Paul Kangas' Stocks in the News
Tuesday, July 10, 2007
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PAUL KANGAS: Wall Street opened broadly lower on those earnings warnings from Home Depot and Sears. The Dow fell 66 points at the outset of trading and the NASDAQ was down 15. But many traders stayed on the sidelines ahead of that mid- session speech by Fed chief Bernanke, so a recovery attempt by stocks came up short. Afternoon brought a steep sell- off, which analysts linked not to the Bernanke speech, but rather to that potential Standard & Poor's downgrade of $12 billion in bonds backed by sub-prime mortgages.
The Dow Industrial Average tumbled to a closing loss of 148.27 points at 13,501.70. The NASDAQ Composite fell 30.86 points, ending at 2,639.16. Standard & Poor's 500 Index dropped 21.73 to 1,510.12.
In the bond market, the 10-year note climbed 26/32 to 95 30/32, pushing the yield all the way down to 5.03 percent.
Most active New York Exchange issue, trading 25.5 million shares was Pfizer (PFE), losing $0.30.
Followed by GE (GE) with a $0.72-drop.
Ford Motor (F) bucked the trend with a penny gain. JPMorgan upgraded Ford from underweight to overweight on optimism over the upcoming talks with the United Auto Workers. JPMorgan upgraded GM (GM) for the same reason. And that stock was up $0.64 at $37.41.
Time Warner (TWX) in there with a $0.48-drop.
Micron Technology (MU) moved up $0.12. Jefferies brokerage upgraded Micron to a buy on the improving outlook for DRAM chip prices, set a $17 a share target for Micron stock.
Citigroup (C) down $0.60 in the weak financial group.
AT&T (T) dropped $0.99.
Home Depot (HD) managing to gain $0.02 despite that earnings warning you heard about, probably because Home Depot plans to buy back up to a billion dollars of its own stock.
Exxon Mobil (XOM) a $0.94-loss.
And Bank of America (BAC), another weak financial, off $0.45 a share.
Altria Group (MO) down $1.27.
A $2.14 loss in American Express (AXP). And the rest of these big blue chips in the Dow all off more than $1 in this hard-hit day for the Dow.
D.R. Horton (DHI), a home-builder, off only $0.39. As you heard, the company's new home orders are down 40 percent. And it sees a third-quarter loss. But all that news from Horton had a bigger negative impact on other housing stocks.
Let's have a look at some of them. Lennar (LEN), KB Home (KBH), M.D.C. (MDC), Meritage (MTH), and Ryland (RYL) all down over a dollar a share.
Pepsi Bottling Group (PBG) up $1.31. The company in with second-quarter earnings, $0.70, up from $0.61 last year. Revenues were up 7.1 percent. And the company boosted its 2007 earnings guidance by about $0.09 up to $2.07 a share at best.
Greenbrier Company (GBX), manufacturer of railroad cars, had great third- quarter earnings, rolling right along, $0.81 versus $0.67 last year. And revenues jumped 45 percent. That $0.81 earnings per share, incidentally, was $0.42 above the Wall Street consensus.
NASDAQ's most active topped by Apple (AAPL), up $2.02. JPMorgan yesterday said it expects the company to produce a smaller, cheaper iPhone by the fourth quarter of this year.
Google (GOOG) bucking the trend, up $0.78.
And then Microsoft (MSFT), a $0.54-drop.
Sears Holding (SHLD) tumbling $17.20. As you heard, the company forecasting a sharp drop in earnings. And hardly cushioning it today was the fact that the company plans to buy back up to $1 billion of its own stock.
Intel (INTC) managed to gain a penny.
Then baidu.com (BIDU) up nearly $10 a share. No specific news I saw.
Research In Motion (RIMM) down $5.15.
Cisco (CSCO) a $0.14-drop.
Cognizant Technology (CTSH) off $0.16.
And then Amgen (AMGN) topping out the active list there with a $0.26-drop.
Akamai Technologies (AKAM) up $1.92. That stock to be added to the Standard & Poor's 500 Index, replacing Biomet (BMET), which is being bought out. Index fund buying there.
Depomed (DEPO) losing 59 percent of its value, down $2.93 on news that late stage trials for its shingles pain treatment failed to achieve its endpoint, down went the stock.
And finally, Physicians Formula (FACE) tumbled over $4 after boosting its second-quarter loss forecast from as little as $.0.01 per share to a high of $0.07 per share on disappointing sales.
