8/3/09 Mon a.m. KFT, CSCO, & PG Earnings This Week

Post #34 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 Monday's 8/3/09 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.

NYT pB2 says the following Dow Jones Industrial Average companies will be reporting earnings this week: KFT Kraft (Tues.), CSCO Cisco & PG Procter & Gamble (Wed.). Fin Times p18 forecasts KFT's earnings at 0.53, CSCO's at 0.28 and PG's at 0.79.

WSJ pA3 "Drug, Energy Firms Buck Lobbying Decline" says PFE Pfizer spent $5.6 million in 2Q up 82% from the quarter last year. CVX Chevron and other oial and gas copanies increased spening on lobbying and XOM Exxon Mobil cut quarterly lobby expenses b 16% from the same period in '08 to $4.3 million.

Inv Bus. Daily pA7 "Winning The Contest Of Ideas Companies offer cash prizes to create new tech and business innovations" says CSCO Cisco is an example of a company using cash prizes to spur technology and business innovations.

WSJ pB1 "NBC Bets on Gaspin to Remake Prime Time" says NBC Universal, owned 80% by GE and 20% by Vivendi SA has elevated Jeff Gaspin to Chairman of its entertainment-television businesses and his job will be to fix the ailing broadcast network.

Fin Times p10 has an item "Yahoo/Microsoft" in the Lex column that says Yahoo is not guaranteed any revenues under the internet seach aprtneship w/MSFT and says it will be years before Yahoo can prove this is a good deal for it. Related story at NYT pB1 "Out of Search Business, Yahoo Shifts Its Focus."

NYTimes pB2 "WAll St. Meets Charlotte Culture" says NY Atty Gen'l Andrew Cuomo is causing BAC BofAm problems due to his investigation of the million bonuses paid to BAC's Merrill Lyncn.

NYT pB2 "Bad Loans at GE" says GE has set aside reserves against losses of about 1.2% of its $38 billion of leveraged loans and mentions that JPM JPMorgan Chase doesn't let borrowers off the hook easily.

Only mention in USA Today of Dow Jones Industrial Average companies is at p6B "Market trends" where it lists the tops stocks in various industry groups.

THE FOLLOWING APPEARED IN SUNDAY'S BLOG:

A read of Sunday's 8/2/09 print editions of: New York Times, 8/3/09 issue of Forbes, 8/3/09 issue of Barron's, and July/Aug issue of CFO Magazine yielded the following stories about Dow Jones 30 component companies (please note - as an aid to learning the market caps and their ranking within the Dow 30, the first time I mention a Dow Jones Industrial Average 30 component company I will note its market cap rounded to the nearest billion and their ranking among the Dow 30 - at the end of this Blog is the list):

Forbes p28 "Not Grounded Despite the very visible Stumbles, Boeing is doing pretty damn well. Seriously." is an insightful article that is bullish on BA (#26 $31 bil market cap) that says the 787 Dreamliner with commitments for 850 each, the Dreamliner is still the fastest selling commercial aircraft in history. Story also says that many of the carriers who are claiming to be upset over the 787 delays are actually happy for the delay.

BRN's says KFT Kraft (#24 mkt cap $42 bil) has a conference call on 8/4 for 2Q earnings as does PG Procter & Gamble (#5 mkt cap $164) the next day, 8/5.

PFE Pfizer (#14 mkt cap $108 bil) is the subject of a Barron's story at p26 "Pfizer Shares Still have Life" that says with the Wyeth purchase, PFE should have a better shot at sustained earnings growth.

Of course, the are stories about the MSFT (#2 mkt cap $212 bil) and Yahoo alliance in Barron's p23 that says Yahoo did not give away the store to MSF despite mass assertions to the contrary and says MSFT's immediate goal is to slow down Google's ad fueled profit growth. Related item at BRN's pM13 says Yahoo is a hold by Benchmark Capital and another small item at p10.

The chart at Brn's M55 has the Dow Jones share earnings, dividends and book values with the lowest book value being MSFT's at 3.65 and the highest book value being $55.29 for TRV Traveler's (#29 $25 bil). Another chart at pM53 has consensus operating earnings estimates for the Dow 30 with the highest estimate being for TRV Travelers at 5.10 and the lowest and only negative is for AA Alcoa (#30 mkt cap $11 bil) at -1.04

BRN's p10 says XOM Exxon Mobil (#1 mkt cap $345 bil) and CVX Chevron (#10 mkt cap $136 bil) posted plunging 2Q profits on lower energy prices and weak demand for refined products. Profit fell 66% for XOM and 71% for CVX.

