Midday movers: IBM, Chesapeake, Halliburton
Disappointment with the reports of 2 blue-chip technology companies weighs on the market.
IBM (IBM), Intel (INTC) and Yahoo (YHOO) all reported earnings after the close Tuesday that beat consensus expectations, but only Yahoo shares rallied following the announcements.
The declines in IBM, which saw its revenues miss expectations and its shares fall 2.5%, and Intel, down 2% after its gross margins were worse than last quarter, weighed heavily on the Dow.
In contrast, Yahoo gained 3% as its revenue grew for the first time since the third quarter of 2008, as noted by Piper Jaffray.
Among other companies reporting earnings, advancers Wednesday included Halliburton (HAL), Seagate (STX) and United Rentals (URI); decliners included Textron (TXT), Cree (CREE) and Amphenol (APH).
Among the notable gainers in the markets Wednesday were Catalyst Health Solutions (CHSI), up 31%, and SXC Health Solutions (SXCI), up 7.5%, as both stocks benefited from plans to merge the companies in a cash and stock transaction that implies a purchase price of $81.02 per Catalyst share. Also higher were shares of THQ Inc. (THQI), up 36%, after the company raised its expectations for the fourth quarter on strong sales of its "Saints Row" game.
Noteworthy losers included Genworth (GNW), down 21%, after announcing it would delay the IPO of its Australian mortgage insurance business until early 2013, and Chesapeake Energy (CHK), down 10%, after Reuters reported that its CEO took out as much as $1.1 billion in unreported loans over the last three years, which could raise the possibility of conflicts of interest. Also lower were shares of Illumina (ILMN), down 2.5%, after Roche (RHHBY) decided not to extend its $51 cash tender offer for the company.
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The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.
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