8/20/09 am Alcoa Gets Downgraded by Goldman

Good morning.

Post #64 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 Jones Industrial Average closed Wednesday at 9279.16 up 61.22 or 0.66% 9217.94 from Tuesday's close of 9217.94. Of the 30 Dow Companies: 8 gained and 22 declined with the biggest loser being Alco AA $12.48 -0.44 3.41% 42,436,585 NYSE and the biggest gainer being Exxon Mobil XOM $68 +1.51 2.27% 27,878,285 NYSE.

A read of Thursday's 8/20/09 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. Wednesday's Dow Jones Industrial Average closing numerator was 1227.81 up 8.1 from Tuesday's closing Dow numerator of 1219.71. 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.

WSJ pC5 "Large Stock Focus - Merck Jumps 2.5%; Deere Takes a Dive" says Stcoks closed higher Wed as decilning ol inventories sparked Exxon Mobil, Chevron and other energy companies higher, and Merck led health care into the black, although industrials dented the markets gains.

WSJ pC1 "Dow Receives Energy Boost, Rising 61.22" says a rise in energy shares helped stocks swin into positive territory, overcoming initial concerns about a market slide in China. It also says the blue chip measure ended upbecause the Dow was helped by gains in Exxon Mobil and Chevon, up 2.3% and 1.8% respectively.

Fin Times p20 "Renewed strength in energy sector fuels broad recovery" says a sudden surge in the price of oil folowing data showing a huge drop in crude supplies last week pulled US stocks out of a slump Wed to stage a broad based rally mentioning CVS and XOM. It says HPQ Hewlett-Packard missed out on the rally after it saw its quarterly sales plunge, and predicted only 8% rev growth in the next quarter, which is below curret Wall Street estimates. This added to renewed concerns about the health of the US consumer, and HPQ's shares fell 0.3 to 43.83.

Inv Bus Daily A1, "Stocks Rise I Faster Action, But Correction Persists" says despite gainsthe past two days, the market remainsin correction mode. That means, according to IBD, that stock purchases should be avoided until a major index triggers a follow-through day.

USA Today p4B "Stocks rise in US despite china's slide" says US shares rose Wed, shaking off a slide in China's stock market, as investors esponded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook and mentions XOM, CVX leading the Dow's advance, and Merck leading health care stocks and HPQ falls after it expressed caution about business demand.

If you divide the Dow numerator increase for Wed of 8.1 by the divisor you get 61.22, the increase in Wednesday's Dow close.

The average closing price (the closing numerator divided by 30) of Wednesday's Dow Jones Industrial Average was 40.93 up 0.27 from Tuesday's Dow Jones Industrial Average closing price of 40.66. The median closing price of Wednesday's Dow Jones Industrial Average was 36.65 down 0.05 from Tuesday's Dow Jones median closing price of 36.70.

The highest closing price Wednesday again was IBM $118.57 +0.94 0.8% 4,802,002 NYSE and the lowest closing price Wednesday again was Alcoa AA $12.48 -0.44 3.41% 42,436,585 NYSE.

The lowest volume Wednesday was MMM $70.79 +0.44 0.63% 3,907,040 NYSE and the highest volume again was BAC BofAm $16.75 -0.15 0.89% 197,075,398 NYSE.

If Wednesday 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 made $801
($122,781 - $121,980)

T $25.38 +0.28 1.12% 19,810,177 NYSE: No mentions found.

Alcoa AA $12.48 -0.44 3.41% 42,436,585 NYSE: WSJ pC5 Alcoa is charted under "Bad News" because Goldman Sachs cut its investment rating on AA to neutral from buy, saying shares are close to its $13 target and upside potential is limited.

Amex AXP $31.7 0+.01 0.03% 7,647,892 NYSE: WSJ pD5 "Citigroup to Initiate new Annual Fees On Some Credit Cards" says this is an attempt to offset strict new legislation that could dent the profits of credit card issuers which include new limits on interest rate increases on existing balances and greater disclosures and increased time for advance disclosures of changes of terms. It says AXP which already charges annual fees on many of its charge and credit cards hasn't raised fees or imposed them on its feeless cards but won't commit to future plans. BAC Bofam said it hasn't added annual fees to its cards since May when the legislation was passed and Chase, a unit of JPMorgan Chase won't commit on its future plans but said most of its cards don't have an annual fee.

BAC $16.75 -0.15 0.89% 197,075,398 NYSE: See AXP above.

