Early Stocks in Motion

Updated from 7:05 a.m. EST

Circuit City(CC Quote) Monday night turned down the previously announced $3.25 billion takeover offer from Boston hedge fund Highfields Capital Management, saying the deal isn't in the best interest of its shareholders. The electronics chain, whose stock shot up last month when the bid was publicized, said its board unanimously chose not to further explore the unsolicited bid -- or any other alternative sales. The board also approved an increase to its share repurchase plan of $400 million, bringing its total to $800 million. Circuit City was down 12 cents to $16.13 in Tuesday premarket trading.

Drug maker Millennium Pharmaceuticals(MLNM Quote) announced after the bell that it recently qualified for milestone payments from two partners totaling about $40 million. Millennium said it will collect $19.5 million cash with the transfer of marketing authorization of cardiovascular treatment Integrilin in Europe to Glaxo(GSK Quote). In addition, the company will receive two $10 million cash payments from Johnson & Johnson(JNJ Quote) after hitting targets for blood-cancer drug Velcade sales outside the U.S. The stock fell 4 cents to $8.30 Tuesday morning.

Ryland(RYL Quote) guided first-quarter earnings lower, citing delayed orders that the homebuilder expects to make up over the rest of the year. The company said first-quarter earnings will be at least $1.18 a share, below the $1.30 a share expected by analysts surveyed by Thomson First Call. Ryland said about 225 closings originally scheduled for closing in the first quarter will be delayed to later periods as a result of bad weather in several markets. The company put full year earnings at $7.25 a share, consistent with previous guidance but below Wall Street estimates.

Jo Ann Stores'(JAS Quote) fourth-quarter earnings came in above estimates on a 4.3% jump in same-store sales. Excluding items, the retail chain earned $32.4 million, or $1.41 a share, in the quarter, up from adjusted earnings of $26.7 million, or $1.20 a share, a year ago. Analysts had been expecting earnings of $1.38 a share in the quarter. For the current fiscal year, Jo Ann expects to earn $2.14 to $2.22 a share, compared with estimates of of $2.30 a share.

Cross Country Healthcare(CCRN Quote) said fourth-quarter earnings rose 8% from a year ago to $5.5 million, or 17 cents a share, matching estimates. Revenue in the quarter was $159.4 million, slightly above forecasts. But the company's shares were whacked on first-quarter earnings guidance that trailed estimates. For the period ending next month, the company sees earnings of 10 cents to 12 cents a share on sales of $154 million to $157 million. Analysts surveyed by Thomson First Call had been expecting earnings of 17 cents a share on sales of $162.3 million. The stock was recently off $1.12 to $15.43.

Dick's Sporting Goods(DKS Quote) lost as much as 4% after hours despite posting fourth-quarter earnings that blew away estimates. Excluding items, the company earned 81 cents a share in the quarter ended Jan. 29, 4 cents above the Thomson First Call consensus. Net sales in the fourth quarter were $788 million, about $14 million below the Thomson First Call consensus. For the current year, the company expects to earn $1.79 to $1.84 a share before items, compared with the Wall Street consensus of $1.81 a share. The company expects same-store sales to rise between 1% and 2% in 2005, excluding its Gaylan's stores division. The stock was down $1.35 to $33.65 on Instinet Tuesday.

The company formed when National Oilwell(NOI Quote) acquires Varco(VRC Quote) will enter the S&P 500 after the close of trading Friday, the index's compiler said late Monday. The new company, National Oilwell Varco, will cause the removal of Power One(PWER Quote), which had been No. 500 in the index previously. F5 Networks(FFIV Quote) will replace National Oilwell in the S&P MidCap 400, while Yellow Roadway(YELL Quote) will replace Varco. Power One fell 36 cents to $5.40 Tuesday.