Omrix for $25 a share, or $438 million, cash. Omrix's product line and candidates include surgical products to control bleeding and for other applications. J&J expects an after-tax charge of $120 million to write off in-process research and development. See full story.
Sanofi-Aventis rose 5.3% after it was upped to overweight from equal-weight by Morgan Stanley, and the broker lifted its price target by one euro to 50 euros. "At current levels, we believe the market is discounting the very significant negative structural issues we have highlighted over the last 12-18 months, such as generic exposure, anemic pipeline, and talent loss to peers.
Sprint Nextel Corp. /zigman2/quotes/208685669/composite S -2.53% rallied 28.7%. John Garcia, an executive in charge of the CDMA business, is leaving the company, The Wall Street Journal reported. The circumstances of Garcia's departure were unclear, according to the newspaper. Sprint has tapped Keith Cowan, president of strategy and corporate development, as interim successor to Garcia while it searches for an executive to oversee the unit, which controls 70% of Sprint's customer base, the Journal said.
Target Corp. /zigman2/quotes/207799045/composite TGT +1.56% rose 8.4%. It rejected proposals by Pershing Square, a hedge-fund firm run by activist investor Bill Ackman, regarding its real estate portfolio. Ackman had proposed that Target spin off the land it owns into a real estate investment trust in a bid to boost the company's value. Target has concluded that the potential value created through the deals proposed by Pershing is too speculative and insufficient.
Williams-Sonoma /zigman2/quotes/202067350/composite WSM +1.73% surged 39.7%. Chairman and Chief Executive W. Howard Lester had to sell 4.19 million shares to satisfy collateral requirements under lines of credit he had with certain financial institutions because of the "recent significant decline" in WSM's share price. Lester now owns more than 2 million shares. None of the remaining shares are pledged to secure any indebtedness.
Xerox Corp. /zigman2/quotes/201169674/composite XRX +0.77% was 17.9% higher. It expects 2009 earnings to range between $1 and $1.25 a share, with operating profit estimated at $1.4 billion and $1.7 billion, the company said Monday. See full story.
Ampal-American Israel Corp. fell 6.4%. The Tel Aviv holding company focused on energy and related fields said it would buy back as much as $20 million of its Class A shares.
Campbell Soup Co. /zigman2/quotes/202107764/composite CPB +0.68% slipped 7.6%, after it said Monday its fiscal first-quarter net income declined nearly 4% on higher costs, even as increased marketing helped lift the sales of certain products by double-percentage digits. See full story.
Cooper Industries Ltd. was down 7.2%. It expects fourth-quarter results below its previous outlook of 83 cents to 92 cents a share, excluding restructuring charges. It didn't specify a number. Analysts surveyed by FactSet project the company will earn 87 cents a share.
DSP Group Inc.'s /zigman2/quotes/204384782/composite DSPG +0.48% chairman and chief executive said he would take a leave of absence as CEO so he can lead the campaign committee of Israel's Likud Party for the Feb. 10 parliamentary election. Read the article.
LandAmerica Financial plunged 88.2% after Fidelity National Financial /zigman2/quotes/207569682/composite FNF +1.64% ended its definitive agreement to acquire LandAmerica, which would have united the two title insurers. Read the article.