Paul Kangas' Stocks In The News
Thursday, August 24, 2006
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PAUL KANGAS: Wall Street opened modestly higher on bargain hunting after three straight down days. But the gains evaporated as those durable goods and new home sales reports raised concerns the economy might be in trouble. At midday, the Dow was off 18 points, NASDAQ down 12. Anemic volume on the downturn convinced traders the path of least resistance was up, so some cautious buying got stocks back in the black. The Dow Industrial Average closed up 6.56 at 11,304.46. The NASDAQ Composite was up 2.45 at 2,137.11. Standard & Poor`s 500 Index gained just over 3 points to 1,296.06. Over in the bond market, the 10-year note rose 4/32 to par and 18/32, putting the yield down to 4.81 percent.
Big board volume leader on 19.8 million shares, Ford Motor Co (F), the third straight day it`s topped the active list, no change. "USA Today" newspaper said now the company`s considering taking itself private.
Then of course Rite Aid (RAD) down $0.35. As you heard, they`re going to buy all the Eckerd and Brooks drug stores.
Lowes Companies (LOW) down $0.74. A slowing economy could have a big impact on earnings there, negatively of course.
Chico`s Fas (CHS) tumbling $6.13. After the close yesterday, second quarter earnings were a bit higher, $0.30 versus $0.27 a year ago. That was in line with expectations, but the company sees third quarter earnings falling to only $0.26 to $0.28. The Street estimate is $0.32. On top of that, Standard & Poor`s today downgraded it from "strong buy" to "hold." UBS Financial downgraded it from "buy" to just a "neutral" rating.
Sprint Nextel (S) dropped a nickel. That was fifth in volume.
ExxonMobil (XOM) up $1.09.
Cendant (CD) a $0.03 gain.
Time Warner (TWX) down $0.11.
Pfizer (PFE) gained a dime.
And Home Depot (HD), another company that could be affected by the slowing economy, down $0.21.
Caterpillar (CAT) is in that category too. A slowing economy certainly not going to help it, down $1.71. After the close, Caterpillar said it`s settled a number of lawsuits with Navistar and the firm signed a series of licensing and long-term supply agreements. Caterpillar stock moved up about $0.11 in after hours trading.
Johnson & Johnson (JNJ) up $1.17. UBS financial upgraded its target from $73 to $80 a share.
Fannie Mae (FNM) up $2.36. As you heard, a positive reaction to the Department of Justice`s ending its accounting probe without taking any action against the company.
Coach (COH) bagged a loss of $1.28. Piper Jaffray downgraded it from "out perform" to just "market perform."
And Wyndham Intl (WYN) which was earlier this month spun off from Cendant. It`s going to get $760 million from the sale of travel sport business. Goldman Sachs today upgraded it to a "buy" recommendation. William Sonoma (WSM) down $2.71. Third quarter, second quarter earnings $.30 up from $0.26 so sales were only up 1.2 percent though and the company cut its third quarter estimate to $0.22 to $0.26. It`s having some problems with its Pottery Barn operations. Prudential downgraded the stock to "under weight" today.
Toro Co (TTC) the lawn mower maker down $2.55. Third quarter earnings jumped to $0.91 from $0.74 a year ago, $0.05 above the Street estimate, but Toro lowered its sales growth target for the next two years from plus 8 percent to as low as plus 3 percent.
Then Genesco (GCO), the footwear maker, up $1.20. Second quarter earnings, $0.24, down from $0.27 a year ago, but $0.03 above the Street estimate.
Apple Computer (AAPL) topped the active list, up $0.50 as you heard all about that Sony battery recall.
Google (GOOG) a $0.30 gain there.
Intel (INTC) $0.18 rise.
Microsoft (MSFT) up $0.07.
And Cisco Systems (CSCO) was up $0.04, fifth in dollar volume.
Applied Materials (AMAT) a $0.19 gain.
Sandisk (SNDK) did well, up $2.36.
Oracle (ORCL) a $0.06 rise.
Ebay (EBAY) down $1.22. Piper Jaffray downgraded it from "market perform" to "under perform."
And Rambus (RMBS) a $0.73 gain, tenth in volume.
Coldwater Creek (CWTR), the women`s apparel retailer, boosted its full year earnings guidance from $0.61 to $0.64 up to $0.66 to $0.68.
And those are the stocks in the news tonight.
