Paul Kangas' Stocks In The News
Friday, May 19, 2006
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JEFF YASTINE: The further decline in oil prices added to Wall Street`s mild relief rally after stocks faced one of their worst weeks this year. Early selling pushed the Dow lower by about 50 points in late morning. From there, a rally as short sellers started taking profits ahead of the weekend and bottom- pickers moving in to help the NASDAQ shoot up about 30 points from its low to the high of the day. Then the indexes gave back part of their gains in the last 90 minutes but still managed to close in the plus column overall. The Dow rising 15 3/4 points to 11,144 and for this week, the Dow closed up three times and down two for an overall loss of 236.93 points. That`s about a 2.1 percent drop. Now the NASDAQ Composite climbed 13 1/2 today to finish at 2193 and today`s rise was the NASDAQ`s only gain this week. For the overall week, the composite fell almost 50 points or about 2 percent and the S&P 500 advancing 5 1/4 points to end at 1267 and a fraction today. In the bond market, the 10-year note slipping just one tick to 115/32, the yield at 5.06 percent.
Lucent Tech (LU) tops our list today, gaining just a fraction.
But shares in American Tower (AMT) falling $0.73, that on news the SEC is probing its stock option practices. We have a number of other news announcements similar to this with some other stocks we`ll get to in a moment. There are concerns AMT may be forced to restate financials.
Advanced Micro Devices (AMD), there`s the action there, gaining a little over $3.50 on that widely anticipated supply deal with Dell that was announced last night.
Nortel Networks (NT) picking up $0.09.
Pfizer (PFE) dropping $0.07.
And then General Electric (GE) with a penny gain.
But then we had ExxonMobil (XOM) gaining $0.56 despite the decline in oil prices today. That stock down 7 percent from its April high, so some rebounding and value hunting going on there.
Motorola (MOT) losing $0.04.
Citigroup (C) gaining $0.07.
And telephone AT&T (T) advancing about $0.54.
And looking over at Genentech (DNA) climbing a little over $4. Morgan Stanley`s analyst set a $90 price target on those shares.
Then we move on to Caremark Rx (CMX), it fell over $3. It is also being investigated by Federal authorities regarding stock option activity. The SEC and New York state attorney general`s office are also making inquiries.
Mittal Steel co NV (MT) falling $1.06. The steel giant sweetening its buyout bid for Arcelor to help offset the 22 percent drop in the stock price in recent days. Today Mittal offering roughly $48.50 a share for Arcelor if it`s a stock for stock deal, which is about 34 percent above the original offer price back in January.
Highlighting a few more gainers, we see British Airways ADS (BAB) rising over $5.50. Full year profits grew 27 percent and the number three European air carrier also raising its revenue guidance.
Western Digital (WDC) surging over $2. Bear Stearns noting the chance of a takeover now that industry rivals in that hard disk drive sector like Seagate and Maxdor (ph) have merged and Western Digital might also be along for that.
While we`re on the subject of takeovers, Footlocker (FL) gaining nearly $2.50 on a published report that a pair of private equity firms are weighing a buyout price of $30 a share for Footlocker. "Women`s Wear Daily" naming Thomas Lee Partners and Apollo Management as the potential suitors.
Then Pinnacle Entertainment (PNK) jumping a little over $2. The company says it will not make a higher offer for Aztar which now goes to Columbia Sussex Corp. for $54 a share. Pinnacle`s investors obviously relieved about that.
Then moving onto the NASDAQ, Google (GOOG) surging over, not exactly surging, but a gain of $0.97. The shares fell nearly $10 early on but recovered.
Intel (INTC) with a new three-year low.
Apple Computer (AAPL) rising $1.33.
Microsoft (MSFT) down just a bit.
Cisco Systems (CSCO) rising a little over $0.50.
There`s the reaction in Dell Computer (DELL) climbing $0.62, a little bit of reaction from its lowered ability to meet lowered estimates last night.
Marvell Technology (MRVL) surging over $6. The microchip maker posting a 19 percent gain in first quarter earnings, also raised its revenue forecast.
Qualcomm (QCOM) a gainer for the day.
So was Yahoo! (YHOO).
Sears Holdings (SHLD) advancing a little over 6 and within $2 of an all-time high set last summer. The retailer posting impressive financial results yesterday.
Martek Biosciences (MATK) climbing nearly $2. The company makes nutritional oils for baby formula and it signed a 10-year deal to be the exclusive supplier of those products to Mead Johnson and that`s the nation`s largest maker of infant formula.
Safenet (SFNT) sank over $4. The software firm has been subpoenaed by Federal authorities, again looking at the granting of stock options.
Benihana (BNHNA) plunged nearly $7. The stock getting sliced and diced after the chain warned that profits will be lower than expected thanks to an accelerated depreciation program.
And finally, Finish Line "a" (FINL) tumbling $2.50. The retailer, the retail chain seeing same store sales results to be sharply lower than expected, also revising their first quarter profit guidance lower as well.
Those are our stocks in the news tonight.
