Paul Kangas' Stocks in the News
Wednesday, February 07, 2007
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JEFF YASTINE: Tech stocks opened in rally mode on Wall Street as investors cheered Cisco System's better than expected earnings and outlook we told you about last night. The Dow piggybacked on that tech rally, rising 36 points at the outset of trading. Lower oil prices and interest rates helped the blue chips higher. But the Dow could not break through the 12,700 level and profit-takers moved in. So, the Dow went on to close up just 0.56 at 12,666.87. And the NASDAQ Composite rising 19 to 2,490.50 and the S&P 500 Index moving up two points to 1,450 and a fraction. Bond prices rose sharply. The Labor Department said worker productivity last quarter rose at its fastest rate in nearly a year, while growth in labor costs fell. The 10-year note rose 5/32 to 99 1/32, putting the yield at 4.75 percent.
Starting things off, AT&T (T) dropping $0.35.
Texas Instruments (TXN) falling $0.18. The chip maker losing out on a contract to supply chips for Nokia's low-end cell phones. An analyst at Bank of America said to downplay any near-term impact to the company.
Ford Motor Co (F) rising a fraction.
Pfizer (PFE) falling that much.
Sprint Nextel (S) rising $0.30.
Corning (GLW) gaining a fraction.
Then ExxonMobil (XOM) dropping $0.35.
Aquila (ILA) losing $0.33. Great Plains energy offering to buy the company for $4.54 a share in cash and stock. That's below yesterday's closing share price. One of the holders of the stock, Apero (ph) Capital, says it will vote against that deal.
Motorola (MOT) picking up $0.18.
And there's Equity Office (EOP) reaction, down $0.60. Shareholders voting overwhelming for Blackstone Group's offer.
Then there's Disney (DIS) which reported earnings after the close with a strong first quarter result, topping estimates by $0.11 a share on phenomenal DVD sales and also a heavy theme park attendance. The stock trading above $36 in after hours trading.
Nortel Networks (NT) rising $2.33. Management's restructuring plan will mean eliminating just under 3,000 jobs and selling off some real estate assets. They're trying to save about $400 million in annual costs.
Cigna (CI) tacking on almost $3. The health insurer seeing medical memberships climb steadily to 3 percent in 2006. They're hoping to double that figure this year. Goldman Sachs giving the thumbs up on the stock.
DirecTV (DTV) advancing $1.38. Fourth quarter profits tripling from year ago levels, thanks to stronger than expected subscriber growth.
SWS Group (SWS) jumping over $6. The financial service firm with a nice 48 percent jump in second quarter profits.
And then here's another buyout du jour, Keane (KEA) climbing over $2, the technology solutions firm Caritor offering $14.30 a share in cash. They'll keep the Keane name when the two companies merge.
Consolidated Graphics (CGX) surging over $7, impressive third quarter profits of $1.17 a share. Investors also applauding fourth quarter guidance from the company.
Shares in Forest Labs (FRX) down more than $2. Yesterday, Forest and its partner Replidi (ph) pulling the plug on developing the new antibiotic drug. Citigroup putting out a "sell" on that stock.
Nu Skin Enterprises (NUS) falling $1.38. The skin care company saying first quarter results will be hurt as the company press its expansion into China.
Now for a look at the NASDAQ, Cisco Systems (CSCO) jumping $0.81 on those results reported last night.
Apple (AAPL) gaining $2.
Microsoft (MSFT) down a fraction.
Google (GOOG) losing $1.47.
And then Intel (INTC) gaining $0.20.
Broadcom (BRCM) climbing $1.51. Morgan Stanley upgrading those shares.
Research in Motion (RIMM) down nearly $1.
Yahoo! (YHOO) up more than half a dollar.
Oracle (ORCL) gaining, excuse me, losing $0.11.
And eBay (EBAY) up more than half a dollar.
JA Solar Holdings ADR (JRSO) jumping nearly $3. A nice pop for this company, a Chinese solar power firm doing an IPO, 15 million shares priced at $15 each.
And finally, Wellco Enterprise (WLC) soared $3.25. Wellco agreed to a buyout from a pair of private equity firms, Golden Gate Capital and Integrity Brands, for $14 a share in cash. Wellco manufactures military and rugged footwear.
