STOCKS NEWS US-RBC bullish on medical supplies companies
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U.S. stock market report [.N] 1436 ET 26Feb2009-RBC bullish on medical supplies companies ------------------------------------------------------------------------------
RBC Capital Markets on Thursday said it was bullish on the medical supplies and devices group, starting coverage on it with an overweight rating. "Over the years, successful investing in the group has been led by new product flow, market share gains and operating margin expansion," it wrote. "We believe that the group still exhibits these favorable investment characteristics."
The firm also started coverage on the orthopedic/spine group with an underweight rating, expecting that the knee, hip and spine market would be hurt by the slowing economy, rising unemployment and a slowdown in elective procedures.
Among specific companies, RBC started coverage on Abbott Laboratories (ABT.N) with a top pick rating, Johnson & Johnson (JNJ.N) with a sector perform rating and Stryker (SYK.N) with an underperform rating. [ID:nWNAB7374]
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1422 ET 26Feb2009-Boeing falls, Obama vows to end weapons waste ------------------------------------------------------------------------------
Shares of defense contractors fell on Thursday, after the Obama administration vowed to end cost overruns and schedule delays in the U.S. weapons program, calling acquisition reform one of the Pentagon's highest priorities.
While Obama's newly-unveiled budget calls for an increase of 4 percent in the size of the Pentagon's base budget, it doesn't include any details about specific weapons programs that could be targeted for cancellation or cutback. [ID:nN26549256]
Shares of Boeing (BA.N), a Dow component, fell 1.5 percent to $33.39 while Northrop Grumman (NOC.N) lost 1.4 percent to $40.01 and General Dynamics (GD.N) was off 0.3 percent to $46.41.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1411 ET 26Feb2009-Department stores mostly up after Sears results ------------------------------------------------------------------------------
Shares of department stores were largely higher on Thursday, after Sears Holding (SHLD.O) reported fourth-quarter earnings that beat expectations and said it would be closing an additional 24 stores in a move to offset the economic environment. [ID:nN26529308]
The stock rose 1.4 percent to $36.32 while the S&P Department Stores Sub-Industry Index .GSPRETD rose 0.4 percent to 80.57.
Among the other components of the index, Kohl's (KSS.N) rose 1.2 percent to $35.66 and J.C. Penney (JCP.N) added 1.2 percent to $15.87. Nordstrom (JWN.N) slid 0.6 percent to $13.14 while Macy's (M.N) lost 1.1 percent to $8.01.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net 1352 ET 26Feb2009-Limited Brands outlook weighs on apparel co's ------------------------------------------------------------------------------
Shares of apparel retailer dived on Thursday, after Limited Brands (LTD.N) reported a decline in its fourth-quarter earnings and unexpectedly forecast a first-quarter loss. The company is also amending its credit agreement. [ID:nN23344554]
The stock plunged 11.4 percent to $7.90 while the Dow Jones U.S. Apparel Retailers Index .DJUSRA lost 1.6 percent to 189.45. Limited Brands led the percentage decliners in the index.
Among other apparel retailers, Tween Brands TWB.N slid 4.2 percent to $1.60, Children's Place (PLCE.O) was down 3.2 percent to $18.42 and Ross Stores (ROST.O) lost 2.5 percent to $29.51.
Reuters Messaging: ryan.vlastelica.reuters.com@reuters.net
