Paul Kangas' Stocks in the News
Monday, July 16, 2007
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PAUL KANGAS: The blue chips were in demand today, as Wall Street followed last week's record highs with more gains. Investor demand for stocks like IBM, Coca-Cola, 3M and Verizon lifted the Dow steadily higher throughout the morning. By 1:00 p.m., the Dow was up 77 points and within striking distance of the 14,000 level. But the NASDAQ was up just two points. Buyers backed away for the rest of the session on caution ahead of the flood of upcoming corporate earnings reports and higher oil prices also hurt. The Dow Industrial Average ended up just 43.73 points, but that was still a new record high at 13,950.98. The NASDAQ fell 9.67 to 2697.33. The Standard & Poor's 500 Index lost 2.98 ending at 1549.52. In the bond market, the 10-year note gained 13/32 to 95 27/32, lowering the yield at 5.04 percent.
The most active New York exchange issue on 18.1 million shares, General Electric (GE) moving up $0.62. That's a five-year high incidentally and the AG Edwards brokerage boosted its price target on GE from $42 to $46 a share. Then came Motorola (MOT) with a $0.26 gain. Deutsche Bank Securities brokerage upgraded it from "hold" to a "buy."
ExxonMobil (XOM) losing $0.63.
And Ford Motor Co (F) down $0.11.
And then Pfizer (PFE) with a $0.17 gain in there.
Advanced Micro (AMD), whose earnings are due out this Thursday, $0.29 gain.
Alcoa (AA) down $0.58. The big Australian firm BHP Billiton reportedly asked its advisor Merrill Lynch if it should make a buyout bid for Alcoa. Analysts say we could know in two weeks.
ConocoPhillips (COP) a little profit taking there on that big winner, down $3.04.
Verizon Communications (VZ) gained $1. Vodaphone quickly denied a "Financial Times" report that it was considering a take over bid from Verizon. Vodaphone lost $0.37 to $33.15.
Then came Citigroup (C) with a $0.33 loss today.
IBM (IBM) moved up $1.06, helping the Dow Industrial Average. The company signed a pact worth $1.4 billion to provide computer outsourcing for the big drug firm Astra Zeneca. That stock was up a nickel to $56.16 today. Big blue also said it's going to acquire privately held DataMirror Corporation. The price: $161 million.
Eaton (ETN) up $2.77. Second quarter earnings, $1.64, same as last year, but $0.17 ahead of the Wall Street estimate and the company boosted its 2007 earnings estimate by $0.30 to $6.70 a share at the high end.
DJO Inc (DJO), an orthopedic firm, up $8. Re-able Therapeutics, a Blackstone company, is going to acquire DJO for $50.25 a share in cash.
Glaxosmithkline (GSK) moving up $0.85. JPMorgan upgraded it from "under weight" to "neutral" on a valuation basis.
Amrep (AXR) which is involved in the real estate business, fourth quarter earnings lower, $0.95 versus $1.56 a year ago, but operating earnings were $1.19 and the company did set a $1 per share special cash dividend and said it plans to buy back up to 500,000 of its own shares.
Con-way (CNW), this is a logistics and trucking company, up $3 a share, positive reaction to the firm's acquisition of Contract Freighters, a privately held firm. The price: $750 million.
Spartech (SEH) down nearly $5. The company makes thermal plastic sheet business and that's kind of is used by the housing industry, so the company cut its 2007 earnings guidance from $1.62 at best down to $1.50 at the high end and the CEO also resigned.
Nalco Holding (NLC), which is in water treatment, down $2.12. Credit Suisse downgraded it from "neutral" to "under perform."
And W.W. Grainger (GWW) off $4.12. Second quarter earnings higher, $1.21 versus $1.19 last year, $0.02 above the Street estimate, but analysts were disappointed that the company's outlook was not more bullish.
Most active NASDAQ issue, Apple (AAPL) up $0.37.
Then Google (GOOG) an $0.83 gain.
Research in Motion (RIMM) down $0.98.
No change in Cisco Systems (CSCO) today.
Intel (INTC), whose earnings are due out tomorrow, a $0.02 loss.
And then Microsoft (MSFT) $0.21 gain.
Yahoo! (YHOO)
was up $0.12
Baidu.com (BIDU) fell $4.83.
Amazon.com (AMZN) losing $1.41.
And tenth in volume was Ebay (BAY) with a $0.44 gain.
Speaking of gains, Syntax-Brillian (BRLC), which is in the HDTV business, boosted its revenue outlook and the stock reacted with $1.05 gain.
And look at this gain, Dynacq Healthcare (DYII), which manages acute care hospitals, it's a Houston-based firm, what a turnaround. Third quarter earnings up $0.17 a share versus a loss of $0.05 a share a year ago.
And those are the stocks in the news tonight.
