Paul Kangas' Stocks In The News
Tuesday, December 05, 2006
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PAUL KANGAS: Wall Street extended yesterday's rally this morning as better than expected reports on third quarter productivity and service sector activity suggested the economy is not as weak as feared. A much smaller than expected 2.3 percent rise in third quarter unit labor costs also helped the Dow rise 41 points by 11:00 a.m., while the NASDAQ Composite was up eight points. After a mid-session fade, the market firmed up in late trading and ended broadly higher. The Dow Industrial Average closed up 47 3/4 points exactly at 12,331.60. The NASDAQ Composite up 3.99, ending at 2452.38. Standard & Poor's 500 Index gained 5.64 to 1414.76. In the bond market, the 10-year note fell 5/32 to 101 14/32, putting the yield at 4.45 percent.
Big board volume leader once again today on 43.1 million, Pfizer (PFE) down another $0.08, lost nearly $3 yesterday when the company discontinued development of a promising cholesterol drug.
Then Ford Motor (F) down $0.21. The company has begun offering $3 billion in senior convertible notes, part of its $18 billion financing plan. These notes carry a recovery rating of four, meaning holders are likely to recoup only 30 to 35 percent of their principal in the event of a Ford bankruptcy.
GE (GE) third in volume, was down $0.12.
ExxonMobil (XOM) moving up $0.29.
LSI Logic (LSI) rebounding $0.16, lost $1.44 yesterday on news it'll acquire Agere Systems for stock -- some analysts think too much stock.
EMC Corp (EMC) an $0.18 gainer.
Time Warner (TWX) rose $0.09.
AT&T (T) $0.44 gain there.
DirecTV (DTV), which entered the Standard & Poor's 500 Index last Friday, up $0.35.
Corning (GLW), tenth in volume was up $0.95.
Coca-Cola Co (KO) a Dow stock up $1.17. Merrill Lynch boosted its price target by $3 to $51 a share and it boosted 2007 and 2008 earnings estimates because of the company's improving sales volumes.
Then Yum! Brands (YUM), this is the owner of KFC, Pizza Hut, Taco Bell and others. The company's doubling its annual dividend from $0.60 a share to $1.20 and plans to buy back up to 4 percent of its stock next year.
Kroger Co (KR), the big grocery chain, up $1.16. Third quarter earnings, $0.30, nicely above $0.25 last year, 4.8 percent rise in sales. The company says fourth quarter same store sales should be up at least 5 percent.
Bandag Inc (BDG), this is the tire re-treading company and in a groove today, up $5.46. The story here, Bridgestone Americas Holdings will acquire Bandag for $50.75 a share in cash.
Cooper Tire & Rubber (CTB) up $1.12. Deutsche Bank securities upgraded it from "hold" to a "buy."
And then another automotive related company, Lear Corp (LEA), which makes automotive interiors down $0.66, traded as low as $29.13 today after UBS downgraded it from "neutral" to "reduce," citing the weak auto market.
On the upside, Amrep Corp (AXR), which is in real estate and publishing, up $13.42. Second quarter earnings jumped to $2.42 from only $0.76 last year and revenues soared 44 percent.
First Marblehead (FMD) gained $2.50. This is the first day of trading incidentally for the three for two split Marblehead stock. Standard & Poor's repeated a "strong buy" on the issue.
And then Centene Corp (CNC) down $2.64. This is a company that's in the managed health care business. Goldman Sachs downgraded it from "neutral" to "sell."
And then we see Lamson & Session (LMS) up $1.92. It's in the thermoplastics products business and Ramius Capital, an investment advisory, said it owns 5.9 percent.
Apple Computer (AAPL) topped the NASDAQ active list, up $0.15.
Followed by Google (GOOG) with a rise of $2.15.
Microsoft (MSFT) fell $0.20.
Then Qualcomm (QCOM) up $1.36.
Cisco Systems (CSCO) fell $0.21, fifth in dollar volume on NASDAQ.
Oracle Corp (ORCL) a $0.42 loss.
Baidu.com (BIDU) up $7.84. That's a 52-week high. Yesterday it was up $3.68 on the company's plan to expand into Japan.
Yahoo! Inc (YHOO) a $0.54 gain.
Research in Motion (RIMM) down $0.41.
Intel Corp (INTC) lost a dime a share, tenth in volume.
Sirius Satellite Radio (SIRI), the home of Howard Stern, down $0.32 or 7.6 percent. The company cutting its subscriber growth target because of lower than expected sales. Bear Stearns downgraded it to "under perform."
And then we see Direct General (DRCT), an insurance company, up nearly $4. Fremont Partners and Texas Pacific will take this company private at $21.25 a share.
Those are the stocks in the news tonight.
