Hot Stock Trading News: Cigna, BioScrip, MasterCard, Abercrombie & Fitch

CIGNA Corporation (NYSE:CI): Effective January 1, 2012, Cigna is required to adopt new accounting rules for costs related to the acquisition or renewal of insurance contracts. This adoption will reduce full year 2011 earnings by approximately $70M on a retrospective basis and is expected to have a similar impact in 2012. Shares of CIGNA Corporation are trading 6% lower today.

BioScrip Inc. (NASDAQ:BIOS): Walgreen (NYSE:WAG) and BioScrip (NASDAQ:BIOS) announced that they have entered into a definitive agreement under which Walgreens would acquire certain assets of BioScrip’s community specialty pharmacies and centralized specialty and mail service pharmacy businesses and BioScrip would receive a total deal value of approximately $225M. This includes approximately $170M in cash at closing and retention by BioScrip of associated accounts receivable and working capital liabilities of approximately $55M, based on BioScrip’s balance sheet values at Dec. 31. Up to an additional $60M in purchase price may be payable based on events related directly or indirectly to Walgreens retention of certain business included in the transferred businesses. Shares of BioScrip Inc. are trading 10.93% higher today.

Abercrombie & Fitch Co. (NYSE:ANF): In its fiscal fourth quarter results, the Company expects to record material charges, including charges for impairments and write-downs of store-related long-lived assets, other charges related to store closures and lease terminations, and charges associated with legal settlements and the reclassification of the Company’s auction rate securities to trading securities. Excluding these charges, the Company expects to report non-GAAP earnings per share for the quarter of approximately $1.10 to $1.15 Pending finalization of the material charges mentioned above, the comparable U.S. GAAP earnings per share number is not available at this time but will be available when earnings are released on February 15, 2012. Shares of Abercrombie & Fitch Co. are trading 11.85% lower today.

MasterCard Incorporated (NYSE:MA): U.S. auto sales in January jumped 11% over a year ago to their fastest pace in almost four years. A number of auto makers, showing new confidence in the U.S. economy, revealed billion-dollar expansions of their American factories, reports the Wall Street Journal. Shares of MasterCard Incorporated are trading 6.51% higher today.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com