Paul Kangas' Stocks in the News
Friday, November 30, 2007
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JEFF YASTINE: Investors welcomed Fed Chairman Bernanke's comments and sent stocks soaring with the Dow jumping 140 points at the opening bell. The financials got an extra boost by reports of a Federal plan to help troubled sub-prime borrowers. Details on that in a moment and midday, the Dow was still up over 80, but the techs came in there under some profit taking, selling in big technology names like Apple and Research in Motion put the NASDAQ in the red, but the Dow managed to bounce back in late afternoon trading and it finished up 59.99 at 13,371.72. The Dow rose four times this week and fell only once for an overall gain of 390.84 points. Meanwhile, the NASDAQ falling a little over 7 points to close at 2660.96, the index falling twice and rising three times this week for an overall gain of 64.36. And then the S&P 500 rose 11.42 to 1481.14 and it fell only once this week and gained 40.44 points overall. Over in the bond market, the 10-year note slipping 3/32 to 102 17/32 and putting the yield still below 4 percent to 3.94 percent.
And once again, Citigroup (C) topping our list, gaining just a little over $1. The financial stocks getting a big lift from the Treasury's plan to freeze interest rates, resets for holders of sub-prime mortgages, those resets due next year. The shares for Citigroup up 6 percent this week, lit a fire under many of the other (INAUDIBLE) financial shares of recent weeks. General Electric (GE) gaining $0.15.
There's Wells Fargo & Co (WFC) up $1.89. Its executives are also party to the negotiations with Treasury for that mortgage interest rate freeze.
Pfizer (PFE) gaining $0.16. The drug company mentioned as a potential suitor for King Pharmaceuticals.
And then Countrywide Financial (CFC) gaining $1.52. It didn't hurt that the financials that Fed chief Bernanke in that speech last night all but waved a flag that the Fed would cut rates again in December.
And a look at some of the other top tier mortgage lenders, Fannie Mae (FNM), Freddie Mac (FRE), MBIA (MBI), Ambac Financial (ABK) all doing very nicely today.
Ford Motor Co (F) rising $0.22.
And then we have Bank of America (BAC) up $1.50.
JPMorgan Chase (JPM) rising nearly $2, its best level of the month.
Schering-Plough (SGP) gained $0.68.
EMC Corp (EMC) dropping $0.19.
You saw some of the banking giants and mortgage lenders, well, some of the home builders also caught a bit (ph) today. Centex (CTX), which is down about 60 percent alone just since June gaining today.
And so did DR Horton (DHI), KB Home (KBH), MDC Holdings (MDC), Ryland Group (RYL) just like the old days of say two years ago.
In other news, Newmont Mining (NEM) dropping $1.70. The gold miner selling some of its assets to (INAUDIBLE) Nevada for $1.3 billion. The dollar strengthened on foreign exchange markets today. The February gold contract falling more than $13 to $789 an ounce.
J Crew Group (JCG) surging $7.75. Earnings came in $0.06 above estimates and same store sales jumped 19 percent.
Then AbitibiBowater (ABH) rising $3.69. This is a new newsprint company formed from a merger. Investors liking the company's plans to cut newsprint production, which should help raise prices as we head into 2008.
And on the downside, Big Lots (BIG) falling almost $2. The close out retailer bracing for a shortfall in holiday sales and slowing management's turnaround plans.
Now on the NASDAQ, Apple (AAPL) ended down more than $2, profit taking the order of the day for most of the technology shares there.
Research in Motion (RIMM) down more than $8. An analyst at Piper Jaffray sees the company losing some sales to the South Korean maker LG in its new Voyager device.
Google (GOOG) dropping $4 even.
Baidu.com (BIDU) gaining nearly $2.50. It's up about 24 percent just this week.
Dell (DELL) losing $3.60, negative reaction so far to its results announced last night.
Microsoft (MSFT) rising a fraction.
But Cisco Systems (CSCO) losing on the day.
So did Intel (INTC).
First Solar (FSLR) dropping a little over $1.
Qualcomm (QCOM) losing $0.64.
Then we have XM Satellite (XMSR) surging $1.86. Bear Stearns analyst expect the FCC to approve a merger with its rival in the satellite radio business, Sirius Satellite. It'll be interesting to see if that comes off. That merger should be announced soon if it does.
SeaChange Intl (SEAC) climbing $2. Profits and revenues rising in its latest quarter and the company, which makes hardware and software for video on demand TV, says it expects continued strength as it heads into its fiscal fourth quarter, based on orders from the North American services providers.
And finally, Force Protection (FRPT) down a little over $4. The Marines are considering scaling back their purchases of its bomb and mine- resistant vehicles, perhaps buying 2400 vehicles instead of 3700.
And those are our stocks in the news tonight.
