Patterson Companies, S&P Slip Into Reverse

Not even Warren Buffett stepping to the plate could keep the Standard & Poors
500 Index from falling more than 16 points, or 1.35%, in the morning session,
sending it to around 1,161. With U.S. consumer confidence at an all-time low,
inflation heating up in China and Europe a long way from resolving its economic
woes, investors were pulling back after having the S&P up more than 3% for the
last five days. Declining stocks outnumbered those advancing by better than
2-to-1. Patterson Companies (NASDAQ: PDCO ) was leading the S&P down, trading
about 9% lower, or more than $2.60 per share, at under $27.30. Earnings this
morning from the medical equipment supplier revealed that net income has fallen,
greatly displeasing Wall Street. Up more than 2% for the week, Patterson
Companies is down about 15% for the quarter. Hormel Foods (NYSE: HRL ) was down
around 5% to about $26.95, a loss of more than $1.50 per share. Even though
profits rose, earnings released this morning did not please investors. Down
about 5% for the month, Hormel is up more than 35% for the year thanks to its
sales growth overseas. Applied Materials (NASDAQ: AMAT ) was off about 40 cents,
losing around 3.35% per share to trade under $11 after issuing a gloomy outlook
for the fourth quarter. Applied Materials projected lower personal computer
sales and a slowing economy. Earnings per share are expected to fall by more
than a third. While up almost 8% for the year, Applied Materials is down about
20% for the quarter. Citigroup (NYSE: C ) was higher by about 5% to over $29.80,
gaining more than $1.30 per share. The financial sector was leading the markets
this morning as Buffetts Berkshire Hathaway (NYSE: BRK.A ) announced it was
investing $5 billion in Bank of America. Citigroup is off about 30% for the
quarter. The tumult in the financial sector has Citigroup at a beta of 2.5.
Morgan Stanley (NYSE: MS ) also was leading the sector up, rising about 6% to
around $17.30, gaining around $1 a share. Morgan Stanley is down more than 30%
for the month and more than 30% for the year. It has a beta of 1.4. Also up was
Goldman Sachs (NYSE: GS ), around $1, or about 0.9%, to over $111 a share. In
2008, Goldman Sachs benefited from a $5 billion infusion from Warren Buffett.
Goldman is down more than 20% for the month. With a beta of 1.3, Goldman is down
more than 23% for the year. Jonathan Yates does not own any of the stocks
mentioned in this article.