Paul Kangas' Stocks in the News
Thursday, November 08, 2007
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PAUL KANGAS: After yesterday's jumbo sell-off on Wall Street, the blue chips rebounded 50 Dow points at the outset of trading today. But Bernanke's comments on the sluggish economy quashed the early upturn, as sellers took control and sent the Dow to a 95-point mid-day loss, with the NASDAQ off 51 points. Cisco's cautious outlook was the catalyst for heavy selling in tech stocks, which had the NASDAQ off 100 points and the Dow down just over 200 points this afternoon before that late rally cut the losses. The Dow Industrial Average closed off 33.73 at 13,266.29. The NASDAQ Composite was down 52.76 at 2,696 even. The Standard & Poor's 500 fell just 0.85 to 1,474.77. In the bond market, the 10-year note climbed 10/32 to 99 22/32, putting the yield at 4.29 percent.
For the fourth consecutive day, Citigroup (C) led the active list on the big board, trading 58.1 million shares today, down $0.51 at a new 52- week low. Goldman Sachs cut the price target on Citigroup from $48 to $40 and Goldman Sachs cut price targets on JPMorgan, Bear Stearns, Merrill Lynch and Lehman Brothers as well. So the whole group was weak. EMC Corp (EMC) losing $1.57. That's in sympathy with the Cisco news. And incidentally, EMC's 86 percent owned VM Ware was down nearly $11 to $91.88 today on that weak high tech group.
Pfizer (PFE) a $0.21 loss.
General Electric (GE) fell $0.06.
But Bank of America (BAC) up $0.19, bucking the trend overall.
Then we have a look at Wells Fargo & Co (WFC) with a $0.72 gain. Wells is going to buy back an additional $75 million of its own shares.
There you see Ford Motor Co (F) moving up $0.24 on that narrower than expected loss.
American Intl Group (AIG) a $2 loss and it was off as much as $54 today was the low. After the close yesterday as we reported, first quarter earnings came in at $119, $0.43 below the Street estimate.
Merrill Lynch (MER) down $0.20.
And then Pepco Holdings (POM) off $1.16. I believe that was added to the Standard & Poor's 500 Index after the close today.
Disney (DIS) $0.13 gain. After the close, the magic kingdom reported fourth quarter earnings of $0.42, up from $0.36 a year ago and that was a penny above Street expectations. The stock did little in after hours trading.
Rio Tinto Plc (RTP) up $82.70. The company however has rejected BHP Biliton's (ph) buyout bid. It was a share for share deal, three shares of Biliton for each share of that and that was way below what Rio Tinto is selling for. No doubt they rejected it.
Petroleo Brasilerio (PBR) up $24.03. The company confirmed a giant oil find with recoverable reserves and estimates of up to 8 billion barrels of oil.
Another foreign stock doing well, Siemens Aktien (SI), the German electronics firm, up $17.07. The company plans to buy back up to $14.6 billion of its own stock by the year 2010.
Big loser of the day, Sotherbys Holdings (BID), the auction house, down $14.23, traded as low as $30.80 today. Bank of America says yesterday's key impressionist painting auction had sales below estimates and Bank America downgraded Sotherbys stock from "buy" to just a "neutral" rating.
Technology consulting firm SRA Intl (SRX) up $1.98. First quarter earnings, $0.31, up from $0.26 a year ago. Revenues up 20 percent.
And King Pharmaceuticals (KG) gained $1.37. Third quarter earnings nicely higher, $0.52 versus $0.44 a year ago and that was $0.07 above the Street consensus.
Lee Enterprises (LEE), the publishing company, up $2.36. Fourth quarter earnings moved up to $0.44 from $0.24 a year ago.
And then Mentor Corp (MNT) down $3.23. Second quarter earnings a bit higher, $0.26 versus $0.22 a year ago, but that was a penny below the Street estimate, no room for disappointment in this market.
Apple (AAPL) got hit with some selling today, down $10.83 topping the active list.
And Google (GOOG) was not immune to selling, off $39.10.
Research in Motion (RIMM) down $8.55.
And Cisco Systems (CSCO) losing $3.12. After the close yesterday as we reported, Cisco had earnings of $0.40 in the first quarter, $0.04 above the Street estimate, but the company said it's bracing for weakness in business from financial and auto companies in the fourth quarter and that helped set off that high tech sell off.
Microsoft (MSFT) down $0.78.
Then we see Baidu.com (BIDU) hit by profit taking, $37.13 loss.
There was some sunshine in the active list, First Solar (FSLR) up $57.31. Third quarter earnings came in at $0.58, way up from $0.06 a year ago on revenues that almost quadrupled.
Intel (INTC) $0.97 drop.
Oracle (ORCL) hit in that high tech sell off.
And then a $0.93 loss in Yahoo! (YHOO).
Restoration Hardware (RSTO) up $3.76, big move there. The home furnishings company got a $6.70 per share buyout bid from Catterton Partners.
And finally, Hansen Natural (HANS), the beverage company, plunging $13.17. Third quarter earnings $0.46 a share, $0.03 below the Street.
Those are the stocks in the news tonight.
