Friday, July 31, 2009

7/31/09 am Exxon Mobil's Profit Drops to 6 Year Low

Post #30 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. Click at the 7/23/09 Blog to find a description of this week's profiled company, AXP American Express Company. AXP closed Thursday at $28.23 +0.48 or 1.73% on volume of 13,796,273 NYSE. AXP in terms of market value ranks 25th amont the Dow Jones 30 Industrial Average with a market cap of $33 billion. For the complete list of ranking as of 7/30/09 see the listing after today's media report in today's Blog.

A read of Friday's 7/31/09 print editions of: Wall Street Journal, Investors Business Daily, Financial Times, USA Today, and Atl Journal Const yielded the following stories about Dow Jones 30 component companies:

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

Lead story at Fin Times p1 ". . .Exxon profits tumble - Price falls and weak demand hit revenues" says XOM Exxon Mobil's earning for 2Q were $3.95 billion or 0.81 a share down from 11.68 b or 2.22 share a year ago. Analysts had expected net income of 1.02 a share. This is also reported at Inv Bus Daily pA6, AJC pA18, WSJ pB3 saying recession's impact on oil prices and demand hurt XOM. Fin Times p16 "Exxon faces questions over goals - The conservative approach is being questioned" says environmentalists, corporate governance activits and many politicians may not like XOM Exxon Mobil but its shareholders do as over the past 5 years while the Dow Jones Industrial Average has lost 9% of its value, XOM Exxon's shares ahve gone up 53%.

WSJ pB1 "Bottom Lines Buoy Rebound Hopes - Though Profits Are Still Weak, Cost Cuts, Overseas Demand Help Many Companies Find Footing" says ten months after credit markets froze and deepened the recession, many companies are seeing signs of a bottom such as MMM (results helped by cost cutting; raised forecast for the year); VZ Verizon (pullback in business spending hurt results: plans 8,000 new job cuts); and XOM Exxonobil (results hurt by falling oil prices.) Related stoy at pB3 "Disney Sees Signs Economy Is Set To Get Off Ground - Disney's earnings dropped 26%, but the decline was less steep than in recent quarters as executives discerned signs of economic stability." Dis's earnings are reported at Inv Bus Daily pA2 and at USAToday p3B "Disney profit sinks on slow DVD sales." USA Today's "Markets Thursday" "Upbeat earningsreports propel stocks" mentions that buying of Dow shares started 7/13 after T AT&T, INTC Intel and CAT Caterpillar posted results that outran expecations. AJC makes a similar statement at pA19 "Dow looks for big July finish" noting that the Dow Jones Industrial average is a day away from locing in its best July in 20 years.

Dis's sale of its ABC radio business is mentioned in a WSJ pC3 item on Lazard banker John Chachas' possible Senate run for seat held by Nevada's Harry Reid. Dis's results are also reproted at AJCpA18 "Disney profit declines on lower revenue."

WSJ pC1 "Dow Gains 83.74 Ponts on Jobless Claims, GE" says the Dow's increase was led by a 7% surge in GE up 0.85 to 13.11 after Goldman Sachs analysts upgraded the conglomerate's shares to "buy" from "neutral" saying it appears less likely that GE will be forced to sever its GE Capital unit. Similar theme at WSJ pC5 "GE, Dow Chemical, Motorola Lead Rally" in "Large Stock Focus" column. Side bar of "The Good News . . ." charts GE. GE's results also reported at Inv Bus Daily pA7.

Front page story at WSJ pA3 "Bank Bonus Tab: $33 Billion - Nine Lenders That Got US Aid Paid at Least $1 million Each to 5,000 Employees" includes BofAm BA; BofA's Merrill Lynch, and JPM JPMorgan in the list. Same story on front page of NYT and front page of USA Today Money Section. USA Today pB1 reports that JPM JPMorgan was subpoenaed by a Senate panel seeking evidence of fraud from last year's mortgage crisis.

BAC BofA is mentioned in a story at WJC pC3 "In Banks' Profit Push, Era of Low Fees Is Over" where it says BofAm boosted its montly maintenance fee for its MyAccess checking account to $8.95 and also raised its fee for credit card balance transfer to 4%.

