Tuesday, July 7, 2009

7/7/09 Tues AM T At&t & VZ Verizon have Antitrust Problems

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 Monday at 8324.87 up 44.43 or 0.53% from Thursday's close of 8280.74 (the market was closed Friday). 19 of the Dow 30 gained and 11 declined with the biggest gainer being AXP Amex $23.52 +1.25 5.61% 20,519,385 NYSE and the biggest loser being AA Alco $9.26 -0.60 6.09% 43,899,465 NYSE.

A read of Tuesday's 7/7/09 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:

Lead story at WSJ p1 says the US Dept. of Justice is investigating whether T AT&T, VZ Verizon and other large US telecommunications companies are abusing their makrket powers reflecting the Obama administration's interest in aggressively enforcing antitrust laws. Fin Times reports a similar story @p13 and says the DOJ's informal review will focus on the exclusive arrangements that limit handsets such as Apple's iPhone to particular wireless communications companies. This is also reported at IBD A4 and as the lead story in the USA Today Money section @1B in "Some iPhone owners chafing at links to AT&T."

WSJ pA3 says big banks don't want Cal. IOUs and says that a group of the biggest US banks said they would stop accepting these IOUs on Fri. The group includes BAC Bank of Am. and JPM JPMorgan Chase. JPM is also mentioned @WSJpC7 as a lender to Monier Group a major London roofing company facing restructuring. BAC is the subject of a story @ Fin Times p15 about how its Merrill Lynch is trying to promote key dealmakers following similar efforts by rival Citigroup.

GE wants to sells some businesses such as lighting, appliances, railcar leasing and private label credit cards but can't find any buyers per WSJ pB1. WSJ C10 has a story "GE Capital's Political Minefield" saying that the Obama admin's reforms could push GE to spin off its lending subsidiary, GE Capital, and turn it into a bank holding company with tighter regulation.

WSJ C1 says AA Alcoa lost 6.1% yesterday ahead of its quarterly earnings report after Wednesday's close because of an analyst's projection of a steepr loss than the current consensus estimate. WSJ in "Large Stock Focus" said AXP Amex rose 5.6% because of an upgrade. There is also an AXP chart under "The Good News . . ." in a side bar. NYT @B8 goes into greater detail re: the AXP upgrade saying AXP will be among the least affected by regulatory changes and that worries about bad debt are easing. USA Today @p5b also notes AXP's gain yesterday due to the Stifel Nicolaus upgrade to "hold."

WSJ C1 says TRV Travelers is in a good position among property insurers in "Ahead of the Tape" story about property insurers having problems.

Inv. Bus. Daily @pA2 says China's blocking of KO Coke's planned $2.4 billion takeover of Huiyuan Juice was not improper according to FTC Comm. Kovacic. AJC @pA8 says Subway said it would add KO's Fuze iced tea in its 22,500 US restaurants.

IBD pA2 said MSFT Microsoft warned of a vulnerability affecting Internet Explorer users whose PCs use Windows XP or WindowsServer 2003. MSFT said it is working on a fix. This is also reported at USA p2B.

IBDpA4 says Oracle may enter hardware field and compete with system mega vendors such as IBM and HPQ Hewlett-Packard. The story says MSFT and CSCO may also be in this elite group that sells the full gamut of hardware, software and services related thereto.

NYTimes pB8 says that the drop in oil to a five week low pushed energy and commodities stocks lower and sent investors into safer parts of the markets like consumer goods noting that PG Procter & Gamble, which makes Tide and Crest, rose 2%.

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 1101.54 up 5.84 from Thursday's Numerator of 1095.70. 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 increase of 5.84 in the Dow numerator by the divisor you get 44.43, the increase in Monday's Dow.

The average closing price of Monday's Dow Jones was $36.72 up .20 from Fri's avg. close of $36.52. The median closing price of Monday's Dow Jones was $31.03 up 2.44 from Thursday's median close of $28.59.

The highest closing price Monday was IBM $101.65 -0.08 0.08% 6,473,483 NYSE and the lowest closing price Friday again was AA Alcoa AA $9.26 -0.60 6.09% 43,899,465 NYSE.

The lowest volume Monday was TRV Travelers $39.94 +0.74 1.89% 5,192,635 NYSE and the highest volume was BAC Bank of Am $12.15 -0.49 3.88% 366,148,084 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 made $600($110,160 - 109,560).

