6/23 Tues am Mrk Merk prices Debt; Merger Scrutinzed

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The Dow closed Mon. at 8339.01 down 200.72 or down 2.35%. Of the Dow only 3 (T AT&T, VZ Verison and WMT Wal-Mart) gained value and 27 lost.

A read of Tues. 6/23/09 print editions of: Wall Street Journal, New York Times, Atlanta Journal Constitution, Financial Times, Investor's Business Daily and USA Today yielded the following stories about Dow Jones 30 component companies:

WSJ @ pC6 says MRK Merck priced $4.25 billion of notes in four parts via active bookrunners that included BAC Bank of America, its sub Merrill Lynch and JPM JPM Morgan Chase. Also, @ pA8 of AJC it says MRK and Schering-Plough, which are in the process of a $41.1 billion buyout said Mon. the Fed. Trade Comm. has asked for more information about the deal which would be the world's second largest drugmaker by revenue. This is also the subject of a short piece in todays Investor's Bus. Daily IBD @pA2. JPM is also mentioned at pC6 of WSJ as selling a $1.5 billion credit loan backed deal dubbed CHAIT 09-A5 which was increased in size from the original $1 billion. JPM is mentioned as rebounding from the economic crisis at the same time three small cash-strapped banks have stopped paying the U.S. gov. TARP dividends.
Also JPM MorganChase along with BAC Bank of Am. CEO are critical of new Treasury Dept. proposed regulatory rules that would call for bigger bank reserves. A former vice chair of BAC, James Hance, jr. was named to Morgan Stanley's board, Hance is currently with Carlyle Group.

AJC @ pA8 said VZ Verizon will bring out an Android phone "in the near future" that will use Google's Android software which will lack a physical keyboard. This is also reported @pB5 of WSJ. FT Fin. Times @p14 has a story "NSN chief confident of securing Verizon contracts" that said Nokia Siemens Networks, the telecom equpment manufacturer, said it would win lucrative contracts with VZ Verizon, the leading US mobile phone operator.

WSJ @pC1 explaining why yesterday's Dow's drop was the biggest in 2 months said CVX Chevron was down 3.4% and XOM Exxonmobil was off 3.1% as oil futures tumbled 3.8% to $66.93 a barrell. WSJ @ pC5 in "Large Stock Focus" noted that AA Alcoa and BAC Bank of Am were among the leading decliners in yesterday's Dow drop. Same page has a chart on BAC noting it was the largest percentage-point loser in the Dow down 9.68% yesterday. WSJ @ C5 in "Good Bet in Market Pullback: Health-Care Shares" said Pfizer, unlike some other health care shares, hasn't moved above its 200 day moving average. NYT @pB7 also mentions BAC's yesterday's decline as well as JPM Morgan's 6.1% fall yesterday as it says that the Dow fell because "global forecast dims." FT @p22 also noted BAC fell 9.7% to 11.94 after two more board members left bringing the total to seven since April in a story that focused on the S&P 500 turning negative for the year as a result of yesterday's Dow decline. USA Today @p4B said yesterday's Dow decline was because "World Bank report hammers stocks" saying the Wrold Bank said it expected the global economy to shrink 2.9% this year - its prior forecast said the economy would contract only 1.7%. The story noted BAC's share decline caused the Financial Select Sector SPDR which tracks the financial industry to fall 5.8% yesterday. The story also noted XOM falling $2.21 to $68.84 due to a weaker than expected economy pushing the price of oil down.

WSJ @pB5 said a national consumer watchdog group has told WMT Wal-Mart it should stop running national tv ads that claim shoppers can save $700 a year by shopping its stores. The Nat'l Advertising Division of the Council for Better Business Bureaus said it was reponding to a complaint from a large supermarket chain. WMT said it is no longer running the ads. This is also reported at IBD Investor's Bus. Daily @pA4.

IBD @pA5 said Dis Walt Disney is among the game publishers that have made a big commitment to games for girls in a story entitled "Game Developers Gunning for Girl Power - Lucrative, Untapped Market".

