4/17/10 Sat. BoA Reports Profits Up But Mostly from Trading; GE Earnings Drop

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Post No. 387. The following is brought to you by Intellivest Securities Research, Inc. Towards the end of this Blog is a list of the Dow 30 current CEOs, a ranking of the Dow 30 components by market capitalization as of 4/1/10 and an update of the Dow 30 component's most recent SEC filings as of 4/1/10.

A read of Saturday's Wall St. Journal, Financial Times, New York Times, & Atlanta Journal & Constitution yielded the following stories about Dow Jones Industrial Average 30 component companies and the Dow with stories about the Dow aggregated first and then items about Dow Jones Industrial Average 30 companies presented alphabetically, followed by symbol and Friday's stock prices and related data.

Dow: The Dow Jones Industrial Average closed Friday at 11,018.66 down 125.91 or 1.13% from Thursday's close of 11,123.11. For the year the Dow is up 5.66% and for the week the Dow is up 21.36 or 0.19% from last Friday's close of 10,997.3. Of the 30 Dow Companies: 2 gained and 28 declined. The biggest gainer dollar-wise and percentage-wise was Coca Cola KO $54.97 +0.71 1.31% 17,539,673 NYSE. The biggest decliner dollar-wise and percentage-wise was Bank of America BAC $18.41 -1.07 5.49% 589,091,978 NYSE.

WSJ pB1 "Dow Drops 125.91 In Rush to Safety" by peter McKay, Michael Casey says fraud charges aainst Goldman Sachs roiled fin'l markets, sending stocks and commodities tumbling and investors fleeing to the safety of Treasurys. The Dow Jones had its biggest decline in 2 months. Trading surged with 8.29 bil shares trading hands on the NYSE, the most since 5/7/09. Average volume for the year until Fri. was 4.77 bil shares. Goldman shares dropped $23.57 to 160.70. Rivals Morgan Stanley fell 5.6%, JPMorgan shed 4.7% and Citigroup fell 5.2%.

WSJ pB2 "BofA, Google Caught in Slide" by Donna Yesalavich says stocks tumbled after the SEC filed cahrges of civil fraud agaisnt Goldman Sachs, adding to the market's pessimism after the disappointment over earnings from a range of firms, including Bank of America, GE and Google. Bof A fell 5.5% as it was hit not only by the news of the charges against Goldman but also by disappointment over its 1Qtr profits which were mostly from investment banking. BofA's more conventional banking businesses, those that make loans to consumers and businessesses, mostly turned in middling resutls. GE was also weak falling 2.7% as its 1Qtr earnings fell 31%, dragged down by a loss from discontinued operations, a sharply smaller tax benefit at its fin'l arm and slower sales at its big industrial divisions.

NYT pB1 "Winning Streak For WallSt Ends at 6 Days" by Javier Hernandez says Wall St. seemed headed for another strong weekly finish on Fri and then the news about the Goldman Sachs scandal hit.

Fin Times p14 "Banking concerns derail 6 day winning streak" by masa Serdarevic says the recent optimism on Wall St. was punctured Fri. with shares falling sharply after the SEC charged Goldman Sachs with fraud.

As of the close of the market Friday, the current divisor for the Dow Jones Industrial Average found at page B4 of today's Wall St. Journal is 0.132319125 unchanged, the trailing P/E ratio is 17.12 down from Friday's 17.31 (year ago it was 27.32) the P/E estimate is 14.00 unchanged from Friday's 14.00 (year ago it was 22.34) and the current dividend yield is 2.48 up from Friday's 2.45 (it was 3.80 a year ago).

Friday's Dow Jones Industrial Average closing numerator was 1,457.98 down 13.82 from Thursday's closing numerator of 1,471.80. 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 of 13.82 for Friday by the divisor you get the decrease in Friday's Dow close of 13.82. A $1 change in the price of any DJIA stock = a 7.56 change in the average.