CFO Magazine has a chart about acquisitions having been done near the 52 week high of the target and has a chart of 10 deals from '09 and #s 2,3, and 4 on the list are JNJ Johnson & Johnson (#4 mkt cap $170 bil) take over of Cougar Biotech; MRK Merck's (#18 mkt cap $63 bil) takeover of Schering-Plough and PFE's takeover of Wyeth, in each case the succesfful bid per share was higher than the target's 52 week high price.

NYT p4 lists the top spenders who are lobbying about health care and has PFE at the top spending $3.1 million and JNJ is third on the list.

NYTimes p2 has a nice interview with CSCO Cisco's (#11 mkt cap $127 bil) CEO, John T Chambers, noting he has overcome dyslexia challenges. NYTimes Book Review p1 profiles 2 books about WMT Walmart (#3 mkt cap $195 bil) and the values of founder Sam Walton.

Finally, NYT p6 "This Time, the Blue Chips Are Rallying, Too" notes that JNJ Johnson & Johnson and MSFT are 2 examples of large companies with strong balance sheets, low debt and lots of cash that have been catching up since early May.

A read of Saturday's 8/1/09 print editions of: Wall Street Journal, New York Times, Atl Journal Const and 8/10/09 issue of Business Week yielded the following stories about Dow Jones 30 component companies:

The current divisor for the Dow found at today's page B4 of The Wall St. Jrnl is .132319125 unchanged.

NYT pB4 "Profit Dips 71% At Chevron says CVX (10th ranked Dow 30 company in terms of market cap at approx. $136 bil) said profit fell 71% for 2Q and that it owuld suspend its entire land based natural gas drilling operation due to dismal demand. CVX's net income was $1.75 bill or 0.87 a share in 2Q compared to $5.98 bil or $2.90 a share a year earlier. AJC pA13 says analysts expected earnings of 0.95 a share. WSJ pB5 "Chevron's Profit Declines 71%" says XOM (the Dow's leader in market cap at $345 bil) sank to its lowest level since 2Q '03.WSJ pB1 "Dows Month was the Best Since 2002" says CVX gained 2.6% desite postinga 71% drop becuase it was helped by rising oil prices. Oil rose 3.7% Friday to 69.45 a barrell. In a related story at WSJ pB3 "Led by Caterpillar, Dow Rose 8.6% in July" it says that GE (9th in Dow market cap at $139 bil)and BAC BofA continued their week long climb. CAT Caterpillar (28th in Dow market cap at $26 bil) was the strongest Dow stock in July up 11.02 or 33$. Oveall, MCD McDonald's (19th in Dow market cap at $61 bil) and MSFT were the only two Dow components to finish in the red for July.

NYT pB3 says BAC Bof Am (17th ranked of Dow 30 for market cap at approx. $89 bil) had 3 more directed resign last week pushign the total of departing board members to 10 since April John T. Collins, William Barnett III and Gary L. Countryman resigned. BAC named 4 new directors in June: Susan S. Bies, Donald E. Powell, Paul Jones Jr. and William P. Boardman.

Bus Wk p6 says the Financial Accounting Standards Board said it would be good for companies to disclose their exposure to derivates. Thefirst quarter of 2009 marked the first time they had to do that. Exposure is concentrated to 5 bankss including BAC BofAm and JPM JPM Morgan Chase (8th among Dow Jones 30 in market cap at approx $145 bil). AJC pA13 says JPM has converted former Washington Mutual branches in seven states to hase systems and is on track to finish absorbing WaMu by year's end. JPM Chase now has 4,200 branches nationwide including 694 former WaMu branches. The 7.6 million former WaMu accounts in Ct, Fla, Ga, Ill, NJ, NY and tx comprise $40 bil in deposits.

WMT Wal-Mart (ranked 3rd in Dow Jones 30 market cap at approx. $195 bil) contests the use of their name by a Canadian union per NYT pB2 and AJC pA8 says two union backed groups that have spent years criticizing WMT are merging: Wal-Mart Watch backed by the Service Employees International Union and the United Food and Commercail Workers Union's WakeUp Walmart.com.

Bus Wk p8 has a story about MSFT offering browsers to satisfy European antitrust regulators and also discusses the Yahoo alliance.

