5/3/10 Mon. am J&J Recalls 40 Products

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Post No. 411. 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 5/1/10 and an update of the Dow 30 component's most recent SEC filings as of 4/1/10.

A read of 5/3/10 issue of Barron's, Mon's Wall. St. Jounral, 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 Friday's stock prices and related data.

Dow:The Dow Jones Industrial Average closed Friday at 11008.61 down 158.71 or 1.42% from Thursday's close of 11167.32. For the week the Dow was down 195.67 or 1.75% from last Friday's close of 11,204.28. For the year the Dow is up 5.57%. Of the 30 Dow Companies: all 30 declined. The biggest decliner dollar-wise and percentage-wise was Caterpillar CAT $68.09 -2.66 3.76% 9,428,029 NYSE.

As of the close 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 16.21 down from Friday's open of 16.70 (year ago it was 35.40) the P/E estimate is 13.95 down from Friday's 14.10 (year ago it was 22.77) and the current dividend yield is 2.48 down from Friday's 2.45 (it was 3.76 a year ago). The Dow ended April with a 1.4% gain, the 3rd consecutive month in positive territory. The Dow's all-time high was 14,164.53 on Oct. 9, 2007.

Friday's Dow Jones Industrial Average closing numerator was 1,456.65 down 21 from Thursday's closing numerator of 1,477.65. 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 21 for Friday by the divisor (0.132319125) you get the decrease in Friday's Dow of 158.71. 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 $48.86 down 0.40 from Thursday's Dow Jones Industrial Average average closing price of $49.26. The median closing price of Friday's Dow Jones Industrial Average was 44.35 down 1.45 from Thursday's median closing price of $45.80. The lowest volume was Travelers TRV $50.74 -0.68 1.32% 5,243,008 NYSE and the highest volume again was Bank of America BAC $17.83 -0.47 2.57% 231,283,468 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 $1,200 ($147,780- $146,580).

Market Watch 4/30/10 4:50 p.m. by Peter McKay, Donna Yesalavich, Kristina Peterson says US stocks tumbled Friday, with a reports of a criminal probe into Goldman Sachs Group and some disappointing tech earnings dragging the major indexes to their worst week since January. For the month, the major indexes posted solid gains. For Friday's session, the Dow Jones Industrial Average (INDU 11,008, -159.24, -1.43%) ended near its session lows, off 158.71 points, or 1.4%, to 11,008.61. All 30 of its components fell, including declines of more than 3% each in J.P Morgan Chase (JPM 42.60, +0.02, +0.05%) , Caterpillar (CAT 68.30, +0.21, +0.31%) , American Express (AXP 46.12, -1.48, -3.11%) , and General Electric (GE 18.96, +0.10, +0.53%) .
Goldman Sachs Group Inc. (GS 144.85, -0.35, -0.24%) , which isn't a Dow component, slid 9.4%. It ended with a 14.9% decline for April, its worst monthly drop since the fall of 2008. Friday's loss helped push stocks to weekly losses. The Dow ended down 1.8%, breaking a string of 8 weekly gains. The S&P 500 (SPX 1,187, -20.10, -1.67%) fell 2.5%, while the Nasdaq Composite (COMP 2,461, -50.73, -2.02%) lost 2.7% for the week. April was kind for the market overall, with major indexes posting their third-straight monthly gain. A generally favorable round of first-quarter profit reports were the major catalyst for the gains, but looking ahead, some traders fear that widening regulatory scrutiny of Wall Street could continue to weigh on the market.
The S&P 500 on Friday fell 1.7% to 1186.69, up 1.5% for April. Its financial sector fell 2.5%, leading a decline that hit every sector except utilities, which managed a 0.5% gain. The Nasdaq Composite Index (COMP 2,461, -50.73, -2.02%) fell 2% to 2461.19, up 2.6% for the month. It was hurt Friday by weak earnings from several technology companies. MEMC Electronic Materials (WFR 12.98, +0.01, +0.08%) , which makes silicon wafers for the solar and semiconductor industries, tumbled 18.6% after the company swung to a first-quarter loss as overhead costs more than doubled. McAfee Inc. /(MFE 34.76, +0.01, +0.03%) shares slid 12.1% after it posted a 30% drop in first-quarter profit as the antivirus-software maker was hit by currency fluctuations and delays in deal closings. Consumer stocks were also big losers after the University of Michigan/Reuters consumer-sentiment index's final reading for April fell to 72.2, from a final March reading of 73.6. J.C. Penney Co. (JCP 29.20, +0.03, +0.10%) shares dropped 6.2%, Abercrombie & Fitch (ANF 43.80, +0.07, +0.16%) slid 5.8% and Macy's (M 23.33, +0.13, +0.56%) dropped 6%. The Commerce Department's report of U.S. economic growth in the first quarter was relatively upbeat. It estimated the U.S. economy grew at a 3.2% annual rate in the first three months of the year. Consumer spending accelerated in the first quarter and the core inflation rate, which excludes food and energy prices and is closely watched by the Fed, fell to its lowest number in 51 years. Crude-oil futures edged up 98 cents to $86.15 a barrel as an oil spill in the Gulf of Mexico reached the Louisiana coast. White House officials said new domestic offshore oil drilling will be on hold until the investigation of the spill is complete, but that currently approved oil and gas projects could go forward. The euro strengthened against the dollar after Greece agreed with the International Monetary Fund and the European Union to take additional austerity measures. The dollar index (DXY 81.87, -0.14, -0.17%) slid about 0.2% for the day but rose for the week and month. Treasury prices advanced, pushing the yield on the 10-year note down to 3.661%. Gold futures rose.

