3:15PM NY, U.S. Market Movers

Barnes Group Inc. (B: chart), metals manufacturer and industrial supplies distributor, said that its first-quarter net income increased to 50 cents per share compared with 36 cents per share in the year-earlier period. Sales climbed 20% to $360.7 million. The aerospace-parts group lifted its fiscal-year earnings estimate to a range of $1.74 to $1.83 per share, from a range of $1.53 to $1.60. As a result, shares of the company climbed 13.1%.

Brightpoint Inc. (CELL: chart), cell phone distributor, posted a sharp decline in its first-quarter profit, as gross margins retreated due to partly to a shift toward lower-margin distribution. The company earned $1.8 million, or 4 cents per share, down 79% compared with $8.7 million, or 18 cents per share, during the same period a year ago. Revenue climbed 14% to $641.6 million from $564.6 million. Of this, distribution revenue grew 17% to $564 million, while logistic services revenue declined 8 % to $74.6 million. Shares climbed 9.4%.

EFunds Corp. (EFD: chart) shares surged 12.1% after the provider of electronic payment services said it has been approached by parties who have expressed a desire to explore possible strategic alternatives. The company has offered to Goldman, Sachs & Co. and BlackRock Inc. to assist it in exploring all of its options, including potential merger opportunities.

EFunds also said that its first-quarter net income declined to $10.5 million, or 22 cents per share, compared with $10.7 million, or 23 cents per share, in the year-ago period. Revenue decreased to $134 million versus $139.7 million last year. The company now expects revenue and earnings to trend toward the lower end of its previously forecasted ranges.

Leap Wireless International Inc. (LEAP: chart), cell phone service provider, shares climbed 6.6% after the company said that it swung to a first-quarter loss of 12 cents per share from a year-earlier profit of 29 cents per share, as expenses, including those associated with acquiring new customers, increased 56%. The company''s revenue climbed 46% to $389.4 million.

Macrovision Corp. (MVSN: chart), which makes copy protection software for music labels, software companies, film studios and others, said that its first-quarter profit more than doubled, as services revenue rose sharply and the company''s tax bill shrank. Net income rose to $5.7 million, or 11 cents per share, from $2.5 million, or 5 cents per share, in the year-ago period. Revenue rose to $65.2 million from $57 million last year. Services revenue climbed 40% and the company''s tax bill fell to $878,000 from $6.3 million a year ago. Shares climbed 15.6%.

Maximus Inc. (MMS: chart), government services provider, said that its second-quarter earnings tumbled 73% because of $6.1 million in legal expenses. For the quarter Maximus earned $2.4 million, or 11 cents per share, compared with $8.9 million, or 41 cents per share, in the year-ago quarter. Revenue declined less than 1% to $179.1 million, compared with $179.8 million in the year-ago period. The company said sales in last year''s second quarter included $6.9 million in corrections and voter hardware revenue that has been divested. Shares climbed 6.4%.

Allscripts Healthcare Solutions Inc. (MDRX: chart), which makes prescription-management software, said that its first-quarter profit more than tripled on a jump in revenue and surge in income tax benefits. The company earned $4.5 million, or 8 cents per share, compared with a profit of $1.3 million, or 3 cents per share, during the same period a year prior. Revenue rose 54% to $65 million from $42.2 million a year ago. Shares fell 10.6%.

Cisco Systems Inc. (CSCO: chart) shares went sharply down 6.6% after the company reported its third-quarter results, but analysts continued to see the tech bellwether as best positioned to benefit from growing demand for networking equipment. Third-quarter profit rose 34% on the growing appetite of corporate customers and Internet-service providers for its networking gear.

Hoku Scientific Inc. (HOKU: chart), materials science company, focused on clean energy technologies, recorded a first-quarter net loss of $1.74 million, or 11 cents per share, compared with a year-ago net profit of $508,000, or 3 cents per share. Excluding certain items, the company lost $1.2 million, or 7 cents per share, in the first quarter. Revenue declined to $1.14 million against $1.34 million in the comparable period last year. Shares fell 12.3%.

SWS Group Inc. (SWS: chart) posted a 10% drop in third-quarter profit from a year ago, when the results benefited from a tax gain. The investment and financial services holding company reported net income of $7.6 million, or 28 cents per share, compared with net income of $8.4 million, or 32 cents per share, in the year-ago period. Shares fell 14.9%.


2:30PM NY – Fed kept short term rate at 5.25%, at same level since June 2006.

The Federal Reserve left short term rates unchanged at 5.25% and said that core inflation remains at elevated level and inflation is ‘predominant’ threat to the economy. The unanimous decision of the committee to leave the rates same as the economy slowed in the first quarter and jobless rates remain at historic low level. The Fed noted that housing market is going through adjustment and clarified that the economic growth is slow from the previous statement describing economic performance mixed.

The yield on 10-year bond rose to 4.65% after the decision, a jump of 2 basis points.

1:00PM NY, 5:00 PM Frankfurt European stocks gained ground, helped by Rio Tinto and BNP Paribas.

European stock markets recovered from recent losses to finish higher on Wednesday. The upbeat market sentiment was generated by deal-related gains for Rio Tinto and well-received earnings from BNP Paribas which managed to offset losses among automotive and tech stocks, as well as caution before the U.S. Fed Reserve decision on interest rates. Rio Tinto jumped 10% in London on speculation that the company had rejected a bid of $110 a share (45.81 pounds) from competitor BHP Billiton which rose 5.4%.

Among earnings-related gainers, BNP Paribas climbed 4.2% on higher-than-expected Q1 profit. Again in the bank sector, Credit Suisse rose 1% in after Merrill Lynch upgraded its stock to buy from neutral. Among other bank stocks, Credit Agricole rose 3.1% while Societe Generale lost 2.6%. Unicredit shares rose 1%. On the side of the losers, car maker Porsche lost 0.8% and tire company Michelin fell 1.5%. Tech stocks declined after Cisco Systems predicted slowing revenue growth. Ericsson shares lost 1%. The DAX Xetra 30 rose 0.5% to 7,475.99, the French CAC-40 added 0.3% to 6,051.63 and the U.K.''s FTSE 100 closed flat at 6,549.60.