Paul Kangas' Stocks in the News
Tuesday, January 15, 2008
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PAUL KANGAS: Given that report of poor December retail sales and a jump in core wholesale prices, stagflation talk was in the air on Wall Street this morning. Making investors even more jittery was all that bad news from Citigroup and fear that it was just a sample of what other major banks would report. By noon then, the Dow was down a hefty 215 points. The NASDAQ off 50 points. Signs that consumer credit is deteriorating triggered recession talk this afternoon, sending stocks even lower. So the Dow Industrial Average closed down 277.04 points at 12,501.11. The NASDAQ Composite ended off 60.71 at 2,417.59. Standard & Poor's 500 lost 35.30 ending at 1,380.95. Over in the bond market, the 10-year note climbed 24/32 to 104 21/32, putting the yield at 3.68 percent.
No surprise to see Citigroup (C) at the top of the active list, traded 55.7 million shares and fell $2.12 and you heard all the story, dividend cut goes from $0.54 to $0.32 incidentally and Standard & Poor's lowered its credit rating a notch with a negative outlook.
General Electric (GE) $0.93 drop there.
Then Bank of America (BAC) off $1.34. That company is going to cut 650 investment banking jobs among a host of other cost-cutting measures.
EMC Corp (EMC) fell $0.12.
And another weak bank JPMorgan Chase (JPM) losing $2.19.
Ford Motor Co (F) fell $0.21.
Pfizer (PFE) $0.38 drop.
Wells Fargo & Co (WFC), another weak bank, off $1.72.
ExxonMobil (XOM) on the lower oil futures, lost $1.81.
Then AT&T (T) in there with an $0.88 drop.
Boeing Co (BA) off $3.81 after trading as low as $76 during the day. "The Wall Street Journal" reports the company's close to announcing additional delays in the production of its 787 Dreamliner. Just last Thursday, Credit Suisse says fears of such delays are overdone.
Merrill Lynch (MER) off $2.96. The company did receive a $6.6 billion capital infusion from Kuwait Investment Authority and the Korean Investment Corporation.
State Street (STT) down $5.04. Fourth quarter earnings fell to $0.57 from $0.91 a year ago. The company made cautious comments about this year saying that earnings growth will be at the low end of a 10 to 15 percent growth range.
Ocwen Financial (OCN) best percentage gainer of the day, up $2.11. An investment group, including the chairman and CEO William Erbey are offering to take the company private at $7 a share.
Big loser, Moneygram International (MGI) losing half of its value, down $6.02. The company said it has additional, excuse me, net unrealized losses of $571 million.
Then came Nike (NKE), a $3.67 loss there, down 6 percent. (INAUDIBLE) Goldman Sachs cut its price target from $73 to $67 a share.
That had a negative impact on other footwear makers. Foot Locker (FL), Crocs (CROX) and Skechers USA (SKX) all down on the day.
Apple (AAPL) topped NASDAQ's most active. That winter cold is catching up with me as you can tell, down $9.74.
Google (GOOG) off over $16.
Research in Motion (RIMM) down $5.42.
Baidu.com (BIDU) off over $22.
Intel (INTC) $0.39 loss there.
Microsoft (MSFT) fell $0.39.
$0.44 drop in Cisco Systems (CSCO).
First Solar (FSLR) off nearly $20.
And Oracle (ORCL) $0.75 loss.
Amazon.com (AMZN) off $2.63.
Nvidia (NVDA) down $2.12. Deutsche Bank cut it from "buy" to a "hold."
And those are the stocks in the news tonight.
