Friday, June 12, 2009

Bank of Am.; Boeing; Exxon; MSFT lead the News

The following is brought to you by Intellivest Securities Research, Inc. The following is not intended as advertising by a broker-dealer and is not a research report.

A read of today's 6/12/09 print editions of: Wall Street Journal, New York Times, USA Today, Investor's Business Daily, Financial Times and Atlanta Journal Constitution yields the following stories about Dow Jones 30 component companies:

The biggest story was that Bank of America BAC's CEO Ken Lewis got grilled by Congress yesterday and admitted that he was pressured by Fed. Res. Bernanke, former Treas. Sec'y Paulson and Chief Economic Advisor to Obama, Lawrence Summers, to keep quiet to BAC's shareholders about Merrill Lynch's losses. This story ran today at P.1 (related story at p.17) of Fin. Times; p. C1 of WSJrn; p. B1 of NYT; p. A14 of AJC; p. B7 USA Today; p. A1 of Investors Bus. Daily. Also a separate story appears at WSJ p. C1 about how the Obama team is being drawn into the mess because of pressuring by Obama insiders.

BAC is also in the news because of its ownership interest in BlackRock which announced yesterday it had agreed to buy Barclays Global Investors from the British banking giant Barclays for $13.5 billion. This story is at p. B3 of NYT; p. 17 of Fin. Times; p. C1 of WSJ; and p. 1B USA Today. WSJ at p. C1 mentioned BAC led the Dow up yesterday with a rise of 8.3% in its stock price. A related story at FT p. 17 said BlackRock's purchase of Barclays Global Investors will unleash a raft of similar deals. Also at p. 22 of WSJ, it says BAC's stock was upgraded by analysts at Keefe, Bruyette & Woods to outperform and Morgan Stanley raised their EPS estimates for BAC.

XOM Exxon-Mobil was in the news because of its switch decision to now join TransCanada to build a 1,700 mile natural gas pipeline from Alaska that would begin operations in 2018 and have a daily capacity of six billion cubic feet of natural gas. This story ran at p. B7 of NYTimes; p. B1 of WSJ & AJC p. A14. P. B9 also mentions XOM's and Chevron's CVX stock prices moving higher yesterday because of rising oil prices. A similar story is at p. B8 at "Market Gauges" saying XOM was a top five performer over the last year in the energy sector being down only -16.4 in its stock price.

MSFT Microsoft made news because it said Thursday it will ship its Windows 7 operating software in Europe without its Internet Explorer Web browser to appease Economic Union Commission regulators. This is at p. 13 of Fin. Times that also says the EU regulators are considering forcing MSFT to have prompts for users of their operating systems to be able to use competitors' browser. Also at B7 of FT there is a story that says MSFT's rivals are looking for a free ride. IBD's story on MSFT is at p. A2, USA runs it at p. B1 and WSJ's story about MSFT shipping Windows Operating system without Internet Explorer in Europe is at p. B7. Also, MSFT was mentioned at IBD p. A4 as possibly losing its security chief, Scott Charney, to Obama as Obama's cybercrime czar although Charney is quoted as saying he's not interested.

BA Boeing lowered its 20 forecast for the commercial airplane market citing the recession, declining air traffic and fuel prices. Last year Boeing said it expected a market for 29,400 aircraft over the next 20 years valued at $3.2 trillion but now they say there will be only 29,000 planes. This story ran at WSJ B1; USA Today p. 5B; and AJC p. A12. USA Today's Markets column at p. 5B said BA fell 1.64 to 50.66 as a result of this forecast revision.

KO Coke is mentioned at p. A2 as causing the shares of Plexus to rise as a result of their partnership with KO to produce a fountain dispenser that could serve 100 different beverages. Also WSJ at p. B8 said Venezuela is banning Coke Zero claiming health hazards.

The Dow closed yesterday, June 11, 2009 at 8770.92, up $31.90 up 0.37%.
The current divisor for the Dow found at today's page C4 of The Wall St. Jrnl is

Yesterday's Dow numerator was 1,160.56. 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.
The average closing price of today's Dow Jones is $38.69. The median closing price of today's Dow Jones is $34.94.

The highest closing price yesterday was IBM at $109.40 up $1.05 and the lowest closing price was AA Alcoa at 12.22 up .73.

Among yesterday's 15 most active on the NYSE was BAC Bank of Am; GE; and PFE Pfizer and the three NASDAQ stocks on the Dow were, as usual, among the 15 most active on Nasdaq: MSFT, Intel and Cisco.

The lowest volume was MMM $60.58 +0.12 at 3,625,620 shares and the highest volume was BAC Bank of America BAC $12.97 +0.99 8.26% 523,881,802.

If yesterday 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 made $436 ($116,056 - $115,620)

Scroll down for yesterday's closing prices for the Dow Jones 30 component stocks.

Yesterday's Closing Prices June 11, 2009 of the Dow Jones Industrial Average:

Symb/Last/Change/% Change/Vol./ Market

T $24.79 +0.51 2.1% 35,464,817 NYSE
AA $12.22 +0.73 6.35% 61,834,972 NYSE
AXP $25.63 -1.06 3.97% 25,330,465 NYSE
BAC $12.97 +0.99 8.26% 523,881,802 NYSE
BA $50.66 -1.64 3.14% 11,788,579 NYSE
CAT $37.61 -0.01 0.03% 10,135,661 NYSE
CVX $71.9 +1.68 2.39% 14,569,348 NYSE
CSCO $20.1 +0.15 0.75% 44,755,769 NASDAQ-GS
KO $48.58 +0.17 0.35% 10,280,256 NYSE
DIS $25.23 +0.13 0.52% 9,573,125 NYSE
DD $27.11 +0.34 1.27% 9,836,028 NYSE
XOM $74.05 +0.21 0.28% 30,639,356 NYSE
GE $13.46 +0.06 0.45% 71,128,628 NYSE
HPQ $37.23 +0.44 1.2% 15,593,110 NYSE
HD $24.23 -0.16 0.66% 17,905,229 NYSE
INTC $16.35 +0.11 0.67% 53,154,115 NASDAQ-GS
IBM $109.4 +1.05 0.97% 9,107,362 NYSE
JPM $34.94 +0.10 0.29% 66,469,680 NYSE
JNJ $56.0 +0.39 0.7% 12,691,898 NYSE
KFT $25.95 +0.10 0.39% 9,382,385 NYSE
MCD $57.67 -0.69 1.18% 9,313,364 NYSE
MRK $26.19 +0.60 2.34% 17,066,370 NYSE
MSFT $22.83 +0.28 1.24% 65,084,534 NASDAQ-GS
PFE $14.63 +0.58 4.13% 70,399,910 NYSE
PG $52.01 -0.07 0.13% 10,805,461 NYSE
MMM $60.58 +0.12 0.2% 3,625,620 NYSE
TRV $43.57 -0.20 0.46% 4,607,410 NYSE
UTX $55.55 +0.05 0.09% 5,058,384 NYSE
VZ $29.75 +0.22 0.75% 12,543,237 NYSE
WMT $49.32 +0.74 1.48% 21,555,000 NYSE