US HOT STOCKS: Steelcase, Sonic Active In Late Trading

U.S. stocks closed lower Monday. The Dow Jones Industrial Average fell 8.23 points to 10442.41, the Standard & Poor's 500 dropped 4.31 points to 1113.20 and the Nasdaq Composite fell 20.71 points to 2289.09. Among the companies whose shares are actively trading in the after-hours session are Steelcase Inc. (SCS), Sonic Corp. (SONC) and PetSmart Inc. (PETM). Steelcase posted a fiscal first-quarter loss as the office-furniture maker recorded a $11.4 million charge related to the government's health-care reform legislation, although margins improved due to cost cutting. The office-products company also projected a second-quarter profit of 1 cent to 5 cents a share, on revenue of $560 million to $585 million. Analysts surveyed by Thomson Reuters expected 3 cents and $576 million, respectively. Shares fell 2.5% to $7.45 in late trading. Sonic's fiscal third-quarter earnings fell 35% as the drive-in restaurant chain's sales weakness continued. Earnings per share fell much further than analysts expected. Shares fell nearly 2% to $9.11 in recent late trading. PetSmart raised its quarterly dividend 25% and authorized a new $400 million share-repurchase program because the company said it generates more cash that it needs to reinvest in the business. A year ago, the nation's largest retailer of services and products for pets more than tripled its quarterly dividend and authorized a $350 million stock buyback. Shares inched up 0.5% to $31.85. Royal Gold Inc. (RGLD) announced plans to offer 6.5 million shares of common stock to raise money for general corporate purposes, paying down debt and funding acquisitions. The owner of royalties on precious-metal mines and interests fell 2.2% to $52.20 in late trading as the offering could dilute shares outstanding by up to 14%. Shares fell 2% to $52.29. Regular Session Movers: Material stocks, particularly those most closely tied to the worldwide economy, climbed aggressively as the Chinese government announced plans to allow more flexibility into the exchange rate on its currency, alleviating fears that a tightening there would clamp down on demand. Aluminum giant Alcoa Inc. (AA, $11.72, +$0.61, +5.49%) was among the biggest gainers of the day, while its smaller rival Century Aluminum Corp. (CENX, $10.84, +$0.80, +7.97%) also climbed. For miners, Cliffs Natural Resources Inc. (CLF, $57.89, +$1.67, +2.97%) and Freeport-McMoran Copper & Gold Inc. (FCX, $68.08, +$2.18, +3.31%) rose, while steel companies U.S. Steel Corp. (X, $44.97, +$1.56, +3.59%) and AK Steel Holding Corp. (AKS, $14.26, +$0.36, +2.59%) also rose. Meanwhile, coal companies were also getting a boost as Credit Suisse listed them among those to benefit and as data from China showed imports of coal did indeed remain well above year-ago levels in May. Among the gainers were Massey Energy Co. (MEE, $32.05, +$0.75, +2.40%), Peabody Energy Corp. (BTU, $42.32, +$1.06, +2.57%), Patriot Coal Corp. (PCX, $16.20, +$0.30, +1.89%) and Arch Coal Inc. (ACI, $22.82, +$0.17, +0.75%). Ralcorp Holdings Inc. (RAH, $57.28, -$4.89, -7.87%) agreed to buy American Italian Pasta Co. (AIPC, $52.66, +$10.93, +26.19%) for $1.2 billion and has closed on two small Canadian cracker makers. Separately, Ralcorp projected fiscal third-quarter earnings below analysts' average estimate. The downbeat forecast was attributed to cereal trends including lower returns on promotional spending and the impact of branded competition. California Pizza Kitchen Inc. (CPKI, $16.83, -$2.06, -10.91%) lowered its second-quarter expectations as results in recent months came in worse than expected. The company on Monday cut its second-quarter earnings projection to 10 cents to 15 cents a share from May's target of 24 cents to 26 cents, above analysts' then-expectations. BP PLC's (BP, $30.33, -$1.43, -4.50%) U.S. shares fell following a statement late Friday indicating its partner in the leaking Gulf of Mexico oil well, Anadarko Petroleum Corp. (APC, $43.45, +$0.88, +2.07%), plans to refuse paying its share of escalating cleanup costs. Meanwhile, BP said costs for the Gulf spill response reached $2 billion as it continues work to contain the leak and to pay claims for damages. Shares of card companies Visa Inc. (V, $80.90, +$3.86, +5.01%) and MasterCard Inc. (MA, $223.34, +$9.08, +4.24%) rose Monday afternoon as the federal financial overhaul package aimed at the fees collected on debit cards was altered by an agreement between lawmakers. U.S. House and Senate Democrats said they reached an agreement that is likely to ensure a more limited proposal on so-called "interchange" language remains in the broader regulatory overhaul legislation. Affymax Inc. (AFFY, $7.18, -$15.83, -68.80%) provided study results for its Hematide treatment of anemia in chronic renal failure patients, saying primary efficacy endpoints were met in each of four Phase-3 studies. But its shares sank as the company said a subgroup of nondialysis patients saw a higher frequency of CSE events, which can include death, stroke, congestive heart failure and other problems, in the group given Hematide than in a comparator. The issues with Affymax's secondary endpoints are viewed as good news for competitor Amgen Inc. (AMGN, $56.52, +$1.32, +2.39%). Hematide aims to be a longer-lasting alternative to Amgen's anemia drugs Aranesp and Epogen. U.S.-based Valeant Pharmaceuticals International (VRX, $46.90, +$1.03, +2.25%) and Canada's Biovail Corp. (BVF, $16.67, +$2.07, +14.18%) said Monday they plan to merge to create a specialty pharmaceuticals group focusing on neurological products, dermatology and generic medicines in Canada and emerging markets. Energy services companies Acergy S.A. (ACY, $21.79, +$0.64, +3.03%) and Subsea 7 Inc. (SUB.OS) announced they will merge into one entity called Subsea 7. The deal combines two companies that provide subsea construction and engineering services to the oil and gas industry. It comes as the industry faces mounting pressure over safety and environmental concerns Amazon.com Inc. (AMZN, $122.55, -$3.28, -2.61%) cut the price of its Kindle e-reader by $70 to $189, in the latest sign of a brewing price war among makers of digital reading devices. Amazon.com Inc. (AMZN, $122.55, -$3.28, -2.61%) cut the price of its Kindle e-reader by $70 to $189, in the latest sign of a brewing price war among makers of digital reading devices. BioSante Pharmaceuticals Inc. (BPAX, $1.89, -$0.20, -9.57%) said it has gotten commitments from several institutional investors, including Deerfield Management Co., to buy $15 million of stock and warrants. CNB Financial Corp. (CCNE, $11.44, -$0.31, -2.64%) said it would sell 3.37 million shares at $10.25 each, a 13% discount to Friday's closing price. The bank holding company said it would use proceeds for general purposes, including expanding its business and investments in its subsidiary. Hilliard Lyons raised its stock-investment rating on medical-technology company Computer Programs and Systems (CPSI, $38.02, +$1.71, +4.71%) to long-term buy from neutral, saying the stock has fallen 15% over the past week, and analyst Tom Carpenter feels this is a buying opportunity. (MORE TO FOLLOW) Dow Jones Newswires June 21, 2010 16:49 ET (20:49 GMT)