NYT pB2 says BAC doesn't deserve to trade at two times book value as does its healthy rival US Bancorp adn that BAC is not out of the woods as its core operations are likely to continue losing money for the rest of the year. It focuses on BAC under "Worth a Gamble" in the Breaking views.com column.

Boeig BA $43.52 -0.26 0.59% 6,553,328 NYSE: Inv Bus Daily pA2 says BA's cDonnell Douglas unit received a $12.5 mil Air Froce contract for 3 test vehicles for the B-52 bomber but its stock fell a bit nontheless.

CAT $45.17 +0.06 0.13% 9,008,692 NYSE: No mentions found.

Chevron CVX $68.16 +1.22 1.82% 11,152,348 NYSE: WSJ pC5 "Large Stock Focus - Merck Jumps 2.5%; Deere Takes a Dive" says Stcoks closed higher Wed as decilning ol inventories sparked Exxon Mobil, Chevron and other energy companies higher, and Merck led health care into the black, although industrials dented the markets gains.

WSJ pC1 "Dow Receives Energy Boost, Rising 61.22" says a rise in energy shares helped stocks swin into positive territory, overcoming initial concerns about a market slide in China. It also says the blue chip measure ended upbecause the Dow was helped by gains in Exxon Mobil and Chevon, up 2.3% and 1.8% respectively.

Fin Times p20 "Renewed strength in energy sector fuels broad recovery" says a sudden sruge in the price of oil folowing data showing a huge drop in crude supplies last week pulled US stocks out of a slump Wed to stage a broadbasedrally mentioning CVS and XOM. It says HPQ Hewlett-Packard missed out on the rally after it saw its quarterly sales plunge, and predicted only 8% rev growth in the next quarter, which is below curret Wall Street estimates. This added to renewed concerns about the health of the US consumer, and HPQ's shares fell 0.3 to 43.83.

USA Today p4B "Stocks rise in US despite china's slide" says US shares rose Wed, shaking off a slide in China's stock market, as investors responded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook and mentions XOM, CVX leading the Dow's advance, and Merck leading health care stocks and HPQ falls after it expressed caution about business demand.

CSCO $21.24 +0.23 1.09% 38,994,444 NASDAQ-GS: No mentions found.

KO $49.36 +0.75 1.54% 8,493,451 NYSE: No mentions found.

DD $31.89 +0.56 1.79% 6,781,571 NYSE: No mentions found.


Disney DIS $25.48 +0.28 1.11% 11,079,561 NYSE: WSJ pB1 "YouTube Pumps More Ads Into Lineup" says Google which has struggled for 3 years to turn YouTube into an ad platform is pushing new ad formats and ramping up deals with media companies. It will distribute a range of short clips from Time Warner properties such as CNN and the Cartoon network following similar deals struck with Dis' ABC and ESPN and a number of Hollywood studios earlie this year. This is also at NYT pB3.

ExxonMobil XOM $68 +1.51 2.27% 27,878,285 NYSE: WSJ pC5 "Large Stock Focus - Merck Jumps 2.5%; Deere Takes a Dive" says Stcoks closed higher Wed as decilning ol inventories sparked Exxon Mobil, Chevron and other energy companies higher, and Merck led health care into the black, although industrials dented the markets gains.

WSJ pC1 "Dow Receives Energy Boost, Rising 61.22" says a rise in energy shares helped stocks swin into positive territory, overcoming initial concerns about a market slide in China. It also says the blue chip measure ended upbecause the Dow was helped by gains in Exxon Mobil and Chevon, up 2.3% and 1.8% respectively.

Fin Times p20 "Renewed strength in energy sector fuels broad recovery" says a sudden sruge in the price of oil folowing data showing a huge drop in crude supplies last week pulled US stocks out of a slump Wed to stage a broadbasedrally mentioning CVS and XOM. It says HPQ Hewlett-Packard missed out on the rally after it saw its quarterly sales plunge, and predicted only 8% rev growth in the next quarter, which is below curret Wall Street estimates. This added to renewed concerns about the health of the US consumer, and HPQ's shares fell 0.3 to 43.83.

NYT pB6 "Australia: Exxon Deal Supported" says XOM's $41 bil deal to supply PetroChina with liquefied natral gas is likely to get Australian gov approval.

USA Today p4B "Stocks rise in US despite china's slide" says US shares rose Wed, shaking off a slide in China's stock market, as ivnestors responded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook and mentions XOM, CVX leading the Dow's advance, and Merck leading health care stocks and HPQ falls after it expressed caution about business demand.

