February 4, 2013 – Here is today’s summary of U.S. financial market activities – Top Losers, Winners, Advances, Declines.
Stock Market Headline
Today, stocks posted their biggest one day decline in 2013. New worries about political instability in Europe (Spain and Italy) caused investors to take some profits and move some money off the table.
The Dow (DJIA) fell 129 points, while the S&P and Nasdaq both declined by 1.15% and 1.51% respectively. Last Friday, stocks had reached their highest levels in five years.
- Shares of The McGraw-Hill Companies Inc. fell the most across the NYSE and Nasdaq. The company’s stock, MHP, dropped -13.78% today due to a Wall Street Journal report that “The Justice Department and state prosecutors intend to file civil charges alleging wrongdoing by Standard & Poor's in its rating of mortgage bonds before the financial crisis erupted in 2008”. Standard & Poor’s is owned by McGraw-Hill.
- Kimball International’s stock was the next biggest loser as the company’s stock (KBALB) dropped -13.54%. The company reported much weaker Q2 fiscal revenue due to a weak demand environment and “deteriorating performance in the manufacturing sector". Top line revenue fell 1%, down to $295 million.
- Acme Packet, Inc. was the highest percentage gainer today across the Nasdaq and NYSE. The stock was up 23.65% on news that Oracle was in talks to acquire the company for $2.1 billion. As reported by the Associated Press, “Acme's gear is used by more than 1,900 service providers and enterprises around the world. Its technology will complement Oracle's offerings for telecoms providers", said Citigroup analyst Walter Pritchard.
- Sonus Networks, Inc. (SONS) was the next highest gainer (Nasdaq). The rise in the company’s stock price was due to the Acme acquisition news. Both companies compete with one another in the IT infrastructure, VIP, multimedia and IP solutions industry. AP reports that “The deal announced Monday spurred speculation about whether Oracle and some of its major rivals will snap up other networking gear companies to round out their product lines”.