Monday, June 22, 2009

6/22 Mon pm Dow drops 200.72 to close @ 8339.01 down 2.35%

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.

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.

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

A read of Mon. 6/22/09 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:

Leading story at p1 of Fin. Times is that due to concerns over stability of the repo market, the Fed is considering dramatic changes including creating a utility to replace the Wall Street banks that handle repo transactions. JPMorgan is named as one of the banks that would be affected by these changes.

NYtimes has a story today about how an investor plans to sue JPM for allegedly mismanaging an investment account that held $1 billion and in the NYTimes Looking Ahead Column it says that Fed. Res. Chairman Ben. S. Bernanke on Thurs. will testify before the House Oversight and Reform Committee about BAC Bank of America's acquisition of Merrill Lynch.

WSJ @ pB1 has a story entitled, "Tech Giants Ramp Up Their Online Offerings" that details how the recession is forcing HP Hewlett-Packard, Oracle and SAP deeper into a low profit business that these companies have traditionally resisted - selling online software. It says that MSFT Microsoft and IBM have also moved into online software over the past year.

At WSJ pB1 there is a story about Siemens expecting to get $21 billion in new government contracts. The story notes that Siemens wants to challenge GE as a "green infrastructure giant."

At WSJ pB5 there is a story about GM holding its ad budget steady and states that last year GM was third in US advertising behind PG Procter & Gamble and VZ Verison.

At WSJ pC3 it is reported that a consortium is going to buy BAC Bank of America's First Republic Bank. On the same page is a story that boutiques are continuing to raid bigger rivals such as JPM JPMorgan and BAC Bank of America for talent.

At the Options Report at WSJ pC4 it said on Friday the bulls ralllied around technology giants Yahoo and INTC Intel.

At WSJ pC6 in an article about exuberance in the industrial sectors stocks recently are because big, diversified companies such as GE will benefit from increased gov. spending on transportation and energy infrastructure.

WSJ @ pR4 has a story about innovation and says that MMM 3M allows its scientists to spend 15% of their time on projects they dream up themselves.

FT @p13 has a story entitled, "Lehman creditors in fight to recover disputed collateral" which is a news analysis story that questions whether Lehman gave up too much to JPM JPMorgan Chase.

Investor's Business Daily IBD at pA2 says MSFT Microsoft climbed 2.4% on Friday after Goldman Sachs upgraded it to its "conviction buy" list saying improved cost controls, good sales drivers and sizable cash balances makes MSFT well positioned. Same page says JPM JPMorgan Chase said it expects to record a $1.1 billion charge in Q2 after returning $25 billion to US.

IBD @ pA9 has a story about big selling drugs going off patent resulting in drugmakers buying up generic mfgers. PFE Pfizer's cholesterol drug Lipitor as mentioned as the best-selling brand name drug in the world. The generic version is expected to reach the market in Nov. '11.

USA Today @ pB1 has a story entitled, "IBM, Google court smaller businesses" that tells how these two companies have stepped up efforts to nudge MSFT Microsoft aside and become tech suppliers of choice to small and medium size businesses.

As reported in my Blog yesterday, a read of Sun's 6/21 AJC, Sunday 6/21 NY Times, Barron 6/22/09, Securities Industry News 6/15, Investment News 6/15 -19, Institutional Investor June issue, CFO June issue, BusinessWeek Small Biz June/July issue, US News & World Report July issue and Newsweek 6/22 issue yielded the following stories about Dow Jones 30 component companies:

AJC has a favorable story about HD Home Depot, its 30 year history, and its future prospects.

BAR @ p21 talks about a competitor of JNJ Johnson & Johnson's Stryker, a specialist in orthopedic implants. JNJ is a big player in the $38 billlion orthpedic-implant market.

WMT is charted by BARs noting that it will be regulated as if it is a bank under the new financial regulations.

MSFT is discussed in an article at Bar p28 in an article with new Yahoo CEO Carol Bartz who is said to be getting Yahoo ready to be sold to MSFT. MSFT is said to be a good buy because it has a large product cycle, piles of cash and a below-market multiple acccord to Eric Savitz at BAR p 34.

Bary Motyl Chief Inv. Off. of Templeton Global Equity Group liked CSCO Cisco @ p41 which is also the subject of another story about how it is installing 3,000 high def screens in Dallas Cowboys new stadium with state of the art technology created by CSCO and T AT&T.

JNJ Johnson & Johnson is one of the rare health care companies that is cheap in a story entitled "J&J is a Bargain" @ BAR p39. Same page ranks XOM ExxonMobil as the top S&P 500 company for the first quarter for stock buybacks of its own shares.

Securities Industry News and Investment News both have lead stories about BlackRkock acquiring Barclays to result in the world's top money manger with $2.7 trillion under management. Merrill Lynch has a distribution system with BlackRock and Merrill's owner BAC Bank of Am. is part owner of BlackRock.

June issue of Inst'l Investor II has a story about Standard Chartered's acquisition to buy the Asian businss of JPM Morgan Cazenove. At p54, II has an article about the business of prime brokers and how JPMorgan is now a leader in this shrinking field even though a year ago it wasn't even in the business of traditional prime brokerage prior to its takeover of Bear. BusinessWeek Small Biz June/July issue has a story about how JPM JPMorgan Chase and other big banks are suspending credit lines to businesses. JPM is also discussed in the cover story of the 6/22 Newsweek at p 47 where it is stated that JPMorgan is among a group of big banks that are forming a new lobby to fight controls on over-the-counter derivatives.

June issue of CFO has a story about the controversy over the high pay of CEOs of public companies and AXP American Express is singled out as its CEO being in the top five of the 29 TARP bailout receivers who received the largest CEO compensation.

US News & World Report July issue in an article at p12 entitled "Digging for gold in a Recession" states that DD Dupont invested nylon during the Great Depression.