IBD @pA6 has a story about a Chinese company Duoyuan Global Water Inc. making great strides in wastewater treatment and noted that it competes in all its market segments with GE.

IBD @pA12 charts 20 big cap companies and includes MSFT Microsoft and AXP American Express.

USA Today @p3B has a story about videoconferencing and says CSCO Cisco sells videoconference equpment and also is cited as an example that by using its own equipment it cut travel expenses in its most recent quarter from $750 million to $250million.

The current divisor for the Dow found at today's page C4 of The Wall St. Jrnl is
.132319125 unchanged.

Monday's Dow numerator was 1103.41 down 26.56 from Friday's Dow numerator which was 1129.97. This is the sum of all 30 closing prices. A short cut to the Dow numerator is to multiply the closing Dow by the Divisor.

Now, if you divide the Dow decrease of 26.56 in the Dow numerator by the divisor you get 200.72, the decrease in Friday's Dow.

The average closing price of Monday's Dow Jones was 36.77 down .90 from Friday's average closing price of $37.67. The median closing price of Monday's Dow Jones is $27.64.

The highest closing price Monday again was IBM at $104.52 down 1.37 down 1.29% vol. of 7,047,908 NYSE and the lowest closing price Monday again was AA Alcoa at $10.02 down 0.98 down 8.91% vol: 44,275,375 NYSE.

The lowest volume Monday was BA Boeing $46.9 down 1.54 down 3.18% vol: 5,034,831 NYSE and the highest volume was BAC Bank of America $11.94 down 1.28 down 9.68% vol: 420,204,459 NYSE.

If Monday morning before the market opened you had purchased $100 of each of the Dow 30 shares (assuming you could buy fractional shares and assuming no transaction costs) and sold at the close you would have lost $1,710. ($113,010 - 110,300).

Monday's Closing Dow closing numbers:

Symb/Last/Change/% Change/Vol./Market
T $24.15 +0.11 0.46% 37,282,619 NYSE
AA $10.02 -0.98 8.91% 44,275,375 NYSE
AXP $23.23 -1.41 5.72% 16,874,981 NYSE
BAC $11.94 -1.28 9.68% 420,204,459 NYSE
BA $46.9 -1.54 3.18% 5,034,831 NYSE
CAT $32.36 -1.29 3.83% 14,010,756 NYSE
CVX $65.76 -2.30 3.38% 15,926,918 NYSE
CSCO $18.41 -0.51 2.7% 44,985,071 NASDAQ-GS
KO $47.99 -0.82 1.68% 10,356,506 NYSE
DIS $22.66- 0.87 3.7% 11,952,450 NYSE
DD $24.1 -0.87 3.48% 8,991,919 NYSE
XOM $68.84 -2.21 3.11% 26,258,826 NYSE
GE $11.52 -0.58 4.79% 100,737,239 NYSE
HPQ $37.74 -0.61 1.59% 19,071,782 NYSE
HD $23.25 -0.27 1.15% 12,523,332 NYSE
INTC $15.68 -0.33 2.06% 66,718,261 NASDAQ-GS
IBM $104.52 -1.37 1.29% 7,047,908 NYSE
JPM $32.87 -2.13 6.09% 67,134,601 NYSE
JNJ $55.49 -0.60 1.07% 12,819,620 NYSE
KFT $25.25 -0.16 0.63% 9,951,364 NYSE
MCD $57.2 -0.97 1.67% 7,440,474 NYSE
MRK $25.18 -0.73 2.82% 18,302,409 NYSE
MSFT $23.28 -0.79 3.28% 69,763,909 NASDAQ-GS
PFE $14.79 -0.21 1.4% 57,083,663 NYSE
PG $50.56 -0.08 0.16% 12,541,586 NYSE
MMM $57.47 1.90 3.2% 5,110,107 NYSE
TRV $41.06 -1.02 2.42% 5,672,756 NYSE
UTX $52.58 -1.62 2.99% 5,475,590 NYSE
VZ $30.02 +0.36 1.21% 21,392,998 NYSE
WMT $48.59 +0.42 0.87% 19,595,394 NYSE