Paul Kangas' Stocks in the News
Monday, October 15, 2007
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PAUL KANGAS: The sharp drop in Citigroup's results led to a weak opening on Wall Street. Adding to the selling, investor concern over those surging oil prices. Just before noontime, the Dow posted a 140 point loss and the NASDAQ Composite was down 23 points. A further rise in oil, then an earnings warning from Eaton Corporation and a downgrade on Boeing kept pressure on stocks this afternoon, but some late tech buying also cut the losses in the final hour. The Dow Industrial Average went on to close down 108.28 at 13,984.80. The NASDAQ of 29.63 ending at 2780.05. Standard & Poor's 500 Index fell 13.09 points to 1548.71. Over in the bond market, the 10-year note rose 2/32 to par and 17/32, putting the yield at 4.68 percent.
Most active big board issue trading 23.1 million shares, Citigroup (C) losing $1.63, traded as low as $45.69 on those sharply lower third quarter earnings.
Then Pfizer (PFE) $0.26 drop there.
Ford Motor Co (F) lost $0.21.
And so did General Electric (GE).
Medtronic (MDT) a major casualty, down $6.33, traded as low as $48.69 today. The company suspended its worldwide distribution of wire leads for its defibrillators because of their potential to fracture. The company also recommended against making any new implants of those leads.
ExxonMobil (XOM), I guess we know why that's up $1.34, record high oil prices.
EMC Corp (EMC) $0.25 loss there.
General Motors (GM), which had a good run up last week, down $1.53 on profit taking.
AT&T (T) dropped a dime.
And then Bank of America (BAC) a $0.65 loss there.
Boeing (BA) down $1.86. The Bernstein research says that the assembly problems delaying the Dreamliner deliveries could keep the stock price of Boeing bound in a narrow range for 12 months. Bernstein also downgraded the stock from "outperform" to just a "market perform" rating.
Chevron (CVX) edging up $0.92. The company plans a major processing unit at its Pascagoula, Mississippi refinery and that'll boost gasoline output there by 10 percent.
China Petroleum (SNP) up $16.62. Citigroup really reversed itself and upgraded its "sell" recommendation to a "buy" recommendation today.
Harley-Davidson (HOG) down $0.91. The company is warning third quarter earnings due out this Friday won't be pretty and it also slashed its 2008 earnings estimates as well.
Eaton (ETN) down $3.36. Third quarter earnings higher than last year, $1.71 versus $1.62, but the company sees fourth quarter results around $1.60 to $1.70. The Street estimate is up there at $1.85 a share.
Big winner of the day, Tektronix (TEK) up $9.51. Danaher Corp. will acquire the company for $38 a share in cash. Danaher was down $0.95 at $81.52.
Medco Health Solution (MHS) down $2.23. Wachovia Securities downgraded it from "out perform" to "market perform" mainly on valuation. You can see by that chart it's had quite a run up.
Primedia (PRM) down $2.26, big percentage loss. The company estimates its 2007 revenue growth will be flat or up just single digits.
And Dril-Quip (DRQ), which provides oil drilling equipment logically enough, down $3.97. UBS financial downgraded it from "neutral" to "sell."
And as you might expect, the airlines weak today on those record high oil prices. That included Us Airways Group (LCC) down $1.95.
NASDAQ's most active, Apple (AAPL) losing only $0.27.
Google (GOOG) got hit a little bit harder, down $17.28.
Baidu.com (BIDU) losing $8.03.
And then Biogen Idec (BIIB) up $13.08. After the close Friday as we reported, the company has in essence put itself up for sale.
Research in Motion (RIMM) lost $4.20.
Intel (INTC) $0.20 gainer.
Microsoft (MSFT) $0.13 loss.
Same story with Cisco Systems (CSCO).
Bea Systems (BEAS) fell $0.38.
And then Dryships (DRYS) gaining $4.93.
Sutron (STRN) up $1.56. This company provides hydrological services and it tripled its third quarter earnings from last year, $0.27, versus $0.09 then and sales shot up 38 percent.
And those are the stocks in the news tonight.
