Paul Kangas' Stocks in the News
Tuesday, December 16, 2008
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JEFF YASTINE: The markets started the session just like it ended, well into positive territory. The Dow rose about 140 points early on and that was despite a 19 percent drop in November housing starts and a 1 percent decline in November consumer prices. That was the sharpest decline in that statistic since 1947. But after the Fed announced its rate cut, everything went out the window and stocks surged into the final hour of trading. The Dow closing up 359.61 to 8924.14. The NASDAQ jumping 81.55 to 1589.89 and the S&P 500 gaining 44.61 to 913.18. And over in the bond market, the 10- year note saw another big rally gaining 2 14/32 to 113 7/32 and the yield now dropping to 2.26 percent.
The blue chips turning out a glowing rally as you've heard on the Fed's drastic rate cut, helping all the financials like Bank of America (BAC) which jumped nearly a buck. That came despite some analysts warning of a possible dividend cut there and all the problems associated with a merger of Merrill Lynch.
General Electric (GE) rising $0.97. GE will not issue earnings guidance next year, but will leave the company's full year earnings targets intact.
Citigroup (C) another financial gainer, rising $0.83.
Pfizer (PFE) up $0.73.
JPMorgan Chase (JPM) gaining $3.72.
And oil prices fell nearly $1 a barrel today, but ExxonMobil (XOM) shares holding up nicely in this rally today, rising $3.19.
There's Wells Fargo (WFC) up $3.71.
AT&T (T) gaining $1.10.
Verizon Communications (VZ) up $1.20.
And then Altria Group (MO) losing $0.67 on that Supreme Court decision allowing consumers to sue tobacco makers over deceptive advertising of light cigarettes.
Disney (DIS) jumping $1.01. Mickey will expand to Russia, where Disney will join with another firm, Media One, to launch a free television network there.
And then Best Buy Co (BBY) shares retesting the November highs, thanks to profits which turned out much better than expected, $0.35 a share. Analysts thought they'd see $0.25 a share. The stock jumping more than $4.
Morgan Stanley (MS) up $2.49. It's slated to report results tomorrow. Analysts seeing a loss there of $0.34 a share.
And the fertilizer stocks like Potash of Saskatchewan (POT) moving higher after Merrill Lynch said that whole group is poised for a rebound. The stock gaining $7.66.
And looking at some of the others blooming, Agrium (AGU), Intrepid Potash (IPI), Mosaic Company (MOS), Terra Industries (TRA), all settling near their highs of the day.
Host Hotels & Resorts (HST) surging $1.18. Today's Fed cut helping there. Even on this one, it says, has an 11 percent dividend yield, but that will become much less. Host cutting its dividend to conserve cash.
Factset Research Systems (FDS) wound up the session more than $4 higher. First quarter profits rose 21 percent. The company's data still finding a lot of subscribers despite the meltdown in the financial markets.
Satyam Computer Services (SAY) nose diving nearly $7. The software firm moving forward with two acquisitions, but analysts don't like that because it'll put a lot of debt on the company's books.
Over on the NASDAQ, Apple (AAPL) rose $0.68, but fell 2 1/2 percent after hours. The big Mac world trade show's in two weeks. Apple says Steve Jobs is pulling out at the confab's keynote speaker and this will be the last time that Apple participates in Mac world. It's sure to fuel some rumors about the state of Steve Jobs' health. Apple pulled out of the east coast version of Mac world earlier in this decade.
Google (GOOG) gaining more than $14.
Microsoft (MSFT) up $1.07.
Intel (INTC) gaining a similar amount.
Cisco Systems (CSCO) rising $0.58.
And then Qualcomm (QCOM) jumping $2.25.
Oracle (ORCL) rising $0.82.
Research in Motion (RIMM) a good day there, rising more than $3.
Baidu.com (BIDU) announcing a $200 million stock buyback and advancing nearly $14.
And First Solar (FSLR) not to be outdone, up more than $15.
And finally Gilead Sciences (GILD) soaring more than $3. Merrill Lynch believes the company's drugs for treating HIV will be a good driver for the company's growth.
And those are our stocks in the news tonight.
