Paul Kangas' Stocks in the News
Thursday, June 26, 2008
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JEFF YASTINE: Maximum pain seems to be the best two words to describe today's market action. The slide was greased by that addition of GM to Goldman Sachs' sell list and Goldman's downgrade of Citigroup, warning of bigger losses at the banker. Record high oil prices of course did not help. By noon, the Dow was off 210 points, the NASDAQ down 56. The markets continued to stair step lower all the way to the end of the session. The Dow dropped 358 points to 11,453.42 and the NASDAQ plunged almost 80 to 2321 and the S&P 500 dropped below 1300 for the first time since March, closing off 38.82 to 1283. And in the bond market, the 10-year note rising 18/32 to 98 24/32 and the yield at 4.03 percent.
And Citigroup (C) topping the list, down $1.18. Goldman Sachs delivering a warning shot that Citigroup may write off another $9 billion and cut its dividend yet again. Goldman put the stock on a "sell" list and today's drop put Citi shares below the multi-year low set in mid-March.
Look at some other hard-hit financials today, Goldman Sachs (GS), Lehman Brothers (LEH), Merrill Lynch (MER), Morgan Stanley (MS), Raymond James (RJF), each settling near their lows of the day. Merrill setting a new five-year low with today's activity.
Countrywide Financial (CFC) slipping $0.16.
And then there's its suitor, Bank of America (BAC) down $1.80 and a new low for the year, dropping more than $1. The banking giant promising to eliminate 7500 positions after it absorbed Countrywide next week.
And a four-year low for General Electric (GE) losing $1.46.
Ford Motor Co (F) falling a fraction.
Pfizer (PFE) slipping $0.71.
Washington Mutual (WM) continuing with those financials, down $0.50.
And Wachovia (WB) down nearly $1.
Multi decade lows for General Motors (GM) if you account for the Delphi spinoff and all the other financial engineering over the years. Reuters says this is the lowest price for the shares since the mid-1950s. Now those charts show it matching the lows of 1974, all this on that "sell" recommendation from Goldman Sachs. The analyst questioning GM's financial liquidity putting the shares on its "sell" list. CEO Rick Wagoner says his company has adequate cash positions and could raise even more if needed.
SprintNextel (S) one of the two going to the upside today. And there's a look at auto parts makers all to the downside, American Axle (AXL), Goodyear Tire (GT) and Lear Corp (LEA) all down significantly low.
Then as we see there, SprintNextel (S) up $0.29.
And then a peek at some other blue chips couched in the red, American Intl Group (AIG) a 52-week low there.
American Express (AXP) continuing aftershocks from the fallout the credit markets.
3M (MMM), United Technologies (UTX) all down significantly lower as well.
If there's one bright spot in today's action, it was in the precious metals stocks. Gold bullion topping to a one-month high, rising nearly $33 to over $915 an ounce and there you see the action in the gold stocks, Agnico Eagle (AEM), Barrick Gold (ABX), Newmont Mining (NEM), Kinross Gold (KGC) and Yamana Gold (AUT) all doing very nicely.
Lennar (LEN) fell over $1, greater than expected second quarter losses.
Oshkosh (OSK) skidding over $11 damaged by the heavy truck maker's forecast for the third quarter as you see it there.
And then in other news, a bungee jumper shares of Nike (NKE) tumbling $6.50. Worries that the economic slowdown will hurt Nike's growth prospects in the U.S., fourth quarter profits did rise by 12 percent.
On to the NASDAQ where Research in Motion (RIMM) tumbled almost $19. First quarter profits just shy of forecasts and the company also warned second quarter profits would also be disappointing.
Apple (AAPL) sliding more than $9.
Google (GOOG) down more than $22.
Microsoft (MSFT) off a fraction.
And then Oracle (ORCL) dropping $1.13 or 5 percent.
So did Intel (INTC).
And then moving onto Cisco Systems (CSCO) falling $0.88.
Qualcomm (QCOM) down more than $2.
Baidu.com (BIDU) dropping more than $17.
Amazon.com (AMZN) losing more than $4 caught in today's downdraft and some worry that Amazon's sales and profits might be hurt if states beginning levying sales taxes when products are purchased online.
And finally, Bed Bath & Beyond (BBBY) among the few standouts. The home goods retailer delivering stronger than expected results and also touting expansion plans for Mexico and Canada and that may help offset the slack in sales from the U.S. housing slowdown.
Those are our stocks in the news tonight.
