LargeCap Stocks to Watch Today

Tomahawk, WI 3/23/2012 (StreetBeat) – Nike (NKE), the sneaker maker, posted third-quarter profit ahead of consensus estimates.

Beaverton, Ore.-based Nike earned of $560 million, or $1.20 a share, on revenue of $5.85 billion for the quarter ended Feb. 29, beating the average earnings estimate of analysts of $1.17 a share on revenue of $5.82 billion.

Gross margin came in at 43.8% for the quarter, down from 45.8% a year earlier.

"Our relentless focus on innovation delivered powerful new products and services for athletes and consumers, and continues to drive value to our shareholders," said Mark Parker, president and CEO, in a statement. "The environment remains volatile, but I'm optimistic about the future. We're starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term."

Shares were up 0.5% to $111.50 in premarket trading on Friday.

KB Home (KBH), the homebuilder, said revenue for the quarter ended Feb. 29 totaled $254.6 million, much lower than analysts' views of $337.7 million.

KB Home reported a quarterly loss of $45.8 million, or 59 cents a share; analysts were expecting a loss of 24 cents.

The announcement was a huge disappointment given that analysts were expecting the company to blow past expectations. The company posted a profit in the November-ended quarter after three straight quarterly losses, leading some to believe it had seen a turnaround along with the broader housing market.

Shares were plunging 6.6% to $10.50 in premarket trading.

Darden Restaurants (DRI), the parent of Red Lobster and Olive Garden, reported third-quarter earnings of $1.25 a share, up from $1.08 a year earlier, and slightly above analysts' expectations of $1.24 a share.

Sales were $2.16 billion, beating the forecast $2.14 billion.

The restaurant group said that sales grew 4.1% compared to the period a year earlier at Red Lobster, Olive Garden and LongHorn Steakhouse amid favorable weather conditions, underlying business strength and deceleration in food cost inflation over the year.

Darden also announced a quarterly cash dividend of 43 cents a share, payable on May 1.

Shares were rising 0.4% to $52.01 before the bell.

US Airways (LCC), seeking support for a possible American Airlines merger, is discussing a takeover plan with some creditors of the bankrupt carrier and their advisers, people with knowledge of the talks told Bloomberg.

Executives have laid out details of US Airways' proposal for a combined airline to some members of the unsecured creditors committee and gotten a positive reception, the people told Bloomberg. The goal would be to complete a merger before AMR, American's parent, exits Chapter 11.

US Airways shares were up 0.4% to $7.36.

Micron Technology (MU), the chipmaker, posted a fiscal second-quarter loss of $224 million, or 23 cents share, on revenue of $2.07 billion.

Analysts were looking for a loss of 19 cents a share on revenue of $2.02 billion.

The stock was falling more 4.3% to $8.34.

Bank of America (BAC) has begun a pilot program that will offer some of its mortgage customers facing foreclosure a chance to stay in their homes by becoming renters instead of owners.

Launched this week, the pilot program -- "Mortgage to Lease" -- will be offered to less than 1,000 Bank of America customers in test markets in Arizona, Nevada and New York.

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AMR Shares Fall Again on Lack of Labor Deals

Tallahassee, FL 11/16/11 (StreetBeat) --Shares of AMR Corp. (NYSE: AMR) fell near an 8-year-low on Wednesday as the parent of American Airlines pushed union workers to accept contracts that would boost productivity at the money-losing company.

A longtime airline industry analyst said compromise was possible with the pilots' union, but American — the world's biggest airline just three years ago — must accept that it will become a smaller carrier.

Other airline stocks were down too, as oil prices surged to a four-month high and raised the threat of higher costs for jet fuel.

THE SPARK: American tried to wrap up a contract with pilots this week by making an offer — two options, actually — before it was accepted by union negotiators. Union leaders balked, however, leaving the talks in limbo.

THE BIG PICTURE: A deal with the Allied Pilots Association could establish a precedent for deals with flight attendants and mechanics, who are represented by separate unions.

Leaders of all three unions, and many of their members, are angry about what they see as overly generous executive compensation while workers continue to labor under wage and benefit cuts they accepted in 2003.

American claims that it spends at least $600 million more on labor than it would if it had the same work rules as other airlines. It offered pilots pay raises in exchange for more flexible rules and longer hours.
AMR, which also owns the American Eagle regional airline, is also struggling with high fuel costs and hasn't turned an annual profit since 2007 — it's lost $4 billion since then.

THE ANALYSIS: Some analysts suggested this week that the lack of labor deals would increases chances that AMR could file for bankruptcy protection. Rodman & Renshaw LLC analyst Daniel McKenzie said Wednesday that the company and the pilots' union are close enough to compromise. He said AMR's future will hinge on fuel prices and routes, and it is shrinking in several key markets.

"AMR needs to resign itself to being a smaller airline turbocharged by deeper domestic and international alliance relationships" with other airlines, McKenzie said. He added that any such restructuring must be accompanied by new labor contracts.

SHARE ACTION: AMR shares fell 11 cents, or 5.5 percent, to $1.82 in afternoon trading. That's near the 52-week intraday low of $1.75, hit on Oct. 3. If they drop below $1.75, they would be at their lowest levels since March 2003, when the company was on the verge of bankruptcy.

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