Alcoa, AIG, Disney, First Solar, IBM, RBS: U.S. Equity Preview

By Whitney Kisling and Elizabeth Campbell

Oct. 7 (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 7:30 a.m. in New York, unless otherwise specified.

Advanced Micro Devices Inc. (AMD US) surged 15 percent to $4.85. The computer-chip maker that's struggling to compete with industry-leader Intel Corp. (INTC US) and the Advanced Technology Investment Company of Abu Dhabi plan to create a semiconductor manufacturing company to address global foundry demand. The Mubadala Development Co. also will boost its investment in AMD to 19.3 percent, AMD said.

Alcoa Inc. (AA US): The largest U.S. aluminum producer may report later today a fourth straight quarterly decline in profit on lower prices, slowing demand and costs from shutting down a Texas smelter, according to analysts. The shares lost 5.9 percent to $18.11 in regular trading yesterday.

American International Group Inc. (AIG US) jumped 7.2 percent to $4.15. Axa SA (AXA US), the Paris-based insurer, said it may consider buying U.S. and Asian assets of the U.S. insurer that agreed to be bailed out by the U.S. government. Yesterday, AIG said it was seeking a ``strategic partner'' to buy a minority stake in its Asian life insurance unit.

Bank of America Corp. (BAC US) fell 8.8 percent, to $29.40. The lender said it will cut its dividend by 50 percent and sell $10 billion in common shares after third-quarter profit slumped 68 percent.

Deutsche Bank AG (DB US) lost 8.2 percent to $59.54. Germany's biggest bank said it doesn't plan to raise capital and expects to report a tier I capital ratio of about 10 percent by the end of the third quarter. Regulators monitor the ratio to asses a bank's ability to absorb loan losses. In July, Deutsche Bank said its target range was 8 percent to 9 percent.

First Solar Inc. (FSLR US) slid 9 percent to $146.50. The world's largest maker of thin-film solar modules was cut to ``sell'' from ``buy'' at Goldman Sachs Group Inc. SunPower Corp. (SPWR US) was also downgraded to ``sell.'' The solar-module marker rose 8.2 percent to $65.75 in late trading yesterday.

International Business Machines Corp. (IBM US) fell 0.4 percent to $100.22. The world's biggest seller of computer services was cut to ``equal-weight'' from ``overweight'' at Barclays Plc on the ``risks from a weakening economy and large exposure to financial services.'' Barclays reduced its fourth- quarter earnings-per-share estimate to $2.88 from $3.19 and its share-price estimate to $108 from $130.

Ivanhoe Energy Inc. (IVAN US): The oil and natural-gas producer will sign an oil production deal this week with state- owned energy company PetroEcuador, Mines and Oil Minister Galo Chiriboga said. The stock dropped 12 percent to $1.10 in regular trading yesterday.

Regis Corp. (RGS US) fell 48 cents, or 1.9 percent, to $24.60 in late trading yesterday. The company, which runs Supercuts and Cost Cutters hair salons, forecast fiscal 2009 profit from continuing operations of as much as $2.03 a share. In August, the company forecast as much as $2.29.

Royal Bank of Scotland Group Plc (RBS US) led a decline in British banks. The U.K. government may invest at least 45 billion pounds ($79 billion) in the country's biggest banks to boost capital depleted by mortgage-related losses, three people with knowledge of the situation said. The government already bailed out Bradford & Bingley Plc and handled the takeover of HBOS Plc.

RBS fell 28 percent to $1.90. Barclays Plc (BCS US) slid 10 percent to $21.01. Lloyds TSB Group Plc (LYG US) fell 6.4 percent to $16.46.

RBS also had its credit rating cut by Standard & Poor's for the first time in almost a decade because of its deteriorating financial state.

Royal Caribbean Cruises Ltd. (RCL US): The world's second- largest cruise operator said it will sell its half-interest in Island Cruises to First Choice Holidays Ltd., the other 50 percent owner in the joint venture. The stock dropped 1.8 percent to $17.96.

SLM Corp. (SLM US): The U.S. student lender known as Sallie Mae said it reduced commitments under its FFELP asset-backed commercial paper program to $21.9 billion from $26 billion and received fee rebates of $10.2 million after the cut. The stock lost 4.2 percent to $9.59 in regular trading yesterday.

Walt Disney Co. (DIS US) fell 2.7 percent to $27.50. The second-biggest U.S. media company was downgraded to ``underperform'' from ``neutral'' by Merrill Lynch & Co., which said that ``almost 60 percent of Disney's revenue is economically sensitive.'' Merrill cut its 2009 earnings-per-share forecast to $2.40 from $2.47 and its share-price projection to $27 from $34.

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