Shares of Continental Airlines and United Airlines parent UAL Corp. fell in Friday premarket trading after the legacy carriers confirmed late Thursday their merger talks have ended. Continental will instead join United's Star Alliance in a move to boost revenue and offset rising fuel costs.
The deal ends alliance negotiations between Continental and American Airlines, the nation's biggest carrier, and British Airways. In premarket trading, UAL shares fell 7.5 percent to $7.50, having closed at $8.11 Thursday. Continental shares slipped 6 percent to $14.65; they closed Thursday at $15.59.
Shares of Merrill Lynch & Co. slipped more than 4 percent in Friday premarket electronic trading, as media reports said rumors are swirling that the investment bank may issue a profit warning. Merrill Lynch spokeswoman Jessica Oppenheim declined to comment on market rumors.
Shares fell to $36.20, having closed Thursday's regular session at $37.69.
Personal computer products maker Logitech International SA dropped $1.69, or 6 percent, to $28.30 in premarket trading, as Goldman Sachs downgraded shares from "Neutral" and placed the stock on its Conviction Sell List.
Analyst Simon F. Schafer said that although Logitech has a strong track record and exposure to higher growth product categories, the stock's value fails to account for a material slowdown in computer peripherals among European retailers. He also said rising casing material and freight costs are likely to pressure margins.
Shares closed at $29.99 on Thursday.
Meanwhile, shares of Huntington Bancshares Inc. rose nearly 17 percent in premarket trading. On Thursday, the bank said its full-year chargeoffs will come in at the high end of its forecast amid a weak economy, but not exceed expectations. Analysts said the update provides near-term clarity for investors.
"The fact that HBAN's 2Q08 credit results will apparently not follow the same negative path as some of its nearby peers should put some immediate concerns to rest and help the stock price to stabilize," Sandler O'Neill & Partners analyst R. Scott Siefers said in a note to clients.
Shares rose 88 cents to $6.02 in premarket trading, having closed at $5.14 Thursday.
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