H-P surges as Whitman paints rosier outlook

SAN FRANCISCO (MarketWatch) — Hewlett-Packard Co. jumped by its biggest percentage margin since May as Chief Executive Meg Whitman painted a more upbeat outlook for the computer giant on Wednesday.

Gainers

Shares of Hewlett-Packard (HPQ) rallied 5.1% as Whitman told analysts that the company's revenue is expected to stabilize with pockets of growth in 2014. The CEO also said she is "comfortable" with H-P's progress and talked up its emphasis on "the New Style of IT."

Shares of Jos. A. Bank Clothiers Inc. (JOSB)  surged 7.4% after the men's apparel company said it made a non-binding proposal to buy Men's Wearhouse (MW)  for $48 a share in cash. Men's Wearhouse spurned the bid but its stock still soared 28%.

"We believe Jos. A. Bank's unsolicited proposal is opportunistic, subject to unacceptable risks and contingencies, and would deprive our shareholders of the value inherent in Men's Wearhouse for inadequate consideration," said Bill Sechrest, lead director of Men's Wearhouse board, in a statement.

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Alcoa Inc. shares (AA)  rose 3.9%. The aluminum producer late Tuesday reported third-quarter results that exceeded market expectations.

AT&T Inc. (T)  shares climbed 2.8%. The largest phone company in the U.S. is on the verge of finalizing a deal to sell its wireless towers to Crown Castle International Corp. (CCI) for as much as $5 billion, Bloomberg News reported on Tuesday.

CenturyLink Inc. (CTL)  shares rose 3%. The stock is one of the top net payout yield stocks so far in October, according to Seeking Alpha.

Decliners

Yum Brands Inc. (YUM)  shares sank 7.7%. The parent company of KFC, Taco Bell and Pizza Hut late Tuesday said its quarterly profit slumped almost 70% due to weakness in its Chinese operations. Yum's third-quarter profit fell to $152 million, or 33 cents a share, from $471 million, or $1 a share, a year earlier.

Fastenal Co. (FAST)  shares slid 7%. The company, which sells fasteners and industrial and construction supplies, on Wednesday reported third-quarter earnings of $119.4 million, or 40 cents a share, on revenue of $858.4 million. Analysts surveyed by Thomson Reuters had projected earnings of 41 cents and revenue of $863 million.

Netflix Inc. (NFLX)  shares shed 2.8%. Netflix and Tesla Motors Inc. (TSLA)   were recently identified as "momentum" stocks by famed short seller Jim Chanos of Kynikos Associates who cautioned that such shares can become extremely volatile since their market caps are much larger than tradable floats. Shares of Tesla are off for a second day, falling over 3%.

Ariad Pharmaceuticals Inc. (ARIA)  shares plunged 69% after the company said the Food and Drug Administration put a partial hold on all new patient enrollments in clinical trials for its leukemia drug Iclusig after some patients suffered from serious conditions.

Internet-related stocks, viewed as a high-growth sector by analysts, were again weak. Zynga Inc. (ZNGA)  declined 0.9%, Groupon Inc. (GRPN)  lost 0.9%, Pandora Media Inc. (P) dropped 1.7%, and Yelp Inc. (YELP)  retreated 0.1%.

Regeneron Pharmaceuticals Inc. (REGN)  shares extended losses for a third session to shed 3.8%. The shares have been very active in recent weeks due to strong interest in its cholesterol drug alirocumab.

Gannett Co. (GCI)  fell 3.4%, among the worst S&P 500 (SPX) laggards. UBS, which rates the stock at neutral, cut its price target to $25 from $27.

Top tickers trending

$COST: Costco Wholesale Corp. (COST)  shares recovered from earlier losses to rebound 2.3%. The retailer reported fiscal fourth-quarter results that fell short of analysts' expectations.

$FDO: Family Dollar Stores Inc. (FDO)  shares fell 1.7% after the discount retailer said its fiscal fourth-quarter earnings rose 26%. However, its comparable-store sales were weaker than expected and the company gave a cautious forecast.

$WMT: Shares of Wal-Mart Stores Inc. (WMT)  edged up 0.2% after the world's biggest retailer said it ended its retailing joint venture in India with Bharti Enterprises Ltd. Wal-Mart plans to expand on its own in the south Asian country.

$JCP: J.C. Penney Co. (JCP)  shares rose for a second day to add 2.1%. The retailer on Tuesday said same-store sales in September fell 4% from a year earlier but were up 5.8% from August, part of an "improving trend" in sales.