Market Turbulence: Winners and Losers Amidst Ongoing Economic Uncertainty

As the US market continues to navigate the challenges of economic uncertainty, certain companies have made significant gains, while others have struggled to stay afloat. Last week, Cingular Wireless emerged as a big gainer, with its 7.125% bonds of 2031 experiencing a 27-point increase to trade at 112.625. This surge can be attributed to the company's completion of its acquisition of AT&T, making it the largest wireless provider in the US. Meanwhile, Delta Airlines saw its stocks jump from $3 to $6 and its bonds rise roughly 15 points after the company extracted a $1 billion concession from its pilots, who will take a 35% pay cut. On the opposite end of the spectrum, ATA Holdings' 13% of 2009 fell nine points to 19.625, with the company announcing plans to file for bankruptcy protection and reorganize in the face of rising jet fuel prices and intense price competition. Oglebay Norton also faced a downturn, with its 10% notes of 2009 plummeting 6.125 points to trade at 39.875 due to concerns over its potential sale or liquidation.

Key Takeaways:

Cingular Wireless saw a 27-point increase in its 7.125% bonds of 2031, trading at 112.625, following its acquisition of AT&T.
Delta Airlines extracted a $1 billion concession from its pilots, who will take a 35% pay cut, causing its stocks to jump from $3 to $6 and its bonds to rise roughly 15 points.
ATA Holdings' 13% of 2009 fell nine points to 19.625, with the company announcing plans to file for bankruptcy protection and reorganize in the face of rising jet fuel prices and intense price competition.
Oglebay Norton's 10% notes of 2009 declined 6.125 points to trade at 39.875, amidst concerns over its potential sale or liquidation.
Calpine Corp.'s 8.75% notes of 2007 dropped 4.375 points to 69.5, following the company's issuance of $360 million in preferred shares.
Pathmark Stores' 8.75% notes of 2012 fell 6.75 points to trade at 90.125, after being downgraded by S&P to B- from B.

Statistics:

Cingular Wireless' 7.125% bonds of 2031 increased by 27 points to trade at 112.625.
Delta Airlines' stocks jumped from $3 to $6, and its bonds rose roughly 15 points.
ATA Holdings' 13% of 2009 fell nine points to 19.625.
Oglebay Norton's 10% notes of 2009 declined 6.125 points to trade at 39.875.
Calpine Corp.'s 8.75% notes of 2007 dropped 4.375 points to 69.5.
Pathmark Stores' 8.75% notes of 2012 fell 6.75 points to trade at 90.125.

Sources:

http://www.thomsonmedia.com
http://www.highyieldreport.com