The average closing price (the closing numerator divided by 30) of Friday's Dow Jones Industrial Average was $48.60 down 0.55 from Thursday's Dow Jones Industrial Average closing price of $49.15. The median closing price of Friday's Dow Jones Industrial Average was 45.29 down 1.26 from Thursday's median closing price of $47.25. The lowest volume was MMM $83.76 1.24 1.46% 5,343,086 NYSE and the highest volume again was Bank of America BAC $18.41 1.07 5.49% 589,091,978 NYSE.

If Friday morning before the market opened you had purchased 100 shares 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 $1650 ($147,450 -$145,800).

Market Watch 4/16/10 4:57 p.m. by Kristina Peterson & Donna Yesalavich says U.S. stocks fell Friday, as Goldman Sachs Group Inc. posted its biggest dollar drop in the stock's history after being slapped with civil-fraud charges by the Securities and Exchange Commission. The Dow Jones Industrial Average (INDU 11,019, -125.83, -1.13%) closed down 125.91 points, or 1.1%, to 11,018.6. Still, the Dow posted its seventh straight week of gains, its longest winning streak since the seven-week period ending in May 2007. The S&P 500 Index (SPX 1,192, -19.54, -1.61%) fell 19.54 points, or 1.61%, to 1,192.13, closing below the key 1,200 level it captured earlier this week for the first time since September 2008. Volume surged on Friday, with more than 8.3 billion shares trading hands in New York Stock Exchange Composite volume. Spurring the market's tumble, Goldman Sachs (GS 161.73, +1.03, +0.64%) dropped $23.57, nearly 13%, to close at $160.70. It was the biggest one-day dollar drop in the stock's history. Other banks tumbled as news spread of the SEC's charge against Goldman and one of its vice presidents for defrauding investors regarding a financial product tied to subprime mortgages. Among the decliners, Morgan Stanley (MS 29.01, -0.15, -0.51%) fell 5.6%, Citigroup Inc. (C 4.58, +0.02, +0.44%) dropped 5.2% and Fifth Third Bancorp (FITB 14.24, +0.04, +0.28%) fell 4.7%. According to the SEC, Goldman Sachs failed to disclose vital information about a synthetic collateralized-debt obligation, or CDO, that hinged on the performance of subprime residential mortgage-backed securities, including the role that a major hedge fund played in the portfolio-selection process and the fact that the hedge fund had taken a short position against the CDO. The news also caused commodities to slip as spooked investors retreated to the safety of Treasurys. The 10-year note rose to yield 3.77%. Crude prices slid to just above $83 a barrel, cutting into the energy sector. Valero Energy Corp. (VLO 19.20, +0.05, +0.26%) fell 3.6%, while Diamond Offshore Drilling Inc.(DO 87.21, -4.33, -4.73%) dropped 4.7% and Consol Energy Inc. (CNX 42.68, +0.01, +0.02%) slid 3.9%. While most of the market's drop came after the SEC filed its charges, the Dow had started the session down, weighed by disappointment over the latest slate of earnings from companies including Bank of America Corp. (BAC 18.40, -0.01, -0.05%) and General Electric Co. (GE 19.00, +0.03, +0.16%). Bank of America fell 5.5%, while GE slid 2.7%. Bank of America's $3.2 billion profit exceeded analysts' expectations but declined from a year earlier, while GE's first-quarter earnings fell 31%, dragged down by a loss from discontinued operations, a sharply smaller tax benefit at its financial arm and slower sales at its big industrial divisions. Earnings from the technology companies including Google Inc. (GOOG 549.95, -0.20, -0.04%) and Advanced Micro Devices Inc. (AMD 9.74, -0.07, -0.71%) received a similar reaction from investors and weighed on the Nasdaq Composite Index (COMP 2,481, -34.43, -1.37%) , which sank 34.43, or 1.37% to close at 2481.26. See Tech Stocks. Google fell 7.6%, with investors worried about the company's growing costs. Chip maker AMD tumbled 3.4%. The company said it expects revenue in the current period, which is seasonally the weakest for its business, to decline by as much as 5% from the first quarter. Volatility in the market spiked as the Goldman news added to the impact of expiring options. The CBOE Market Volatility Index (VIX 18.36, +2.47, +15.54%) jumped 15%. The so-called "fear gauge" earlier this week had reached its lowest intraday point since 2007.

