5/14/10 Fri. am Cisco's Profits Dissappoint Despite 63% Rise

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Post No. 430. The following is brought to you by Intellivest Securities Research, Inc. Toward9 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 5/1/10 and an update of the Dow 30 component's SEC filings as of 5/10/10.

A read of Friday's Wall St. Journal, Financial Times, New York Times, USA Today & 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 Thursday's stock prices and related data.

Dow The Dow Jones Industrial Average closed Thursday at 10,782.95 down 113.96 or 1.05% from Wednesday's close of 10,896.91. For the year the Dow is up 3.40%. Of the 30 Dow Companies: only Alcoa gained and 28 declined. The biggest gainer dollar-wise and percentage-wise was Alcoa AA $12.8 +0.34 2.73% 45,624,146 NYSE. The biggest decliner dollar-wise was American Express AXP $42.81 -1.29 2.93% 10,031,665 NYSE and percentage-wise was Cisco CSCO $25.53 -1.21 4.53% 143,300,457 NASDAQ-GS.

WSJ pC1 "Late Swoon Costs DJIA 113.96 Points" by Peter McKay says stocks dropped on Thurs as worries about weak reports from retailers combined with a disappointing profit report from Cisco. Trading ended with a late day swoon, a decline attributed to the failure of major indexes to hold levels considered important by technical analysts, prompting a new wave of selling.

WSJ pC5 "Cisco Systems Slides: Kohl's Tumbles 5.8%" by Donna Yesalavich says stocks fell, led by the consumer discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed & a forecast from Cisco Systems failed to improve sentiment toward tech stocks. Cisco is charted under Bad news saying it draged the Dow despite a 63% rise in profit reportd late Wed. Alcoa is charted under Good news saying it advanced on expectations that aluminum prices could rise due to Chinese electricity price increases. The Dow's other top decliners included American Express down 2.9%, Intel down 2.6% & GE dow down 2.1%. Only Alco was up. Sprint rose on news it would sell a new prepaid wireless ervice through WalMart. Walmart fell 0.2%.

Fin Times p24 "Cisco loses ground despite exceeding rev estimates" by Masa Serdarevic says US stock prices slid lower yesterday following a rally that has seen the main indices rise at least 4% since the start of the week. a lacklustre jobs report gave investors little to get excited about. Fin'ls were in focus following reports that NY AG Andrew Cuomo started an investigation into whether 8 banks including Bank of America's Merrill Lynch, misled ratings agencies about past mortgage securities deals.

NYT pB9 "Shares Falter Late inthe Day on Weakness i nBanks & Tech" by ChristineHausersays stocks prices tumbled on Thurs, with most of the declines coming alte in the day, led by a drop inb anking and tech shares. The Euro fell for a 3rd straight day amid stubborn concerns over the Euopean debt crisis and the $1 tril rescue package that was meant to address it. Reports that NY AG Cuomo was investigating 8 banks re: misleading info to ratings agencies dragged down fin'l firms.

USA Today p4B "Stocks stumble on bank, tech probes" by Bloomberg says stocks fell Thurs, led by banks and tech firms, on reports that more mortgage bond deals are being scrutinized by prosecutors & an earnings forecast from Cisco that disappoined some investors.

As of the open of the market Friday, the current divisor for the Dow Jones Industrial Average found at page C4 of today's Wall St. Journal is 0.132319125 unchanged, the trailing P/E ratio is 15.76 down from Thursday's open of 16.09 (year ago it was 41.86) the P/E estimate is 12.84 unchanged from Thursday's 12.84 (year ago it was 23.95) and the current dividend yield is 2.55 up from Thursday's 2.25 (it was 3.68 a year ago). The Dow's all-time high was 14,164.53 on Oct. 9, 2007. The 12 year low close for the Dow was on March 9, 2009 when it fell to 6,547.05.

Thursday's Dow Jones Industrial Average closing numerator was 1,426.79 down 14.96 from Wednesday's closing numerator of 1,441.75. 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 14.96 for Thuresday by the divisor (0.132319125) you get the decrease in Thursday's Dow of 113.96. 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 Thursday's Dow Jones Industrial Average was $47.56 down 0.50 from Wednesday's Dow Jones Industrial Average average closing price of $48.06. The median closing price of Thursday's Dow Jones Industrial Average was 41.81 down 1.08 from Wednesday's median closing price of $42.89. The lowest volume was 3M MMM $86.59 -0.85 0.98% 3,307,698 NYSE and the highest volume again was Bank of America BAC $16.87 0.20 1.17% 134,744,587 NYSE.

