Paul Kangas' Stocks In The News
Tuesday, August 08, 2006
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PAUL KANGAS: Stocks opened higher as oil prices eased from yesterday`s sharp run up. The Dow gained 45 points at the outset of trading, while the NASDAQ rose six points. The market`s advance slowly eroded as investors backed away to wait for the Fed`s rate decision. When it came at 2:15 p.m. Eastern time, the Dow jumped to a 60 point gain, only to abruptly reverse course and slide to a closing loss. The Dow Industrial Average ended down 45.79 points at 11,173.59. The NASDAQ Composite was down 11.65, ending at 2060.85. Standard & Poor`s 500 fell 4.29 to 1271.48. Over in the bond market, the 10-year note fell 1/32 to 101 17/32, putting the yield at 4.93 percent.
Big board volume leader on 32.7 million shares was Bristol Myers Squibb (BMY) down $1.56. The company expects a little firm called Apotex to have a generic version of Bristol`s blockbuster anti-clotting drug Plavix on the market shortly. Deutsche Bank estimates that could cut Bristol`s earnings this year by up to $0.40 a share. Bristol says it`ll vigorously pursue its Plavix patent rights.
Sprint Nextel (S) down $0.31. The company announced it`ll spend about $3 billion over the next two years to build a high-speed wireless data network using wi-max technology. It will have as partners Motorola, Samsung and Intel. Ford Motor Co (F) a $0.20 gain today.
Pfizer (PFE) was up $0.11.
ExxonMobil (XOM) rose $0.04, fifth in big board volume.
Lucent Tech (LU) a $0.02 loss.
General Electric (GE) $0.35 drop.
Time Warner (TWX) fell $0.19.
EMC Corp (EMC) a $0.03 loss.
Motorola (MOT) tenth in volume, fell $0.29.
Aramark "B" (RMK), this company provides food and support services to institutions. Its CEO and an investment group will acquire it for $33.80 a share in cash. That`s up from their initial bid of $32 a share in cash.
A lot of takeovers today, including Rent-way (RWY) Incorporated, up $1.92. Rent-a-Center will acquire this company for $567 million. That works out to $10.65 a share in cash.
Aleris Intl (ARS), in the aluminum business, Texas Pacific Group going to acquire it for $3.3 billion. That works out to $52.50 a share in cash, nice move in the stock.
And Reynolds & Reynolds Co (REY), which makes business forms and computer services, Universal Computer Systems will acquire Reynolds & Reynolds for $40 a share in cash. A lot of takeover activity today.
United Rentals (URI) down $4.92. Second quarter earnings $0.51, up from $0.48 last year, but that was $0.12 below the Wall Street estimate. UBS financial cut 2006 and `07 earnings estimates for the company.
Stillwater Mining Co (SWC), which is in the palladium and platinum business, second quarter loss of $0.03, triple last year`s loss of a penny a share and revenues dropped nearly 7 percent during this period.
Jack in the Box (JBX) up $2.88. Third quarter earnings rose to $0.77, up from last year`s $0.66, nice move there.
New offering today, Aircastle Ltd (AYR), this is a jet leasing company, 9.1 million shares offered at a price of $23. It opened at $27.45. That was the high of the day and it closed with a nice gain of $3.60. Apple Computer (AAPL) topped the active list, down $2.43. The stock still plagued by stock option grant irregularities at Apple.
Google (GOOG) $3.05 gain.
Microsoft (MSFT) rose $0.12.
And Cisco Systems (CSCO) closed down $0.12, but the stock jumped to $19 a share in after hours trading after those better than expected earnings you heard about.
Intel (INTC), fifth in volume, edged up $0.04.
Teva Pharm (TEVA) up $1.77. Second quarter earnings including the Ivax acquisition, $0.66, up from $0.36 a year ago, $0.20 better than the Street estimate. Standard & Poor`s repeated a "strong buy" on Teva Pharmaceuticals.
Hansen Natural (HANS) down $0.39.
Qualcomm (QCOM) $0.74 drop.
EBay (EBAY) rose $1.03.
And then Oracle (ORCL), tenth in volume, up $0.18.
Brocade Communication Systems (BRCD) falling $1.13 on news it`ll acquire McData Corp for stock worth about $4.61. McData rose $0.41 to $3.26 a share.
And Loudeye (LOUD), look at the gain on this one, 144 percent. Nokia will acquire it for $4.50 a share in cash.
And those are the stocks in the news tonight.
