Paul Kangas' Stocks in the News
Monday, October 26, 2009
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PAUL KANGAS: Wall Street welcomed the new week with an opening rally on better than expected results from Radio Shack, Corning Corp. and Verizon. The Dow gained nearly 100 points early on with the NASDAQ up 27 points. But then stocks reversed course as a spike in the dollar sent oil and other commodity stocks broadly lower. A brokerage downgrade on several regional banks kept the selling pressure on and the market went on to close at the day's lows. The Dow Industrial Average ended down 104.22 at 9867.96. The NASDAQ Composite fell 12.62 to 2141.85, while the Standard & Poor's 500 Index lost 12.65 to end at 1066.95. In the bond market, the 10-year note fell 18/32 to par 18/32, putting the yield at 3.56 percent. Big board volume leader on 110 million shares was Citigroup (C) moving down $0.19.
Followed by Bank of America (BAC) with an $0.82 loss. Bank of America reportedly has hit a snag in repaying TARP funds. It has to do with a disagreement over how much additional capital the bank must raise to satisfy regulators.
General Electric (GE) $0.19 loss there.
Pfizer (PFE) fell $0.13.
Sprint Nextel (S) down a nickel a share. Third quarter results due out Thursday. The Street estimate a $0.15 per share loss for Sprint.
Wells Fargo (WFC) down $0.87. A group complaining about bank greed picketed the company`s offices in Chicago and also picketed Goldman Sachs` offices there too.
JPMorgan Chase (JPM) down $1.41.
Ford Motor Co (F) $0.16 loss.
Regions Financial (RF) losing $0.43. Bank analyst Dick Bove said many of the regional banks will not be profitable until the year 2011.
AT&T (T), tenth in volume, down $0.42.
Caterpillar (CAT) fell $0.53. The company will permanently cut 2500 laid off workers despite signs of improving product demand.
Verizon Communications (VZ), another Dow stock, down $0.21. Third quarter earnings fell 30 percent to $0.41 from $0.59 a year ago, but excluding one-time items, those earnings were $0.60 a share and that was a penny above the Street estimate.
Monsanto (MON) fell $4.54. The company is offering lower than expected pricing for its high tech corn seed.
And Corning (GLW) down $0.14. Third quarter results excluding one- time items, $0.42, $0.03 above the Street estimate. But sales did decline 5 percent. However, the company said LCD demand is picking up.
RadioShack (RSH) had a good day on the upside, up nearly $2.50. Third quarter earnings fell to $0.30 from $0.38 last year, but the company said its financial performance improved in the latter part of the third quarter and today, Janey Montgomery Scott brokerage repeated a "buy" on RadioShack.
General Cable (BGC) losing $4.16. Lower third quarter earnings, $0.55, way down from $1.16 (ph) last year. Revenues fell 25 percent and the company cut its fourth quarter earnings estimate to top things off. Ethan Allen (ETH) off $2.64. The company sees worse than expected losses in the first quarter, be around $0.21 to $0.23 in the red versus the Street estimate of a loss of only $0.08. Standard & Poor`s repeated a "sell" today.
And the big tobacco company Lorillard (LO) down $5.60. Third quarter earnings a bit higher, $1.44 versus last year`s $1.38, but $0.08 below the Street estimate.
NASDAQ`s most active, Amazon.com (AMZN) up $6.15, still riding high on those earnings that were fantastic late last week.
Microsoft (MSFT) moved up $0.66. Adams brokerage upgraded it "hold" to "buy" with a $34 a share target.
Apple (AAPL) down $1.46.
And then Google (GOOG) $0.52 gain.
Baidu (BIDU) was down $2.34.
Intel (INTC) a nickel gainer.
Cisco Systems (CSCO) $0.47 loss.
Research in motion (RIMM) down $0.09.
Qualcomm (QCOM) $0.02 drop.
And then came Amgen (AMGN) losing $1.84.
Elsewhere, Private Bancorp (PVTB) lost nearly 37 percent of its value. The company reported a third quarter loss of $0.68 a share, much bigger than last year`s loss of $0.25. The company blamed heavy loan losses.
And those are the stocks in the news tonight.
