The Wall Street Journal-20080216-Priceline Surges 21- on Profit Gain- Best Buy Declines 2-5-- Airlines Lifted by Word Of Continental Talks

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Priceline Surges 21% on Profit Gain; Best Buy Declines 2.5%; Airlines Lifted by Word Of Continental Talks

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Stocks had a mixed day, as Best Buy slashed its profit forecast, Priceline.com jumped on a surge in earnings and Continental Airlines climbed on merger-related news.

Friday was the first day this year that the Dow Jones Industrial Average, which closed down 28.77 points on the day, didn't have an intraday swing of 100 points or more.

"The markets have really gotten oversold and the pessimism is really building up among individual investors," said Bruce Bittles, chief investment strategist at R.W. Baird. "I think we should be looking for a short-term relief rally. There is only so many times you can sell on the same news."

The Dow was in the news for other reasons during the week. Dow Jones, a unit of News Corp. and publisher of The Wall Street Journal, announced that Bank of America and Chevron will replace Altria and Honeywell in the Dow, effective Tuesday. Bank of America rose 1.3% during the week, while Chevron added 5.5%.

In Friday's trading, Best Buy fell 1.15, or 2.5%, to 44.62. The electronics retailer cut its fiscal-year earnings outlook, saying the economic picture grew more challenging after the holidays.

Clear Channel Communications rose 2.22, or 7.4%, to 32.35. The media company posted a 52% jump in fourth-quarter net income, helped by favorable foreign-exchange rates and continued sharp growth in outdoor-advertising revenue.

Kraft Foods gained 2.02, or 6.9%, to 31.33. Berkshire Hathaway has accumulated a stake of 8.6% in the company. Other food stocks also had a good day, General Mills climbed 1.57, or 2.9%, to 56.39; and Kellogg rose 86 cents, or 1.7%, to 51.73.

Priceline.com (Nasdaq) soared 21.63, or 21%, to 123.86. The online travel-services company's fourth-quarter net income more than doubled on strong demand internationally.

Continental Airlines -- which already is in preliminary talks with UAL Corp.'s United Airlines about a possible merger -- also has discussed the concept with AMR Corp.'s American Airlines, said people familiar with the situation, The Wall Street Journal reported. Continental rose 99 cents, or 3.4%, to 29.69; AMR added 44 cents, or 3%, to 15.25; and UAL (Nasdaq) added 32 cents to 37.35.

Citigroup fell 26 cents, or 1%, to 25.48. The financial giant has barred investors in one of its hedge funds from withdrawing their money, according to a report in the Journal.

Chipotle Mexican Grill fell 3.40, or 3%, to 105.25. The restaurant chain missed Wall Street earnings estimates for the first time since going public.

Bear Stearns climbed 4.32, or 5.5%, to 82.79 amid some speculative chatter that the firm could be bought.

Campbell Soup rose 1.93, or 6.1%, to 33.44. The company's quarterly earnings came in below analysts' projections, but it reiterated its guidance for the year.

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Rob Curran contributed to this article.