AT&T T $25.93 -0.31 1.18% 31,988,637 NYSE: No mentions found.

Alcoa AA $13.91 -0.40 2.8% 52,026,668 NYSE: No mentions found.

American Expressw AXP $45.1 -1.57 3.36% 18,334,533 NYSE: No mentions found.

Bank of America BAC $18.41 -1.07 5.49% 589,091,978 NYSE: NYT pB2 "Bank of America, With Merrill's Help, Returns to Profit" by Andrew Martin, AJC pA11 "Bankof America reports big 1Qtr profit" says BofA followed JPMorgan Chase in reporting a big 1Qtr profit and that it sees a healing economy. Earnings rose 0.7% to $2.83 bil from $2.81 bil a year earlier. Strong trading rev. helped it offset losses from failed consumer loans.

WSJ pA1 "US Charges Goldman Sachs With Fraud" by Gregory Zuckerman, Susanne Craig, Serena Ng says Goldman is in big trouble involving its sale of CDOs, Collateralized Debt Obligations. Although not implicated in the case, other securities firms also used synthetic CDOs to offset risks taken on through credit default swaps with hedge fund clients, including Deutsche Bank AG, Bank of America's Merrill Lynch and UBS AG.

WSJ pB3 "BofA Says the Wrost has past" by Daniel Fitzpatrick says storng investment banking results powered Bank of America to a $3.2 bil profit in 1Qtr as BoF CEO Brian Moynihan said the worst of the crisis is behind us.

WSJ pB16 "Goldman's Grief May be Shared" by David Reilly says JPMorgan's net profits was75% from investment banking which includes trading and Bank of America's numbers were similar, so all big banks could be hurt by the Goldman scandal.

Boeing BA $70.79 -1.30 1.8% 8,075,323 NYSE: No mentions found.

Caterpillar CAT $66.88 -1.34 1.96% 10,385,998 NYSE: No mentions found.

Chevron CVX $80.75 -0.84 1.03% 12,866,505 NYSE: No mentions found.

Cisco CSCO $26.98 -0.23 0.85% 68,529,424 NASDAQ-GS: No mentions found.

Coca Cola KO $54.97 +0.71 1.31% 17,539,673 NYSE: AJC pA10 "Teamsters worried by CCE plans" by eJremiah McWilliams says a proposal to change the way soda gets trucked to 7-11 stores in L.A. has the Teamster union threatening to use strikes aainst Coca-Cola Enterprises. The test program involves shipping the soda to Costco centers and using third party logistics firms to handle the beverages at certain stages.

Disney DIS $35.83 -0.57 1.57% 12,334,732 NYSE: NYT pB3 "Weinstein Brothers Said to Be near Deal to Buy Miramax From Disney" by Brooks Barnes, Michael Cieply says Harvey and Bob Weinstein are close to regaining control of Miramax Films, a move that would mark a triumphant and unexpected return by the pair to the independent film spotlight. The Disney Company bought Miramax in '93 and has operated it without the Weinsteins since '05. Dis has given the brothers an option to make a deal.

WSJ pBN5 "Mattel Pins Down Strong Quarter" by Mary Lloyd says Mattel swung to a 1Qtr prfoit, helped by strong sales of toys tied to entertainment, notably Disney movies and World Wrestling Entertainment's programing.

DuPont DD $38.66 -0.67 1.7% 7,816,641 NYSE: No mentions found.

ExxonMobil XOM $67.93 -0.33 0.48% 33,866,172 NYSE: No mentions found.