AT&T T $26.06 0.08 0.31% 33,740,978 NYSE: Barron's p19 "The New Dell's Daunting New Challenges" by Mark Veverka says Dell has been leapfrogged by lower cost rivals Hewlett-Packard and Acer. Dells is entering into the wireless smartphone business and has forged deals with china mobile and Telefonica and is designing Android-based handsets for AT&T but most analysts don't think Dell will generate meaningful rev from mobile handsets.

Alcoa AA $13.43 0.29 2.11% 29,285,035 NYSE: No mentions found.

American Express AXP $46.12 1.48 3.11% 13,996,618 NYSE: No mentions found.

Bank of America BAC $17.83 0.47 2.57% 231,283,468 NYSE:

Boeing BA $72.43 1.36 1.84% 5,600,881 NYSE: Barron's p27 "D.C. Current" by Jim McTague says Boeing and Orbital Sciences would be the only 2 public firms inthe running to bid for NASA's shuttle fleet if Congress approves Obama's $19 bil fiscal '11 budget that would give private sector firms such as Boeing, the possibility of building economical space shuttles worth $5.8 bil in contracts over 5 years. Lockheed Martin cold also join the race to commercialize space. The purpose of the shuttle would be to shuttle astronauts and freight to the Int'l Sa[ce Sation and cater to tourists and corporate scientists as well. Theoretically, the private sector can build and operate a shuttle fleet for less than NASA, freeing the agency to concentrate on deep space exploration. NASA hopes the private sector can produce a replacement shuttle before '16. NASA this year or next will be retiring its 30 year old fleet of gliders because they are expensive and increasingly dangerous to fly.

Caterpillar CAT $68.09 2.66 3.76% 9,428,029 NYSE: No mentions found.

Chevron CVX $81.44 0.85 1.03% 13,910,271 NYSE: Barron's p M17 "Big Blue Is Golden" by Shirley Lazo says IBM has its 7th consecutive double digit payout hike by boosting its quarterly common dividend 18.2% on Tues from 55 cents to 65 cents which marks 15 years in a row of payout increases. IBM also earmarked another $8 bil for share purchases. Also, ExxonMobil and Chevron sweetened their dividends last week. Exxon's hike to 44 cents from 42 cents is its 28th consecutive annual boost. Chevron's quarterly is going to 72 cents from 68 cents, marking its 23rd yearly increase.

Barron's p16 "Preview" says 1Qtr profits more than doubled agt Chevron. Hewlett-packard plans to spend nearly $1 bil to buy Palm.

CSCO $26.93 0.60 2.18% 41,886,891 NASDAQ-GS: No mentions found.

Coke KO $53.45 0.29 0.54% 9,674,770 NYSE:

Disney DIS $36.84 0.38 1.02% 11,456,311 NYSE: WSJ pB1 "While Sharing Iron man Rev, Disney Tightens Grip on Franchise" by Ethan Smith, Lauren Schuker says Iron Man 2 took in $100 mil in its int'l debut this past weekend, auguring well for its US opening May 7 which will serve as a barometer of Disney's ability to integrate Iron Man creator Marvel Entertainment, with its tangled legacy of licensing & distribution arrangements.

