BEFORE THE BELL -2: US HOT STOCKS TO WATCH

Among the companies whose shares are expected to actively trade in Friday's session are Goldman Sachs Group Inc. (GS), Bank of America Corp.'s (BAC) and Google Inc. (GOOG). Goldman Sachs shares climbed 4.7% to $152 in premarket trading, adding to a 4.4% gain before the end of Thursday's trading session, as the investment bank announced a settlement of Securities and Exchange Commission's lawsuit accusing the firm of misleading investors in a subprime mortgage product. The SEC said Goldman will pay $550 million and reform its business practices to settle the charges. Goldman did not admit or deny the allegations but acknowledged making a mistake in its marketing materials. Bank of America's second-quarter earnings fell a less-than-expected 3.1% as the big bank's revenue declined, but it said it benefited from lower credit costs and the sale of non-core assets. "We improved our capital foundation through retained earnings, and credit quality improved even faster than expected," said President and Chief Executive Brian Moynihan. Shares fell 2.4% premarket to $15.02. Google's second-quarter earnings climbed 24% as the Internet giant's advertising revenue accelerated growth, and the company noted very strong growth in its emerging businesses. Still, shares fell 4.7% to $470.78 in premarket trading, as the company's earnings missed Wall Street's expectations. General Electric Co.'s (GE) second-quarter earnings rose 16% as the conglomerate posted its first profit increase since the financial crisis began, aided by a stronger performance at its GE Capital unit. The result beat analysts' expectations, but shares were recently down 0.7% premarket to $15.15. The Food and Drug Administration rejected Vivus Inc.'s (VVUS) weight-loss drug Qnexa, sending down shares of rival weight-loss-drug makers Arena Pharmaceuticals Inc. (ARNA) and Orexigen Therapeutics Inc. (OREX) shortly before the close of regular trading Thursday. The other two companies, which had seen strong gains for most of Thursday's session, face similar panels in September and December, respectively. The federal advisory panel Thursday narrowly rejected Qnexa on worries that potential safety concerns could be magnified if the drug was used by millions of patients. Vivus shares were down 55% to $5.46 in premarket trading. Lazard Capital recently projected they are worth $3 to $4 if the drug was rejected. Orexigen's shares were recently flat premarket, while Arena's climbed 20% to $4.70, after falling 8.4% during the regular session Thursday. Polycom Inc.'s (PLCM) second-quarter profit dropped 18% on higher overhead costs, which masked revenue and gross-margin growth at the maker of audio and data conferencing products. Shares dropped 9.4% to $29 premarket. Mattel Inc.'s (MAT) second-quarter profit more than doubled on improved sales and margins, but earnings fell slightly short of analysts' expectations. The largest U.S. toy maker by revenue has seen results improve recently after struggling with dwindling sales during the recession. Its iconic Barbie has also rebounded, with second-quarter sales up 6% after a 15% drop in the prior-year period. Shares fell 4.1% premarket to $22.05. Watch List Advanced Micro Devices Inc.'s (AMD) second-quarter loss narrowed on sharply higher revenue and margins. The chip maker's results topped expectations. AngioDynamics Inc.'s (ANGO) fiscal fourth-quarter profit grew 29% as the company reported higher across-the-board sales, although margins were pressured by a difficult pricing environment. Still, results for the maker of minimally invasive medical devices topped Wall Street's expectations. AT&T Inc. (T) said it reached a deal that will keep Cablevision Systems Corp.'s (CVC) IFC, AMC and WE cable networks available to customers of its U-verse television service, which has 2.3 million subscribers. BP PLC (BP, BP.LN) said the flow of oil into the Gulf of Mexico stopped during a test to see whether a recently placed cap on its broken well can entirely seal it off. Central Garden & Pet Co. (CENT) announced a $100 million stock-buyback effort, which equals nearly 15% of the company's market value. It makes lawn-and-garden and pet supplies under brands such as Pennington and Adams. The new stock-buyback plan comes as Central Garden has nearly completed a $100 million repurchase effort launched four years ago. Cubist Pharmaceuticals Inc.'s (CBST) second-quarter profit grew 18% on double-digit percentage sales growth of its flagship product Cubicin. The biopharmaceutical company's results topped Wall Street's expectations. Omega Healthcare Investors Inc.'s (OHI) board approved a 13% increase in its quarterly dividend, the real estate investment trust's second hike this year. People's United Financial Inc. (PBCT) has agreed to acquire Smithtown Bancorp Inc. (SMTB) for $60 million in cash and stock and LSB Corp. (LSBX) for $96 million as the Connecticut-based bank looks to beef up its presence on Long Island and in the Boston area. The news came as Smithtown reported a second-quarter loss of $29.2 million, including a $15.7 million write-down of credits the bank could have used to offset future income-tax bills. People's reported a 37% drop in second-quarter earnings on lower noninterest income. Valmont Industries Inc.'s (VMI) second-quarter profit dropped 61% as its largest business--making utility support structures--posted significantly lower sales and earnings. The company gave a more downbeat forecast for 2010 earnings, saying they are expected to fall 35% from a year earlier, rather than the 25% decline previously predicted. -By Dow Jones Newswires; write to hotstocks@dowjones.com (END) Dow Jones Newswires July 16, 2010 07:42 ET (11:42 GMT)