GE $13.53 -0.06 0.44% 60,148,567 NYSE: tem at WSJ pB4 says Redbox Unit files lawsuit against Warner Home Video and says earlier this week a fed court said it could proceed with antitrust claims agaisnt GE's Universal Pictures.

Hewlett-Packard HPQ $43.83 -0.13 0.3% 25,254,369 NYSE: Fin Times p20 "Renewed strength in energy sector fuels broad recovery" says a sudden sruge in the price of oil folowing data showing a huge drop in crude supplies last week pulled US stocks out of a slump Wed to stage a broadbasedrally mentioning CVS and XOM. It says HPQ Hewlett-Packard missed out on the rally after it saw its quarterly sales plunge, and predicted only 8% rev growth in the next quarter, which is below curret Wall Street estimates. This added to renewed concerns about the health of the US consumer, and HPQ's shares fell 0.3 to 43.83.

USA Today p4B "Stocks rise in US despite china's slide" says US shares rose Wed, shaking off a slide in China's stock market, as investors responded favorably to a surprising drop in crude oil stockpiles that might suggest an improving demand outlook and mentions XOM, CVX leading the Dow's advance, and Merck leading health care stocks and HPQ falls after it expressed caution about business demand.

HD $26.75 -0.18 0.67% 19,420,912 NYSE : No mentions found.

INTC $18.8 +0.028 0.15% 48,001,669 NASDAQ-GS: No mentions found.

IBM $118.57 +0.94 0.8% 4,802,002 NYSE: No mentions found.

JPMorgan Chase JPM $41.41 -0.29 0.7% 29,195,579 NYSE: WSJ pD5 "Citigroup to Initiate new Annual Fees On Some Credit Cards" says this is an attempt to offset strict new legislation that could dent the profits of credit card issuers which include new limits on interest rate increases on existing balances and greater disclosures and increased time for advance disclosures of changes of terms. It says AXP which already charges annual fees on many of its charge and credit cards hasn't raised fees or imposed them on its feeless cards but won't commit to future plans. BAC Bofam said it hasn't added annual fees to its cards since May when the legislation was passed and Chase, a unit of JPMorgan Chase won't commit on its future plans but said most of its cards don't have an annual fee.

WSJ pB4 has a small item that a judge has approved Bally's bankrupcy plan which calls for lenders led by JPM to take control of the health club operator.

Johnson & Johnson JNJ $60.37 +0.57 0.95% 10,414,319 NYSE: NYT pB3 "J&J Gets FDA Warning On an Antibiotic Candidate" says JNJU was warned by FDA it did not properly monitor two human tess of its antibiotic drug candidate ceftobiprole which is intended to treat compliacated skin infections like MRSA. FDA has twice delayed approval of ceftobiprole citing similar problems saying JNJ violated the protocols of is own studies. JNJ said it was prepared a resposne.

KFT $28.63 +0.69 2.47% 10,196,694 NYSE: No mentions found.

MCD $55.65 +0.39 0.71% 7,943,722 NYSE: No mentions found.

MRK $31.48 +0.77 2.51% 20,316,662 NYSE: Merck is cahrted under "Good News" WSJ pC5 because a US judge has upheld a patent for its best selling product, the allergy medication Singulair (also reported at WSJ pB4 and AJC) Side story under "Large Stock Focus" says "Merck Jumps 2.5%; Deere Takes a Dive."

MSFT $23.65 +0.07 0.3% 41,564,547 NASDAQ-GS; Inv bus. Daily pA4 "Waht Does Nokia Pact Mean for Windows? - Frist Such Deal for Mircrosfot - Windows Mobile losing ground to Apple and RIM and here comes Google" says that when MSFT and Nokia last week anounced a smartphone alliance they called the first of its type for either, the competition in this market escalated. Several analysts say the pact signals the demise of MSFT's Windows Mobile operating system because its an acknowledgment that Windows MMobile is dying a slow death per Jack Gold of research firm J. Gold Associates.

PFE $16.37 +0.39 2.44% 46,309,532 NYSE: No mentions found.

PG $52.8 +0.35 0.67% 12,108,195 NYSE: No mentions found.

MMM $70.79 +0.44 0.63% 3,907,040 NYSE: No mentions found.

TRV $47.96 +0.45 0.95% 4,489,381 NYSE: No mentions found.

UTX $56 -0.81 1.43% 6,579,492 NYSE: No mentions found.

VZ $30.43 +0.15 0.5% 10,787,230 NYSE: No mentions found.

WMT $51.67 +0.31 0.6% 14,327,900 NYSE: No mentions found.