If Thursday 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 1,500 ($144,180 - $142,680).

Market Watch Thurs. 5/13/10 5:09 p.m. by Kate Gibson says U.S. stocks on Thursday made a late-session drop that pulled the Dow Jones Industrial Average down by triple digits, with Wall Street weighing reports of widening probes of large banks and disappointments from retailers. Investors found reason for disappointment after results from Kohl's Corp. (KSS 57.15, +3.34, +6.21%) and Urban Outfitters Inc. (URBN 39.41, +2.63, +7.15%) ; shares of Kohl's fell 5.8% and Urban Outfitters dropped 6.7%.
After meandering up and down, the major indexes dropped decisively in the final hour of trading. The Dow Jones Industrial Average (INDU 10,782, -114.95, -1.06%) lost 113.96 points, or 1.1%, to 10,782.95, with all but Alcoa, Inc. (AA 12.88, +0.08, +0.63%) declining. Cisco Systems Inc. (CSCO 25.51, -0.02, -0.08%) weighed the most among the blue chips, its shares sliding 4.5% after cautious words about the business climate from Chief Executive John Chambers. Read more about Cisco's report.
On Wednesday, the Dow's 148-point rise had the index nearly back to where it stood ahead of a 500-point decline that came in the final two days last week.
The wild swings included a nearly 1,000-point intraday drop on the Dow that has prompted probes by regulators and lawmakers. Off the Dow, one of the day's more dramatic swings came in shares of Sybase Inc. (SY 64.20, -0.02, -0.03%) , up 14% at $64.22 after German software giant SAP AG (SAP 44.61, -0.02, -0.05%) said late Wednesday that it would pay $65 a share, or $5.8 billion in cash, for the maker of database software. The multibillion-dollar acquisition "reminds us that SAP doesn't think the market is slowing down, and secondly there is a lot of cash sitting on corporate balance sheets," said Hogan, who expects the deal would be followed by more M&A activity. The S&P 500 Index (SPX 1,157, -14.24, -1.22%) declined 14.23 points, or 1.2%, to 1,157.44. The consumer discretionary sector tumbled, led by a 6.7% drop in Urban Outfitters (URBN 39.41, +2.63, +7.15%) shares and a 6.6% decline in Office Depot (ODP 6.50, -0.06, -0.92%) shares. The government reports April retail sales figures Friday morning. Financial stocks also fell on reports federal investigators are looking into mortgage-bond deals. The Wall Street Journal, citing a person familiar with the matter, said the banks under scrutiny are J.P. Morgan Chase (JPM 40.76, -0.05, -0.12%) , and Citigroup (C 4.08, -0.01, -0.24%) , Deutsche Bank AG (DB 63.04, +0.19, +0.29%) and UBS AG (UBS 14.63, +0.01, +0.07%) .

In addition, a New York Times report, citing two sources with knowledge of the investigation, said Attorney General Andrew Cuomo is looking into whether the banks gave misleading information to rating agencies like Standard & Poor's, Moody's Corp. (MCO 22.29, +0.59, +2.72%) and Fitch. The Nasdaq Composite Index (COMP 2,394, -30.66, -1.26%) fell 30.66 points, or 1.3%, to 2,394.36. The latest data on the employment front did not bolster sentiment. The Labor Department reported first-time claims for jobless benefits fell by 4,000 to 444,000 last week. See full story on jobless claims. Decliners passed advancers by 2 to 1 on the New York Stock Exchange, where 1.2 billion shares traded hand. Gold fell one day after hitting a record high, and crude finished below $75 a barrel on the New York Mercantile Exchange.


AT&T T $25.74 -0.08 0.31% 22,870,509 NYSE: WSJ pB1 "Phone Rivals Start Dialing Up Prepaid Services" by by Niraj Sheth & Roger Ceng says Sprint is partnering with WalMart to roll out new brands and plans but AT&T is not jumping on to the prepaid band wagon.

Alcoa AA $12.8 +0.34 2.73% 45,624,146 NYSE: No mentions found.

