Paul Kangas' Stocks in the News
Tuesday, May 13, 2008
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JEFF YASTINE: The rebound in oil prices and a spike in bond yields kept a lid on the blue chip stocks today. The Dow dropped more than 90 points in the first half of the session. Losses in Dow component's Wal-Mart and Hewlett-Packard led the way lower. The news was better for the NASDAQ, where the rally in oil fueled another advance for solar power stocks. So the Dow trimmed its losses out of the close, ending down 44.13 to end at 12,832.18. The NASDAQ rising 6.63 to 2495.12 and the S&P 500 falling a fraction to 1403.04. And bond yields jumped in anticipation of tomorrow's report on consumer prices. Traders expect the data to show more inflation. The 10-year note falling 31/32 to 99 21/32 and pushing the yield up to 3.92 percent.
Our first one to the upside, American Intl Group (AIG) gaining $0.79. AIG says it expects to raise more than $17 billion by issuing more stock and debt, which is supposed to help its balance sheet after two quarters of big losses. Former CEO Hank Greenberg wants to delay the start of tomorrow's annual shareholder meeting. No response from the company on his request. Hewlett-Packard (HPQ) sliding $2.47. As you heard, some think $25 a share is too high a price to pay for EDS. Hewlett-Packard says the deal will add to profits in coming years. The company also hinted that second quarter profits, which are due out a week from today, will be better than forecast.
Sovereign Bancorp (SOV) gaining $0.42. The bank raised $1 1/2 billion to help rebuild its balance sheet after making a lot of bad consumer loans. Friedman, Billings, Ramsey upgraded the shares.
And there's Electronic Data Systems (EDS) picking up $0.26.
Citigroup (C) losing $0.61. Interest rates sparking or spiking sharply higher today.
Pfizer (PFE) edging up a fraction.
And then we have General Electric (GE) losing $0.07.
Ford Motor Co (F) gaining $0.08.
JPMorgan Chase (JPM) losing $1.76.
Bank of America (BAC) falling $0.83. The bank expects larger losses on its home equity loans, but executives say they intend to complete the purchase of Countrywide Financial in the third quarter. Countrywide shares rose nearly 4 percent.
And Fluor Corp (FLR) shares jumping nearly $25, a great gain for that stock. A bunch of analysts raised their outlooks after yesterday's quarterly results and robust forecast, along with a record backlog of orders and that news helping a lot of the other major engineering companies. A quick glance at those, Foster Wheeler (FWLT), Jacobs Engineering (JEC), McDermott Intl (MDR), all doing nicely finishing near their best levels of the day. McGraw-Hill Companies (
MHP), Goldman Sachs adding that publishing giant to its "buy" list. The stock adding $2.24 today. And then Bally Technologies (BYI) rising nearly $5. Profits at the slot machines maker more than quadrupling at $0.52 a share. That was $0.04 above estimates.
On the downside, Lehman Brothers Holdings (LEH) falling $1.60. Oppenheimer's analyst cut his forecast at all the major investment banks and brokerages because of expectations the group will have to give back some of the gains booked last quarter because of further declines and loan losses on their books.
U.S. Shipping Partners (USS) sank more than $3.50 on a first quarter loss of $0.31 a share. Revenues fell 22 percent.
And then Crystal River Capital (CRZ) tumbling $2.36. The real estate investment trust logging a huge first quarter loss. They've hired the former head of Brookfield asset management as their new CEO.
Now turning to the NASDAQ, Apple (AAPL) gaining another $1.80. The one-year anniversary of the iPhone is next month, anticipation growing about the debut of the next generation iPhone which uses the faster 3G wireless transmission networks.
Google (GOOG) off $1.94.
Research in Motion (RIMM) fell $1.13 after a big $9 advance. You can imagine the headlines all summer. What's better, the Blackberry Bold or the new Apple iPhone?
Yahoo! (YHOO) rising $1.30. Published reports say Carl Icahn has built a large position in Yahoo! shares since last week that led to a big intra-day reversal higher for the shares. Reuters cited sources close to Icahn saying he'll map (ph) his own proxy fight with a new slate of board members with the intent to bring Yahoo! back to the negotiating table with Microsoft.
Microsoft (MSFT) losing $0.10 for the day.
Baidu.com (BIDU) advanced $1.53.
First Solar (FSLR), part of that big solar move today for all those stocks, gaining nearly $20.
Cisco Systems (CSCO) advanced a nickel.
Intel (INTC) up $0.12.
Applied Materials (AMAT) advancing a nickel.
Canadian Solar (CSIQ) vaulting nearly $7. This is a Chinese firm despite the name. First quarter profits were great. Second quarter results expected to be even better.
And finally Iomai (IOMI) more than doubling in today's trading, soaring $3.42. Intercell will pay $6.60 a share, nearly $190 million to buy the Maryland biotech firm. Those are the stocks in the news tonight.
