Wednesday, July 8, 2009

7/8/09 Wed am BA Boeing to Buy Fuselage Plant

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 Wednesday's 7/8/09 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:

This month's CEO Magazine has a cover story on MCD McDonald's CEO Jim Skinner naming him CEO of the year for taking over after his two predecessors had health problems and causing MCD to be only one of two Dow companies, the other being WMT Walmart, that had increase in share price for '08.

BA Boeing will pay $580 in cash for a plant that makes the fuselage for its 787 dreamliner per WSJ B3, Fin Times 13, NYT B1 (lead story), USA Today p1B and AJC A8. WSJ C5 said BA lost 1.52 or 3.7% on news that it agreed to acquire Vought Aircraft Industries facility that makes the fuselages. The "Large Stock Focus" article also notes that INTC Intel lost .29 even those earlier in the day a Merrill Lynch analyst upgraded it. GE lost .47 because rail car maker Greenbrier blasted GE for breach of contract.

Inv. Bus. Daily IBD @pA2 also noted INTC's upgrade by Merrill.

WSJ B2, IBD A2, NYT B8, USA Today p3B & Fin Times p14 says Lear Corp. filed for bankruptcy Tues. It makes auto seats and electronics and its secured lenders are led by JPM JPMorgan Chase.

WSJB3 says PFE Pfizer is going to inherit Wyeth's valuable childhood vaccine Prevanar which can be given in fewer doses against a bug that causes meningitis and pneumonia according to a new study.

WSJ B7 in an article about consumer products company Jarden Corp. says Jarden calls itself a smaller version of a major diversified consumer products company such as PG Procter & Gamble. The article says Jarden's largest customers include WMT WalMart.

WMT is the subject of a story @ WSJ pB7 that says WMT customers in the UK will be getting emails from WMT buyers asking the customers their opinions on products to be sold at WMT stores.

In an article about beach products company Quksilver Inc. it is said that a credit line with BA Bank of Am's Merrill Lynch and GE will be refinanced.

WSJ C1 has a story, "Old Merrill Quickly Disappers inside BofA" that says Merrill has lost at least 18 vet investment bankers since Sept.

Fin Times p14 says MSFT Microsoft and Brussels have started a new round of talks to settle MSFT's antitrust problems in Europe.

AJC A8 says environmentalists are targetting HD Home Depot for not pressuring one of their Chilean wood suppliers to abandon a project to build a dam in the Patagonian region of Chile.

WSJ A6 & IBD pA2 says Indiana may pull the plug on IBM managing its welfare system which is a $1.16 billion contract.

AA Alcoa is the subject of an article at WSJ B1, "Alcoa Reckons to ride a Recovery - Amid Aluminum Slump, Company Invests in Businesses It Thinks Will Be Among First to Rebound" that says AA is expected to report a quarterly loss today amind a slump in global aluminum demand. However, it says AA is positioning itself for an eventual rebound by investing in new markets and notes that it completed a $750 million expandsion of a cosntruction products factor in Russia to produce beverage cans.

Alcoa is also in a story at WSJ C1, "Aluminum Bellwether Only: Alcoa's Results" that said that investors should not jump to conclusions about commodity demand from AA's earning report to be issued today because much of the recent demand for aluminum and other metals has been due to China restocking industrial supplies which may be winding down. AA is also mentioned in a story on same page about the Dow declining but noting AA rose 1.6% after falling sharply on Mon.

USA Today p1B in "Markets" column says if AA beats 2nd quarter estimates today it could act as a catalyst to boost stocks. USA Today p4B in "Markets Today" said XOM ExxonMobil slid $1.54 as crude oil prices continue to fall to $62.93 per barrell.

IBD @ pA5 in a story about Telecom mergers says that Deutsche Telekom's T-Mobile USA unit has been losing ground to T At&t and Verizon Wireless, a joint venture of Vodafone and VZ Verizon Communications.

The Dow closed Tuesday at 8163.6 down 161.27 or 1.94% from Monday's close of 8324.87. Four of the Dow 30 gained, one (BAC Bank of Am) was unchanged and 15 declined with the biggest gainer being AA Alcoa $9.41 +0.15 1.62% 61,013,342 NYSE and the biggest loser being XOM $66.56 -1.54 2.26% 25,010,474 NYSE.

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

Tuesday's Dow numerator was 1080.02 1101.54 down 21.52 from Monday's Numerator of 1101.54. 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 21.52 in the Dow numerator by the divisor you get 161.27, the decrease in Tuesday's Dow.

The average closing price of Tuesday's Dow Jones was 36.00 down .72 from Monday's avg. close of $36.72. The median closing price of Tuesday's Dow Jones was 27.70 down 3.33 from Monday's median close of $31.03.

The highest closing price Tuesday was IBM $100.19 -1.46 1.44% 6,681,694 NYSE and the lowest closing price Tuesday again was AA Alcoa $9.41 +0.15 1.62% 61,013,342 NYSE.

The lowest volume Tuesday was TRV Travelers $39.04 -0.90 2.25% 5,296,690 NYSE and the highest volume was BAC Bank of Am $12.15 unch unch 274,293,591 NYSE.

If Tuesday 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 $2,160 $600($110,160 - 108,000).

Tuesday's Closing Dow closing numbers:

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

T $24.33 -0.47 1.9% 23,749,078 NYSE
AA $9.41 +0.15 1.62% 61,013,342 NYSE
AXP $22.63 -0.89 3.78% 15,935,748 NYSE
BAC $12.15 unch unch 274,293,591 NYSE
BA $39.04 -1.52 3.75% 7,697,652 NYSE
CAT $30.29 -1.41 4.45% 14,573,551 NYSE
CVX $62.7 -1.44 2.25% 9,504,093 NYSE
CSCO $18.24 -0.29 1.57% 41,453,032 NASDAQ-GS
KO $48.64 -0.36 0.73% 8,554,412 NYSE
DIS $22.53 -0.56 2.43% 15,203,662 NYSE
DD $24.04 -1.29 5.09% 9,222,492 NYSE
XOM $66.56 -1.54 2.26% 25,010,474 NYSE
GE $11.01 -0.47 4.09% 99,015,439 NYSE
HPQ $36.84 -0.89 2.36% 14,073,508 NYSE
HD $22.4 -0.48 2.1% 14,977,267 NYSE
INTC $16.25 -0.29 1.75% 69,109,145 NASDAQ-GS
IBM $100.19 -1.46 1.44% 6,681,694 NYSE
JPM $32.81 +0.21 0.64% 56,656,645 NYSE
JNJ $56.23 -0.39 0.69% 9,674,195 NYSE
KFT $25.75 -0.69 2.61% 11,953,141 NYSE
MCD $56.8 -1.19 2.05% 8,183,198 NYSE
MRK $27.62 -0.27 0.97% 22,512,395 NYSE
MSFT $22.53 -0.67 2.89% 52,731,917 NASDAQ-GS
PFE $14.59 +0.02 0.14% 60,916,290 NYSE
MMM $58.76 -1.91 3.15% 7,289,351 NYSE
TRV $39.04 -0.90 2.25% 5,296,690 NYSE
UTX $49.43 -1.47 2.89% 6,278,766 NYSE
VZ $29.64 -0.72 2.37% 16,195,405 NYSE
WMT $47.84 +0.11 0.23% 15,092,489 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