Paul Kangas' Stocks in the News
Friday, October 03, 2008
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JEFF YASTINE: The bailout package did nothing to help today`s equity markets. The Dow opened sharply higher and it kept on climbing, up 310 points, just ahead of the House vote about midday, but -- while the NASDAQ was up more than 50 points. After the House passed the bill, stocks came right back down the other side and notched new yearly lows at the closing bell. The Dow settled down 157.47 at 10,325. And for the week the index fell in four of the last five sessions for an overall loss of 817.75 points. The NASDAQ ended off 29.33 at 1,947.39. And like the Dow, Tuesday was its only up day, for the week it was down 235.95. And the S&P 500 dropped 15.05 to 1,099. For the week, it was off 114 and a fraction. In the bond market, the 10-year note rose 7/32 to 103 9/32, and the yield at 3.6 percent.
First we have Citigroup (C) to tell you about, sliding $4.15. And as you heard, a drama unfolding there with Wells Fargo (WFC) offering $15 billion for Wachovia. Citi says, hey, wait a minute, that`s a breach of contract. They may go to court or raise their bid for Wachovia.
GE (GE) sliding $0.58.
And there`s Wachovia (WB), jumping $2.30. The Wachovia shares have more than tripled from the Monday morning low of $1.50.
National City (NCC) up $0.37.
And then we have American International Group (AIG) dropping $0.14.
And then running down some other notable movers today, we had Exxon Mobil (XOM), which rose $0.44. Barclays says it expects the refiners and integrated oil companies to beat their earnings forecast. Hurricane Gustav helped refiners pricing margins, but he says -- the analyst says he would be a seller into any rally. He calls this a one-quarter windfall.
And then shares in Schering-Plough (SGP) dropped $1.01, revisiting the April lows. Merrill Lynch downgraded that stock.
General Growth Properties (GGP) jumped nearly -- or jumped exactly $2.08. Investors cheered the company`s decision to suspend its dividend. And one analyst sees the mall REIT as a takeover play. General Growth has struggled to pay down its debt, of course, in this very difficult environment.
Global Payments (GPN) vaulting nearly $8 on an earnings beat. First- quarter profits came to $0.71 a share. That was a $0.12 above analyst expectations.
First Industrial Realty Trust (FR) sank $7.38. The company cut its full- year profit guidance. It`s tough to sell anything in this market and monetize some of those realty assets. And good luck trying to get more financing.
Salesforce.com (CRM) feel $2.62. UBS issued a sell there on fears of a slight drop in utilization rates, which may cause the company to withhold guidance for 2010.
And Magna International (MGA) sliding more than $2. A Russian investor sold his 20 percent stake in the auto parts-maker due to the intensifying financial crisis.
On the NASDAQ, shares in Apple (AAPL) fell over $3. Apple`s iTunes download service lives on. Apple threatened to shut it down if the Copyright Royalty Board raised royalty payments. It did not. And earlier today the stock was tanked by a false report quickly denounced by Apple that Steve Jobs had suffered a heart attack. And then the shares rebounded, then got caught up in the afternoon NASDAQ sell-off.
There`s Google (GOOG), sliding $3.58. The company reportedly wants to mount its first advertising campaign to support the Google brand name. And of course, late today, as you heard, Google and Yahoo (YHOO) delaying their advertising partnership so that the Justice Department has more time for anti-trust review.
Microsoft (MSFT) gaining a fraction.
Research In Motion (RIMM) down $1.04.
Cisco (CSCO) up a nickel.
Then we have CME Group (CME) off $11.37 after being -- after trading above $400 earlier in the session. Trading volume last month was at second- highest level ever due to the extreme volatility in credit and equity markets.
And finally, Penn National Gaming (PENN) falling $3.34. Analysts downgraded the stock after the casino operator lowered its third-quarter profit forecast. Penn National`s per casino revenues slipped 21 percent in September after an 8 percent decline in July and August.
Those are our "Stocks in the News" tonight.