GE $18.97 -0.53 2.72% 172,384,480 NYSE: WSJ pB1 "GE Profit Falls 31%; SEC Eyes Disclosures" by Bob Sechler, Paul Glader, NYT pB2 "GE Income Falls to $1.9 bi, but Tops Forecasts" by Javier Hernandez, AJCpA11 "GE earnings drop, but hopeful signals reported" says GE reported a 32% drop in its 1Qtr earnings, but it said it saw signs of improvement in its own results and the broader economy. GE earned $1.87 bil or 17 cents a share, after deducting preferred dividends, down from $2.75 bil or 26 cents a share a year ago. Rev. fell 5% to $36.6 bil from $38.4 bil a year ago. Excluding $390 mil in losses from one time items, GE's earnings from continuing oeprations totaled $2.4 bil, or 21 cents a share. GE said the SEC is examining its Sept '08 comments re: GE Capitals liquidity.

WSJ pB16 "GE Becomes the Quiet American" by Laim Denning says GE Capital posted a pretax profit for the first time since '8 3Qtr. GE's cash flow target of around $15 bil from the industrials ide of its business looks possible. Ge may start to be able to do acquisitions and pay dividends in '11.

AJCpA11 "Ge's NBC loses $223 mil on Winter Olympics" says Olympic brought in $800 mil in extra rev, but NBC's production and other expenses included $820 mil just to acquire the rights to carry the games.

Hewlett-Packard HPQ $53.75 -0.48 0.89% 15,628,514 NYSE: No mentions found.

Home Depot HD $35.01 -0.13 0.37% 28,515,402 NYSE: AJC pA10 "Home Depot will pay $25.5 mil" by Rachel Ramos says HD has agreed to pay this amount to settle a lawsuit by Cal. employees who complainted they were not allowed to take lunchand rest breaks in violation of state law.

Intel INTC $23.92 -0.301 1.24% 102,974,848 NASDAQ-GS: No mentions found.

IBM $130.63 -0.26 0.2% 9,549,798 NYSE: No mentions found.

J.P. Morgan JPM $45.55 -2.26 4.73% 121,206,568 NYSE: AJC pA11 "Bankof America reports big 1Qtr profit" says BofA followed JPMorgan Chase in reporting a big 1Qtr profit and that it sees a healing economy. Earnings rose 0.7% to $2.83 bil from $2.81 bil a year earlier. Strong trading rev. helped it offset losses from failed consumer loans.

WSJ pA5 "Fraud Allegations Further Inflame Fight Over Fin'l Regulation" by Damian Paletta, Victoria McGrane says the gov's civil fraud chares vs. Goldman Sachs handed Democrats a powerful tool to press their case for stricter curbs on Wall Street's big banks. Under proposed legislation, the huge derivatives trading market would be upended, as it would force its largest dealers, including Goldman, JPMorgan Chase and Morgan Stanley to spin off those businesses.

WSJ pB1 "Dow Drops 125.91 In Rush to Safety" by peter McKay, Michael Casey says fraud charges aainst Goldman Sachs roiled fin'l markets, sending stocks and commodities tumbling and investors fleeing to the safety of Treasurys. The Dow Jones had its biggest decline in 2 months. Trading surged with 8.29 bil shares trading hands on the NYSE, the most since 5/7/09. Average volume for the year until Fri. was 4.77 bil shares. Goldman shares dropped $23.57 to 160.70. Rivals Morgan Stanley fell 5.6%, JPMorgan shed 4.7% and Citigroup fell 5.2%.

WSJ pB16 "Goldman's Grief May be Shared" by David Reilly says JPMorgan's net profits was75% from investment banking which includes trading and Bank of America's numbers were similar, so all big banks could be hurt by the Goldman scandal.

Fin Times p7 In Wall St's corner" by Francesco Guerrera profiles JPM's Jamie Dimon as the man in the news saying the abrasive ceo is still fighting for his embattled sector.

Johnson & Johnson JNJ $65.02 -0.49 0.75% 15,744,105 NYSE: WSJ pB9 "Another Way Dividends Can Boost Your Stock Portfolio" by Jeff D. Opdyke explains a dividend-arbitrage strategy based on call options to wring more money out of dividend paying stocks and gives examples using Verizon,, McDonald's and Johnson & Johnson.

