AllianceBernstein Holding LP (AB:US): The investment management firm cut its 2007 earnings per share forecast by 30 cents because of lower-than-expected hedge-fund performance fees. The stock dropped $4.41, or 5.7 percent, to $72.60 in extended trading yesterday.
American Express Co. (AXP) fell $4.42, or 9 percent, to $44.50 before the official open of U.S. exchanges. The third- largest U.S. credit-card network said operating earnings will be less than 90 cents a share in the first quarter. Analysts, on average, anticipated profit of 92 cents, according to a Bloomberg survey.
Capital One Financial Corp. (COF), the largest independent U.S. credit-card issuer, lost 3.3 percent to $41.50 in extended trading yesterday.
Countrywide Financial Corp. (CFC) slid $1.20, or 15 percent to $6.55. The largest independent U.S. mortgage company will be acquired by Bank of America Corp. for about $7.16 a share in stock. The offer is 7.6 percent below Countrywide's closing share price yesterday, when reports the acquisition was imminent sent Countrywide to its biggest percentage gain ever. Bank of America (BAC), the biggest U.S. bank by market value, fell $1.10, or 2.8 percent, to $38.20.
Merrill Lynch & Co. (MER) declined $1.29, or 2.5 percent, to $50.74. The third-largest U.S. securities firm, may write down $15 billion related to U.S. mortgage losses, almost twice its original forecast, the New York Times reported, citing people briefed on the plan.
United Rentals Inc. (URI): The construction-equipment rental company forecast 2008 profit of $2.80 to $3 a share. The average of eight analyst estimates compiled by Bloomberg was for earnings of $2.72. The stock gained $1.93, or 12 percent, to $18.50 in extended trading yesterday.
Washington Mutual Inc. (WM) rose $1.09, or 7.7 percent, to $15.25. JPMorgan Chase & Co. may be interested in buying the largest U.S. savings and loan, CNBC reported, without citing anyone specific. JPMorgan Chase (JPM), the third-largest U.S. bank, fell 50 cents, or 1.2 percent, to $40.83.
Watch VIP, MOS, DBA, CRL, SIE for long breakouts.
Watch MTB, BDK, MAN, WPS, STU for short breakdowns.
-MM