Monday's Closing Dow closing numbers:

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

T $24.8 +0.21 0.85% 25,444,180 NYSE
AA $9.26 -0.60 6.09% 43,899,465 NYSE
AXP $23.52 +1.25 5.61% 20,519,385 NYSE
BAC $12.15 -0.49 3.88% 366,148,084 NYSE
BA $40.56 -0.27 0.66% 7,089,254 NYSE
CAT $31.7 0.04 0.13% 10,863,484 NYSE
CVX $64.14 0.28 0.43% 10,567,619 NYSE
CSCO $18.53 0.03 0.16% 35,123,513 NASDAQ-GS
KO $49 0.12 +0.25% 8,382,506 NYSE
DIS $23.09 +0.25 1.09% 14,413,943 NYSE
DD $25.33 +0.55 2.22% 6,905,836 NYSE
XOM $68.1 -0.39 0.57% 29,600,172 NYSE
GE $11.48 +0.02 0.17% 65,259,764 NYSE
HPQ $37.73 -0.12 0.32% 12,114,767 NYSE
HD $22.88 +0.07 0.31% 12,606,565 NYSE
INTC $16.54 -0.18 1.08% 46,977,666 NASDAQ-GS
IBM $101.65 -0.08 0.08% 6,473,483 NYSE
JNJ $56.62 +0.64 1.14% 12,831,283 NYSE
JPM $32.6 +0.33 1.02% 60,551,121 NYSE
KFT $26.44 +0.48 1.85% 11,386,387 NYSE
MCD $57.99 +0.54 0.94% 7,502,850 NYSE
MRK $27.89 +0.88 3.26% 23,093,484 NYSE
MSFT $23.2 -0.17 0.73% 48,675,497 NASDAQ-GS
PFE $14.57 -0.09 0.62% 54,667,057 NYSE
PG $52.17 +1.06 2.07% 15,976,284 NYSE
MMM $60.67 +0.42 0.7% 5,783,599 NYSE
TRV $39.94 +0.74 1.89% 5,192,635 NYSE
UTX $50.9 +0.66 1.31% 6,270,842 NYSE
VZ $30.36 +0.18 0.6% 13,040,456 NYSE
WMT $47.73 -0.06 0.13% 20,218,401 NYSE

Here are the latest SEC filings as of 6/29/09 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 5/11/09 8K
AA Alcoa 5/13/09 8K
AXP 6/17/08 8K Announcing repurchase of $3.39 of preferred shares from
the U.S. as part of TARP bailout
BAC Bank of Am 6/29/09 8K announcing results of offer to exchange up to 200 million of its shares
BA Boeing 6/26/09 8K announcing grant of options to James A. Bell
CAT Caterpiller 6/18/09 8K Supp. fin. info re: deliveries to
certain customers
CSCO Cisco 6/2/08 S8 Regis. of securities to employees
KO Coke 6/10/09 8K announcing personnel changes
DIS Disney 5/7/09 S8
DD DuPont 5/7/09 8K
XOM Exxon 5/5/09 10Q and 6/19 regarding writeoff for the Valdex judgment
GE 6/12/09 8K Changes to board of directors
HPQ Hewlett-Pack 6/5/09 10Q
HD Home Depot 6/4/09 10Q
INTC Intel 6/26/09 S8
IBM 6/17/09 Proxy by Shareholder
JPM JPMorgan 6/26/09 Freewriting Prospectus re: Return Optimization Securities
JNJ Johnson 5/5/09 10Q
KFT Kraft 6/22/09 8K re: personnel changes
MCD McDonalds 6/11/09 11K Annual report of employee stock
purchase plan
MRK Merck 6/29/09 Proxy update re: Merger w/Schering-Plough
MSFT Microsfot 5/15/09 8K
PFE Pfizer 6/17/09 S4 Effective re: 6/17 Proxy re merger
with Wyeth
PG Procter Gam 6/10/09 8K re: Robert McDonald becoming new CEO
MMM 3M 5/13/09 8K
TRV Travelers 6/2/09 8K re: sale of $500 million of secs.
UTX United Tech 4/24/09 10Q
VZ Verizon 5/26 Free Writing Prospectus for Direct Investment Purch. shareholder .
WMT Wal-Mart 6/5/09 10Q