Paul Kangas' Stocks in the News
Friday, April 25, 2008
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PAUL KANGAS: Wall Street's blue chips opened slightly higher but were undermined by a weak tech sector. That tech weakness was spurred by Microsoft's disappointing outlook, reported last night. The Dow rose 14 points at the outset of trading, while the NASDAQ fell 24 points. That surge in oil and the drop in consumer sentiment pushed the broad market sharply lower as the Dow posted a 100-point loss at mid-day, with the NASDAQ Composite down 33 points. The sell-off's low volume attracted bargain hunters this afternoon and that helped stocks end on a mixed note. The Dow Industrial Average closed up 42.91 points at 12,891.96. This week it fell twice, rose three times, had a net gain of exactly 42.50 points. The NASDAQ Composite fell 5.99 to 2422.93 today and it also fell twice and rose three times this week and gained 19.96 points overall. Standard & Poor's 500 Index rose 9.02 points, ending at 1397.84 today. For the week, it gained 7.51 points. In the bond market, the 10-year note fell 10/32 to 96 31/32, putting the yield at 3.87 percent.
Trading 52.6 million shares, volume leader on the big board was Ford Motor Co (F) down $0.90. Yesterday it was up $0.88 after reporting a surprise first quarter profit, but today, Bear Stearns downgraded the stock from "peer perform" to "under perform." Citigroup (C) $0.84 gain.
America Movil (AMX) down $8.86. The Mexican phone company had lower first quarter earnings, $0.74 for ADR, down a penny from last year and Goldman Sachs today downgraded the stock from "buy" to just a "neutral" rating.
Pfizer (PFE) in there with a $0.37 gain.
General Electric (GE) $0.52 advance in that stock.
Bank of America (BAC) up $0.43.
Wachovia (WS) up $1.43. The company will pay $144 million to settle allegations it allowed telemarketers to take advantage of customers, many of them elderly by using remotely created checks. The bank did not admit any wrongdoing.
National City (NCC) edged up a penny.
Altria Group (MO) $0.83 loss.
And then Co vale do Rio (RIO) $0.59 advance.
3M Co (MMM) down $1.31. Yesterday as we reported, first quarter earnings were down 28 percent from a year ago and today the Sterne Agee (ph) brokerage downgraded it from "buy" to just a "hold" rating.
Big gain for Southwestern Energy Co (SWN), up $6.87, big earnings, $0.31 in the first quarter, more than double $0.15 last year. Revenues shot up 84 percent.
Universal Health Services (UHS) a $4.86 gain. First quarter earnings of $1.20, well above $0.92 last year. Revenues up nearly 8 1/2 percent.
Eastman Chemical (EMN) rose $5.36, higher first quarter earnings there, $1.46, up from last year's $1.10. Revenues were up 5 1/2 percent during that period.
A turnaround for Goodyear Tire & Rubber (GT). The stock up $1.66. First quarter earnings of $0.60 versus a loss of $0.51 a share last year. Sales this year up 10 percent.
Then the big loser of the day, NBTY (NTY), this is the nutritional supplements company. Second quarter earnings dropped to $0.67 from $0.83 a year ago. Price margins dropped from 53 percent to 51 percent.
Horizon Lines (HRZ) down $3.38. The container shipping company had a sharp drop in first quarter earnings, only $0.07, versus $0.21 last year and the company cut its 2008 guidance. Standard & Poor's downgraded it from "buy" to "hold."
The Roto Rooter company, Chemed (CHE) down $7.47. First quarter earnings lower than expected, $0.73. The Street was looking for $0.85.
And then MEMC Electronic Material (WFR) down $4.85. Its first quarter earnings were higher, $0.84 versus $0.58 last year, but a penny below the Street estimate and the company was cautious about the second quarter.
Apple (AAPL) topped the NASDAQ actives, up $0.79.
Microsoft (MSFT) losing $1.97 on its rather dire outlook yesterday.
Baidu.com (BIDU) up $21.69. First quarter earnings, $0.67, $0.03 above the Wall Street estimate.
Research in Motion (RIMM) down $3.62. "Fortune" magazine reports the company may delay its next generation Blackberry device.
Google (GOOG) $1.02 gainer.
Cisco Systems (CSCO) $0.43 drop.
$0.50 loss in Yahoo! (YHOO).
Intel (INTC) $0.13 loss there.
And Amazon.com (AMZN) up $3.17.
Juniper Networks (JNPR), tenth in volume, was up $0.98.
And those are the stocks in the news tonight.
