Paul Kangas' Stocks in the News
Friday, January 11, 2008
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JEFF YASTINE: All the financial stocks were gaining ground today, but it wasn't enough to offset selling on some previously strong areas of the market. The Dow dropped about 170 points in the first hour of trading. Consumer staple stocks, the folks who make beer, colas, detergents, getting sold even as banks and brokers like Merrill Lynch racked up a 5 percent gain. And tech stocks also fell, dropping 60 points before a small bounce in the last hour of the session. So the Dow closed out the session, plunging 246.79 points or nearly 2 percent and today's sell off put the index in the red for the week overall by 193.88 points. The NASDAQ Composite ended off 48 1/2 points at 2439.94 and this week, the index fell in three out of the past five sessions for a net loss of 64.71. And the S&P 500 falling 19.31 to close at 1401.02 and it rose in three out of the five sessions for a drop of 10.6 points. And in the bond market, the 10-year note climbing 27/32 to 105 25/32 and the yield at 3.79 percent.
And Countrywide Financial (CFC) topping our list, falling $1.42, giving back part of yesterday's 50 percent gain after that Bank of America buyout deal was announced. Citigroup (C) part of the strong financial sector today, rising nearly 2 percent. Citi hopes to raise another $10 billion from foreign investors and late today, the "Journal" reported that China Development Bank and Saudi Prince Al-Walid (ph) will put in $2 billion in fresh capital Al-Walid's stake in Citi will remain below 5 percent. He's a long-time investor there. Of course, some analysts looking to nearly $19 billion in write downs from Citi when it reports results next week.
Bank of America (BAC) losing $0.80 after doubling down in its Countrywide investment.
General Electric (GE) falling $0.75.
And American Express (AXP) contributing to the Dow's triple digit loss, tumbling nearly $5. That's a near three-year low for the stock and the company sees only 4 to 6 percent earnings growth with rising credit delinquencies. A host of analysts revising their outlooks on the company.
Washington Mutual (WM) advancing $0.53. Could JPMorgan be preparing a buyout deal of WAMU? That's the market rumor after Bank of America's deal for Countrywide.
Then EMC Corp (EMC) slipping $0.62.
JPMorgan Chase (JPM) dropping $0.47. The company not commenting on those market rumors about Washington Mutual.
AT&T (T) dropping $1.20.
Pfizer (PFE) slipping a fraction.
Then we turn to McDonald's (MCD), dropping $4, worries that consumers will be doing some belt tightening in a slowing economy and that could take a bit out of the chain's profits. An analyst at Friedman Billings turning cautious on the fast food chain's stock.
Run down some other Dow stocks on the ropes today, Boeing (BA), the FAA worried that the 787 Dreamliners' computer systems could be vulnerable to terrorist computer hacking attempts.
And Caterpillar (CAT) receiving an upgrade, but the stock going down anyway.
IBM (IBM) and 3M (MMM) also down for the day.
Consumer staples another casualty in today's sell off, Anheuser Busch (BUD), Coca-Cola Co (KO), Colgate Palmolive (CL), Kimberly-Clark (KMS), Procter & Gamble (PG), all doing quite poorly after some pretty strong stocks in recent weeks.
Money rotating into the financials like Merrill Lynch (MER) up over $2 or 5 percent. That despite a "New York Times" report that Merrill could write down as much as $15 billion when it reports results next Thursday. Like Citi, Merrill trying to raise about $4 billion in new capital.
MBIA (MBI) vaulting nearly 2 1/2. The bond insurer offering $1 billion in surplus bonds. Those yield 14 percent for capital to help preserve its triple A investment status.
Imation (IMN) nearly $5. The data storage company forecasting fourth quarter revenues to rise to the high end of earlier projections.
And then we turn to Best Buy Co (BBY) which slid more than $2, a disappointing 1 1/2 percent rise in December same store sales.
Pretty much the same story for Tiffany & Co (TIF), down more than 4 1/2. Sales falling 2 percent last month and they're forecasting a shortfall in profits for this year.
On the NASDAQ, Apple (AAPL) losing more than $5.
Research in Motion (RIMM) down nearly $7.
Google (GOOG) off more than $8.
Microsoft (MSFT) down $0.42.
Intel (INTC) losing more than half a dollar.
Baidu.com (BIDU) falling more than $10. Baidu expects fourth quarter revenues to grow more than 100 percent. That didn't help the stock today though/
Cisco Systems (CSCO) down a fraction.
Qualcomm (QCOM) up $0.64.
First Solar (FSLR) down nearly $5.
Juniper Networks (JNPR) down more than $4. JPMorgan downgrading the stock.
And then finally, Usana Health Sciences (USNA) surging nearly $14. The SEC is closing up its investigation of the nutrition and skin products firm. Some had claimed it was selling products through a pyramid scheme and no action will be taken against the company. Investors applauding that. And those are our stocks in the news tonight.
