Paul Kangas' Stocks in the News
Monday, October 22, 2007
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PAUL KANGAS: Sharp downturns in most overseas markets had Wall Street extending Friday's huge sell off in the early going today. The Dow fell about 105 points at the outset of trading while the NASDAQ moved up 5 points. The blue chips improved on solid earnings from Merck and continuing firmness in the tech sector. At 1:30 p.m., the Dow posted a 61- point gain while the NASDAQ was up 30 points. The market moved erratically for the next two hours and then it rallied again in the final half hour. The Dow closed up 44.95 points at 13,566.97. The NASDAQ Composite gained 28.77 ending at 2753.93 while the Standard & Poor's 500 Index rose 5.70 at 1506.33. Over in the bond market, the 10-year note fell 5/32 to 102 22/32, putting the yield at 4.42 percent.
Most active New York exchange issue on 18.2 million shares was Citigroup (C) moving up $0.25.
Followed by Pfizer (PFE) with a nickel loss.
Schering-Plough (SGP) was down $4.37. Third quarter operating earnings nicely higher, $0.28 versus $0.19 a year ago, but $0.02 below the average Wall Street estimate. Standard & Poor's however did repeat a "strong buy" on Schering.
General Electric (GE) moved up $0.13.
And then Ford Motor Co (F) a $0.03 drop.
Co vale do Rio (RIO), the big Brazilian mining firm, down $0.53.
Wells Fargo & Co (WFC) moved up $0.96.
ExxonMobil (XOM) losing $1.23.
Bank of America (BAC) edged up $0.21.
And Wal-Mart Stores (WMT) was up $0.27.
American Express (AXP) closed down $0.24. After the close, the company reported third quarter earnings of $0.90. That's up from $0.79 last year and a nickel better than the Street was expecting. In after hours trading, I saw the stock just above $58 a share, so it moved up rather nicely.
Merck & Co (MRK) a $1.53 advance. Third quarter earnings excluding one-time items, $0.75, up from $0.51 a year ago and $0.06 better than the Street expected.
Dupont Co (DD), that's another Dow stock, off $0.30 today. Citigroup cut its 2008 earnings estimate from $3.44 down to $3.32, also downgraded the stock from "buy" to just a "hold" rating on Dupont.
Texas Instruments (TXN) closed up $0.35. After the close, the company reported third quarter profits of $0.54. That's up from $0.47 last year and $0.04 above the Street consensus. In after hours trading, however, the stock fell to $33 on the company's cautious outlook about fourth quarter revenues apparently.
Then Kimberly-Clark (KMB) had a good day, up $3.05. Third quarter earnings came in at $1.07, up from $0.99 last year. Sales up 9.7 percent. Bank of America repeated a "buy" recommendation.
LDK Solar Co (LDK) up $4.57. The company has signed a three-year contract to supply crystalline solar wafers to a company called Canadian Solar, so a nice contract for that one.
Goodman Global (GGL), this is a company that makes air conditioning equipment and it's going to be acquired for $25.60 a share cash plus debt by a private equity firm, Hellman & Friedman.
Look at this, housing stocks, pretty firm today. Could this be a little bottom fishing in anticipation of a bottom in the market? Centex (CTX) has earnings due out tomorrow and Pulte Homes due out on Wednesday. Maybe that's in anticipation of some better than expected results.
KB Home (KBH)
Lennar (LEN)
Pulte Homes (PHM)
Ryland Group (RYL)
Target (TGT) up $0.07. After the close, the company cut its October same store sales growth estimate from plus 3 to 5 percent, down to 2 to 4 percent.
Apple (AAPL) topped the NASDAQ active up $3.94. Caris & Company before earnings came out boosted its price estimate from $175 to $200 a share and of course, you heard about the big after the close earnings. The stock jumped to $187. And incidentally, Apple said it ended the fiscal year with $15.4 billion in cash and no debt.
Google (GOOG) up $6.04.
Research in Motion (RIMM) down $1.59.
Microsoft (MSFT) gained $0.34.
And so did Intel (INTC).
Then we move along to Baidu.com (BIDU) up $0.15.
$0.13 drop in Cisco Systems (CSCO).
Sandisk (SNDK) gained $1.40.
Amazon.com (AMZN) up $1.53. Earnings due out tomorrow from Amazon.
And then Yahoo! (YHOO) an $0.82 gain, tenth in volume.
Radiation Therapy (RTSX) jumping $9.40. Vestar Capital will acquire it for $32.50 a share.
And Astec Industries (ASTE), which makes road construction equipment, hit a pothole today, tumbling $12.55. Third quarter earnings came in at $0.51, $0.18 below the Street estimate.
And those are the stocks in the news tonight.
