Paul Kangas' Stocks in the News
Wednesday, January 07, 2009
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PAUL KANGAS: Wall Street opened with a sharp sell-off amid a host of reminders as to just how deep the recession is. For example, payroll firm ADP's private estimate that over 690,000 jobs were lost last month. There was a revenue warning from Intel and last night's Alcoa job cuts all weighing on investors. An hour into trading, the Dow was off 191 points, NASDAQ down 43. Weak oil stocks and the specter of that trillion dollar Federal budget deficit kept the sellers coming all afternoon and the market ended near the day's worst level. The Dow Industrial Average closed down 245.40 points at 8769.70. The NASDAQ Composite tumbled 53.32 to 1599.06. Standard & Poor's 500 Index lost 28.05 at 906.65. Over in the bond market, the 10-year note fell 14/32 to 110 27/32, putting the yield at 2.50 percent exactly.
Big board volume leader its second day running, today on 24 million shares, Bank of America (BAC) down $0.57, but the company did sell $2.8 billion, part of its stake in China Construction bank and that cut its ownership from 19.6 percent down to 16 percent.
Citigroup (C) in there with a $0.31 loss.
General Electric (GE) lost $0.75.
Wells Fargo (WFC) a drop of $1.67.
Pfizer (PFE) $0.31 down.
JPMorgan Chase (JPM) down $1.79.
Time Warner (TWX) fell $0.69. The company noted that the economic environment is a lot more challenging than it expected and it will take a fourth quarter non-cash impairment charge of $25 billion, resulting in a 2008 operating loss. Time Warner cable, incidentally, fell $1.09 to $21.56 on that news.
Compania Vale (RIO) down $1.43 on the lower oil prices.
ExxonMobil (XOM) down for the same reason, $2.05.
And Sprint Nextel (S) edged up $0.06. The company will close 20 of its call centers this year.
Alcoa (AA) down $1.23. After the close yesterday as we reported, the company said it's cutting 13,500 jobs or 13 percent of its workforce and also cutting aluminum production.
Monsanto Co (MON), the star of the day, up $12.70. Big earnings, first quarter, $0.98, up from $0.45 last year and $0.39 above the Street estimate. Sales jumped 29 percent due to strong Latin American demand. The company boosted its 2009 earnings guidance by $0.10 to a high of $4.50 a share.
Aetna (AET) down $1.18. Goldman Sachs issued a "sell" recommendation on the stock.
Harley Davidson (HOG) losing $2.45. Raymond James financial brokerage downgraded it from "market perform" to "under perform" and reportedly, two thirds of the Harley dealers are having fourth quarter sales declines. Fourth quarter earnings are due on the 23rd of this month and Street estimate, $0.58 a share.
Cash America International (CSH) down $3.49. President-Elect Obama plans to put a 36 percent national cap on interest charged by pay day loan companies like this one.
Constellation Brands (STZ), this is the world's largest wine merchant, third quarter earnings fell to $0.38 from $0.55 a year. The company cut its 2009 earnings guidance by $0.04 a share.
Steinway Music (LVB) down $1.74. The story here, company sees fourth quarter sales down 25 percent and the outlook for 2009 piano sales challenging. We see that word a lot these days.
Family Dollar Stores (FDO) however, up $3.48. Higher first quarter earnings, $0.42, up from $0.37 a year ago. Same store sales up 21 or 2.1 percent is should say.
Supervalu (SVU) up $1.24. Third quarter earnings lower, $0.62 versus $0.69 last year, but $0.02 better than the Street expected.
Apple (AAPL) topped NASDAQ's most active, down $2.01.
Intel (INTC) off $0.93. As you heard, the company forecasting lower revenues -- fourth quarter, let's see, for the fourth quarter.
Google (GOOG) was down $12.05.
Microsoft (MSFT) $1.25 loss.
Research in Motion (RIMM) edged $0.08 higher.
Cisco Systems (CSCO) down $0.47.
And Oracle (ORCL) dropped $0.74.
Qualcomm (QCOM) losing $1.60.
First Solar (FSLR) down $5.21.
And Amazon.com (AMZN) down $1.16.
And finally, Netscout Systems (NTCT) climbed $3.05 to $13.29. The company gave an upbeat third quarter forecast, with a preliminary earnings estimate of $0.24 to $0.26 per share, double the Street consensus.
