Paul Kangas' Stocks in the News
Monday, May 12, 2008
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JEFF YASTINE: Stock buyers put their worries about corporate earnings and the economy on hold today, sending stocks higher right from the open. The Dow notched a 100-point gain before noon with Wal-Mart shares leading the way ahead of tomorrow's earnings report. Fellow blue chips 3M, Alcoa, Caterpillar also found steady buying. Adding to the buying, the first pullback in oil prices in seven sessions. The NASDAQ also rallied strongly with Research in Motion and Apple leading that advance. The Dow closed up 130.43 to end at 1,2876.31 and the NASDAQ gained 42.97 to end at 2488.49. The S&P 500 climbing 15.30 to finish at 1403.58 and in the bond market, the 10-year note falling 6/32 to 100 20/32 and the yield at 3.8 percent.
American Intl Group (AIG) leading the list, down nearly $2. Some think a breakup of the company might be the only way for it to survive after reports of a $8 billion first quarter loss. On top of that, former CEO Hank Greenberg says the company is hiding or alleging that the company is hiding $4 billion in losses in its portfolio of credit (INAUDIBLE) Citigroup (C) edged up a fraction.
Clear Channel (CCU) rising nearly $3. Investors betting that that deal to take the company private will finally go through. Thomas Lee Partners and Bain Capital are in settlement talks with their banks, which wanted to pull their financing on that buyout. The "Wall Street Journal" says the buyout will happen at $36 a share. That's about $3 less than the original proposal. Settlement talks though are still underway.
SprintNextel (S) down $0.14. Losses in its most recent quarter rose to $0.18 a share and the company lost more than a million subscribers. There's still the chance they could dump Nextel and put that company, that part of the company up for sale. It was acquired less than three years ago.
Pfizer (PFE) picked up $0.12.
And then we have Hewlett-Packard (HPQ) ballooning to about 11 million shares trading before being halted at $46.74. That was just ahead of the close today. After the close, the computer giant confirming it's in talks to acquire Electronic Data Systems. Analysts say that deal could be worth up to $13 billion.
And then there's Electronic Data Systems (EDS) shares, surging on the news, rising over $5 before being halted at $24.13.
General Electric (GE) tacked on $0.13 today.
And then Bank of America (BAC) gaining $0.79. Some think the deal to buy Countrywide will never be completed leaving B of A with better things - with management to concentrate on.
EMC Corp (EMC) gaining $0.13.
Fannie Mae (FNM) up $0.44.
And the Dow's star gainer of the day, Alcoa (AA) rising more than $2.50. Analysts at Citigroup predicting a shortage of aluminum over the next year and half and urging clients to move into shares of Alcoa.
Then AnnTaylor Stores (ANN) surging nearly $4. The retailer raised its earnings outlook and said it is doing well in selling out its overstocked inventories.
Fluor (FLR) advanced $2.39 on the day, but bolted more than $10 after hours on a stronger than expected 63 percent jump in first quarter profits and an upbeat outlook, not bad for that one.
Collective Brands (PSS) gained $1.74. This is the parent of Payless shoe stores. They believe they can top earnings targets, even though they're still fighting a patent infringement lawsuit over or with Adidas over how many stripes can be stitched down the sides of its sneakers.
Cablevision Systems (CVC) falling $0.45. They inked a pack to acquire Tribune's Newsday newspaper for $650 million.
And Evercore Partners (EVR) falling $1.53. Lower first quarter profit, also a lower estimate and revenues lower as well.
On the NASDAQ, Apple (AAPL) advanced almost $5. HBO striking a deal to make its content available on iTunes, but apparently at a price that's more favorable to Time Warner than other media groups have gotten from Apple.
And there's Research in Motion (RIMM) jumping more than $9. As Susie mentioned, the Blackberry maker unveiling its new iPhone competitor called the Bold.
Google (GOOG) surging more than $11.
Microsoft (MSFT) advanced $0.60.
Baidu.com (BIDU) part of that strong Chinese Internet portal group today, advancing more than $20.50.
Yahoo! (YHOO) falling $0.67.
Cisco Systems (CSCO) gaining $0.35.
Intel (INTC) up $0.27.
First Solar (FSLR) up $0.34.
And Amazon.com (AMZN) advancing a little more than $2.
Then we have Radyne (RADN) jumping $3.36. Comtech Telecommunications is buying Radyne in a cash offer at $11.50 a share. Comtech shares gained $1.19.
And then finally Gencor Industries (GENC) tumbled more than $12, quite a loss of more than 38 percent and posted sharply lower second quarter profits. On top of that, a board member and a major shareholder resigned, putting the company out of compliance with the rules for listing the stock on the NASDAQ market.
And those are our stocks in the news tonight.
