Paul Kangas' Stocks In The News
Wednesday, January 17, 2007
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PAUL KANGAS: Today's larger-than-expected jump in wholesale prices did not sit well on Wall Street. The Dow fell 22 points after the first hour of trading, while the NASDAQ lost nine points, being undermined by a drop in Intel stock on its disappointing results after the bell yesterday. The blue chips did rebounded though, lifting the Dow into record high ground with a 22-point gain at mid-day, but then higher oil prices and lower tech stocks quashed the rally. So the Dow Industrial Average closed down 5.44 at 12,577.15. The NASDAQ tumbled 18.36 points to 2,479.42. Standard & Poor's 500 Index lost 1.28 ending at 1,430.62. Over in the bond market, the 10- year note fell 8/32 to 98 24/32, putting the yield at 4.79 percent.
Most active New York exchange issue, trading 22.8 million shares, Motorola (MOT) edging up $0.32 a share. Motorola's quarterly results are due out this Friday.
Then came Ford Motor Co (F) with a gain of a dime.
ExxonMobil (XOM) reacting to that rebound in oil prices, up $0.83.
Pfizer (PFE) $0.12 gain there.
And Corning (GLW), fifth in volume, was down $0.60 a share.
Health Mgmt (HMA) moved up $0.54. The company is planning a $3 1/4 billion REIT capitalization and that will include a one-time dividend to $10 a share cash.
Sprint Nextel (S) $0.15 loss.
General Electric (GE) down $0.13.
But AMR (AMR) down $1.45 despite reporting sharply higher earnings versus a loss last year, but I think the rise in oil got to the stock which has been very strong recently and vulnerable to profit taking.
Then ConocoPhillips (COP), fifth in volume, $0.74 gain there.
Procter & Gamble (PG) moved up $0.36 a share. Goldman Sachs upgraded it from "hold" to "buy" and boosted its price target on PG from $68 to $71 a share. Caremark Rx (CMX) up $2.15. CVS Corp. has sweetened its buyout bid of $53.67 per share in stock by adding a one-time $2 a share cash dividend to the bid. Now there's speculation that Express Scripts may sweeten its $57.24 cash and stock bid, could be a real battle for that company.
Parker-Hannifin (PH) up $2.96. Second quarter earnings $1.64, way up from $1.07 last year. Sales were up 16 percent and the company boosted its 2007 earnings estimate.
Quanex (NX) up $2.77. The company is predicting first quarter earnings will be $0.45 to $0.50, well above the $0.42 Wall Street consensus.
Lennar (LEN) the home builder, $2.23 gain, despite a fourth quarter loss of $1.24 versus earnings of $3.54 last year, but the loss was expected and the company says 2007 earnings overall will meet or exceed the earnings of 2006, quite a surprise.
Amphenol (APH) up $0.92. Big earnings there, fourth quarter, $0.85 up from $0.61 last year and the company plans to split its stock two for one.
Cablevision Systems (CVC) $0.76 gain. The company rejected the Dolan family's final $30 a share buyout bid.
However, accepting a buyout bid was Mills Corp (MLS), the REIT, up $4.69, agreed to be acquired by Brookfield Asset Management for $21 a share cash.
NASDAQ's most active, Apple (AAPL) down $2.15 despite those big earnings but the cautious outlook the company gave hurt the stock and it dropped another $1 in after hours trading.
Intel (INTC) off $1.26.
Google (GOOG) fell (ph) $7
And then Cisco Systems (CSCO) down $1.06, a lot of weakness in the tech stocks.
Research in Motion (RIMM) managed to buck that trend with a $0.41 gain.
Microsoft (MSFT) down $0.06.
While Symantec (SYMC) gained that much.
Dell (DELL) $0.67 loss.
Qualcomm (QCOM) $0.28 drop.
And then Rackable Systems (RACK) plunging $12.44. The company makes computer servers and storage systems and after the close yesterday, it's cut its fourth quarter guidance to $0.17 to $0.18 a share, well below the $0.27 Wall Street consensus estimate.
And finally, shares in Star Scientific (STSI) jumped $1.01 ahead an expected ruling on its patent suit against RJ Reynolds tobacco.
