This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wednesday's Winners & Losers: Moody's

A computer glitch at Moody's (MCO - Get Report) caused shares of the bond ratings company to plunge Wednesday and sent other financial stocks down as jittery investors began selling.

Moody's experienced a problem that caused some complex European financial instruments to be doled out higher ratings than they should have been given, according to Reuters. The error was discovered in early 2007 and the products were downgraded, but the news was never disclosed. The stock collapsed into its largest one-day drop since being spun off from Dun & Bradstreet. It ended the day down $6.99, or 15.9%, at $36.91.

Shares of Hewlett-Packard (HPQ - Get Report) were down $1.66, or 3.6%, to $44.80 despite the company reporting a 16% growth in its bottom line during the second quarter due to strong performance in international markets. Revenue during the quarter rose to $28.3 billion, from $25.5 billion a year ago, with 70% of sales coming from overseas. H-P had preannounced its results last week when it said it will acquire technology consulting company EDS (EDS) for $13.9 billion.

Washington Mutual (WM - Get Report) gave back 4.4% to $9.40 after Moody's downgraded the rating on its covered bonds. This acion follows the recent downgrades of the senior unsecured debt of Washington Mutual Bank. The concern from Moody's is the increased potential exposure of covered bond investors to the risk of a liquidation of the cover pool in a short time frame in the event of a default.

Analog Devices (ADI - Get Report) lost $1.40, or 4%, to $33.52 after the chipmaker reported its second-quarter results. Net income for the second quarter rose to $133.1 million vs. $125.4 million a year ago. Revenue rose 8.7% to $649.3 million and EPS, excluding items, were 44 cents. Analysts were expecting a profit of 41 cents a share on revenue of $627.2 million. The company reported a gross profit margin of 61%, down from 61.2% in the first quarter.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ADI $57.01 1.23%
HPQ $12.12 -1.22%
HTM $0.78 0.00%
MCO $96.01 0.30%
WM $59.98 2.02%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs