Paul Kangas' Stocks in the News
Thursday, May 10, 2007
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PAUL KANGAS: The nation's trade deficit ballooned in March on a sharp surge in the cost of crude oil imports. The Commerce Department said the March trade gap soared 10.4 percent to almost $64 billion, its highest level in six months. The move came even as U.S. exports rose almost 2 percent to $126 billion. But meanwhile, March imports rose 4.5 percent to $190 billion on rising prices for imported fuel.
If investors were looking for reasons to take some profits from the recent rally, they found them in those discouraging reports on the trade deficit and retail sales. In a sell-off with few up ticks, the Dow tumbled 120 points by noon time while the NASDAQ lost 31 points. The market remained under heavy selling pressure this afternoon as higher oil prices kept potential buyers on the sidelines, resulting in a sharply lower close. The Dow Jones Industrial Average dropped 147.74 points to 13,215.13. The NASDAQ Composite plummeted 42.60 points ending at 2533.74, while the Standard & Poor's 500 index lost 21.11 to 1491.47. In the bond market, the 10-year note rose 8/32 to 98 28/32, lowering the yield at 4.64 percent.
The most active big board issue on 16.1 million shares was an initial public offering, Aecom Tech (ACM). This is a firm, that's an acronym for Architectural Engineering Construction Operations and Maintenance and 13.5 million shares were offered to the public at 20, opened at $21.10. The high of the day, $21.98 and backed off a little bit. It's a very nice debut. Among its projects incidentally, the firm has the World Trade Center rapid transit system. Then came Advanced Micro (AMD) up $0.48.
While General Electric (GE) dropped $0.48.
Pfizer (PFE) a $0.36 loss.
And then Motorola (MOT) edging up a nickel a share.
Ford Motor Co (F) lost $0.11.
EMC Corp (EMC) down $0.42.
AT&T (T) a $0.56 drop there.
Wal-Mart Stores (WMT) off $0.18 on that 3 1/2 percent drop in April same store sales.
Let's have a look at some of the other major retailers. They were certainly affected by the Wal-Mart news. Federated Department (FD), Nordstrom (JWN), Sears Holding (SHLD) and Target (TGT) all on the downside today.
ExxonMobil (XOM) was down $1.68, even though oil prices edge a bit higher today.
Hillenbrand Industries (HB) up $6.14. The company has approved a plan to separate into two public companies. One will be called Hill-Rom and it's a medical technology firm and the other one will be Batesville Casket Company. I guess we know what they do.
Hershey Co (HSY) losing $2.06 today. The company lowered its 2007 earnings guidance from growth at 7.7 to 9 percent growth of only 4 to 6 percent. The company blamed partly the higher cost of dairy products for the problem.
Torch Energy Royalty Trust (TRU) up $1.71. Trust Ventures launched an $8 tender offer for all the outstanding units of Torch Energy Royalty.
China East Air (CEA) moving up $3.80. The company reportedly is in late stage talks to sell a stake to Singapore Airlines, but Singapore says it's only discussing a commercial cooperation deal.
Aeropostale (ARO) up $2.85. The young adult apparel retailer had April same store sales rising 14 percent and the company boosted its first quarter earnings guidance.
Neenah Paper (NP) up $2.58. First quarter earnings came in at $1.01, way up from $0.23 last year. Revenues soared almost 70 percent.
Pope & Talbot (POP), this is a forest products firm, had a first quarter loss of $1.15, much worse than last year's loss of $0.49 a share. Revenues dropped 10 percent.
Ralcorp Holdings (RAH) off $13.13. JPMorgan downgraded it from "over weight" to "neutral." After the close yesterday, Ralcorp announced only $0.02 in second quarter earnings, down from $0.48 last year.
And Steak & Shake (SNS) burned for a loss of $1.85. Second quarter earnings fell to $0.21 from $0.30 last year and same store sales dropped 4.7 percent.
Apple (AAPL) topped the actives on NASDAQ, moving up $0.46.
Amgen (AMGN) down $5.77. An FDA advisory panel urging the company and Johnson & Johnson to implement more restrictions on their anemia drugs. J&J stock incidentally fell $1.61.
Google (GOOG) down $7.78.
Followed by Microsoft (MSFT) $0.20 loss there.
Cisco Systems (CSCO) off $0.22.
And moving along to Intel (INTC), $0.26 loss there.
Research in Motion (RIMM) after several days of gains, down $3.20.
Whole Foods Market (WFMI) off $4.65. After the close yesterday, lower second quarter earnings, $0.32, down from $0.36 a year ago and reportedly the Federal Trade Commission is concerned about the company's plan to acquire its rival Wild Oats.
Yahoo! (YHOO) down $0.52.
And Qualcomm (QCOM) was a $0.36 loser.
And those are the stocks in the news tonight.