American Express AXP $42.81 -1.29 2.93% 10,031,665 NYSE: WSJ pC5 "Cisco Systems Slides: Kohl's Tumbles 5.8%" by Donna Yesalavich says stocks fell, led by the consumer discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed & a forecast from Cisco Systems failed to improve sentiment toward tech stocks. Cisco is charted under Bad news saying it draged the Dow despite a 63% rise in profit reportd late Wed. Alcoa is charted under Good news saying it advanced on expectations that aluminum prices could rise due to Chinese electricity price increases. The Dow's other top decliners included American Express down 2.9%, Intel down 2.6% & GE dow down 2.1%. Only Alco was up. Sprint rose on news it would sell a new prepaid wireless ervice through WalMart. Walmart fell 0.2%.

Bank of America BAC $16.87 -0.20 1.17% 134,744,587 NYSE: WSJ pC1 "Scrutiny for Bets on Muni Debt" by Ianthe Dugan says the SEC has launched an inquiry into banks' trades of muni credit default swaps to find out whether firms used their own money to bet against the bonds they sell and if that is properly disclosed to bond buyers. Banks being asked to provide info are Bank of America, Barclays, Goldman, JPMorgan and Morgan Stanley.

Fin Times p24 "Cisco loses ground despite exceeding rev estimates" by masa Serdarevic says US stock prices slid lower yesterday following a rally that has seen the main indices rise at least 4% since the start of the week. a lacklustre jobs report gave investors little to get excited about. Fin'ls were in focus following reports that NY AG Andrew Cuomo strated an investigation into whether 8 banks including Bank of America's Merrill Lynch, misled ratings agencies about past mortgage securities deals.

Boeing BA $71.76 -1.11 1.52% 3,945,022 NYSE: No mentions found.

Caterpillar CAT $66.91 -1.24 1.82% 6,516,892 NYSE: No mentions found.

Chevron CVX $78.92 -1.14 1.42% 10,815,714 NYSE: WSJ pC12 "BP: Beyond Pessimism" by Liam Denning says BP looks cheap It has a forecast annualized dividend yield of 3.3% which is on a par with Chevron and Conoco-Phillips.

Cisco CSCO $25.53 -1.21 4.53% 143,300,457 NASDAQ-GS: WSJ pC1 "Late Swoon Costs DJIA 113.96 Points" by Peter McKay says stocks dropped on Thurs as worries about weak reports from retailers combined with a disappointing profit report from Cisco. Trading ended with a late day swoon, a decline attributed to the failure of major indexes to hold levels considered important by technical analysts, prompting a new wave of selling.

WSJ pC5 "Cisco Systems Slides: Kohl's Tumbles 5.8%" by Donna Yesalavich says stocks fell, led by the consumer discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed & a forecast from Cisco Systems failed to improve sentiment toward tech stocks. Cisco is charted under Bad news saying it draged the Dow despite a 63% rise in profit reportd late Wed. Alcoa is charted under Good news saying it advanced on expectations that aluminum prices could rise due to Chinese electricity price increases. The Dow's other top decliners included American Express down 2.9%, Intel down 2.6% & GE dow down 2.1%. Only Alco was up. Sprint rose on news it would sell a new prepaid wireless ervice through WalMart. Walmart fell 0.2%.

Fin Times p24 "Cisco loses ground despite exceeding rev estimates" by masa Serdarevic says US stock prices slid lower yesterday following a rally that has seen the main indices rise at least 4% since the start of the week. a lacklustre jobs report gave investors little to get excited about. Fin'ls were in focus following reports that NY AG Andrew Cuomo started an investigation into whether 8 banks including Bank of America's Merrill Lynch, misled ratings agencies about past mortgage securities deals.

USA Today p1B "Cuomo digs into ratings coziness" by David Lieberman says t NY AG Andrew Cuomo started an investigation into whether 8 banks including Bank of America's Merrill Lynch, misled ratings agencies about past mortgage securities deals.

Coke KO $53.49 -0.53 0.98% 9,603,592 NYSE: AJC pA17 says Coke is sponsoring next month's World Cup in S. Africa and on pA16 "Coke bottler sees European profits" by Jeremiah McWilliams says CCE will still be based in Atlanta after its N. American operations are sold to Coca-Cola.

Disney DIS $34.75 -0.38 1.08% 15,423,440 NYSE: No mentions found.

DuPont DD $38.59 -0.67 1.71% 6,763,522 NYSE: No mentions found.

Exxon XOM $64.74 -0.17 0.26% 26,737,995 NYSE:

GE $18.05 -0.39 2.11% 64,142,738 NYSE: WSJ pC1 "Why Industrials Face Growing Pains" by Kelly Evans says on Fri, the Fed releases industrial production figures for April and output at factories, utilities and mines is expected to gain 0.8% for the month. Shares of GE, Eaton and Honeywell may look vulnerable given they are already up 15 to 18% this year and trade at a valuation premium to the broader stock market.