DuPont DD $39.84 0.73 1.8% 9,510,175 NYSE: No mentions found.

Exxon XOM $67.77 0.89 1.3% 43,747,183 NYSE:
Barron's p26 "BP, Transocean Priced for Disaster" discusses the recent oil spill int he Gulf of Mexico and compares it to the Exxon Valdez spill in Alaska in '89 tht cost Exxon about $4 bil.

Barron's p M17 "Big Blue Is Golden" by Shirley Lazo says IBM has its 7th consecutive double digit payout hike by boosting its quarterly common dividend 18.2% on Tues from 55 cents to 65 cents which marks 15 years in a row of payout increases. IBM also earmarked another $8 bil for share purchases. Also, ExxonMobil and Chevron sweetened their dividends last week. Exxon's hike to 44 cents from 42 cents is its 28th consecutive annual boost. Chevron's quarterly is going to 72 cents from 68 cents, marking its 23rd yearly increase.

GE $18.86 0.63 3.23% 111,990,981 NYSE: NYT pB3 GE's NBC Opens Its Wallet to Build Up Prime Time" by Bill Carter says Jeff Haspin head of NBC's prime time schedule is tring to pull NBC out of a long slide by spending money for more pilots.

Barron's "Preview" p17 says General electric's CEO Jeffrey Immelt will speak at New York's 92nd Street Y.

Hewlett-Packard HPQ $51.97 0.91 1.72% 15,731,934 NYSE: WSJ pB6 "Hewlett-Packard Hires Former Sears Exec" by Justin Scheck, Miguel Bustillo says HPQ hired Richard Gerstein, the former sr. vp of marketing for Sears to take a leadership role in HP's pc marketing.

Barron's p30 "Smartphone Wars' new Force: Hewlett-Packard & Palm" by Eric Savitz says last week, Hewlett-Packard agreed to pay $1.2 bil for beleaguered Palm, which was running out of customers, cash and time. This is good news for Palm and the handful of developers who created aps for Pre or Pixi, the two Palm phones that run on the Palm's WebOS software which HP wll now use to launch new mobile devices, including phones, tablets and maybe netbooks. The deal is bad for Apple, Research in Motion, Nokia and Motorola. Now, they must battle Hewlett-Packard, the world's leading seller of pcs, a firm that generates close to $30 bil in sales every quarter, about 300 times what Palm generates. The combatants in the smartphone wars now include almost every major consumer tech firm, from Google to Microsoft to Sony to Samsung to Lenovo. Microsoft now loses a potential customer, HP, for Windows Phone 7.

Barron's p19 "The New Dell's Daunting New Challenges" by Mark Veverka says Dell has been leapfrogged by lower cost rivals Hewlett-Packard and Acer. Dells is entering into the wireless smartphone business and has forged deals with china mobile and Telefonica and is designing Android-based handsets for AT&T but most analysts don't think Dell will generate meaningful rev from mobile handsets.

Barron's p16 "Preview" says 1Qtr profits more than doubled agt Chevron. Hewlett-packard plans to spend nearly $1 bil to buy Palm.

Home Depot HD $35.23 0.33 0.93% 15,800,787 NYSE: No mentions found.

Intel INTC $22.84 0.65 2.77% 81,823,897 NASDAQ-GS: No mentions found.

IBM $129 1.46 1.12% 6,266,689 NYSE:

JPMorgan JPM $42.58 1.42 3.23% 54,069,244 NYSE: Barron's p18 "Take Profits in Citigroup, Buy JPMorgan": by Andrew Bary says a better bet than buying Citigroup is JPMorgan Chase whose shares at 43 are up just 2% in '10, lagging behind Citi and the two other US banking giants, Bank of America and Wells Fargo, both up about 20%.

Johnson & Johnson JNJ $64.3 0.71 1.09% 14,183,818 NYSE: WSJ pB3 "Consumers Helped Spur J&J Recall" by Ron Winslow, Avery Johnson says consumer complaints about certain otc children's medications spurred an investigation that led to a recall of more than 40 different products because of manufacturing problems, including pediatric versions of Tylenon, Motrin, Zyrtec & Bernadryl. There haven't been any serious side effects reported. In Nov, Johnson & Johnsonr ecalled some bottles of Tylenol after there was a strange smell or taste reported.

