Wednesday, June 10, 2009

In the News: 10 Large Banks to Exit TARP Program

The following is brought to you by Intellivest Securities Research, Inc. Because ISR happens to be affiliated with a broker-dealer I must tell you that the following is not intended as advertising by a broker-dealer and is not a research report.

A read of todays 6/10/09 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 front page of NTimes, WSJ, FT, IB and at page 3B of USA Today report that the U.S. Treasury on Tuesday said 10 large banks can repay $68 billion of TARP money. Two of these banks are DJIA components, JPM JPMorgan Chase with $25 billion in loans, the leader, and AXP American Express with $3.4 Billion.

T AT&T is in the news at page B1 of WSJ and p. 16 of FT in reports that GM announced on Tuesday that Edward Whitacre, former chairman and ceo of ATT, will become GM's chairman upon exiting bankruptcy. T is also in an article along with MSFT Microsoft at NYTimes first business page discussing the Smartphone's rise from toy to necessity.

AXP American Express is mentioned at C5 of WSJ as moving the market yesterday by rising 1.28 or 5% to 26.93. Also mentioned in this Large Stock Focus article was JPM JPMorgan losing 13 cents to $35.26, INTC Intel rising .50 or 3.1% to 16.42. The NYTimes also mentioned AXP and BAC Bank of America performance yesterday as demonstrating a muted response from the Street to the repayment of TARP money. BAC was unchanged at $12.06.

BAC bank of America was also the subject of an article at p. B4 of today's NYTimes regarding a House committee announcement on Tuesday that it would subpoena the Federal Reserve to force the central bank to surrender documents regarding its role in Bank of America's takeover of Merrill Lynch last year. Also, WSJ has an article at p. C2 about Fares Noujaim, one of the highest-ranking Merrill Lynch bankers left at BAC being promoted to vice chairman of corporate and investment banking at BAC. At the same page the WSJ reports the subpoena of records regarding BAC's acquisition of Merrill.

CSCO Cisco is discussed at p. B1 in USA Today in an article sentitled "Climate for tech mergers warms up." CSCO's CEO John Chambers is quoted.

KO Coke is the subject of an article at p.10 of the FT about KO's investment of a 40% interest in Honest Beverages, a producer of a best-selling bottled tea distributed in natural and organic food stores.

CVX Chevron is mentioned at p. C1 of WSJ as leading the charge for oil companies as its stock rose 61 cents or .9% to close at $70.19. The article also stated that UTX United Technologies led the Dow's decliners by falling 97 cents or 1.7% to close at $55.52. It also mentioned AXP American Express rising 5% and JPM J.P. Morgan Chase down .4%.

HPQ Hewlett-Packard, INTC Intel, IBM, and MSFT Microsfot were all discussed at p. A4 of the Investor's Business Daily in an article, "Many Big Tech Companies Elevating Their Cloud Computing Efforts" regarding a one-year update on these companies' efforts to build a test bed for cloud systems and components using open-source software. MSFT is also the subject of an article at p. B7 in the WSJ entitled "Bing Brings Market-Share Gains for Microsoft - New Search Enginge Spurs Modest Growth."

KFT Kraft is mentioned at p. B8 of the WSJ about chain restaurants selling branded products in supermarkets. KFT has a licensing agreement with California Pizza Kitchen to sell new microwaveable Flatbread Melts sandwiches to supemarkets.

MCD McDonald's is the subject of a FT article at p.14 entitled "Indonesian franchisee sues McDonald's over sale of outlets." The suit is for $105.5 million.

PG Procter & Gamble is mentioned at p. 22 of FT as dropping 1.4% to $52.41. The article also mentioned AA Alcoa advancing 3.5% to $11.15, AXP American Express gaining 5% to $26.93 and a mention of Intel rising 3.1% to $16.42 on a Bank of America report on improved orders from China for microchips. PG is also mentioned at p. A10 of the AJC about P&G's holding a board meeting to select a new CEO which is expected to be COO Bob McDonald who will succeed A.G. Lafley. Finally, P&G is the subject for a good advertising story entitled "Girding for a Leaner P&G" at p. B6 of the WSJ.

Dow Jones Closed 6/9/09 at 8763.06 down $1.43 0.02%

The following information is excerpted from the NASDAQ Stock Quote site available on the upper right hand side of the home page of

The Dow Jones Industrial Average closed today at 8763.06 down 1.43 or 0.02%

The current divisor for the Dow found at today's page C4 of The Wall St. Journal is .132319125
Today's numerator is 1,159.52
The average closing price of today's Dow Jones is $38.65

Symb/Close/Change/%Change/Vol. Market

T $24.21 0.19 0.78% 30,312,375 NYSE
AA $11.15 0.38 3.53% 35,602,584 NYSE
AXP $26.93 1.28 4.99% 26,136,055 NYSE
BAC $12.06 unch unch 202,233,047 NYSE
BA $52.35 0.48 0.91% 7,719,973 NYSE
CAT $38.24 0.33 0.86% 10,464,512 NYSE
CVX $70.19 0.61 0.88% 10,014,782 NYSE
CSCO $20.08 0.21 1.06% 49,698,991 NASDAQ-GS
KO $49.09 0.29 0.59% 10,152,178 NYSE
DIS $25.33 unch unch 8,533,248 NYSE
DD $26.93 0.72 2.75% 8,272,245 NYSE
XOM $73.12 0.05 0.07% 21,922,080 NYSE
GE $13.57 0.01 0.07% 54,244,059 NYSE
HPQ $36.84 0.57 1.52% 15,470,456 NYSE
HD $24.35 0.21 0.86% 13,000,855 NYSE
INTC $16.42 0.50 3.14% 63,936,826 NASDAQ-GS
IBM $108.14 0.65 0.6% 8,585,740 NYSE
JPM $35.26 0.13 0.37% 58,923,840 NYSE
JNJ $55.7 0.07 0.13% 11,161,101 NYSE
KFT $26.21 0.38 1.43% 9,308,112 NYSE
MCD $59.08 0.36 0.61% 7,946,673 NYSE
MRK $25.72 0.21 0.81% 11,666,610 NYSE
MSFT $22.08 0.03 0.14% 47,762,005 NASDAQ-GS
PFE $14.13 0.18 1.26% 42,499,633 NYSE
PG $52.41 0.73 1.37% 11,592,359 NYSE
MMM $60.34 0.35 0.58% 4,387,325 NYSE
TRV $44.04 0.12 0.27% 4,944,969 NYSE
UTX $55.52 0.97 1.72% 5,877,064 NYSE
VZ $29.42 0.14 0.48% 13,279,708 NYSE
WMT $50.61 0.20 0.39% 14,393,800 NYSE