Early Briefing: XM Shares Fall on Analyst Report

*Even though a merger between XM and Sirius satellite radio would help reduce costs, investors should sell their stocks because of increased competition from MP3 players and technologies like the iPhone, wrote Goldman Sachs analyst Mark Wienkes. The report sent the companies' shares down - XM fell 17 percent and Sirius fell 12 percent.

*Shares of Circuit City Stores, which put itself up for sale last month, fell the most in two months yesterday after the company posted a wider first-quarter loss and a sales decline that surpassed analysts' estimates. Shares of the Richmond company slid 33 cents, or 8.1 percent, to $3.72 before closing at $3.98 , down 1.7 percent.

*Coventry Health Care reduced its projected earnings for the second time this year, dragging down its shares and those of fellow players in the health insurance industry. Shares of Bethesda-based managed-care provide Coventry plunged about 22 percent, to $31.30. The company also announced a hiring freeze and said it plans to raise prices next year.

*Giant Food said it has lowered the price of 350 commonly prescribed generic drugs to $9.99 for up to a 90-day supply. The move follows a similar price cut this month at local Safeway stores, which are offering hundreds of generic drugs at $4 for a 30-day supply.

By Terri Rupar  |  June 20, 2008; 5:00 AM ET  | Category:  Morning Brief
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