Paul Kangas' Stocks In The News
Wednesday, July 12, 2006
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PAUL KANGAS: Stocks on Wall Street headed steadily lower this morning as oil prices moved higher, while the tech sector sold off on that big anti- trust fine the EU levied on Microsoft. At mid-session, the Dow was off 70 points, the NASDAQ down 24. Also undermining the market were negative analyst comments on IBM and Apple Computer and an earnings warning from Brunswick. At the final bell, stocks were near their lowest levels of the day. The Dow Industrial Average closed off 121.59 points at 11,013.18. The NASDAQ Composite tumbled 38.62 points to 2090.24. Standard & Poor`s 500 lost 13.92 down to 1258.60. In the bond market, the 10-year note edged up 1/32 to par and 5/32, putting the yield at 5.01 percent.
Big board volume leader on 25.9 million shares, Lucent Tech (LU) showing no change. Alcatel`s chairman and CEO says a merger between Lucent and Alcatel still makes sense, despite Lucent`s recent earnings warning.
AT&T (T) down $0.08. A U.S. judge has expressed doubts about government settlements last year permitting SBC Communications to buy AT&T and for Verizon to acquire MCI.
EMC Corp (EMC) was down $0.41.
Home Depot (HD) $0.77 drop.
And then Time Warner (TWX) lost $0.15, fifth in big board volume.
General Electric (GE) dropped $0.20.
Sprint Nextel (S) a $0.19 loss.
ExxonMobil (XOM) dropping a penny.
While Nortel Networks (NT) gained a penny.
And then Pfizer (PFE), tenth in volume, was down $0.31.
IBM (IBM) fell $0.99, traded as low as $74.82. A JPMorgan analyst cut its revenue forecast for big blue and thinks the company`s growth expectations through the year 2007 are unrealistic.
Then we see Brunswick (BC) down $2.28. The company sees second quarter earnings of $0.93 to $0.94 versus the $0.96 per share Street consensus and it also cut its 2006 guidance from the range of $3 to $3.15 a share down to $2.40 to $2.55, citing a significant drop in retail demand for its marine products in particular. Best Buy Co (BBY) down $2.92, lower than expected retail demand for flat panel TVs is hurting that stock. Circuit City dropped $1.07 also.
Then we see Genentech (DNA) losing $3.08. After the close yesterday, the company reported a nice jump in earnings, but said the second quarter sales of its cancer drug Avastin were well below Wall Street`s expectation.
MortgageIT Holdings (MHL) up $2.25. Deutsche bank will acquire it for $14.75 a share in cash.
And then AAR Corp (AIR), which deals in airline parts, aircraft parts, up $1.62, big earnings fourth quarter, $0.31, up from $0.17 a year ago. Sales were up 21 percent during that period.
Yankee Candle (YCC) down $3.23. The company cut its second quarter earnings guidance of $0.18 to $0.20, down to only $0.11 to $0.12 because of lower than expected wholesale performance and higher promotional spending.
Then Cleveland Cliffs moved up $1.33 on news the company will buy back an addition two million shares of its stock.
Volume leader on NASDAQ, Google (GOOG) losing $7.31.
Apple Computer (AAPL) off $2.69. An analyst at CS First Boston says fourth quarter sales and earnings may fall short ahead of the introduction of new products from Apple.
There you see Microsoft (MSFT) losing $0.46 on that big European fine.
Intel (INTC) down $0.79.
Dell (DELL) was down $1.04. UBS financial cut second quarter earnings forecast from $0.33 to $0.31 on Dell and cut its price target from $26 to $24 a share.
Cisco Systems (CSCO) down $0.43.
Yahoo! (YHOO) moved up $0.21.
And there you see Genzyme (GNZ) on those better than expected earnings, up $4.76.
Hansen Natural (HANS) down $1.39. Sandisk (SNDK) fell $1.74.
Network Appliance (NTAP) losing $2.13. Kaufman Brothers brokerage notes that sales targets are at risk for the company because of growing inventories of data storage products.
And then finally Secure Computing (SCUR) plunging over 38 percent with that loss of $3.08. The company issued a second quarter earnings and revenue warning after it agreed to acquire Cipher (ph) Trust Incorporated for $273 million in cash and stock.
Those are the stocks in the news tonight.
