8/18/09 am HPQ Earnings Out Today May signal Tech Slump is Over

Post #60 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 Tuesday's 8/17/09 print editions of: Wall Street Journal, Financial Times, Investors Business Daily, New York Times, Atl Journal Const, and USA Today yielded the following stories about Dow Jones Industrial Average 30 component companies and the Dow with stories about the Dow aggregated first (some of the information about yesterday's closing Dow appeared in my blog yesterday afternoon) and then items about Dow Jones Industrial Average 30 companies presented alphabetically, followed by symbol and Friday's closing price and related data:

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

The Dow Jones Industrial Average closed Monday at 9135.34 down 186.06 or 2.0% from Friday's close of 9321.40. Of the 30 Dow Companies: 2 gained and 28 declined with the biggest loser being Caterpillar CAT $43.95 -2.05 4.46% 10,748,860 NYSE and the biggest gainer being Coke KO $48.74 +0.27 0.56% 6,988,458 NYSE.

WSJ pC5 "Large Stock Focus ' Lowe's Loses 10% And BofA Falls 4.8%" says stock market declines oveseas stoked economic fears domestically as a sharp decline for a broad spectrum of energy and amterials companies was coupled with a selloff for financials, including BAC, and an earnings driven decline for Lowes. Also mentioned was HD Home Depot trading lower as Warren Buffett disclsoed he trimmed his stakeof HD in the past quarter. HD fell 1.03 or 3.8% to 26.11.

NYT pB1 "Pessismism Still Grips Wall Street" says in recent weeks, it seemed as if nothing could hold back investors trying to will a recovery into a reality. Acknowledging continuing weakness in critical pars of the econmy, the Fed and the Treasury announced Monday that they were extending a program to spur consumer and business lending for several months. This is the Term Asset-Backed Securities Lending Facility or TALF program.

USA Today p4B "Stocks tumble on recovery worries" says the still fragile state of cuonsumers' pruchasing power and confidence level resurfaced as a majorry work for stock investors yesterday as the Dow fell.

Monday's Dow Jones Industrial Average closing numerator was 1208.78 down 24.62 from Friday's closing Dow numerator of 1233.40. 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 decrease for today of 24.62 by the divisor you get 186.06, the decrease in Monday's Dow close.

The average closing price (the closing numerator divided by 30) of Monday's Dow Jones Industrial Average was 40.29 down 0.82 from Friday's Dow Jones Industrial Average closing price of 41.1. The median closing price of Monday's Dow Jones Industrial Average was 35.93 37.41 down 1.48 from Friday's Dow Jones median closing price of 37.41.

The highest closing price Monday again was IBM $116.98 -1.59 1.34% 4,592,550 NYSE and the lowest closing price Monday again was Alcoa AA $12.4 -0.87 -6.56% 28,316,229NYSE.

The lowest volume Monday was 3M MMM $70.08 -1.24 1.74% 4,114,045 NYSE and the highest volume again was BAC BofAm $16.55 -0.84 4.83% 286,678,319 NYSE.

If Monday morning before the market opened you had purchased $100 of each of the Dow Jones Industrial Average 30 shares (assuming you could buy fractional shares and assuming no transaction costs) and sold at the close you would have lost $2,460
($123,330 -$120,870)

AT&T T $25.03 -0.42 1.65% 18,292,149 NYSE: Front page of AJC says T wants to stop distributing free copies of the white pages telephone directory but it would be available by request for free (my comment: at least for a short period, then you know they will discontinue that as well).

AA $12.4 -0.87 -6.56% 28,316,229 NYSE
Amex AXP $30.4 -1.32 4.16% 12,268,114 NYSE: WSJ pC3 "Card Issuers Seeing Improvement - A Monthly Report Card of Consumers' Payment Patterns Is Encouraging" says data released Mon shows an improvement in the rate of delinquent payments. AXP and BAC Bank of Am each announced a small drop in the level of borrowers who were at least a month behind in their payments in July compared with the prior month. AXP said its delinquency rate fell to 4.2% in July from 4.4% in June and AXP wrote off 9.2% of its card loans. BAC at 13.81% had the highest write-off rate in July among the card issuers that released data on. this compared with a write-off rate of 13.86% in June.

WsJ pA2 "Banks Keep Tightening Loan Standards" says Loan originations rose 12.7% in June to $312.1 bil buoyed by strong growth in orginations by AXP and Goldman Sachs as well as seasonal factors and new home purchases. AXP saw a 41% increase in originations in its credit card business.

Bank of Am BAC $16.55 -0.84 4.83% 286,678,319 NYSE: WSJ pC3 "Card Issuers Seeing Improvement - A Monthly Report Card of Consumers' Payment Patterns Is Encouraging" says data released Mon shows an improvement in the rate of delinquent payments. AXP and BAC Bank of Am each announced a small drop in the level of borrowers who were at least a month behind in their payments in July compared with the prior month. AXP said its delinquency rate fell to 4.2% in July from 4.4% in June and AXP wrote off 9.2% of its card loans. BAC at 13.81% had the highest write-off rate in July among the card issuers that released data on. this compared with a write-off rate of 13.86% in June.

BAC is charted under "Bad News . . ." at WSJ pC5 saying the bank's net charge off rae rose to 13.8% in July.

WSJ pC5 "Large Stock Focus ' Lowe's Loses 10% And BofA Falls 4.8%" says stock market declines oveseas stoked economic fears domestically as a sharp decline for a broad spectrum of energy and amterials companies was coupled with a selloff for financials, including BAC, and an earnings driven decline for Lowes. Also mentioned was HD Home Depot trading lower as Warren Buffett disclsoed he trimmed his stakeof HD in the past quarter. HD fell 1.03 or 3.8% to 26.11.


