Paul Kangas' Stocks in the News
Wednesday, November 05, 2008
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JEFF YASTINE: And so much for Wall Street's recent rallies. Today's sharp decline erased all of the gains of the past three trading sessions. The Dow opened 200 points lower, with financial stocks like Citigroup leading the way down on worries about tighter regulation under an Obama administration. Adding to the selling, a new report showing further contraction in the nation's services sector. The selling accelerated into the close, so the Dow went on to close off 486 and a fraction to 9139.27. The NASDAQ fell 98.48 to 1681.64 and the S&P 500 down 52.98, ending at 952.77. In the bond market, the 10-year note climbing 6/32 to 102 14/32 and the yield to 3.7 percent.
General Electric (GE) tops our list, losing $0.84.
Citigroup (C) dropping $2.05. Financials were in broad retreat today. An Oppenheimer analyst expects the new Obama administration to make banks restructure their troubled mortgage loans. That will keep people in their houses, but also mean a contraction in the market for new mortgages.
Bank of America (BAC) down $2.78.
Pfizer (PFE) off $1.09.
Procter & Gamble (PG) down a little over $2.25.
JPMorgan Chase (JPM) again another financial here, dropping nearly $3.
ExxonMobil (XOM) off $3.80. Oil fell over $5 a barrel today and a new government report showed fuel inventories swelling last month as consumers put off unnecessary road trips.
American Intl Group (AIG) down $0.35.
National City (NCC) off $0.17.
Wells Fargo & Co (WFC) losing $3.09. The company announcing plans for a smaller $10 billion stock offering to fund its purchase of Wachovia.
Then we have AT&T (T) pulling back $2 and change. The new Obama administration supports Internet network neutrality rules which are opposed by phone companies like AT&T and the new administration may do more antitrust scrutiny as noted earlier. It makes it harder to do acquisitions.
Then we have the steel giant, Arcelormittal (MT) plunging almost $7. Auto makers aren't selling cars. China's also weakening. That translated to a plunge in sales at the steel maker.
And some of the others in that group not doing well either. AK Steel (AKS), Nucor (NUE), Reliance Steel (RS), U.S. Steel (X) all doing poorly today.
Ambac Financial (ABK) plunged $1.39. Ambac having more liquidity issues after taking a $2.7 billion charge on credit default swaps and now the pressure's on to get the government to use its bailout cash to buy a piece of Ambac. MBIA was also down 20 percent today.
General Growth Properties (GGP) leveled (ph) for a loss of $2.24. The mall owner scrambling to sell properties and raise about $900 million in debt payments which are due at year end.
Notable gainers among today's losers a few (ph), Chesapeake Energy (CHK) climbing $1.88. That's on takeover speculation. The nat gas producer had no comment there.
And Greatbatch (GB) having a great day, jumping $3.38 on an earnings, beat third quarter earnings about $0.12 above analyst estimes.
Over at the NASDAQ, Apple (AAPL) falling more than $7. UBS is now expecting lower iPhone production levels because of concerns about weakening end (ph) demand.
Then Google (GOOG) dropping more than $24. As you heard, Google calling off its advertising alliance with Yahoo!
Microsoft (MSFT) dropping $1.45.
Research in Motion (RIMM) down more than $2.50.
Cisco Systems (CSCO) losing $0.94. It fell about 5 percent after hours, reported flat third quarter profits. The company says the economic challenges here have spread abroad.
First Solar (FSLR) dropping more than $25. The whole solar power group hurt from a profit warning by SunPower. More on that in a moment.
Intel (INTC) losing $1.06.
Qualcomm (QCOM) down more than $2.50.
Yahoo! (YHOO) the only gainer there, gaining $0.57 after the Google deal was called off.
Oracle (ORCL) down more than $1.
Here's SunPower (SPWRA) which sank $17.50. The rally in the dollar over recent weeks will mean reduced earnings growth for the quarter and the year.
I2 Technologies (ITWO) dropping more than $4. It's being pursued by JDA Software as an acquisition. JDA wants a lower offering price on that deal.
And finally, Kendle International (KNDL) climbing $3.97. The drug- testing firm reported record profits that were nearly triple year-ago levels.
