Paul Kangas' Stocks In The News
Tuesday, November 14, 2006
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PAUL KANGAS: Wall Street's blue chips opened mixed as that bigger than expected drop in producer prices we told you about triggered concern about slowing economic growth. By 10:30 this morning, the Dow was off 45 points, but then a strong rebound in the depressed retail, housing and auto stocks this afternoon lifted the Standard & Poor's 500 Index above the 1390 level of resistance and a strong technical rally followed. The Dow Industrial Average vaulted 86.13 points to a new record closing high at 12,218.01. The NASDAQ Composite was up 24.28, ending at 2430.66. Standard & Poor's 500 Index rose 8.80 to 1393.22. In the bond market, the 10-year note rose 12/32 to par and 15/32, putting the yield down to 4.57 percent.
Topping the active list on the New York exchange on 26.6 million shares, Home Depot (HD) up $1.56. Third quarter earnings came in at $0.73 a share, $0.02 below the Street estimate and the company sees profits falling as much as 16 percent in the fourth quarter because of the housing slump. But the stock came alive this afternoon. It was a major part of the rally.
Then came Pfizer (PFE) with a $0.36 gain.
Followed by General Electric (GE) up $0.23.
Motorola (MOT) rose $0.51.
Wal-Mart Stores (WMT) up $1.34. Wal-Mart in with third quarter earnings, $0.62, up from $0.58 last year, $0.02 above the Street estimate. The company sees fourth quarter earnings rising to $0.88 to $0.92 and Standard & Poor's repeated a "strong buy" on Wal-Mart stock.
EMC Corp (EMC) edged up $0.08.
Qwest Comm (Q) losing a nickel.
And Sprint Nextel (S) down $0.06.
AT&T (T) dropped a dime. The Senate Commerce Committee says if AT&T's pending $80 billion buyout of Bellsouth is not approved by the FCC by January, it wants to hold hearings on the deal.
Tenth in big board volume, Micron Tech (MU) $0.74 gainer.
DR Horton (DHI), the home builder, up $2.12. Fourth quarter earnings, $0.88, way down from $1.77 a year ago, but it's $0.19 better than the Street estimate of only $0.69.
And then another home builder, WCI Communities (WCI) up almost $2. Third quarter earnings tumbled to $0.25 from $0.85 last year, but that was $0.07 better than expected and on top of that, billionaire Carl Icahn has taken a 4 percent stake in the stock.
Dillard's (DDS), the department store, up $6.38. Third quarter turnaround, earnings of $0.17 versus a loss of $0.03 last year. The Street was looking for a $0.01 loss, did a lot better than that.
Dicks Sporting Goods (DKS) up $5.28. Third quarter earnings, $0.14, up from last year's $0.08 and that was $0.09 above the Street estimate. The company will acquire Golf Galaxy Corp. for $18.82 a share cash. Golf Galaxy stock jumped $2.79 to close at $18.44.
Pier 1 Imports (PIR) up $1.30. There's speculation that Danish retail magnate Jacob Jacobsen might make a buyout bid for Pier 1.
And Timberland Co (TBL) up $2.37. The "Wall Street Journal" today reported that the boot maker is exploring a plan to sell itself.
Google (GOOG) topped the active list, up $8.27.
Followed by Apple Computer (AAPL) with a $0.65 gain.
Intel (INTC) up $0.88.
Microsoft (MSFT) lost $0.02.
And Cisco Systems (CSCO) down $0.04, fifth in dollar volume.
Qualcomm (QCOM) up $1.36.
And then Research in Motion (RIMM) rose $0.44.
And so did Amgen (AMGN).
Broadcom (BRCM) up $1.77.
And then this one, Efuture Information Tech (EFUT), this is a Chinese-based infotech firm, began trading on NASDAQ October 31st at $6 a share, so it's really up there.
Netopia (NTPA) gained $1.24, a move of 22 percent to the good. The story here, Motorola will acquire this firm for $7 a share in cash. Netopia provides broadband equipment.
And those are the stocks in the news tonight.
