The bevy of share offerings continued after the bell Monday, as The Bank of New York Mellon ( BK) said it would sell $1.2 billion worth of its own shares. The New York City-based bank said it would price 42 million shares at $28.75 each, which is slightly below its Monday closing price of $29.55. Like several other major banks recently, including BB&T ( BBT), U.S. Bancorp ( USB), and Capital One Financial ( COF), Bank of New York seeks to use the money raised via the share offering to pay down its governmental TARP debt. Bank of New York received about $3.4 billion in TARP funds in the form of a preferred stock investment from the federal government. Bank of New York shares fell $1.12, or -3.8%, in morning trading Tuesday. We have avoided shares of Bank of NY Mellon since we initiated coverage back in early June, when shares were trading at $41.15. The company has near-term technical support in the $23-$25 price area. If the shares can continue the recent rebound, we see overhead resistance around the $32-$35 price levels. We would remain on the sidelines for now. The Bank of New York Mellon is not recommended at this time, holding a Dividend.com DARS Rating of 3.0 out of 5 stars.
Fluor Corp Profit Jumps 60%, Full-Year Outlook Reduced
Engineering and construction company Fluor ( FLR) said Tuesday that its first-quarter profit improved by 60% from a year ago. The Irving, Texas-based company reported first-quarter net income of $204.8 million, or $1.12 per share, up 60% from $137 million, or 74 cents per share, in the year-ago period. Revenue jumped 21% to $5.8 billion, from $4.81 billion in the same quarter last year.