WSJ pC5 "Cisco Systems Slides: Kohl's Tumbles 5.8%" by Donna Yesalavich says stocks fell, led by the consumer discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed & a forecast from Cisco Systems failed to improve sentiment toward tech stocks. Cisco is charted under Bad news saying it draged the Dow despite a 63% rise in profit reportd late Wed. Alcoa is charted under Good news saying it advanced on expectations that aluminum prices could rise due to Chinese electricity price increases. The Dow's other top decliners included American Express down 2.9%, Intel down 2.6% & GE dow down 2.1%. Only Alcoa was up. Sprint rose on news it would sell a new prepaid wireless ervice through WalMart. Walmart fell 0.2%.

Hewlett-Packard HPQ $48.72 -0.84 1.69% 15,420,370 NYSE: No mentions found.

Home Depot HD $35.27 -0.62 1.73% 20,178,187 NYSE: No mentions found.

Intel INTC $22.5 -0.59 2.56% 61,995,537 NASDAQ-GS:No mentions found.

IBM $131.48 -1.20 0.9% 10,472,078 NYSE: USA Today p1B says Indiana sued IBM for $1.3 bil for breach of contract regarding denying Medicaid to a dying cancer patient and a nun and IBM counersued.

JPMorgan JPM $40.81 -0.88 2.11% 35,247,302 NYSE: WSJ pC1 "Scrutiny for Bets on Muni Debt" by Ianthe Dugan says the SEC has launched an inquiry into banks' trades of muni credit default swaps to find out whether firms used their own money to bet against the bonds they sell and if that is properly disclosed to bond buyers. Banks being asked to provide info are Bank of America, Barclays, Goldman, JPMorgan and Morgan Stanely.

Johnson & John JNJ $64.67 -0.23 0.35% 12,278,333 NYSE:

Kraft KFT $30.31 -0.09 0.3% 11,070,102 NYSE: No mentions found.

McDonald's MCD $70.5 -0.17 0.24% 5,699,304 NYSE: No mentions found.

Merck MRK $33.31 -0.33 0.98% 14,615,918 NYSE: No mentions found.

Microsoft MSFT $29.24 -0.20 0.68% 45,199,317 NASDAQ-GS: No mentions found.

Pfizer PFE $16.56 -0.34 2.01% 67,271,093 NYSE: No mentions found.

Procter & Gamble PG $62.75 -0.27 0.43% 11,124,322 NYSE: WSJ pB1 "Diaper Gripes GrowLouder for P&G " by Ellen Byron says Procter & Gamble is scrambling to put out an Internet wildfire over the safety of its new Pampers diapers which accounts for 11% of its rev as allegations of rashes and leaks find traction on the Web.

AJC pA16 says P&G reports strong sales of new Pampers despite complaints that triggered a gov safety investigation.

3M MMM $85.59 -0.85 0.98% 3,307,698 NYSE: No mentions found.

Travelers TRV $50.17 -0.02 0.04% 3,792,196 NYSE: No mentions found.

United Tech UTX $72.86 -0.29 0.4% 5,269,674 NYSE: No mentions found.

Verizon VZ $28.69 0.01 -0.03% 13,248,560 Dual Listed: No mentions found.

WalMart WMT $52.4 0.08 -0.15% 12,431,306 NYSE: WSJ pC5 "Cisco Systems Slides: Kohl's Tumbles 5.8%" by Donna Yesalavich says stocks fell, led by the consumer discretionary sector as earnings guidance and results from retailers Kohl's and Urban Outfitters disappointed & a forecast from Cisco Systems failed to improve sentiment toward tech stocks. Cisco is charted under Bad news saying it draged the Dow despite a 63% rise in profit reportd late Wed. Alcoa is charted under Good news saying it advanced on expectations that aluminum prices could rise due to Chinese electricity price increases. The Dow's other top decliners included American Express down 2.9%, Intel down 2.6% & GE dow down 2.1%. Only Alco was up. Sprint rose on news it would sell a new prepaid wireless ervice through WalMart. Walmart fell 0.2%.

WSJ pB1 "Phone Rivals Start Dialing Up Prepaid Services" by by Niraj Sheth & Roger Ceng says Sprint is partnering with WalMart to roll out new brands and plans but AT&T is not jumping on to the prepaid band wagon.

