Paul Kangas' Stocks in the News
Monday, November 26, 2007
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JEFF YASTINE: Well, online shoppers may have been buying today but investors were selling. Those credit woes at HSBC and Citigroup's problems erased an early 40 point gain for the Dow. The NASDAQ also had little traction, despite the interest in online retailers today. A huge rally in the bond market also had stock traders wondering if there's still more bad news that isn't being fully discounted yet. So the Dow finished down 237.44 at 12,743.44. The NASDAQ lost 55.61, to end the day at 2540.99 and the S&P 500 falling 33.48 to 1407.22 and over in the bond market, the 10- year note gaining a big 1 and 11/32 to 103 11/32 and the yield now drops to below 4 percent, 3.84 percent, the lowest yield in more than three and a half years.
Starting things off, Citigroup (C) dropping $1.90. As we mentioned earlier, Citi wants to slim down, shave costs, may bring some of that CBO (ph) debt on to its balance sheet. The stock falling to new 4 1/2 year lows. The pressure's on to do something dramatic, perhaps large job cuts. General Electric (GE) down $0.94.
And then Transocean (RIG) jumped over $3. The company closing in on its $18 billion purchase of Global Santa Fe. The news Transocean shares will replace the old one, the symbol RIG, rig in the S&P 500 Index.
Pfizer (PFE) dropping $0.68.
EMC Corp (EMC) losing $1.08.
And then Fannie Mae (FNM) down more than $3. Mounting mortgage losses, a downgrade from UBS pounding the shares, also Freddie Mac taking a hit, down $1.97 to $24.50.
And then the Brazilian miner, Co Vale do Rio (RIO) dropping $1.56, worries of course, that the downturn in the U.S. economy will hurt demand for metal ores.
Then Ford Motor Co (F) dropping $0.18.
Countrywide Financial (CFC) falling $1.01. Senator Charles Schumer of New York wants regulators to look at Countrywide's borrowing of $51 billion from the Federal home loan bank of Atlanta. He's worried the loans could be a risk to the soundness of the huge Federal home loan banking system.
Then Bank of America (BAC) dropping $1.27, two-year lows for that stock amidst this very weak financial sector today.
Boeing Co (BA) ending up $0.53. Any problems in the economy or production delays for Boeing's 787 Dreamliner are already priced into the shares or so says an analyst at Wachovia.
And then here's Sony Corp ADR (SNE), which rose $0.93. Dubai International Capital, a private equity group in the Middle East, buying a big stake in Sony, no one saying exactly how large that stake is.
U.S. Shipping Partners (USS) gaining $1.13, investors breathing a sigh of relief. The company says it will maintain its current hefty $0.45 per unit distribution through next year. That yield up over $0.18, 18 percent rather.
Centex Corp (CTX) falling $1.58, getting close to a five-year low for the home builder. An analyst at Citigroup doesn't expect a recovery in that sector for at least another six months.
Then Newell Rubbermaid (NWL) down more than $2. The company cut its quarterly and full year sales targets. Office supply retailers aren't buying new stuff while they sell out their existing inventory and Newell Rubbermaid feeling that impact.
First Marblehead (FMD) dropping nearly $3. Increasing numbers of unpaid student loans could mean lower profits for the bank.
And then CIT Group (CIT) sliding $4.72. Analysts think lower demand for loans will hurt earnings at that group.
NASDAQ, Apple (AAPL) rising $1, got as high as $1.77, excuse me, $177, before the broad market sell off this afternoon.
Google (GOOG) off $10.70 at a high of $693 intraday.
Baidu.com (BIDU) though gaining $17.28. A Reuters article highlighting the company's strength in its home turf of China where even Google has had its problems.
Research in Motion (RIMM) falling more than $2.
Microsoft (MSFT) down more than $1.
Cisco Systems (CSCO) down also $1.19.
Intel (INTC) losing $0.70.
Garmin Ltd (GRMN) gaining nearly $5. An analyst at Deutsche Bank believes Garmin's navigation units are a favorite buy among holiday shoppers so far this year.
And then First Solar (FSLR) climbing $1.87.
Genlyte Group (GLYT) a huge premium there of more than $31. Phillips Electronics will buy Genlyte for $95.50 a share. That's $2.7 billion, making Phillips the largest of the fixture makers in North America.
And finally Hoku Scientific (HOKU) jumping more than $2. It signed a $300 million deal to supply poly silicon to a solar panel maker also in China.
Those are our stocks in the news tonight.
