The market is trading in positive territory after a major selloff yesterday. The major indices are all up about 1% each.
The Russell 2000 and the S&P Small Cap 600 are trading alongside the major indices, with notable strength coming from Russell 2000. The Russell 2000 is trading at 668.92, down about 1%, and the S&P Small Cap 600 is at 351.96, up 0.50%.
Rohm & Haas
rose sharply by 65% to $74.01 after
offered $15.29 billion, or $78 a share, for the company. It is a 74% premium to Wednesday's closing price of $44.83. The transaction will allow Dow Chemical to expand into the specialty chemicals segment.
William Blair downgraded
to market perform from outperform, causing the stock to fall nearly 17% to $14.28 after being. The downgrade comes a day after the teen retailer reported that same-store sales fell 3.4% in June, which was worse than the analysts' expectation of a drop in sales by 0.8%.
surged 22% to $6.49 after the company released better-than-expected earnings for its fourth quarter and raised its outlook.
Net income for the fourth quarter was $13.9 million, or 27 cents a share, beating analysts' expectations by 7 cents. The company raised it outlook for its fiscal year 2009, ended in May, projecting earnings to be between 50 cents and 70 cents. Analysts were expecting a profit of 51 cents a share.
California Pizza Kitchen
rose by 7% to $11.89 after the company reported its preliminary results for its second quarter, ended in June 29.
The casual dining restaurant announced that revenue increased to $176.6 million, compared with $158.6 million for the same quarter last year, an increase of 11.3%. It also raised its second-quarter profit forecast to a range of 25 cents to 26 cents, up from its previous estimate of 16 cents to 17 cents. The board also authorized a $50 million buyback program for the next two years.
tumbled to new lows in the face of rising concerns on the future prospects for both of these companies.
The Wall Street Journal
reported today some reasons for concern over Freddie Mac and Fannie Mae: "Investors are worried they will suffer bigger losses as housing prices continue to fall and mortgage defaults rise. Stock-market investors are also worried they will need to raise significant amounts of capital to cover those losses. For stock investors, that means the value of their ownership stakes in the company will be cut."
Fannie Mae is down by 11% to $13.63, while Freddie Mac is faring worse, trading down 22% to $7.97.
This article was written by a staff member of TheStreet.com.