Paul Kangas' Stocks in the News
Tuesday, May 08, 2007
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PAUL KANGAS: Wall Street's huge blue chips rally of some recent weeks ran into some moderate selling early today with the Dow dropping 65 points at the outset and the NASDAQ falling 15 points. Weakness in overseas markets was a negative factor in the early downturn, but a strong rail sector on takeover news and stock buyback news helped the market curb its losses in afternoon. The upturn was subdued, but that was because of caution ahead of tomorrow's Federal Reserve meeting. The Dow Industrial Average cut its closing loss to only 3.90, putting it at 13,309.83. And the NASDAQ managed actually to gain of .80 ending at 2571.75. The Standard & Poor's 500 index lost 1.76 to 1507.72. Over in the bond market, the 10-year note fell 2/32 to 99 28/32, putting the yield at 4.64 percent.
Most active big board issue on 18.4 million shares, Hewlett-Packard (HPQ), a nice move, up $1.21 after the company boosted its second quarter earnings guidance from $0.63 to the $0.70 per share level, also boosted revenue estimates and after the close, Bear Stearns boosted its price target on HP from $59 to $62 a share.
Alcoa (AA) up another $0.87, up nearly $3 yesterday when it made that bid for Alcan. Alcan, which soared $21 yesterday, was off $1.83 today incidentally.
Then Pfizer (PFE) with a $0.03 loss.
Schering-Plough (SDP) fell $0.53.
Motorola (MOT) down $0.38. It looks like preliminary figures indicate that Carl Icahn was not elected to the board of directors of Motorola.
Ford Motor Co (TWX) up $0.21.
Time Warner (TWX) $0.19 gain.
General Electric (GE) $0.16 loss there.
Cvs/Caremark (CVS) moved up $0.89. First quarter earnings, $0.46, but that excluded the acquisition of Caremark, but the earnings were in line with Street estimates.
Emc Corp (EMC) $0.07 gainer.
Disney (DIS) closed up $0.49. After the close, second quarter earnings, $0.44, up from $0.37 a year ago, $0.06 better than the Street was expecting, but revenues were lower than expected and in after hours trading, I saw the stock was low as $35.75 a share.
AK Steel Holding (AKS) up $2.96. The "Financial Times" of London reports Arcelor Mittal Steel is eyeing the company as a takeover and may fetch up to $40 a share, say analysts, although they doubt the bid will happen.
Florida East Coast (FLA), big rail, up $10.78. Private equity fund managed by Fortress Investment Group will acquire this company for $84 a share in cash.
Other rail stocks up on that news, Burl No Santa Fe (BNI), Norfolk Southern (NSC) and Union Pacific (UNP). It also helped Morgan Stanley begin covering Norfolk and Union Pacific with an "overweight" rating on each of those two.
McDermott Intl (MDR) up $6.56. First quarter earnings soared to $1.38 from only $0.49 a year ago. The Street estimate was for only $0.75 in earnings.
Then we see on downside, DJO (DJO), which makes medical equipment. Lower earnings, first quarter, $0.23 down from $0.28, $0.08 below the Street estimate. The company blamed lower profit margins.
And Verasun Energy (VSE), which makes ethanol, down $2.89. The company had just a break even first quarter versus earnings of $0.04 a share a year ago.
Apple (APPL) topped the NASDAQ's active, up $1.14.
Cisco Systems (CSCO) closed up $0.55 and then as you heard, dropped to around $27.50 in after hours trading.
Research in Motion (RIMM) up nearly $7 a share after the company had an upbeat meeting with analysts yesterday.
Microsoft (MSFT) $0.04 gainer.
Google (GOOG) down $0.46.
Intel (INTC) was a $0.19 gainer.
Amgen (AMGN) fell $1.10.
Yahoo! (YHOO) a $0.03 rise there.
Amazon.com (AMZN) up $1.04.
And Medimmune (MEDI) was down $0.13 a share.
Blue Nile (NILE), this is the online jewelry retailer. First quarter earnings, $0.19 up from $0.13 a year ago, $0.04 better than the Street expected.
Then over on the American exchange, Englobal (ENG) up $1.81, big percentage move. First quarter earnings more than doubled, $0.12 versus only a nickel last year. The Street was expecting just $0.02.
And United Guardian (UG) look at that gain, up $3.69. First quarter earnings, $0.23, up from $0.13 a year ago. Revenues jumped 48 percent.
Those are the stocks in the news tonight.
