Paul Kangas' Stocks in the News
Monday, April 06, 2009
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PAUL KANGAS: After advancing over 20 percent in the last four weeks, Wall Street came under profit taking pressure today. Adding to the selling, nervousness over the upcoming barrage of corporate earnings and weakness in the tech sector on word IBM dropped its buyout bid for Sun Microsystems. At midday, the Dow was off 154 points, the NASDAQ down 41 points. The bank stocks led a partial afternoon recovery helping the market end well above the day's lows. The Dow Industrial Average closed down a modest 41.74 points at 7975.85. The NASDAQ Composite was down 15.16 at 1606.71. Standard & Poor's 500 fell 7.02 ending at 835.48. In the bond market, the 10-year note lost 9/32 to 98 14/32, putting the yield at 2.94 percent.
Most active big board issue on 43 million shares was Bank of America (BAC) down $0.12. Mike Mayle , the banking analyst at Calyon Securities issued a number of negative ratings on bank stocks today, saying that there is going to be some big losses in the future.
Citigroup (C) down $0.13. Both Bank of America and Citigroup got "under perform" ratings and Mayle put "sell" ratings on the following stocks.
BB&T Corp (BBT), Keycorp (KEY), Suntrust (STI) and US Bancorp (USB) all "sell" recommendations by Calyon Securities.
Getting back into the active list, Ford (F) a $0.52 loss there, I should say gain. That's a 16 percent rise incidentally. The company has completed a debt restructuring which will cut its automotive debt by $9.9 billion and lower its yearly interest expense by $500 million.
General Electric (GE) $0.25 gain.
Wells Fargo (WFC) down $1.09. Calyon Securities put an "under perform" rating on Wells Fargo.
American International Group (AIG) down $0.04.
JPMorgan Chase (JPM) losing $1.08. You guessed it, Calyon had a "under perform" rating on it today.
Pfizer (PFE) a $0.16 gain.
Las Vegas Sands (LVS) moved up $0.48.
Co Vale do Rio (RIO) a $0.42 loss, tenth in volume.
MGM Mirage (MGM) moved up $0.88, but traded as high as $6.69 during the day. The "Wall Street Journal" reports it hired Morgan Stanley to handle potential sales of two of its resort properties, mainly MGM Grand Detroit and (INAUDIBLE) in Biloxi, Mississippi.
Rio Tinto (RTP) plunging $16.72. The "Financial Times" reports the company has secretly drawn up plans to raise about $10 billion in a contingency write offering which would be underwritten by JPMorgan and Credit Suisse.
American Tower (AMT) down $1.70. RBC Capital brokerage downgraded it from "out perform" to "sector perform."
And SL Green Realty (SLG) losing $1.19. Credit Suisse downgraded that one from "neutral" to "under perform."
Looking at Syniverse (SVR) with a loss of $1.42. The Webush Morgan brokerage downgraded it from "buy" to just a "hold."
Most active NASDAQ issue, Research in Motion (RIMM) gaining another $4.68 after a $10 jump last Friday on better than expected fourth quarter earnings.
Apple (AAPL) in there with a gain of $2.46.
Google (GOOG) down $1.54.
Cisco Systems (CSCO) $0.63 gain. Incidentally Goldman Sachs downgraded Cisco from "buy" to "neutral."
Microsoft (MSFT) managed to edge a penny higher.
Intel (INTC) $0.09 loss.
Qualcomm (QCOM) $0.53 drop.
Sun Microsystems (JAVA) plunging $1.93. Sun has rejected IBM's $9.50 per share takeover offer as being adequate (sic). IBM has apparently withdrawn it.
Gilead Sciences (GILD) down, up $1.83 a share.
And then Oracle (ORCL) with a $0.13 loss.
Elsewhere, Dreamworks Animation (DWA) down $2.28. Pali Capital brokerage downgraded it from "buy" to "neutral," noting the company's "Monster Versus Aliens" movie is not scaring up enough attendees.
Those are the stocks in the news tonight.