WSJ pB4 says PFE Pfizer will pay $75 million in a settlement of a lawsuit over a '96 clinical study in Africa as a result of their study of the drug Trovan that was conducted during Nigeria's worst meningitis epidemic. Lawsuits accused PFE of violating human rights standards by experimenting on children without their consent.

TRV Traveler's is not mentioned much but they are in a story at WSJ pC5 "Travelers' profit Sinks 21% . . ." that says TRV's 2Q profit fell 21% on lower revenue and higher claims closts. TRV, a commercial and personal insurance provider, still raised its full year earnings outlook to 4.80 to 5.05 a share from its earlier outlook of 4.55 to 4.95 a share. CEO Jay Fishman says TRV's performance reflected good underwriting and fixed income investment results as well as the continued impact of low short term investment yeilds and a small loss on its alternative investment portfolio. TRV replaced former parent Citigroup in the Dow Jones Industrial Average.

CAT Caterpillar, another Dow Jones 30 not often in the news, is the subject of a story at Fin Times p10 where its CEO, Jim Owens, is interviewed. James W. Ownes became CEO in '04 having started there in '72 as a PhD grad in economics. CAT is generally seen as a bellwether of the US and global industrial economy. Owens' first 3 years as CEO saw large growth in demand for CAT's products driven by the commodity boom and emerging markets. James Owens, 2 years ago, became on of the first US CEOs to warn of an economic downturn. CAT made its first quarterly loss for 17 ears and recently cut 26,000 jobs. James Ownes sits on Pres. Obama's Economic Recovery Advisory Baord.

WSJ pB4 says Sanofi-Aventis SA will buy out MRK Merck's share of their animal health joint venture, Merial Ltd. for $4bil (MRK's share was 50% of the venture).

WSJ pB5 "Ballmer Defends Yahoo Deal" saying investors have failed to appreciate the value a search deal MSFT struck with Yahoo. Similar theme at Fin Times p15 "Ballmer mounts defence of alliance" and same page "Partnership urged to take rapid action" and same page, a third story, "Venture to face regulatory scrutiny." Inv Bus Daily pA10 has an editorial "Hands Off Microsoft-Yahoo, Please" that says Congress and federal regulators should not put the MSFT Yahoo deal through the political meat grinder.

WSJ pB5 "FCC Eyes Rural Impact of Cellphone Tie-Ups" says FCC's inquiry into exclusive carrier deals on popular cell phones will focus on customers in rural areas who can't buy Apple's iPhone or Palm's Pre smart phone because the cariers don't serve their markets. T AT&T has a multiyear deal to offer the iPhone. VZ Verizon Wireless (jv of VZ and Vodafone) say exclusive handset deals prompt innovation by forcing competitors to forge their own agreements with manufacturers and come up with newer and fancier phones.

AJC pA18 has an item "Coke, CCE roll out new 2 liter contour bottles."

The following is a ranking of all Dow Jones Industrial Average 30 Companies based on the value of their outstanding shares as of close of the Dow on Thursday July 30, 2009 with the market value rounded to the nearest billion.

Rank/Dow Company Symbol & Name Value of Float in Billions # of Shares Outstanding