Kraft KFT $30.66- 0.41 1.32% 11,721,477 NYSE: No mentions found.

McDonald's MCD $69.03 -0.13 0.19% 7,876,494 NYSE: WSJ pB9 "Another Way Dividends Can Boost Your Stock Portfolio" by Jeff D. Opdyke explains a dividend-arbitrage strategy based on call options to wring more money out of dividend paying stocks and gives examples using Verizon,, McDonald's and Johnson & Johnson.

Merck MRK $35.71 -0.33 0.92% 20,591,950 NYSE: No mentions found.

Microsoft MSFT $30.67 -0.20 0.65% 88,707,802 NASDAQ-GS: Fin Times p8 "A code to crack" by Richard Waters says Apple has 185,000 apps and other mobile software firms like Microsoft, Nokia and Google have raced to copy Apple.

Pfizer PFE $16.8 -0.19 1.12% 75,522,835 NYSE: No mentions found.

Procter & Gamble PG $62.85 -0.15 0.24% 12,570,601 NYSE: No mentions found.

3M MMM $83.76 -1.24 1.46% 5,343,086 NYSE: No mentions found.

Travelers TRV $52.14 -0.74 1.4% 6,067,654 NYSE: No mentions found.

United Technologies UTX $73.69 -0.92 1.23% 7,570,183 NYSE: No mentions found.

Verizon VZ $29.58 +0.04 0.14% 24,676,275 Dual Listed: WSJ pB9 "Another Way Dividends Can Boost Your Stock Portfolio" by Jeff D. Opdyke explains a dividend-arbitrage strategy based on call options to wring more money out of dividend paying stocks and gives examples using Verizon,, McDonald's and Johnson & Johnson.

Wal-Mart WMT $54.11 -0.02 0.04% 19,234,121 NYSE: No mentions found.
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Here are the current CEOs of the Dow 30 Companies:

AT&T T Randall L. Stephenson
Alcoa AA Klaus Kleinfeld
American Express AXP Kenneth I. Chenault
Bank of America BAC Brian T. Moynihan
Boeing BA W. James McNerney, Jr.
Caterpillar CAT Douglas Oberhelman
Chevron CVX John Watson
Cisco CSCO John Chambers
Coca Cola KO Muhtar Kent
Disney DIS Robert Iger
DuPont DD Ellen Kullman
ExxonMobil XOM Rex W. Tillerson
GE Jeffrey R. Immelt
Hewlett-Packard HPQ Mark Hurd
Home Depot HD Frank Blake
Intel INTC Paul S. Otellini
IBM Samuel J. Palmisano
JPMorgan Chase JPM Jamie Dimon
Johnson & Johnson JNJ William C. Weldon
Kraft KFT Irene Rosenfeld
McDonald's MCD Jim Skinner
Merck MRK Robert Clark
Microsoft MSFT Steve Ballmer
Pfizer PFE Jeffrey Kindler
Procter & Gamble PG Bob McDonald
3M MMM George W. Buckley
Travelers TRV Jay S. Fishman
United Technologies UTX Louis Chenevert
Verizon VZ Ivan Seidenberg
Wal-Mart WMT Mike Duke

Here are the Dow Jones Industrial Average 30 ranked in order of market capitalization rounded to the nearest billion as of 4/1/10 followed by number of shares outstanding rounded to the nearest 1/2 billion:

1. Exxon Mobil XOM $317 [5]
2. Microsoft MSFT 257 [9]
3. WalMart WMT 212 [4]
4. GE 200 [10.5]
5. Procter & Gamble PG 184 [3]
6. Johnson & Johnson JNJ 180 [3]
7. BAC 179 [10]
8. JPMorgan Chase 178 [4]
9. IBM 167 [1]
10. AT&T 153 [6]
11. Chevron CVX 152 [2]
12. Cisco CSCO 149 [6]
13. Pfizer PFE 138 [8]
14. Coke KO 127 [2]
15. Hewlett-Packard HPQ 125 [2]
16. Intel INTC 123 [5.5]
17. Merck MRK 116 [3]
18. Verizon VZ 88 [3]
19. McDonald's MCD 72 [1]
20. United Technologies UTX 69 [1]
21. Disney DIS 67 [2]
22. 3M MMM 59 [.5]
23. Home Depot 55 [2]
24. Boeing BA 55 [1]
25. American Express AXP 49 [1]
26. Kraft KFT 45 [1.5]
27. Caterpillar CAT 39 [.5]
28. DuPont DD 34 [1]
29. Travelers 27 [.5]
30. Alcoa AA 15 [1]

Here are the latest SEC filings as of 4/1/10 market open other than ownership filings, registration of shares for employee benefit plans, free writing prospectuses 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: 3/26/10 8K re: its intent to take a non-cash charge of approximately $1 billion in the first quarter of 2010 to reflect the impact of the health care reform legislation.

Alcoa AA: 3/2/10 Add'l def. proxy materials

American Express AXP: 3/18/10 Add'l def. proxy materials

Bank of Am BAC: 3/17/10 Add'l def. proxy materials

Boeing BA: 3/31/10 8K re: charge off re: income tax charge of approximately $150 million as a result of the Patient Protection and Affordable Care Act, as modified by the Health Care and Education Reconciliation Act.

Caterpiller CAT: 3/24/10 8K re: charge off as a result of the Patient Protection and Affordable Care Act (H.R. 3590) signed into law on March 23, 2010

Chevron CVX: 3/31/10 Add'l def. proxy soliciting material

Cisco CSCO: 2/17/10 10Q Quarterly Report

Coke KO: 3/22/10 8K re: transactions related to CCE transaction.

Disney DIS: 3/16/10 8K re: amendment to stock option plan & by-laws

DuPont DD: 3/19/10 Def. add'l proxy materials

ExxonMobil XOM: 3/29/10 8K re: its 2009 Financial and Operating Review

GE: 3/25/10 8K re: credit agreement with lenders led by JPMorgan Chase re: the transaction wherein GE and Comcast will form a joint venture which will consist of the NBCU businesses and Comcast’s cable networks.

Hewlett-Packard HPQ: 3/23/10 8K re: amendment of its Stock Incentive Plan

Home Depot HD: 4/7/10 Proxy Statement

3/25/10 10K Annual Report

Intel INTC: 3/22/10 8K re: John Thornton will not stand for reelection at the Company’s Annual Stockholders’ Meeting to be held on May 19, 2010

IBM: 3/25/10 Add'l def. proxy soliciting materials

JPMorganChase JPM: 3/31/10 Def. add'l proxy materials

Kraft KFT: 3/30/10 Definitive Add'l Proxy material

McDonalds MCD: 3/9/10 8K re: Press release "McDonald’s Global Comparable Sales Increased 4.8% in February"

Merck MRK: 3/11/10 8K re: amendment to the Call Option Agreement among Merck, Merck Sharp & Dohme and sanofi-aventis re: the option granted by Merck to sanofi-aventis to acquire 50% of Merck’s animal health business.

Microsoft MSFT: 1/28/10 10Q.

Pfizer PFE: 3/16/10 Add'l Proxy Materials

Procter & Gamble PG: 2/18/10 8K re: FD disclosures re: guidance given at an analyst conference

3M MMM: 3/26//10 8K re: one-time charge it expects to take in the first quarter of 2010 as a result of the Patient Protection and Affordable Care Act signed by the President on March 23, 2010.

Travelers TRV: 3/17/10 Add'l Proxy Materials

United Technologies UTX: 3/24/10 Add'l proxy solicitation materials

2/26/10 Def. Proxy Statement

Verizon Communications Inc. VZ: 3/30/10 Proxy Statement

WalMart WMT: 3/30/10 10K Annual Report