NYT pB1 "Rethinking Generic Drugs Vs. the Brands" by Natasha Singer says due to the recall of 40 products by McNeil Consumer Healthcare, the Johnson & Johnson unit, the author is suggesting that brand name drugs may not by synonymous with quality.

Barron's Cover Story "J&J Has Lift Off" by say new drugs and reviving demand for health-care products will propel Johnson & Johnson to new heights. It has plenty of cash for smart acquisitions. JNJ is up 40% since Wall St's '09 nadir, just half the S&P's rise. With its large stable of well known bands such as Band Aids, Tylenol and Listerine, J&J might look too familiar to some investors but over the next few years, earnings growth should accelerate thanks to an improving economy, a surprisingly robust drug and medical device pipeline and a solid balance sheet. Within a year or two, the shares, which offer a nice dividend, shold be up 10 to 20%.

KFT $29.6 0.31 1.04% 12,490,164 NYSE: Barron's "Preview" p17 says on Thursday 5/6, Kraft will post its earnings after the market close and says you should keep an eye on the volume trends which have been improving in the industry. Analysts will focus on the core Kraft business and whether it's firmly in a turnaround and ready for integration with Cadbury.

McDonald's MCD $70.59 0.93 1.3% 6,966,532 NYSE: No mentions found.

MRK $35.04 0.21 0.6% 15,721,657 NYSE: Fin Times p22 says Merck will report 1Qtr earnings Tuesday expected to be 75 cents a share as does Pfizer expected at 53 cents.

Microsoft MSFT $30.535 0.468 1.51% 63,218,534 NASDAQ-GS: Barron's p31 "Finding the Fattest Dividends" by Mike Hogan says the 10 biggest tech firms, such as Cisco, Microsoft, Apple and Qualcomm have about twice as much cash on their balance sheets as the next 65 in the S&P 500. They are likely to disburse some of their cash by raising dividends.

Barron's p30 "Smartphone Wars' new Force: Hewlett-Packard & Palm" by Eric Savitz says last week, Hewlett-Packard agreed to pay $1.2 bil for beleaguered Palm, which was running out of customers, cash and time. This is good news for Palm and the handful of developers who created aps for Pre or Pixi, the two Palm phones that run on the Palm's WebOS software which HP wll now use to launch new mobile devices, including phones, tablets and maybe netbooks. The deal is bad for Apple, Research in Motion, Nokia and Motorola. Now, they must battle Hewlett-Packard, the world's leading seller of pcs, a firm that generates close to $30 bil in sales every quarter, about 300 times what Palm generates. The combatants in the smartphone wars now include almost every major consumer tech firm, from Google to Microsoft to Sony to Samsung to Lenovo. Microsoft now loses a potential customer, HP, for Windows Phone 7.

Pfizer PFE $16.72 0.14 0.83% 51,013,464 NYSE: Fin Times p22 says Merck will report 1Qtr earnings Tuesday expected to be 75 cents a share as does Pfizer expected at 53 cents.

PG $62.16 0.04 0.06% 15,768,837 NYSE: No mentions found.

MMM $88.67 0.66 0.74% 5,261,981 NYSE: No mentions found.

Travelers TRV $50.74 0.68 1.32% 5,243,008 NYSE: Sun AJC pD3 "Increased dividends" says Exxon increased its quarterly dividend from 42 cents to 44 cents, & Travelers increased it to 36 cents from 33 cents.

United Tech UTX $74.95 1.07 1.41% 5,068,410 NYSE: No mentions found.

Verizon VZ $28.9 0.32 1.1% 21,916,475 Dual Listed: Barron's "Preview" p17 says on Thursday, 5.6 Verizon will hold its annual meeting where retirees will seek stricter performance measures and to overturn '09 CEO package.

WalMart WMT $53.64 0.06 0.11% 16,279,335 NYSE: AJC pA13 "Battle continues in bid to block Walmart" says a judge has kept alive the battle to block a WalMart store near an endangered Civil War battlefield in Va saying opponents can go forward with a lawsuit.

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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 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