3Com, Atmel, Cache, Rio Tinto, Citigroup: U.S. Equity Preview

By Elizabeth Campbell and Whitney Kisling

Sept. 23 (Bloomberg) -- The following companies may have unusual price changes in U.S. trading today. Stock symbols are in parentheses, and share prices are as of 8:40 a.m. in New York, unless otherwise specified.

3Com Corp. (COMS US) gained 25 cents, or 12 percent, to $2.34. The networking-equipment maker reported its first quarterly profit since 2000, buoyed by a patent settlement and sales in China.

Airlines gained as crude oil fell. Northwest Airlines Corp. (NWA US) rose 4.2 percent to $10.45. Delta Air Lines Inc. (DAL US) gained 4.1 percent to $9.06. US Airways Group Inc. (LCC US) added 3.5 percent to $7.10. UAL Corp. (UAUA US), which owns United Airways, added 3.4 percent to $12.20.

Atmel Corp. (ATML US) rose 4.7 percent to $3.80. The maker of semiconductors was rated ``buy'' in new coverage at UBS AG.

Cache Inc. (CACH US) dropped 11.6 percent to $8.40. The women's clothing retailer cut its third-quarter and full-year forecasts and was lowered to ``hold'' from ``buy'' by analyst Elizabeth Pierce at Roth Capital Partners.

Circuit City Stores Inc. (CC US) rose 10 cents, or 5.9 percent, to $1.80. The electronics retailer said Chief Executive Officer Phil Schoonover will leave after overseeing two years of losses.

Citigroup Inc. (C US) fell 14 cents, or 0.7 percent to $20.15. The New York-based bank's third-quarter and full-year earnings estimates were cut by Oppenheimer & Co. analyst Meredith Whitney, who cited charges linked to auction-rate securities and the bailout of Fannie Mae and Freddie Mac. Wachovia Corp. (WB US), the fourth-largest U.S. bank, had its third-quarter, fourth- quarter, and full-year estimates cut to a greater loss by Oppenheimer's Whitney. The shares fell 8.8 percent to $15.14.

Gap Inc. (GPS US) lost 27 cents to $19.08 in late trading yesterday. The largest U.S. clothing retailer agreed to acquire Athleta Inc. for about $150 million in cash to broaden its line of women's athletic apparel.

General Electric Co. (GE US) fell 2.5 percent to $25.50. GE was cut to ``neutral'' from ``buy'' at Merrill Lynch and Co. Analysts said GE Capital should facing ``growing fundamental pressures'' and lowered their 2009 earnings per share forecast, 2010 estimate, and share-price estimate.

ImClone Systems Inc. (IMCL US) added 5.7 percent to $62.80. Bristol-Myers Squibb Co. (BMY US) increased an offer to buy 83 percent of the maker of only one product, Erbitux, to $62 from $60 a share. ImClone rejected the $60-a-share offer July 31.

Bristol-Myers, the drug company that owns the largest share of ImClone, rose 21 cents, or 1 percent, to $20.83.

Rio Tinto Group American depositary receipts (RTP US) lost 9.7 percent to $299.90. The London-based iron-ore producer that's fending off a hostile $130 billion takeover bid from BHP Billiton Ltd. (BHP US) and other miners may have smaller-than-expected price increases next year as steelmakers cut output because of slowing economic growth and the global credit crisis, analysts said.

BHP Billiton, Rio's rival, fell 3.9 percent to $62.61.

Union Pacific Corp. (UNP US) rose 1.6 percent to $74. The largest U.S. railroad said it forecasts third-quarter earnings of $1.28 to $1.33 a share on lower diesel-fuel costs and better operating efficiency. The company earlier projected profit of $1.10 to $1.20.

Washington Mutual Inc. (WM US) fell 7.5 percent to $3.08. The lender that put itself up for sale last week had 6 billion euros ($8.8 billion) of mortgage-backed covered bonds downgraded by Moody's Investors Service. Moody's reduced its rating one step to Baa1, the third-lowest investment-grade ranking, from A3, the New York-based ratings company said in a statement today.

Waste Connections Inc. (WCN US) fell 4 percent to $37.05 in regular trading yesterday. The trash collector for 1.5 million customers in the western and southern U.S. lowered its sales outlook for the third quarter and said it would issue 10 million shares.

To contact the reporters on this story: Elizabeth Campbell in New York ecampbell11@bloomberg.net; Whitney Kisling in New York at wkisling@bloomberg.net.