Monday's Winners & Losers

Updated from 12:10 p.m. EDT

Hudson Highland Group(HHGP Quote) was among the Nasdaq's losers Monday, slumping 22.5% after the staffing company cut its second-quarter revenue guidance.

The company now sees revenue of $348 million to $350 million, down from an earlier projection of $355 million to $370 million. Analysts polled by Thomson Financial predict revenue of $363.2 million.

"Our North American operation reduced its loss in the second quarter compared with a year ago, but the trajectory of improvement was slower than expected," the company said. Hudson Highland sees earnings before interest, taxes, depreciation, and amortization in the middle of its previous guidance of $12.5 million to $13.5 million.

Looking ahead, the company sees third-quarter EBITDA of $9 million to $12 million. Shares closed down $4.95 to $17.07.

Blue Nile(NILE Quote) jumped 9.2% after Citibank upgraded the online jewelry seller to buy from hold. The broker also upped its price target on the stock to $88 from $51. The firm said that Blue Nile would likely report strong second-quarter results when it posts earnings next month. Shares closed up $6.59 to $78.56.

Shares of IHOP(IHP Quote) rose 8.9% after the restaurant operator agreed to acquire Applebee's International(APPB Quote) for about $2.1 billion, or $25.50 a share. The price represents a premium of slightly less than 5% above Applebee's closing price of $24.38 on Friday.

"Over the past year and a half, we have been evaluating alternatives that would allow us to leverage IHOP's proven competencies in order to create additional long-term value for shareholders, including a potential acquisition," IHOP said in a statement. "Applebee's meets all of our acquisition criteria and we expect the combination to generate significant additional value for our shareholders."

The deal is expected to close during the fourth quarter. Shares of IHOP were up $4.99 to $61.24, while Applebee's gained 53 cents to $24.91.