Tuesday's Winners & Losers: Pool

Pool(POOL Quote) was among the Nasdaq's losers Tuesday, sinking 7.1% after the pool equipment distributor cut its 2007 earnings forecast.

The company now sees earnings of $1.75 to $1.85 a share, down from an earlier forecast of $2 to $2.10 a share. Analysts polled by Thomson Financial project earnings of $1.97 a share. "Sales for April and May were essentially in line with the company's expectations," the company said. "However, the daily sales rate did not increase as expected in June, primarily due to a greater than projected decrease in new pool construction together with adverse weather in certain markets that also affected replacement and repair activity." Shares were trading down $2.69 to $35.02.

Kraft Foods(KFT Quote) fell 2.4% after the packaged-food giant said that it plans to buy Groupe Danone's(DA Quote) biscuit business for $7.2 billion in cash. "This proposed acquisition makes great sense for Kraft," the company said. "It will increase our presence in snacks -- our fastest growing global segment -- and transform our international business." The deal is expected to close by the end of the year. Danone's biscuit business generated revenue of $2.7 billion in 2006 on earnings before interest, taxes, depreciation and amortization of $525 million. Shares of Kraft were trading down 84 cents to $34.69.

Shares of Massey Energy(MEE Quote) slid 4.8% after the coal producer said that a subsidiary received an unfavorable jury verdict in a case against Wheeling-Pittsburgh Steel(WPSC Quote). The jury awarded Wheeling-Pittsburgh $120 million in compensatory damages and $100 million in punitive damages. Massey plans to appeal the decision. "We firmly believe we operated within the terms of our coal supply contract," Massey said. "We recognized that a trial in Wheeling Pitt's backyard would be challenging, but we were still surprised at the outcome." Massey said that second-quarter earnings would be impacted by its decision to record a bigger liability related to the lawsuit. Shares of Massey Energy were trading down $1.28 to $25.38.

Bill Barrett(BBG Quote) rose 5.8% after Standard & Poor's said it would add the natural gas producer to its S&P MidCap 400 index after the close of trading on July 6. Barrett will replace Laureate Education(LAUR Quote), which is being acquired. Shares of Bill Barrett were trading up $2.09 to $38.42.

Shares of Caterpillar(CAT Quote) fell 3.1% after UBS downgraded the company to reduce from neutral. The firm also cut its price target on the stock to $70 from $78. The broker kept its earnings forecast intact at $6 a share. Shares were trading down $2.51 to $77.94.