Paul Kangas' Stocks in the News
Tuesday, July 22, 2008
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PAUL KANGAS: Stocks were weak at the open, but they didn't finish that way. Weakness in American Express and Merck shares led the way lower at the start of trading, but stocks soon rebounded on that drop in oil prices. By noontime, the Dow posted a 57 point gain and the NASDAQ was off just a fraction. The airlines spearheaded a strong afternoon rally and the financials joined in after Deutsche Bank said it's adopting a quote, not so negative stance on that sector. The Dow Jones Industrial Average surged to a closing gain of 135.16 points at 11,602.50. The NASDAQ gained 24.43 to 2,303.96 while the Standard & Poor's 500 Index rose exactly 17 points to close at exactly 1,277. Over in the bond market, the ten-year note fell 16/32 to 98 5/32, putting the yield at 4.11 percent.
New York exchange volume leader on 30 3/4 million shares, Bank of America (BAC) having a good day, up $3.79. After the close yesterday as we reported, second quarter earnings came in at $0.72, $0.19 better than the Street expected.
Citigroup (C) participating in the banking rally, up $1.20.
And then Wachovia (WB) up $3.61. As you heard, second quarter loss of $1.27 but $0.03 above the Street estimate. The company is cutting its quarterly dividend from $0.375 all the way down to $0.05 a share and is going to slash nearly 11,000 jobs.
Wells Fargo (WFC) up $2.89.
General Electric (GE) in there with an $0.81 gain.
Moving along in the actives, Washington Mutual (WM) was up $0.34 at the final bell.
Merck (MRK) down $4. After the close yesterday as we reported, second quarter earnings came in at $0.82, but that was a penny below the Street estimate and investors are concerned about the future of Merck's Vytorin drug.
Freddie Mac (FRE) $0.95 gain.
Texas instruments (TXN) off $4.17. After the close yesterday, its second quarter earnings were $0.44, $0.02 below the Street estimate. Down goes the stock today.
JPMorgan Chase (JPM) participating in the bank rally, up $2.21.
American Express (AXP) down $2.91, traded as low as $36.01 today. It after the close yesterday had second quarter earnings of $0.56, $0.27 below the Wall Street consensus.
Dupont Co (DD) moving up $1.16. Second quarter earnings came in at $1.18, up from last year's $1.04 and sales were up a respectable 12 percent.
Caterpillar (CAT) up $1.75. Second quarter earnings out today, $1.74 versus last year's $1.24. That was $0.20 better than the Street consensus.
Bluegreen (BXG), look at that percentage gain, up $5.60. It builds resorts and residential communities and the company signed a non-binding letter of intent to be acquired by Diamond Resorts International for a price of $15 a share.
PepsiAmericas (PAS), the big bottling company, up $4.54, $0.72 in second quarter earnings, up from last year's $0.61, sales up 12 percent and it boosted its 2008 earnings guidance overall.
Wellcare Health (WCG) up $7.02. The company's restating earnings from 2004 to 2007 due to accounting errors and Oppenheimer said today that restatement will show that the problems are not as severe as Wall Street thought.
Assured Guaranty Ltd (AGO) tumbling $7.43. Moody's put the company's top rating on review for a possible downgrade and JPMorgan downgraded the stock from "over weight" to "neutral" today.
VMWare (VMW) up $1.03. After the close, second quarter earnings out, $0.13, up from $0.10 a year ago, but the stock fell to $32.20 after hours and the company's third quarter revenue estimate of about $465 million. The Street was looking for $497 million.
Apple (AAPL) topped the NASDAQ actives, down $4.27. Yesterday's earnings better than expected but the outlook not at all.
Microsoft (MSFT) up $0.16.
Google (GOOG) $8.31 gain.
Research in Motion (RIMM) fell $1.50.
Foundry Networks (FDRY) moving up $4.42. Late yesterday, second quarter earnings came in at $0.17. That was $0.03 above the Street consensus, nice move in the stock today.
Intel (INTC) no change there.
Qualcomm (QCOM) down $1.18.
$0.06 gain in Cisco Systems (CSCO).
First Solar (FSLR) down $14.73.
And Applied Materials (AMAT) a $0.42 gain.
UAL Corp (UAUA) look at that gain, up $3.42, second quarter loss of $1.19. The Street was looking for a loss of $2.05. Standard & Poor's upgraded it from "sell" to "hold." This news bolstered the whole airline group.
AMR (AMR), Continental Air (CAL), Delta Air (DAL), US Airways Group (LCC) All doing well and by the way, US Airways also reported a smaller than expected second quarter loss of $1.11 versus the Street estimate for minus $1.30 per share.