Speaking about antitrust, Bus Wk p44 has a story "Antitrust for the Digital Age" that says Christine A. Varney, the nation's top antitrust cop, aims to revive antitrust policy without stifling some of the most successful US business. The article mentions INTC Intel (ranked 13th in Dow Jones 30 market cap at approx $108 bil) is being investiated by the FTC and possibly DOJ for anticompetitve behavior. Also mentioned are T At&T (ranked 7th among Dow Jones 30 market caps at approx $155 bil) and VZ Verizon (ranked 16th among Dow Jones 30 market caps at approx $92 bil) as being looked at by US Dept. of Justice for exclusive handset deals.

WSJ pA1 has a story about a city in Spain, Palomares, that suffered one of the world's worst nuclear weapons accident in 1966 that will be the subject of a Disney film put out by its Miramax Films tenatively called Muchas Gracias, Bob Oppenheimer. Dis is 21 among the Dow 30 in market cap at $49 bil.
WSJ pB10 "Overheard" says JPM JPMorgan Chase paid 1,626 employees bonuses of $1 million or more in '08.

The Dow closed Friday at 9171.61 up 17.15 up 0.19% from Thursday's Dow close of 9154.46. Of the 30 Dow Companies: 19 gained, and 11 declined with the biggest loser being DIS $25.12 -1.10 -4.2% 24,921,137 NYSE and the biggest gainer being CVX $69.47 +1.77 2.61% 16,230,075 NYSE.

Friday's Dow closing numerator was 1213.58 up 2.27 from Thursday's closing Dow numerator of 1211.31. 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 2.27 by the divisor you get 17.15, the increase in Friday's Dow close.

The average closing price (the closing numerator divided by 30) of Friday's Dow Jones was 40.45 up 0.07 from Thursday's Dow Jones Industrial Average closing price of 40.38. The median closing price of Friday's Dow Jones Industrial Average was 35.36 down 0.03 from 35.39 up 0.52 from Thursday's Dow Jones median closing price of 35.39.

The highest closing price Friday again was IBM $117.93 +0.07 +0.06% 5,257,406 NYSE and the lowest closing price Friday again was Alcoa AA $$11.76 +0.30 +2.62% 26,615,168 NYSE.

The lowest volume Friday was TRV $43.07 +1.13 2.69% 4,160,417 NYSE and the highest volume again was BAC BofAm $14.79 +0.82 5.87% 371,956,931 NYSE.

If Friday 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 $210 ($121,350 - $121,140).

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

T $26.23 -0.11 -0.42% 27,185,976 NYSE
AA $11.76 +0.30 2.62% 26,615,168 NYSE
AXP $28.33 +0.10 0.35% 11,828,752 NYSE
BAC $14.79 +0.82 5.87% 371,956,931 NYSE
BA $42.91 -0.33 0.76% 6,024,978 NYSE
CAT $44.06 +0.65 1.5% 11,728,293 NYSE
CVX $69.47 +1.77 2.61% 16,230,075 NYSE
CSCO $22.01 +0.03 0.14% 41,821,106 NASDAQ-GS
KO $49.84 +0.17 0.34% 8,279,442 NYSE
DIS $25.12 -1.10 4.2% 24,921,137 NYSE
DD $30.93 +0.12 0.39% 6,261,162 NYSE
XOM $70.39 -0.33 0.47% 27,789,631 NYSE
GE $13.4 +0.29 2.21% 108,837,973 NYSE
HPQ $43.3 +0.59 1.38% 20,938,982 NYSE
HD $25.94 +0.09 0.35% 11,666,924 NYSE
INTC $19.25 -0.08 0.41% 46,665,077 NASDAQ-GS
IBM $117.93 +0.07 0.06% 5,257,406 NYSE
JPM $38.65 +0.18 0.47% 38,701,865 NYSE
JNJ $60.89 -0.90 1.46% 13,064,951 NYSE
KFT $28.34 -0.23 0.81% 9,305,138 NYSE
MCD $55.06 -0.53 0.95% 13,450,010 NYSE
MRK $30.01 +0.07 0.23% 15,452,094 NYSE
MSFT $23.52 -0.29 1.22% 54,525,177 NASDAQ-GS
PFE $15.93 -0.01 0.06% 42,685,469 NYSE
PG $55.51 -0.72 1.28% 12,504,061 NYSE
MMM $70.52 +0.62 0.89% 4,455,331 NYSE
TRV $43.07 +1.13 2.69% 4,160,417 NYSE
UTX $54.47 +0.24 0.44% 5,712,695 NYSE
VZ $32.07 -0.24 0.74% 13,794,768 NYSE
WMT $49.88 -0.10 0.2% 14,520,530 NYSE

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