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Market Update : 
Profit Taking After 2-Weeks Rally
Author: Albena Toncheva
123jump.com
Last Update: 13:37 PM ET July 18 2005


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Stocks fell Monday after Citigroup reported weaker-than-expected earnings and provoked investors' concerns about other companies' 2Q financial results. Citigroup earnings said tough market environment was to blame for the earnings 5 cents below expectations.

 
PriceSmart, warehouse clubs operator, reported 3Qnet loss of 53 cents per share vs. $1.01 for the comparable period last year.

PYR Energy, oil and gas company, announced 2Q net loss of 1 cent a share vs. a loss of 2 cents a year earlier mainly attributable to one time non-cash charge.

Suffolk Bancorp, one-bank holding company, reported 2Q profit increase of 50 cents a share compared with 46 cents last year.

Washington Federal, the parent of Washington Federal Saving & Loan Association, posted lower 3Q income of 39 cents a share vs. 40 cents a year ago on higher operating expenses and lower margins. Analysts had expected a profit of 42 cents a share.

CORPORATE NEWS

Whirlpool, an appliance maker, made a bid worth $17 a share, or more than $1.3 billion, for rival Maytag, topping a $14 a share bid from Ripplewood Holdings.

Apollo Advisors is the possible winner over Bain Capital for the marketing-services division of Cendant Corp.. Both bids are considerably higher than the $2 billion analysts originally expected, according to people familiar with the matter. A final decision has yet to be made, and a bid from Bain could still top that of Apollo. An announcement could come as soon as today.

The U.S. Department of Justice is examining the potential mergers between the New York Stock Exchange and Archipelago Holding Inc. (AX: chart) , and the Nasdaq Stock Market Inc. (NDAQ: chart) and Instinet Group Inc. (INGP: chart). The department's antitrust division has asked to be provided with more information about the exchange mergers which may delay or even abandon the deals.

Stanley Works (SWK: chart) made a 410 million euro ($494 million) cash offer for Fimalac's Facom tools business. The deal should boost 2006 earnings per share by 10 cents, 2007 earnings per share by 35 cents and 2008 earnings by 65 cents. Stanley Works targets $35 million of pre-tax synergies by the end of 2008. The deal would result in operating margins between 15% and 16% by 2007.

Versatel Telecom International announced that Swedish Tele 2 AB will buy the Dutch alternative telecommunications for 1.34 billion euro. Tele 2 will pay 2.20 euro per share to Versatel’s shareholders and will buy the outstanding convertible debt. After the purchase, private equity group Apax Partners will buy Versatel’s German operations for 565 million euro.
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