Paul Kangas' Stocks in the News
Wednesday, June 18, 2008
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PAUL KANGAS: Morgan Stanley also reported quarterly results today, coming in with a 57 percent drop in earnings for the second quarter. But the numbers were still better than Wall Street expected. Morgan Stanley earned $0.95 a share; analysts were looking for $0.92. Revenue though, fell 38 percent to $6.5 billion. CEO John Mack blamed continued fallout from the credit crisis. Those sharply lower results from Morgan Stanley and FedEx set a bearish tone on Wall Street early on as once again, the financials led the market steadily lower this morning. The Dow posted a 134 point loss at 11:00 a.m., while the NASDAQ fell 33 points. A dip in oil futures gave the market a little lift around mid-session, but a sell-off in regional bank stocks and then a sharp rebound in oil quashed the rally and sent stocks toward their lows by the end of the day at the final bell. The Dow Industrial Average closed off 131.24 points at 12,029.06. The NASDAQ Composite lost 28.02 points to 2,429.71. Standard & Poor's 500 dropped 13.12 ending at 1,337.81. In the bond market, the 10-year note gained 15/32 to 97 27/32, putting the yield at 4.14 percent.
Big board volume leader on 20 3/4 million shares, Wachovia (WB) down $0.28 in a very weak financial sector.
Pfizer (PFE) however, moved up a nickel. The company reached a deal with generics manufacturer Ranbaxy Labs of India to end a large part of the five-year battle over the cholesterol drug Lipitor. The agreement will forestall generic competition in the United States by 20 months.
Bank of America (BAC) down $0.87.
$0.06 drop in Citigroup (C).
Ford Motor (F) fell $0.38.
General Electric (GE) $0.65 loss.
Motorola (MOT) down $0.39.
Washington Mutual (WM) bucked the trend with a $0.04 gain.
Regions Financial (RF) led that whole regional bank group lower, down $1.33. Stock hit by worries over problem loans, future earnings as well as dividends.
And then Lehman Brothers (LEH) off $0.36. The chief exec says contrary to rumors making the rounds, the company is not for sale.
General Motors (GM) down $0.93, closing at the lowest level since 1982 in February, off $0.93. Deutsche Bank says the auto makers in the U.S. need to cut production in the second half because car lots are filled with product right now.
Monsanto (MON) down $1.19, even though the company this afternoon boosted its quarterly earnings by, I should say quarterly dividend, by 37 percent. It'll go from $0.175 to $0.24 a share. The stock's had quite a run though.
Carmax (CMX) down $2 a share. First quarter earnings jumped or I should say fell to $0.13 from $0.30 a year ago as lower gross profits offset a 1 percent rise in same store sales. The company temporarily is suspending its same store sales guidance. Wachovia repeated an "under perform" on the stock.
Union Pacific (UNP), finally a gainer, up $3.35. The company says severe Midwest weather will cut its second quarter earnings by only a nickel a share. Morgan Keegan brokerage repeated an "out perform" rating. Morgan Stanley says the negative impact of the weather on results should be just short term.
MF Global (MF) plunging $5.43, almost 41 percent of its value. The options and futures broker issued a pessimistic outlook, plans $300 million of preferred stock and convertible stock and notes in private offerings.
General Mills (GIS) up $1.91. The company boosted its 2009 expectations despite higher marketing expenses.
Then Lindsay Corp (LNN), the irrigation systems company, plunging $20.73, traded as low as $90.80 today. Third quarter earnings jumped to $1.15 from $0.62 a year ago, but that was $0.07 below the Wall Street consensus.
And then Clarcor (CLO), which is in industrial filters, down $5.25. Higher second quarter earnings, $0.48 versus $0.41 a year ago, a penny above the Street estimate, but the company lowered its 2008 outlook by a nickel a share, down to $2.
NASDAQ's most active Apple (AAPL) up or down $2.68. Then Research in Motion (RIMM) up $2.29. Lehman Brothers boosted its price target on Research from $145 to $165 a share.
Google (GOOG) down $7.08.
Microsoft (MSFT) $0.34 drop there.
Cisco Systems (CSCO) $0.69 loss, fifth in NASDAQ volume.
Qualcomm (QCOM) $0.47 gain.
Fifth Third Bancorp (FITB) plunging $3.47. The company cut its quarterly dividend 66 percent. It'll go from $0.44 to $0.15 and it plans to sell $1 billion in convertible preferred stock on top of that.
Intel (INTC) $0.30 drop.
baidu.com (BIDU) $0.15 loss there.
And First Solar (FSLR) down $6.47.
And finally, Medicision (MEDE) surged $4.91 on news it will be acquired by Healthcare Service Corporation for $7 per share, what a jump, huge jump.
