Paul Kangas' Stocks in the News
Wednesday, February 01, 2006
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PAUL KANGAS: Wall Street`s blue chips rallied on those earnings from Boeing and Time Warner, as well as a sizable drop in oil prices. The NASDAQ had rougher going, on a slide in Google shares after its disappointing earnings we told you about last night. By the way, we don`t have charts of those markets today, due to some technical glitches. In any case, the Dow Industrial Average closed up just over 89 points at 10,953.95. The NASDAQ Composite edged up 4 3/4 points ending at 2310.56; the Standard & Poor`s 500 up 2.38 at 1282.46.
The long bond is back. The Treasury said today it will hold its first sale of new 30-year bonds on February 9, selling $14 billion worth of securities. Long bond sales were discontinued in 2001, the last year the government had a budget surplus. The current huge budget deficit prompted their return. In the bond market today, the 10-year note fell 10/32 to 99 17/32, putting the yield up to 4.56 percent.
Once again topping the active list, Time Warner (TWX) today on 51 million shares and moving up $0.69 on those higher earnings which were $0.08 above the Street estimate. Revenues up a respectable 7 percent.
Then General Electric (GE) $0.39 gainer there.
Ford Motor Co (F), you heard about their improved sales, up $0.08.
Nortel Networks (NT) a $0.19 gain.
Pfizer (PFE), fifth in big board volume, rose $0.37.
Tyco Intl (TYC) up a nickel.
Followed by Texas Instruments (TXN) with a $0.54 rise.
No change in Lucent Technology (LU).
ExxonMobil (XOM) down $0.80 on those lower oil prices.
And Citigroup (C) a $0.25 loss, tenth in volume.
There we see it, big old Boeing (BA) doing well, up $3.31. That gain accounted for 26 1/2 points in the Dow`s 89-point gain and the company boosted its 2006 guidance from $3.30 a share at best to as much as $3.45 at best. On top of all that, Standard & Poor`s upgraded it from "hold" to a "buy."
The big insurance company Chubb (CB) up $2.16. Sharply higher fourth quarter earnings, $2.35, up from $2.15 last year and $0.20 better than the Street estimate.
Then we see Deere & Co (DE) up $3.34. Apparently a positive reaction to President Bush`s call in his speech last night for more money for ethanol research and more production of ethanol.
Jones Lang Lasalle (JLL) up $7.63. This is a real estate services firm and its fourth quarter earnings, $4 - I should say $1.99, up from $1.52 and that`s fully diluted and revenues up a very respectable 19 percent.
Molina Healthcare (MOH) did well, up $3.45. The company`s forecasting fourth quarter profits will be well above the Wall Street consensus.
And then the Timken Co (TKR) down $4.97. Fourth quarter earnings were higher, $0.54 versus $0.44 last year, but that was $0.09 below the Street estimate. On top of that, Standard & Poor`s repeated a "sell" recommendation, especially after the company`s 2006 earnings guidance fell short of expectations.
Sterling Bancorp (STL) continuing down, off $2.34. The company yesterday a slightly lower fourth quarter earnings $0.31 versus last year`s $0.32 and today the Harris Nesbitt brokerage downgraded it from "neutral" to "under perform."
Then a couple of new issues out today, Koppers Holdings (KOP), which ironically is in the coal business, came out on a 10 million share offering priced at $14, opened at $14.60. The high of the day $16.29, held on to most of the gains.
And Ternium S.A. (TX), this is a Latin American steel company, 24.8 million shares offered at 20, opened at $23.05 and the high of the day $24.25 and it hung on to most of its gain too.
Google (GOOG) topped the active list, you saw earlier down $30.88. The low of the day was $387.52 incidentally.
Then Amgen (AMGN) $3.30 gain. The stock up on reports Roche Holding has pushed back the launch of its rival anemia drug Sera by at least two years.
Microsoft (MSFT) down $0.11.
Intel (INTC) $0.30 gainer.
Yahoo! (YHOO) up $0.63, fifth in volume.
Apple Computer (AAPL) dropped $0.09.
But Research in Motion (RIMM) jumping $6.08 on news that the U.S. Patent office had issued a non-final rejection of a fifth patent held by NTP Corp. in which the company`s involved with a lot of litigation.
Cisco Systems (CSCO) a $0.01 gainer there.
Then Symantec (SYMC) down $1.25. The securities software firm in with sharply lower third quarter earnings, only $0.08 versus $0.22 a year ago and a number of analysts are concerned about increasing competition from Microsoft.
Applied Materials (AMAT) was tenth in volume and moved up $0.28 a share.
And those are the stocks in the news tonight.
