Closing Bell: Dow ends 2.4% down; DDS, HUM, HUN, THOR, VZ

Posted Oct 27th 2008 4:18PM by Jon Ogg
Filed under: After the Bell, Earnings Reports, Market Matters, Verizon Communications (VZ), Economic Data

Today ended up being another one of those days that almost could have been special. Despite futures being lower all morning after the Asian markets slid into oblivion with Japan at 26-year lows, U.S. markets recovered on less-bad housing sale data and an S&P report that said the Christmas of 2008 shopping season may only be flat compared to 2008. Both were bad, but very acceptable for the current poor sentiment. Unfortunately, late day selling from redemptions and the "re-emergence of fears" took hold.

Here are today's unofficial closing bell levels:

DJIA: 8,175.77 -203.18 -2.42%

NASDAQ: 1,505.90 -46.13 -2.97%

S&P 500: 848.95 -27.82 -3.17%

10yr Note: 102.3438 -0.1875 -0.18%

52-WEEK LOWS
Top 10 Analyst Calls
Technology Sector Upgrades

Dillard's Inc. (NYSE: DDS) was up over 30% at $4.48 in today's final minutes of trading. Management bought shares and insiders want new management.

Humana (NYSE: HUM) almost didn't make sense as far as the trader reaction to earnings is concerned. The health insurer posted earnings at $1.49 EPS vs. estimates of $1.47 and gave guidance of $1.00 to $1.10 after a $0.10 item vs. $1.20 estimates. For 2009, it sees earnings at $5.90 to $6.10 vs. $5.85 EPS estimates. That gives a forward P/E ratio of under 7, yet shares were down 14% at $31.12 right before the close of trading.

Huntsman Corporation (NYSE: HUN) shares were up all day and were showing a gain of over 5% to $12.30 at the end of the day. The Apollo-backed private equity entity called Hexion announced that it has secured additional funding commitments to support this merger. Certain Huntsman holders agreed to make an additional cash commitment to Huntsman of $217 million.

Thoratec Corp. (NASDAQ: THOR) was down over 12% at $21.90 in today's final minutes. The medical device maker for the treatment of heart failures issued a product recall, which is much more complicated than a tire recall from auto companies. Frankly, Thoratec should be thankful the trader reaction wasn't worse.

Verizon Communications Inc. (NYSE: VZ) posted inline earnings, but with a 7% yield that was more than enough. The nation's #2 telecom provider posted 66 cents EPS, as expected. Shares were up over 10% at $27.82 at the end of the day as a vote of confidence.

Tags: DDS, featured, HUM, HUN, inthenews, THOR, vz