Paul Kangas' Stocks in the News
Wednesday, July 30, 2008
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PAUL KANGAS: The extension of the Fed's emergency borrowing helped stocks extend yesterday's rally. The Dow surged 157 points in the first hour of trading, while the NASDAQ was up 22 points. Another plus was payroll firm ADP's report that July private sector jobs rose 9,000. That was in July. The promising rally was blunted by that sharp jump in oil prices though. At 2:00 p.m. the Dow was up just 37 points and the NASDAQ down 16. But then a late wave of buying lifted the blue chips to the day's best levels at the final bell. The Dow Jones Industrial Average closed up 186.13 at 11,583.69. The NASDAQ up 10.10 at 2329.72. Standard & Poor's 500 was up 21.06 ending at 1284.26. Over in the bond market, the 10-year note fell 2/32 to 98 19/32. That lifted the yield to 4.05 percent.
Topping the big board's active list on 21.4 million shares, Bank of America (BAC) moving up $1.39. This stock was one where the ban on naked short selling was extended by the SEC.
Clear Channel (CCU) a $0.04 gain. It came out of the Standard & Poor's 500 Index today, replaced by Davida (ph).
Citigroup (C) $0.36 gain.
Merrill Lynch (MER) moved up $0.66.
And then Wachovia (WB) with an advance of $1.38 a share.
Washington Mutual (WM) $0.31 rise.
General Electric (GE) up $0.57.
EMC Corp (EMC) $1.01 advance.
Kraft Foods (KFT), which had good earnings out last week, up $0.55.
And then the big loser in the actives, Elan Plc (ELN), the Irish pharmaceutical, tumbling $14.12. That's a 42 percent drop. Mid-stage trials of the company's Alzheimer's drug are inconclusive and also raised concerns about side effects. Elan's partner, Wyeth stock tumbled $5.37 to $39.74.
Visa (V) up $2.48. After the close, the company reported third quarter earnings of $0.59, $0.11 better than the Street was expecting. In after hours trading, the stock was up another $1.05. It just went public incidentally last March at $44 a share. It's had a good ride.
Avon Products (AVP) rang up a nice gain of $6.54. Second quarter earnings, $0.55, up from $0.26 a year ago. Revenues up 17 percent on strong international sales.
FMC Corp (FMC), the chemical company, up $8.25. Second quarter earnings $1.29, up from $0.90 last year. Revenues rose 23 percent.
And then Cummins (CMI), the diesel engine company, up $4.48. Second quarter earnings $1.49, well above $1.06 last year. The company boosted its 2008 sales guidance from plus 12 percent to a 15 percent rise.
Energizer (ENR), the battery company, down $2.80. Third quarter earnings, $1.13, up from $1.06 last year, but that was $0.13 below the Street consensus and the company also gave a cautious outlook.
Then we see Kemet (KEM) losing 42 percent of its value, all the way down to $1.72 today. The company makes electronic components like capacitors and it posted a first quarter loss of $2.33 versus earnings of $0.08 last year. The company will cut 640 jobs in part of a restructuring.
Trex Company (TWP), which makes fences and decking and things like that, up $2.98, a real turnaround. Second quarter earnings of $0.52, way up from $0.17 last year.
And then a familiar name, Lubrizol (LZ) up $2.80. Second quarter earnings came in at $1.06, $1.26 versus $1.16 on a 17 percent rise in revenues.
And then Arcelormittal (MT), the big steel holding company, was up $7.50. Second quarter earnings, $4.19, way up from $1.97 last year.
NASDAQ's most active, Apple (AAPL) up $2.80.
Research in Motion (RIMM) gained $3.16.
Google (GOOG) $0.41 drop.
Qualcomm (QCOM) was up $0.72.
Microsoft (MSFT) $0.12 advance there.
Intel (INTC) showed no change on the day.
Cisco Systems (CSCO) down $0.25.
First Solar (FSLR) up $7.43.
And a $0.02 gain in Amgen (AMGN).
Baidu.com (BIDU) a $2.12 advance.
Electronic Arts (ERTS) down $3.11. After the close, the company had first quarter earnings of - I should say a loss of $0.42, almost double the loss of $0.22 a year ago.
And then Garmin Ltd (GRMN) down $9.87. The manufacturer of global planning system or positioning systems had second quarter earnings of $1.19, up from $0.98, but the company delayed its (INAUDIBLE) until next July, quite a disappointment.
And then finally, Starbucks (SBUX) fell $0.32. After the close, the coffee chain posted lower than expected third quarter earnings of $0.16 per share, $0.02 below analysts' estimates. The coffee chain now sees 2009 full year earnings of as much as $1 a share. Analysts were looking for $0.92. The stock traded above $15 in after hour's activity.