1. XOM Exxon Mobil $345 Billion 4,879,710,000
2. MSFT Microsfot $212 Billion 8,899,720,000
3. WMT Wal-Mart $195 Billion 3,896,618,000
4. JNJ Johnson & Jo $170 Billion 2,755,566,000
5. PG Procter & Gam $164 Billion 2,914,702,000
6. IBM $158 Billion 1,341,678,000
7. T AT&T $155 Billion 5,900,000,000
8. JPM JP Morgan Chas $145 Billion 3,759,160,000
9. GE $139 Billion 10,589,575,000
10. CVX Chevron $136 Billion 2,004,672,000
11. CSCO Cisco $127 Billion 5,767,881,000
12. KO Coke $115 Billion 2,314,998,000
13. INTC Intel $108 Billion 5,585,000,000
14. PFE Pfizer $108 Billion 6,747,979,000
15. HPQ Hewlett-Packa $102 Billion 2,386,262,000
16. VZ Verizon $92 Billion 2,840,574,000
17. BAC Bank of Ameri $89 Billion 6,402,966,000
18. MRK Merck $63 Billion 2,108,669,000
19. MCD McDonald's $61 Billion 1,103,243,000
20. UTX United Techn $51 Billion 941,273,000
21. DIS Walt Disney $49 Billion 1,856,752,000
22. MMM 3M $49 Billion 694,384,000
23. HD Home Depot $44 Billion 1,703,395,000
24. KFT Kraft $42 Billion 1,472,743,000
25. AXP American Exp. $33 Billion 1,167,625,000
26. BA Boeing $31 Billion 726,432,000
27. DD DuPont $28 Billion 903,608,000
28. CAT Caterpillar $26 Billion 601,752,000
29. TRV Travelers $25 Billion 585,430,000
30. AA Alcoa $11 Billion 974,276,000


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

The Dow closed Thursday at 9154.46 up 83.74 or 0.92% from Wednesday's close of 9070.72. Of the 30 Dow Companies: 25 gained, and 5 declined with the biggest loser being NYSE and the biggest gainer being NYSE.

Thursday's Dow closing numerator was 1211.31 up 11.08 from Wednesdays's Dow closing numerator of 1200.23. 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 numerator increase for today of 11.08 by the divisor you get 83.74, the increase in Thursday's Dow close.

The average closing price (the closing numerator divided by 30) of Thursday's Dow Jones was 40.38 up 0.38 from Wednesday's average closing price of 40.00. The median closing price of Thurssday's Dow Jones was 35.39 up 0.52 from Wednesday's Dow Jones median closing price of 34.87.

The highest closing price Thursday was IBM $$117.86 +0.60 0.51% 6,745,050 NYSE and the lowest closing price Wednesday again was Alcoa AA $ $11.46 +0.45 4.09% 30,398,888 NYSE.

The lowest volume Thursday was MMM $69.94 +1.22 1.78% 3,876,285 NYSE and the highest volume was BAC BofAm $13.97 +0.45 3.33% 283,077,122 NYSE.

If Thursday 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 $1,140 ($121,140 - $120,000).

Thursday's Closing Dow closing numbers:
Symb/Last/Change/% Change/Vol./Market

T $26.34 +0.39 1.5% 31,287,662 NYSE
AA $11.46 +0.45 4.09% 30,398,888 NYSE
AXP $28.23 +0.48 1.73% 13,796,273 NYSE
BAC $13.97 +0.45 3.33% 283,077,122 NYSE
BA $43.24 -0.13 0.3% 8,140,852 NYSE
CAT $43.41 +1.58 3.78% 14,886,918 NYSE
CVX $67.7 +0.58 0.86% 11,442,477 NYSE
CSCO $21.98 +0.26 1.2% 52,515,542 NASDAQ-GS
KO $49.67 +0.39 0.79% 9,684,262 NYSE
DIS $26.22 +0.33 1.27% 16,675,678 NYSE
DD $30.81 +1.27 4.3% 8,586,534 NYSE
XOM $70.72 -0.71 0.99% 37,598,142 NYSE
GE $13.11 +0.85 6.93% 168,336,203 NYSE
HPQ $42.71 +0.52 1.23% 18,935,992 NYSE
HD $25.85 +0.46 1.81% 13,457,919 NYSE
INTC $19.33 -0.07 0.36% 60,137,392 NASDAQ-GS
IBM $117.86 +0.60 0.51% 6,745,050 NYSE
JPM $38.47 +0.70 1.85% 37,639,684 NYSE
JNJ $61.79 +0.63 1.03% 12,585,558 NYSE
KFT $28.57 +0.03 0.11% 9,753,888 NYSE
MCD $55.59 -0.82 1.45% 13,783,218 NYSE
MRK $29.94 +0.07 0.23% 18,660,520 NYSE
MSFT $23.81 +0.01 0.04% 67,300,865 NASDAQ-GS
PFE $15.94 +0.19 1.21% 47,838,968 NYSE
PG $56.23 +0.11 0.2% 11,911,353 NYSE
MMM $69.94 +1.22 1.78% 3,876,285 NYSE
TRV $41.86 -0.77 1.81% 7,738,658 NYSE
UTX $54.12 +0.92 1.73% 6,853,332 NYSE
VZ $32.3 +0.32 1% 17,816,052 NYSE
WMT $50.+03 0.66 1.34% 16,232,786 NYSE
Here are the latest SEC filings as of 7/15/09 other than ownership filings and, except for certain cases, I do not include third party shareholder proposals:

Symbol & Co. Name/Date of Filing/Form Filed/ Comments

T AT&T 6/30/09 11K Annual Report of Employee Stock Purchase Plan
AA Alcoa 7/13/09 8K 2nd Quarter Earnings Results
AXP 6/30/08 8K Settlement w/FDIC re: convenience checks
BAC Bank of Am 7/1/09 8A Regis. of Securities
BA Boeing 7/7/09 8K Acquisition of Vought Aircraft
CAT Caterpiller 6/23/09 11K Annual Report of Employee Stock Purchase Plan
CSCO Cisco 6/2/08 S8 Regis. of securities to employees
KO Coke 6/25/09 11K Annual Report of Employee Stock Purchase Plan
DIS Disney 6/26/09 11K Annual Report of Employee Stock Purchase Plan
DD DuPont 6/29/09 11K Annual Report of Employee Stock Purchase Plan
XOM Exxon 6/24/09 11K Annual Report of Employee Stock Purchase Plan
GE 6/25/09 11K Annual Report of Employee Stock Purchase Plan
HPQ Hewlett-Pack 6/30/09 11K Annual Report of Employee Stock Purchase Plan
HD Home Depot 6/29/09 11K Annual Report of Employee Stock Purchase Plan
INTC Intel 7/14/09 8K Financial results 3rd quarter
IBM 6/29/09 11K Annual Report of Employee Stock Purchase Plan
JPM JPMorgan 7/14/09 Freewriting Prospectus
JNJ Johnson 6/28/09 8K Press release re: financial results
KFT Kraft 6/22/09 8K re: personnel changes
MCD McDonalds 6/22/09 Prospectus
MRK Merck 7/1/09 8K Closing of sale of notes
MSFT Microsoft 6.29.09 11K Annual Report of Employee Stock Purchase Plan
PFE Pfizer 6/29/09 11K Annual Report of Employee Stock Purchase Plan
PG Procter Gam 7/13/09 8K re: 0.44 dividend
MMM 3M 7/7/09 8K settlement of shareholder derivative suit
TRV Travelers 6/24/09 11K Annual Report of Employee Stock Purchase Plan.
UTX United Tech 6/26/09 11K Annual Report of Employee Stock Purchase Plan
VZ Verizon 6/29 11K Annual Report of Employee Stock Purchase Plan
WMT Wal-Mart 6/5/09 10Q

Here are the CEOs of the Dow 30 Companies:

T Randall L. Stephenson
AA Klaus Kleinfeld
AXP Kenneth I. Chenault
BAC Kenneth D. Lewis
BA W. James McNerney, Jr.
CAT James W. Owens
CVX David O'Reilly
CSCO John Chambers
KO Muhtar Kent
DIS Rogert Iger
DD Ellen Kullman
XOM Rex W. Tillerson
GE Jeffrey R. Immelt
HPQ Mark Hurd
HD Frank Blake
INTC Paul S. Otellini
IBM Samuel J. Palmisano
JPM Jamie Dimon
JNJ William C. Weldon
KFT Irene Rosenfeld
MCD Jim Skinner
MRK Robert Clark
MSFT Steve Ballmer
PFE Jeffrey Kindler
PG Bob McDonald
MMM George W. Buckley
TRV Jay S. Fishman
UTX Louis Chenevert
VZ Ivan Seidenberg
WMT Mike Duke