NYT pB7 "DreamWorks Wins Financing for Its Films" says JPM Morgan and BAC will be providing financing to make movies. in the amount of $325 million.

BA $44.19 -0.68 1.52% 4,775,079 NYSE: No mentions found.

CAT $43.95 -2.05 4.46% 10,748,860 NYSE: No mentions found.

CVX $66.66 -1.97 2.87% 11,532,269 NYSE: No mentions found.

CSCO $20.73 -0.58 2.72% 31,475,420 NASDAQ-GS: No mentions found.

KO $48.74 +0.27 0.56% 6,988,458 NYSE: No mentions found.

Disney DIS $25.09 -0.77 2.98% 8,297,891 NYSE: NYT pB3 says Sony is hiring Peyton Manning to do a comedy commercial for Sony and says in the commercial will be a reporter, Erin Andrews, for Dis' ESPN.

DD $31.04 -1.32 4.08% 7,046,341 NYSE: No mentions found.

ExxonMobil XOM $66.57 -1.64 2.4% 20,469,052 NYSE: "Biofule Bet Aims to harvest Fish That Fight Algae - Start-Up Wants to Render Oil by Targeting Dead Zones in the Gulf of Mexico; The Sea Equivalent of Traveling Goats" says algae grows in the Gulf of Mexico as a result of fertilizer runoff and this could be a new domestic source of fuel. It says that XOM last month announced a partnership with Synthetic Genomics Inc., a biotech firm owned by genomics scientist J. Craig Venter, to spend as much as $600 million working on developing algae biofuels.

GE $13.37 -0.55 3.95% 75,510,952 NYSE: WSJ pB2 "Court lets Redbox Proceed in Unviesal Antitrust Suit" says Coinstar Inc's Redbox Automated Retail LLC won a partial victory in fedeal court Mon. when a judge ruled it could proceed with its antitrust claims against GE's Universal Pictures. GE is fighting Red who is hurting their DVD businessses by making $1 a mnight DVD rentals available.

Hewlett-Packerd HPQ $43.17 -0.92 2.09% 11,314,474 NYSE: WSJ pC1 "Ahead of the Tape - Good Question: How Has EDS Helped HP?" says when HPQ reports fiscal 3Q earnings today, Wall Street is optimistic it will offer signs the tech spending slump is over. But HPQ's tech services unit hasn't ben open about its performance. This unit has been a priority for HPQ since it acquired EDS for more than $13 bil last year. Including EDS, the services unit did $89.5 bil in revenues or about 31% of HPQ's total 3Q revenue.
Home Depot HD $26.17 -0.97 3.57% 29,292,117 NYSE: WSJ pC5 "Large Stock Focus ' Lowe's Loses 10% And BofA Falls 4.8%" says stock market declines oveseas stoked economic fears domestically as a sharp decline for a broad spectrum of energy and amterials companies was coupled with a selloff for financials, including BAC, and an earnings driven decline for Lowes. Also mentioned was HD Home Depot trading lower as Warren Buffett disclsoed he trimmed his stakeof HD in the past quarter. HD fell 1.03 or 3.8% to 26.11.

INTC $18.45 -0.32 1.7% 44,340,691 NASDAQ-GS: No mentions found.

IBM $116.98 -1.59 1.34% 4,592,550 NYSE: Inv Bus Daily pB5 "Rising margins Set IBM Up for Future EPS gains" says despite a tough economy IBM has boosted after-tax margin on a year ago basis for 7 consecutive quarters.

JPMorgan Chase JPM $40.82 -1.63 3.84% 33,130,916 NYSE: WSJ pB1 "Chapter 11 Is Next Page for Reader's Digest" says the publisher's lenders, led by JPM will take control of the Reader's Digest Association Inc. pursuant to a bankruptcy plan that will be filed this week. (Comment: The first book report I ever did was in 1960 when I was in second grade and I did it on "My Most Unforgetable Character" a feature in Reader's Digest and my topic was Rocky Campanella.) This is also reported at Fin Times p1.

Fin Times p19 features Jing Ulrich of JPM is its "View of he Days" where she talks about the 17% slide in the Shanghai Ckomposite index since Aug 4 being a phase of correction.

NYT pB7 "DreamWorks Wins Financing for Its Films" says JPM Morgan and BAC will be providing financing to make movies. in the amount of $325 million.

JNJ $59.84 -0.24 0.4% 10,557,835 NYSE: No mentions found.

KFT $27.8199 0.2801 1% 5,813,502 NYSE: No mentions found.

MCD $54.54 -0.73 1.32% 8,513,780 NYSE: No mentions found.

MRK $30.95 -0.03 0.1% 15,751,098 NYSE: No mentions found.

MSFT $23.25 -0.442 1.87% 40,995,887 NASDAQ-GS: No mentions found.

Pfizer PFE $15.89 +0.12 0.76% 41,011,530 NYSE: Inv Bus daily pA5 has an article about United Therapeutics launching two new drugs for a deadlin condition called Pulmonary Arterial Hypertension that says there is no cure but currently PFE markets a treatment.

PG $52.24 -0.13 0.25% 10,079,512 NYSE: No mentions found.

MMM $70.08 -1.24 1.74% 4,114,045 NYSE: No mentions found.

TRV $46.61 -0.64 1.35% 4,633,820 NYSE: No mentions found.

UTX $56.13 -1.08 1.89% 5,034,067 NYSE: No mentions found.

VZ $30.21 -0.87 2.8% 11,539,070 NYSE: No mentions found.

WalMart WMT $51.57 -0.22 0.42% 17,214,470 NYSE: WSJ pC10 talks about certain disconnects in the stock market such as there being relatively strong corporate earnings but they are the result of cost exutting exercises. WMT is given as an examle of profits holding up while it missed sales targets.