Paul Kangas' Stocks in the News
Monday, December 29, 2008
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JEFF YASTINE: Two stories influencing trading on Wall Street today, that failed Dow Chemical joint venture and a surge in oil prices. The blue chips headed lower at the open on the Dow Chemical news and rising tensions in the Middle East, the conflict in Gaza, sent oil prices higher by 6 percent to $40 a barrel. By midday, the Dow was off 140 points, but an afternoon rally in energy-related shares helped the broader market cut its losses. So the Dow went on to close down just 31.62 to 8483.93 and the NASDAQ tumbling almost 20 to 1510.32 and the S&P 500 losing 3.38 to 869.42. In the bond market, the 10-year note gaining 7/32 to 114 17/32 and the yield at 2.11 percent.
Leading off our list, General Electric (GE) losing $0.31.
And there's Dow Chemical (DOW) plunging $3.60, Kuwait pulling out of its joint venture with Dow Chemical, the shares falling to an eight-year low. Shares of Rohm and Haas fell 16 percent. Moody's and S&P have cut their bond ratings on both companies.
Citigroup (C) falling $0.16.
And Bank of America (BAC) dropping $0.42.
Pfizer (PFE) advancing $0.19.
And there's Ford Motor Co (F) dropping a fraction. Billionaire Kirk Kerkorian has sold out the last of his Ford shares acquired from earlier this year, $1 billion worth acquired at an average price of $7 a share, so quite a hit there for him.
ExxonMobil (XOM) gaining $0.83. Oil touching $40 a barrel. A recent forbes.com article says most of the company's profit growth is coming from share buybacks, may see a potential 50 percent downside to the stock.
JPMorgan Chase (JPM) losing, excuse me, losing just a fraction.
AT&T (T) dropping $0.08.
And there's Altria Group (MO) gaining $0.13.
Shares in California Water Service Group (CWT) fell $1.56. An analyst at Brean Murray thinks the stock is fairly valued after hitting his target of $45 a share.
Shares of Bristow Group (BRS) climbed nearly $3. They supply helicopters for oil service work. "Barron's" claims the need for offshore transportation services is picking up despite the plummeting oil prices.
There's SL Green Realty (SLG) sliding $2.80. The real estate investment trust slashed its quarterly dividend. Poor holiday sales means more vacant store front in commercial shopping districts and a number of other REITs faring poorly today.
CBL & Associates (CBL), Macerich (MAC) and Redwood Trust (RWT) all noticeably lower.
A couple of retailers to tell you about, Cabelas (CAB) tumbling $1.52. They sell outdoor, fishing and hunting gear. Analysts at Susquehanna financial see investors bracing for more downturns in consumer spending and an impact on Cabelas credit card operations.
And then Saks (SKS) shares also losing ground. A money manager in "Barron's" still weekend though sees opportunity in the shares, if only because of the value of the real estate assets underneath the stores. The stock fell $0.13.
And another loser, Solera Holdings (SLH) fell $1.67. Venita brokerage sees shrinking margins hurting returns for investors there.
Turning to the NASDAQ, Apple (AAPL) climbed $0.80. The silicon alley insider blog says the iPod touch appears to be Apple's biggest hit this holiday season. They see potential new versions of the devices good competitors for those stripped down netbook laptops that are all the rage from Dell and HP.
Google (GOOG) falling almost $3.
Microsoft (MSFT) dropping $0.17. Microsoft is beta testing its post- Vista operating systems Windows Seven. Early reviews say it's OK, but no great shakes.
And there's Cisco Systems (CSCO) dropping $0.26. A "New York Times" article noted Cisco's push into the networking in home audio and video entertainment system.
Research in Motion (RIMM) dropping more than $2.
Intel (INTC) slipped a nickel.
CME Group (CME) advancing $1.64.
Qualcomm (QCOM) losing $0.33.
Oracle (ORCL) down $0.21.
First Solar (FSLR) up nearly $1.
Linn Energy (LINE) jumping $2.17. "Barron's" this weekend with a report says the (INAUDIBLE) limited partnership is well hedged against the declines in oil prices and represents good value at these levels.
Northwest Pipe (NWPX) gained $7.54. The company receiving a $7 million order for hydroelectric piping for a project in Baja, Mexico.
And finally Cal-Maine Foods (CALM) sliding $1.97. The egg producer finds its second quarter profit getting yes, scrambled. Profits down 30 percent from year ago levels, with people eating more at home and spending less at restaurants.
And those are our stocks in the news tonight.
