Paul Kangas' Stocks in the News
Wednesday, January 21, 2009
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JEFF YASTINE: There was certainly no retreat for stock prices today, with the market shaking off yesterday's 332-point drubbing. The financials led the way higher. Stocks like Citigroup and Bank of America rose as Treasury nominee Tim Geithner told Congress about that new bank rescue deal. That helped pull along the entire market through the remainder of the session. The Dow rising 279.01 to end at 8228.10. The NASDAQ Composite jumping 66.21 to end at 1507.07 and the S&P 500 index climbing 35.02 to 840.24. And bonds were all sellers today, the 10-year note sliding 1 18/32 to 110 12/32 and the yield at 2.55 percent.
The financials leading the way higher today, Bank of America (BAC) gaining $1.58. Their Treasury nominee Tim Geithner telling Congress of the Obama administration's new bank rescue package to be unveiled in a few weeks.
And then Citigroup (C) climbed $0.87. Citi naming former Time Warner CEO Richard Parsons to be its new chairman. He'll replace Win Bischoff after criticism about the board's leadership and Citigroup's troubles over the past year.
General Electric (GE) rising $0.10. An analyst at Goldman Sachs expect GE to announce a major dividend cut of at least 50 percent when it reports quarterly results on Friday. The current stock dividend yield is 9 1/2 percent.
JPMorgan Chase (JPM) rising more than $4.50. Their Washington Mutual unit wants a three-month extension to file their Chapter 11 bankruptcy plan. The FDIC seizure made their bankruptcy reorganization a lot more complicated they say.
And then finally Wells Fargo (WFC) rising nearly $2.50.
US Bancorp (USB), another financial, picking up $0.75 and that despite the bank today reporting a 65 percent drop in quarterly profits as they increased their credit reserves and wrote down bad loans.
There's Ford Motor Co (F), excuse me, declining a fraction.
Then Pfizer (PFE) gaining $0.28.
AT&T (T) up $0.77.
ExxonMobil (XOM) rising nearly $3 on a big jump in oil prices, $2.50 to nearly $44 a barrel. Exxon reports results at the end of this month.
Then we have IBM (IBM) which delivered big gains today. The stock rising more than 11 percent. CEO Sam Palmisano raising its profit forecast for the coming year to as much as $11 a share thanks to solid demand for software products and services and a lower tax rate.
Wal-Mart Stores (WMT) falling $1.42. The analyst at Credit Suisse believes the retailer will have a harder time competing with its arch rival Target in the coming year. Wal-Mart shares are down about 20 percent since their September highs.
Then SPX Corp (SPW) jumping more than $3. This conglomerate says customers are deferring orders, but are not canceling them. But you can expect more layoffs as the company cuts costs.
PNC Financial Services Group (PNC) rebounding more than $8, making up nearly half of yesterday's decline. Today, PNC said its losses would be less than its earlier $1.8 billion forecast. That stock tanked yesterday because of orders at National City recently acquired, would need more capital after writing down the usual truck load of bad loans.
Then Cash America Financial (CSH) sliding over $4. The company cut its fourth quarter full year forecast. The Obama administration may look to place more regulations on these kinds of companies, the payday lenders.
On the NASDAQ, Apple (AAPL) rising more than $4.50. During regular trading, it soared to above $90. After hours, quarterly profits rose strongly with robust holiday sales of iPhones and Macbook laptops. Separately, the "Wall Street Journal" says the SEC is now looking into how Apple disclosed the news on Steve Jobs' health status.
Google (GOOG) jumped over $20.
And then Microsoft (MSFT) picked up $0.90. Both of these companies report quarterly results tomorrow.
Research in Motion (RIMM) gaining almost $3. The company withdrew its offer to acquire Certicom, a Canadian company for about $1.50 Canadian.
Oracle (ORCL) tacking on $0.79.
Then Cisco Systems (CSCO) edged up $0.69.
And then Intel (INTC) rising $0.40 in regular trading. The chip maker after hours saying it will close plants in the U.S., Malaysia and the Philippines, cutting 6,000 jobs.
Qualcomm (QCOM) gaining $1.73.
Northern Trust (NTRS) up more than $13.50. What do you know, a financial firm making money. Northern Trust said its quarterly net income more than doubled to $1.47 a share. Revenues up 18 percent. Income from foreign exchange trading helping those results.
Amgen (AMGN) rising $0.53.
And then Cree Inc (CREE) rising over $2. There was a decent jump in second quarter profits for that company.
And finally, Omnicell (OMCL) down $2.30. Investors did not like the company's profit forecast yesterday, when it said 2009 earnings will be more than 50 percent below earlier forecasts.
