Paul Kangas' Stocks in the News
Monday, March 26, 2007
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PAUL KANGAS: Profit takers took the upper hand in early trading on Wall Street as they cashed in on some of last week's big gains. The Dow lost 30 points at the outset of trading, NASDAQ fell about one point. That report of a 3.9 percent drop in new home sales sent the Dow to a late morning loss of 101 points with the NASDAQ off 15. Then despite growing tensions with Iran and higher oil prices, stocks made a nice recovery this afternoon to end on a mixed note. The Dow Industrial Average closed off just 11.94 at 12,469.07. The NASDAQ Composite was up 6.70 at 2455.63. And the Standard & Poor's 500, it also rose and it was up 1.39 at 1437.50. Over in the bond market, the 10-year note gained 3/32 to par and 5/32, putting the yield at 4.60 percent.
The most active big board issue on 16.1 million shares, General Electric (GE) moving up $0.18.
Followed by the new firm CVS Caremark (CVS) with a nickel gain. But then came Boston Scientific (BSX) losing $1 and it traded as low as $13.88. A study showed that Abbott Laboratories drug coated stent outperformed Boston Scientific's Taxus stent. Bad news for BSX.
Motorola (MOT) was up $0.16. This week's "Barron's" financial magazine article suggests things could get worse before they get better for Motorola because the company's having problems in getting new products to market. However, Carl Icahn's purchase of stock recently has helped stabilize it.
Time Warner (TWX) a $0.38 gain. That was fifth in volume on the big board.
Then Pfizer (PFE) edged a penny higher.
ExxonMobil (XOM) rising $0.49.
And Abbott Labs (ABT) itself up $3.38 on the news about that study showing a drug coated stent out performed Boston Scientific's.
AT&T (T) was up $0.43.
And tenth in volume, Sprint Nextel (S) losing a half dollar a share.
Merck (MRK) fell $0.38. The company announced that it and Schering Plough will co-develop a new cholesterol lowering drug. Schering's stock was up $0.52 at $25.14.
Walgreen Co (WAG) down $0.47 despite nicely higher second quarter earnings, $0.65 versus $0.51 a year ago, $0.04 above the Street estimate. Total sales up 14.6 percent thanks to strong prescription drug demand according to Walgreen.
Freeport McMoran Copper & Gold (FCX) up $2.40. As we know the company just acquired copper producer Phelps Dodge and today Freeport CEO says demand for copper is growing annually at a double digit rate thanks largely to demand from China.
Goodyear Tire (GT) up $1.47. The company will sell the division it owns that manufactures conveyor belts and hoses. It's going to get $1.48 billion in a buyer's Carliyle Group.
Alcatel-Lucent (ALU) up $0.39, over 3 1/3 percent. Verizon has awarded the company a three-year, $6 billion net worth expansion contract, a lot of business there.
On the downside, Trex Co (TWP) which makes decking products, had a fourth quarter loss of $0.93, $0.20 worse than last year's loss and it sees the 2007 market conditions remaining quite soft.
Tam SA (TAM), this is the Brazilian airline, off $1.38. It was downgraded by Bear Stearns from "out perform" to just "peer perform."
Apple (AAPL) topped the NASDAQ most active list, up $2.33, thanks to some positive comments about it in this week's "Barron's" financial.
Google (GOOG) up $3.17.
Microsoft (MSFT) a $0.20 gain.
Cisco Systems (CSCO) up $0.15.
And then Amgen (AMGN), fifth in volume, down $0.88.
Dell (DELL) moved up $0.79. Goldman Sachs upgraded that stock from "neutral" to "buy."
Intel (INTC) a $0.02 gainer.
Ebay (EBAY) did well, up $1.39. Goldman Sachs boosted first quarter revenue and earnings estimates on eBay.
Qualcomm (QCOM) down $0.15.
And Research in Motion (RIMM), tenth in dollar volume, up $1.71.
Look at this gain, Biosite (BSTE) up $28.42 or 51 1/3 percent. The news, Beckman Coulter has made an $85 a share cash tender offer for all of the stock outstanding.
And Alexza Pharmaceuticals (ALXA) up $5.23, nice move there too. The company said mid-stage trials for its migraine and schizophrenia treatment showing promise.
Over on the American - not quite on the American yet -- CV Therapeutics (CVTX) was downgraded by Deutsche Bank from "hold" to "sell."
Now we turn over to the American Exchange where Metretek Technologies (MEK) up $2.13. The company's power secure unit has procured $50 million in new contracts for this year and next.
And also on the American Exchange, Document Security System (DMC) off $1.52. A British court has ruled the company's European patent is invalid in the United Kingdom.
And those are the stocks in the news tonight.
