Paul Kangas' Stocks in the News
Friday, October 05, 2007
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PAUL KANGAS: Judging by Wall Street's solid rally this morning, investors felt the September jobs report was strong enough to allay recession concerns but not so strong as to rule out another near term rate cut. By noontime, the Dow was already sporting a 105 point gain and the NASDAQ was up 41 points. After a brief pause, stocks surged still higher with the Dow at 3 p.m. up over 140 points or about 30 points above its record closing high. Some late selling however cut the gain to double digits. The Dow Industrial Average ended up 91.70 points at 14,066.01. That's about 21 points below its record closing high.
This week, the Dow fell twice, rose three times, had a net gain of 170.38 points. The NASDAQ Composite jumped 46 3/4 points exactly today to 2780.32. This week, it fell only once and gained 78.82 points overall. The Standard & Poor's 500 rose 14 3/4 points to a record closing high of 1557.59 I should say, that's a record. And for the week, it was up 30.84 points. Over in the bond market, the 10-year note fell 31/32 to par and 29/32, lifting the yield to 4.64 percent.
Most active issue on the big board trading 19 million shares was Archstone-Smith (ASN). This is an operator of apartment communities and (INAUDIBLE) partnership closed on its acquisition of Archstone at a price of a little over $60 a share.
Then came Ford Motor Co (F) an $0.11 gain.
Citigroup (C) moved up $0.67.
Noble Energy (NBL) was down $0.18, although Noble stock will replace Archstone-Smith in the Standard & Poor's 500.
Pfizer (PFE) $0.28 gain there.
Moving along we see Co vale do Rio (RIO), this is the big Brazilian mining conglomerate, up $1.51 today.
Followed by EMC Corp (EMC) with a $0.06 drop.
General Electric (GE) was a $0.07 gainer.
Then a new issue China Digital TV (STV), this is a 12 million share IPO offered at $16 today. The stock opened at $30, the high of the day, $33.50, backed off a little bit, still had a very strong debut.
Sprint Nextel (S) down $0.27. CEO Gary Forsee (ph) is under fire from activist shareholders who want him replaced, new management.
Alcoa (AA) moved up $1.13. The company will take $845 million of charges in the third quarter as it gets ready to sell its packaging and auto related businesses. Third quarter earnings from Alcoa due out next Tuesday. The Street estimate, $0.65 a share.
Aluminum Corp of China (ACH) up $4.80. "Wall Street Journal" reports the company will team up with Malaysia's MMC Corp. and Saudi Arabia's bin Laden Group to jointly invest $3 billion to build an aluminum smelter in Jazan (ph), Saudi Arabia.
Speaking of metal, Commercial Metals (CMC) up $2.86. The scrap metal recycler's stock was added to Goldman Sachs' list on top U.S. stocks to buy because of strong demand for scrap metal and weakness in the U.S. dollar and Goldman believes it could also be a possible takeover target.
Administaff (ASF) up $3.24. That strong jobs report this morning boosted a lot of the staffing company's stocks.
Let's have a look at some other in that sector. Labor Ready (LRW), Manpower (MAN) and Robert Half Intl (RHI) doing just fine.
Sealy (ZZ), the mattress company, down $1.11. The stock here, lower third quarter earnings, $0.22, down from $0.30 a year ago as higher costs offset a 7 1/2 percent jump in revenues. Citigroup downgraded Sealy stock from "buy" to a "sell."
And then MetroPCS Communications (PCS) down $2.81. In the third quarter, the company added only 114,000 subscribers, 83,000 fewer than the same period a year ago and 24,000 below the Street estimate.
NASDAQ's most active, Research in Motion (RIMM) up $12.83. Yesterday as we reported, second quarter earnings of $0.50, doubled from a year ago and then today, Research Capital brokerage boosted its price target on Research in Motion to $123.
Apple (AAPL) up $5.21. That is a record closing high.
Google (GOOG) up $15.02, doing very well.
Baidu.com (BIDU) up $6.61.
And then Intel (INTC) with a $0.06 loss.
Microsoft (MSFT) moved up $0.13.
Cisco Systems (CSCO) a half dollar gain.
Yahoo! (YHOO) up $0.73.
Sears Holding (SHLD) up $7.84. Yesterday that stock up a little over $3 on word activist investor Bill Ackman (ph) had a 3 1/2 percent stake.
Then Oracle (ORCL) $0.42 gain there.
Clearwire Corp (CLWR) down $3.23. The company's concerned that its partnership with Sprint could be at risk if there's a shake up in Sprint management as I suggested earlier.
Those are the stocks in the news tonight.
