Movers: AT&T, Countrywide, E*Trade, Starbucks, Bear Stearns

AT&T (T) falls 4.4% amid cautious comments made by management at Citigroup conference. The telecom company reportedly notes softness in broadband, phone line businesses.

Countrywide Financial (CFC) plunges 28% to a new 52-week low of $5.48 (and traded as low as $5.05) after the New York Times reports that CFC fabricated documents related to bankruptcy case of a Pennsylvania homeowner, court records show, raising new questions about the business practices of CFC. Separately, CFC reportedly denied market speculation it might seek bankruptcy protection. S&P maintains hold.

E*Trade Financial (ETFC) drops 20% to $2.25 -- a new 52-week low. According to a newswire report, ETFC stated, "upon further review of the core business and as part of last month's announced turnaround plan, ETFC has decided to divest itself completely of its institutional sales business as the scale of the business did not warrant the expense of capital."

Starbucks (SBUX) appoints Howard Schultz, chairman, to take on the additional role of chief executive officer, effective immediately, replacing Jim Donald, who is leaving the Company. Starbucks also says it will slow U.S. store growth and accelerate international expansion.

Bear Stearns Companies (BSC) chairman and CEO James Cayne, is stepping down as CEO, according to the Wall Street Journal. The article stated that on Monday, Cayne started notifying the board that he plans to relinquish his CEO post but remain as chairman. Cayne is expected to be succeeded by BSC President Alan Schwartz.

Microsoft (MSFT) agrees to make offer to acquire Fast Search & Transfer ASA, a leading provider of enterprise search solutions, through a cash tender offer for 19.00 Norwegian kroner (NOK) per share, or about $1.2 billion total value.

KB Home (KBH) posts $9.99 fourth quarter loss per share, vs. $1.04 loss from continuing operations on 31% lower total revenues.

Circuit City Stores (CC) posts 11% lower December same-store sales, 8.9% lower total sales. Comps for flat panel televisions increased by a high-single-digit rate, but total t.v. comps decreased by low double digits, as significant declines in projection and tube televisions more than offset the flat panel sales increase.

Isis Pharmaceuticals (ISIS) inks deal with Genzyme (GENZ), whereby Genzyme will develop, commercialize mipomersen, ISIS's lipid-lowering treatment for high risk cardiovascular patients. GENZ will purchase 5 million ISIS shares at $30 per share. Upon completion of final contracts, GENZ will pay ISIS a $175 million up-front mipomersen license fee. In addition to initial $325 million, ISIS to potential to receive "significant" milestone payments for mipomersen, which is currently in Phase 3 trials. Once the product is launched, the two companies will share profits. Needham raises ISIS's target price, reiterates strong buy.

Stanley Works (SWK) sees fourth quarter EPS of about $1.06-$1.11, which includes $0.04 for resolution of legal matters, vs. previous guidance of $1.10-$1.15. It now sees 2007 EPS from continuing operations of about $3.95-$4.00. It says free cash flow will likely exceed $450 million, surpassing previous estimate of $400-$450 million. It sees 2008 EPS of $4.20-$4.40 on organic sales growth of flat to 1%, with its Construction and DIY segment modestly negative.

Merrill Lynch reportedly widens loss estimate for Citigroup sees potential fourth quarter write-downs of $16 billion. It also cuts EPS estimates for JP Morgan (JPM).

Constellation Brands (STZ) posts third quarter EPS of $0.55, vs. $0.45 a year ago, despite 23% revenue drop. It sees $1.06-$1.11 fiscal year 2008 EPS vs. $1.38 in fiscal year 2007 (reported basis).

Tween Brands (TWB) posts 9% higher same-store sales for the nine-week period ended Jan. 5, 21% total sales rise. It notes comps rose 4% at Limited Too and 31% at Justice. Revenue from all other sources nearly doubled, including a 134% increase in e-commerce sales.

Brinker International (EAT) sees $0.30-$0.31 second quarter EPS from continuing operations, before special items, vs. year ago's $0.33. It says second quarter fiscal year 2008 EPS were primarily impacted by a decrease in Brinker comparable restaurant sales of about 2% and the associated impact of sales deleverage on fixed costs. Keybanc downgrades to underweight from hold.

Comcast (CMCSA) and Panasonic Corp. (a unit of Matsushita Electric) unveil the industry's first portable DVR/DVD player powered by tru2way technology at the 2008 Consumer Electronics Show.

Liz Claiborne (LIZ) says it has reached a definitive agreement to sell Laundry by Design and C&C California: is closing Sigrid Olsen; and is retaining the Enyce brand.

Leap Wireless International (LEAP) announces that it gained about 152,000 net customer additions during the fourth quarter, bringing the total number of net additions for 2007 to about 634,000. In addition, customer churn for the fourth quarter was 4.2%. LEAP ended the year with about 2.86M customers. S&P maintains hold.

Avon Products (AVP) says it now expects to achieve annualized saving of about $430M once final initiatives of restructure program are fully implemented by 2011-2012, vs. original objective of $300 million.

Family Dollar Stores (FDO) posts $0.37, vs. $0.36 a year ago, first quarter EPS on 1.0% lower same-store sales, 5.2% higher total sales. It sees $0.40-$0.44 second quarter EPS, $1.56-$1.64 for fiscal year 2008. For fiscal 2008, it expects same-store sales to be flat or increase slightly, total sales to increase 2% to 3%.

Sirtris Pharmaceuticals (SIRT) announces that its first product to enter the clinic, SRT501, was found to be safe and well-tolerated, and was found to significantly lower glucose in oral glucose tolerance test conducted as part of a 28-day Phase 1b clinical study in patients with Type 2 Diabetes.

Greenbrier Companies (GBX) posts lower-than-expected first quarter EPS of $0.16, vs. $0.12 a year ago, on 16% revenue rise. It does not expect that earnings before special charges (net of tax) in 2008 will meet $2.22 realized in 2007, as the company anticipates lower overall new railcar deliveries, lower gains on equipment sales, and a higher tax rate than in 2007.

Newport (NEWP) expects fourth quarter EPS will be higher than its previous $0.16-$0.20 guidance due to partial reversal of valuation allowance recorded against its deferred tax assets, offset in part by charges to cost of sales, primarily in its Lasers Division. Also expects new orders received in the fourth quarter to exceed previous guidance.

ITC Holdings (ITC) sees 2007 EPS near high end of prior guidance of $1.50-$1.60, expects $1.90-$2.00 2008 EPS, including acquisition of the transmission assets of Interstate Power and Light Co. It says it expects to spend $1 billion in capital expenditures over 7-10 years across the newly acquired IPL transmission assets.