Paul Kangas' Stocks In The News
Tuesday, August 01, 2006
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PAUL KANGAS: Wall Street headed broadly lower this morning as worries about higher interest rates resurfaced on that rise in core inflation we told you about, along with a 0.3 percent jump in construction spending and an unexpected increase in manufacturing activity. At noon, the Dow was off 75 points, NASDAQ down 28. The blue chips dipped to nearly a 100 point loss this afternoon, so bargain hunters moved in and that enabled the Dow Industrial Average to cut its closing loss to 59.95 points at 11,125.73. The NASDAQ Composite was off 29.48 at 2061.99, while the Standard & Poor`s 500 lost 5 3/4 points, ending at 1270.92. Over in the bond market, the 10- year note gained 2/32 to 101 4/32, putting the yield down to 4.98 percent.
Big board volume leader on a heavy 50.6 million shares, Cendant (CD) down, up $0.44. That`s a 22 percent gain incidentally. The stock was trading X spin off of its hotel and real estate operations. Reality, the real estate operation, will be trading under the symbol H and closed up $0.81 today. And Windham, the hotel operation, was down $1.60 at $31.85. Qwest Communications (Q) a $0.41 gain. Quarterly earnings out today, $0.06 per share, versus a $0.09 loss last year and that was a penny above the Street estimate.
And EMC Corp (EMC) down $0.43.
Pfizer (PFE) no change there.
Scottish Re Group (SCT), the insurance company up $2.85 after plunging $12 a share yesterday after the company forecast a big second quarter loss. But today, the firm reassured investors it is not facing any near-term solvency issues. And UBS Securities upgraded the stock from "reduce" to "neutral." It was fifth in volume.
Lucent Tech (LU) a nickel loss.
SprintNextel (S) $0.28 drop.
AT&T (T) fell $0.23.
Eastman Kodak (EK) off $1.05. That`s a new 12-month low. It`s reported its seventh consecutive quarterly loss. Kodak fell, the loss was $0.98 a share in the second quarter, worse than last year`s $0.54 per share and the Street was looking for a profit and the company also going to cut another 2,000 jobs.
Advanced Micro Devices (AMD), tenth in volume, down $0.29.
International Paper (IP) fell $1.04. Second quarter earnings excluding items, $0.41, $0.08 above the Street estimate, but the company`s very cautious on the outlook because of the slowing economy.
Then we see Archer-Daniels Midland (ADM) down a dime, even though fourth quarter earnings more than doubled to $0.62, up from $0.30 last year, $0.10 above the Street estimate and then ethanol was a major money maker for Archer Daniels Midland.
Group 1 Auto (GPI) plunging $11.57. Second quarter earnings were higher, $1 a share versus $0.75 last year, but the company had a very disappointing outlook out there and that`s what hurt the stock.
Oshkosh Truck (OSK) up $3.51, higher earnings there, third quarter $0.72 up from $0.52 last year. Sales were up 8.4 percent and the company boosted this year`s overall earnings forecast.
Arch Chemicals (ARJ) plunging $6.27. Second quarter earnings $1.22, up from $1.15 last year, but that was $0.05 below the Street estimate and the company sees third quarter earnings falling to only $0.20 to $0.30 a share, way down.
Administaff (ASF) did well, up $4.81. Second quarter earnings, $0.37, well above $0.28 last year and revenues were up a respectable 21 percent.
Burger King Holdings (BKC), there you see it, down $2.01. Fourth quarter loss of $0.07 a share versus earnings of $0.02 last year and that`s despite a 6 percent rise in revenues. The IPO in May of course came at $17, so it`s way down.
FTI Consulting (FCN) fell $3.75. Second quarter earnings, $0.32, a penny below last year and that`s despite a 29 percent rise in revenues. The Street was looking for $0.35 in earnings.
Google (GOOG) topped the active list, dropping a little over $11.
Apple Computer (AAPL) a $0.78 drop.
Microsoft (MSFT) $0.07 loss.
Whole Foods Market (WFMI) plunging $6.76 despite third quarter earnings higher, $0.37, up from $0.29 last year on a 10 percent rise in same store sales, but that sales figure was below the Street estimate and that`s what hurt the stock.
Cisco Systems (CSCO) a $0.40 drop. That was fifth in dollar volume on NASDAQ.
Intel (INTC) $0.34 loss.
Amgen (AMGN) bucked the trend, up $0.35.
Qualcomm (QCOM) $0.78 loss.
Yahoo! (YHOO) off $0.20. First Global Securities downgraded it from "moderate out perform" to a "sell into strength" rating. The company is delaying an advertising system upgrade and that had some analysts disturbed.
Oracle (ORCL), tenth in volume was down $0.24.
Garmin Ltd (GRMN), this company`s involved with global positioning devices and American Technology Research began covering the stock with a "sell" recommendation because of the company`s limited growth outlook, said the analyst. Those are the stocks in the news tonight.
