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Wednesday, July 1

Drug stocks mixed; Myriad tanks on outlook(9:42 am ET)
BOSTON (MarketWatch) -- Drug stocks were mixed early Wednesday while shares of Myriad Genetics (MYGN: news, chart, profile) tanked on news that 2009 revenue would come in below its previous forecast. The NYSE Arca Pharmaceutical Index ($DRG: news, chart, profile) rose 0.5% to 53.26 as the NYSE Arca Biotechnology Index ($BTK: news, chart, profile) fell 0.4% to 694.21. The Dow Jones Industrial Average (DJII: news, chart, profile) climbed about 70 points to 8,519. Shares of Myriad dropped nearly 25% to $27.31.

Constellation Brands profit falls (7:49 am ET)
NEW YORK (MarketWatch) -- Drinks firm Constellation Brands Inc. (STZ: news, chart, profile) said on Wednesday that its fiscal first quarter net income fell to $6.5 million, or 3 cents a share, from $44.6 million, or 20 cents a year ago. Constellation said net sales in the quarter fell to $791.6 million, from $931.8 million a year ago. Constellation also said it sees its full year 2010 net income between 97 cents a share and $1.07 a share. It expects 2010 free cash flow of $230 million to $270 million.

General Mills sees adjusted 2010 net up 6% to 7%(6:06 am ET)
TEL AVIV (MarketWatch) -- General Mills, (GIS: news, chart, profile) the Minneapolis cereal giant, estimated fiscal 2010 earnings at $4.20 to $4.25 a share, assuming no impact from marking to market the valuation of commodity positions. The net income will include such valuation but the company can't predict how it will affect the bottom line, General Mills said. The estimate further includes a negative foreign-exchange impact of 15 cents a share. The estimate reflects growth of 6% to 7% from fiscal 2009's profit of $3.98 a share. For fiscal 2010, FactSet Research's survey of analysts reflects a consensus estimate of $4.18 a share.

General Mills 4th-period net nearly doubled(5:56 am ET)
TEL AVIV (MarketWatch) -- General Mills, (GIS: news, chart, profile) the Minneapolis cereal giant, reported fiscal fourth-quarter net income nearly doubled on 5% higher net sales. For the quarter ended May 31, net income reached $358.8 million, or $1.07 a share, from $185.2 million, or 53 cents, in the year-earlier quarter. On an adjusted basis, earnings were 86 cents a share against 73 cents. Sales advanced to $3.65 billion from $3.47 billion. A survey of analysts by FactSet Research produced consensus estimates of 81 cents of profit on $3.7 billion of sales. General Mills reported that foreign-currency translations reduced sales growth in the quarter by three percentage points.

National Express hit by rail losses, CEO to leave(2:35 am ET)
LONDON (MarketWatch) -- U.K. bus and rail operator National Express Group (UK:NEX: news, chart, profile) said Wednesday that all of its businesses experienced difficult market conditions in the first half of the year as it also announced that CEO Richard Bowker will leave at the end of August. The group said higher hedged fuel costs are expected to add 11 million pounds ($18.1 million) of costs in the first half of the year, while increased pension costs will add a further 3 million pounds. The group said it's planning cost cuts that will save 40 million pounds, but profitability will be hit in the first half, mainly due to a loss of over 20 million pounds from its east coast franchise. Bowker is leaving to become CEO designate of Union Railway in the UAE. John Devaney, currently non-executive chairman, will become executive chairman, and Ray O'Toole will become chief operating officer while the board seeks a new CEO.

Wood Group sees market conditions unchanged(2:23 am ET)
LONDON (MarketWatch) -- John Wood Group (UK:WG: news, chart, profile) , which provides services to the energy industry, said Wednesday that although oil prices have strengthened over recent weeks, market conditions remain broadly similar to those earlier in the year. The group said performance in the year to data therefore remains in line with expectations.

Sodexo revenue up 11% in quarter, 8.8% in 9 months(1:33 am ET)
TEL AVIV (MarketWatch) -- Sodexo, (SDXAY: news, chart, profile) (FR:SW: news, chart, profile) the Paris provider of food and facilities-management services, reported that fiscal third-quarter revenue rose 11% to 3.77 billion euros ($5.29 billion) from 3.4 billion in the year-earlier quarter. For the nine months ended May 31, revenue rose 8.8% to 11.4 billion euros from 10.48 billion a year earlier. For the nine months, organic growth -- excluding acquisitions -- was 3.4%, and currency effects added 1.7% to the revenue number. Sodexo "is on track to achieve its objectives" for the fiscal year, Chief Executive Michel Landel said in a statement on Wednesday.
Tuesday, June 30

Sealy swings to quarterly loss (4:11 pm ET)
SAN FRANCISCO (MarketWatch) -- Sealy Corp. [s:zz] late Tuesday reported it swung to a net loss of $5.2 million, or 6 cents a share, from a profit of $12 million, or 13 cents a share, in the same quarter last year. The quarterly results included charges of 13 cents a share related to the company's refinancing of its senior credit facility and rights for convertible notes. Revenue slid to $298.5 million from $375.4 million a year ago, the Trinity, N.C.-based bedding products manufacturer said. Analysts surveyed by FactSet Research, on average, had forecast earnings of 5 cents a share on revenue of $299.6 million.

Citi downgrades Southern Co. to hold(9:04 am ET)
NEW YORK (MarketWatch) -- Citi on Tuesday downgraded shares of Southern Co. (SO: news, chart, profile) to hold from buy after the utility firm broke though the broker's target price of $31.50 a share. Analyst Brian Chin said in a note to clients that Southern Co.'s ability to win rate increases may slow down in the face of the recession. Chin reiterated his price target of $31.50 a share.