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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 5/1/10 followed by number of shares outstanding rounded to the nearest 1/2 billion:

1. Exxon Mobil XOM $319 [5]
2. Microsoft MSFT 268 [9]
3. WalMart WMT 201 [4]
4. GE 201 [10.5]
5. Procter & Gamble PG 180 [3]
6. BAC 179 [10]
7. Johnson & Johnson JNJ 177 [3]
8. JPMorgan Chase 169 [4]
9. IBM 166 [1]
10. Chevron CVX 163 [2]
11. AT&T 154 [6]
12. Cisco CSCO 154 [6]
13. Pfizer PFE 135 [8]
14. Intel INTC 126 [5.5]
15. Coke KO 123 [2]
16. Hewlett-Packard HPQ 122 [2]
17. Merck MRK 109 [3]
18. Verizon VZ 82 [3]
19. McDonald's MCD 76 [1]
20. Disney DIS 71 [2]
21. United Technologies UTX 70 [1]
22. 3M MMM 63 [.5]
23. Home Depot 60 [1.5]
24. Boeing BA 55 [1]
25. American Express AXP 55 [1]
26. Kraft KFT 51 [1.5]
27. Caterpillar CAT 43 [.5]
28. DuPont DD 36 [1]
29. Travelers 25 [.5]
30. Alcoa AA 14 [1]

Here are the latest SEC filings as of 5/10/10 market 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: 5/6/10 10-Q
5/4/10 8K: re: results from the annual meeting of the stockholders of AT&T Inc. held on April 30, 2010, in Chattanooga, Tennessee.

Alcoa AA: 5/4/10 8K re: Alcoa Inc.’s 2009 Sustainability Highlights Report.

American Express AXP: 5/5/10 10Q
4/28/10 8-K re: transcript of 4/22/10 American Express live audio conference call/webcast to discuss the Company’s financial results for the three months ended March 31, 2010

Bank of Am BAC: 5/10/10 Rule 424(b) Prospectus
5/7/10 10-Q

Boeing BA: 4/28/10 8-K re: results of its Annual Meeting of Shareholders on April 26, 2010

Caterpiller CAT: 5/10/10 Definitive Proxy materials
5/510 8-K re: departure of directors and officers
5/3/10 10Q

Chevron CVX: 5/510 10Q
4/30/10 8K re: 4/30/10 press release announcing unaudited first quarter 2010 net income of $4.6 billion

Cisco CSCO: 2/17/10 8K re: amendment of an excec vp's employment agreement.

Coke KO: 4/29/10 10Q
4/26/10 8K re: results of 4/21/10 voting results from annual meeting in Duluth, Ga.

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

DuPont DD: 4/29/10 8K re: voting results from annual meeting held on 4/28/10.
4/27/10 10Q

ExxonMobil XOM: 5/6/10 10Q

GE: 5/7/10 8K to update fin'l info from form 10K
5/7/10 10Q

Hewlett-Packard HPQ: 4/29/10 Definitive proxy materials

Home Depot HD: 4/7/10 Proxy Statement

Intel INTC: 5/7/10 8K re: Micron Technology, Inc. completed its acquisition of Numonyx Holdings BV & issued shares of common stock to Numonyx shareholders. In exchange for Intel’s investment in Numonyx, Intel received approximately 64.2 million shares of Micron common stock, and issued a $72 million short-term payable.

5/3/10 10Q

IBM: 4/29/10 8K re: voting results from annual meeting of stockholders on 4/27/10
4/27/10 10Q

JPMorganChase JPM: 5/10/10 10Q

Kraft KFT: 5/7/10 10Q

McDonalds MCD: 5/6/10 10Q

Merck MRK: 5/7/10 10Q

Microsoft MSFT: 4/22/10 10Q.

Pfizer PFE: 5/4/10 8K re: 1Qtr results
4/28/10 8K re: voting results of Pfizer's annual meeting of shareholders held on 4/22/10

Procter & Gamble PG: 4/30/10 10Q

3M MMM: 5/5/10 10Q

Travelers TRV: 8K re: voting results of Travlers annual meeting of shareholders on 5/4/10

4/23/10 10Q

United Technologies UTX: 4/26/10 10Q

Verizon Communications Inc. VZ: 4/28/10 10Q

WalMart WMT: 8K re: press release re: negative court decision against WalMart allowing an employee sex discrimination case to go forward