Paul Kangas' Stocks In The News
Tuesday, October 17, 2006
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PAUL KANGAS: Stocks took a tumble this morning on profit-taking coupled with a disappointing core inflation report which we`ll detail shortly. Investors were also nervous about late day earnings reports from IBM and Yahoo! At noon, the Dow posted a 92-point loss. NASDAQ was off 34 points. Then some optimism came back into the markets and stocks trimmed their losses. So the Dow Industrial Average closed down only 30.58 at 11,950.02. The NASDAQ Composite was off 18.89 ending at 2344.95. Standard & Poor`s 500 Index slid exactly five points to 1364.05. In the bond market, the 10- year note rose 2/32 to par and 26/32, putting the yield at 4.77 percent.
Big board volume leader on 26 1/2 million shares, EMC Corp (EMC) down $0.13. The data storage company had third quarter earnings lower, $0.13 versus $0.17 a year ago, and it`s going to cut 1250 jobs. Then Motorola (MOT) which closed down $0.64 after the close, reported third quarter earnings, $0.39, down from $0.69 a year ago, year ago, was helped however by gains from the company`s investment in Nextel. In after hours trading, Motorola stock dropped about $2 from that price.
Lucent Tech (LU) lost $0.01.
Time Warner (TWX) moving up $0.08.
General Electric (GE) was unchanged and that was fifth in big board volume.
Ford Motor Co (F) lost a nickel. Calyon (ph) Securities said the company`s restructuring is not likely to be effective and issued a "sell" on Ford stock.
Pfizer (PFE) up $0.06.
Qwest Comm (Q) $0.09 gain there.
Advanced Micro (AMD) down $0.90.
And Exxon Mobil (XOM) lost $0.42, tenth in big board volume.
Johnson & Johnson (JNJ) up $1.15. Third quarter earnings $0.94, up from $0.85 last year and a penny better than the Street was expecting.
IBM (IBM) closed up $0.24, but jumped over $4 after the close when the company reported third quarter earnings of $1.45, up from last year`s $0.94 and $0.10 better than the Wall Street consensus.
United Technologies (UTX), another Dow stock, off $1.51 despite higher earnings, $0.99 third quarter, versus $0.81 last year, but the company said it was concerned about the slowdown in the housing market and how it might hurt results for its Carrier air conditioning unit.
Merrill Lynch (MER) up only $0.41 despite huge third quarter earnings, $2, $0.53 better than the Street expected and up $1.40 from last year, but remember, the stock in the last year was as low as $60.
Chicago Mercantile Exchange (CME) up $13.25 on that news it`s acquiring the Board of Trade.
Let`s see how the board of trade stock fared, CBOT Holdings (BOT) up $17.48. Now it`s 0.3 of a share of CME for each share of board of trade or the cash equivalent. That works out to a value of about $155 a share today. Lear Corp (LEA), this is the big auto interior company. Billionaire Carl Icahn bought $200 million of common stock on a private placement. That works out to 8.7 million shares at $23. He now owns 16 percent of the firm.
Callaway Golf (ELY) down $1.49. The company sees a third quarter loss of $0.17 to $0.19 a share.
And Triad Hospitals (TRI) losing $3.14. The company said its third quarter earnings will be about $0.46 to $0.47, well below the $0.65 Wall Street consensus.
Intel (INTC) topped the active list on NASDAQ, down $0.71. As you heard, third quarter earnings better than expected and after the close, the stock edged up $0.50 a share from there.
Google (GOOG) was down $1.11.
And the same drop in Apple Computer (AAPL) whose earnings are due out tomorrow.
Yahoo! (YHOO) was off $0.03. After the close, you heard in line earnings, but after the close, the stock dropped about $0.65 from that price level.
Microsoft (MSFT), fifth in volume, dropped a penny a share.
Then Cisco Systems (CSCO) with an $0.11 loss.
Research in Motion (RIMM) moved up $1.59.
Level 3 Comm (LVLT) gained $0.70. The company is going to acquire Broadwing, which we`ll see in just a moment.
Amgen (AMGN) down $0.64.
And Qualcomm (QCOM) an $0.88 loss there.
There you see Broadwing (BWNG) up $2.62. As I touched on, Level 3 Communications going to buy the company for cash and stock worth a little over $16 a share.
And then Icos (ICOS), the maker of Cialis, is going to be acquired by Eli Lilly for $32 a share in cash.
And those are the stocks in the news tonight.
