Paul Kangas' Stocks in the News
Monday, June 22, 2009
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PAUL KANGAS: That downward revision in the global outlook sent stocks falling on Wall Street. With hardly an uptick, the Dow tumbled 175 points by noontime, with the NASDAQ Composite off 53 points. Stocks remained broadly lower with commodity-related issues leading the downturn on fear of declining global demand. Without even a hint of any technical rebound this afternoon, the market ended at the day's lowest level. The Dow Jones Industrial Average closed down 200.72 points at 8339.01. The NASDAQ Composite plummeted 61.28 points ending at 1766.19, while the Standard & Poor's 500 nosedived 28.19 ending at 893.04. Over in the bond market, the 10-year note rose 23/32 to 95 13/32 on flight to safety buying, pushing the yield down to 3.68 percent.
Most active New York exchange issue on 73 million shares, Bank of America (BAC) losing $1.28. The financial sector of course down on fears that the recent rally may have sent prices up too quickly. As far as Bank of America is concerned, two more board members have resigned amid calls for improved corporate governance. That makes seven recent board resignations.
Citigroup (C) in there with a $0.17 loss. The Fox Pitt brokerage sees possible significant pressure on Citi stock after the upcoming conversion of preferred shares into common stock.
General Electric (GE) down $0.58. Reportedly, Chief Executive Officer Jeff Immelt is strongly opposed to part of the Obama financial reform plan because it might force the company to spin off its GE Capital unit.
JPMorgan Chase (JPM) down $2.13. "New York Times" reports billionaire Len Blavatnik is planning to file a lawsuit alleging mismanagement of $1 billion account owned by its holding company. JPMorgan Chase calls the suit meritless.
Now let's see an example of some of the weak commodity stocks. Let's look at the second five actives on the big board first.
Pfizer (PFE) down $0.21.
What's this, a gainer? AT&T (T) up $0.11.
Then American Intl Group (AIG) down $0.14.
Regions Financial (RF) $0.29 loss.
And then Ford Motor Co (F) with a $0.34 drop.
Now let's have a look at those weak commodity stocks starting with Alcoa (AA) down nearly $1.
The steel company Arcelormittal (MT) down $2.76. Freeport-McMoran C&G (FCX), Peabody Energy (BTU), the coal company and Rio Tinto plc (RTP) all major losers today.
And the oil stocks were no bargain either today. The oil price dropped over $2.50 a barrel. ExxonMobil (XOM), Chevron (CVX), Hess (HES), BJ Services (BJS) and Schlumberger Ltd (SLB), another oil service company all major casualties.
Walgreen co (WAG) fell $1.79. Third quarter earnings to $0.53 from $0.58 a year ago, $0.03 below the Street estimate. Same store sales were up 2.8 percent, but expenses were higher than the company had anticipated.
Manulife Financial (MFC) down $2.90. The Ontario securities commission sent the company a notice that it doesn't adequately expose the risks of its annuity policy.
And then Goodyear Tire (GT) down $0.92. It's cutting continuous tire production at its Union City, Tennessee plant. It will be cut back to a five day, three shift operation. Also, about 555 employees or 550 employees received buyout package offers from the company.
Apple (AAPL) topped the active list on NASDAQ, down $2.11. The company sold over a million of its newest iPhones since Friday. Also, the stock gained a fraction after hours on reports Steve Jobs was seen at work today.
Research in Motion (RIMM) down $4.67.
Google (GOOG) tumbling $12.74, even though TMobile USA will begin selling a new cell phone using Google's android operating software. That will start in August.
Microsoft (MSFT) $0.79 drop. This week's "Barron's" financial magazine reported the stock looked super cheap in light of the company's new product.
Intel (INTC) $0.33 drop there.
A lot more red ink here, Qualcomm (QCOM) off $1.60.
Cisco Systems (CSCO) down $0.51.
Amazon.com (AMZN) losing $3.81.
Oracle (ORCL) $0.69 loss.
And Baidu (BIDU) American depository shares down $19.58.
Those are the stocks in the news tonight.
