Commodity Online
NEW YORK: US stocks jumped on Wednesday after a two-day string of losses following the Fed statement.
One booster for the stock market was the energy stocks which rose following a gain in crude prices.
Massey Energy Co. (MEE, $15.30, +$2.77, +22.11%) surged after the coal company cut its production outlook.
Jefferies and Co said the stock gain was fueled by company’ strong cash flow in tough times — clear sign Massey won’t risk shareholder value by selling coal at low prices.
The Goodyear Tire & Rubber Company (GT, $11.80, +$1.33, +12.70%) said it swung to a loss of $333 million in the first quarter. While its loss was in line with Wall Street expectations, the tire maker reported revenue above analysts’ estimates.
Hess Corp. (HES, $57.38, +$2.49, +4.54%) swung to a first-quarter loss on sharply lower prices and a drop in revenue. The energy company reported above Wall Street estimates.
Panera Bread Co.'s (PNRA, $55.87, -$7.06, -11.22%) first-quarter net income jumped 40% on higher sales and margins as stronger breakfast sales helped offset weakness in its catering operations. The company said the state of the commercial real estate industry has disrupted several planned store openings for fiscal 2009. As such, Panera now expects to be at or below the low end of its prior target of 80 to 90 new unit openings for the year.
Energy company Range Resources Corp’s (RRC, $43.12, +$1.99, +4.84%) first-quarter net income soared more than 11-fold on noncash hedging gains. “While our financial results reflect the decline in oil and gas prices, our operating results were strong, reflecting excellent first-quarter drilling results,” said Chief Executive John H. Pinkerton. The company expects to reduce debt during the rest of the year with lower capital spending and asset sales.
Shares of SunPower Corp. (SPWRA, $24.69, +$2.08, +9.20%) rose after the company's offer of common stock and senior convertible notes raised $363.1 million, easing concerns about the solar-panel maker's liquidity. “It looks to us that investors believe strengthening the balance sheet either equals or more than offsets dilution of additional shares,” Cowen & Co. analyst Robert W. Stone told Dow Jones Newswires.
