Saturday, June 5, 2010

6/5/10 Sat. McDonald's Recalls Shrek Glasses

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Post No. 467. The following is brought to you by Intellivest Securities Research, Inc. Toward 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 6/4/10 and an update of the Dow 30 component's SEC filings as of 6/4/10.

A read of Saturday's Wall St. Journal, Financial Times, New York Times, & Atlanta Journal Constituion& 6/7/10 issue of Barron's 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 9,931.97 down 323.31 or 3.15% from Thursday's close of 10,255.28. For the year the Dow is down 4.65%. For the week the Dow was down 204.66 or 2.01% from last Friday's close of 10,136.63. Of the 30 Dow Companies: all 30 declined. The biggest decliner dollar-wise was Boeing BA $61.1525 -3.1575 4.91% 8,060,166 NYSE and percentage-wise was Caterpillar CAT $57.76 -3.35 5.48% 10,109,432 NYSE.

WSJ pB1 "Dow Falls 323.31,Dow Below 1000" by Peter McKay, Bradley Davis says fresh concern about the health of the US and European economies sent the Dow back below 10000 and drove the euro to new four year lows against the dollar.

WSJ pB2 "Caterpillar, Boeing And AmEx Pace Slide" by Donna Yesalavich says stocks tumbled broadly Fri, with Caterpillar, American Express and Boeing among the decliners following a disappointing report on US jobs and as Hungary emerged as Europe's latest economic problem.

NYT pB1 "Report on Jobs Dashes Investors' Hopes, and Sahres Tumble" by Christine Hauser says stock tumbled Fri in one of their sharpest declines this year, leaving the Dow firmly below 10,000 as a disappointing jobs report cast a pall over the nation's economic recovery.

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 14.44 down from Friday's 14.91 (year ago it was 44.04) the P/E estimate is 12.36 down from Friday's 12.62 (year ago it was 25.00) and the current dividend yield is 2.78 up from Friday's 2.70 (it was 3.45 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.

Friday's Dow Jones Industrial Average closing numerator was 1,314.19 down 42.78 from Thursday's closing numerator of 1,356.97. 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 42.78 for Friday by the divisor (0.132319125) you get the decrease in Friday's Dow of 323.31. 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 $43.81 1.42 from Thursday's Dow Jones Industrial Average average closing price of $45.23. The median closing price of Friday's Dow Jones Industrial Average was $38.01 down 1.81 from Thursday's median price of $39.82. The lowest volume was Travelers TRV $48.61 -1.11 2.23% 6,141,242 NYSE and the highest volume again was Bank of America BAC $15.35 -0.46 2.91% 144,907,877 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 $4,260made $ ($135,690 - $131,430).

MarketWatch Fri. 6/4/10 4:14 pm by Nick Godt says U.S. stocks finished sharply lower on Friday, with the Dow industrials sliding below the 10,000 mark as a disappointing U.S. jobs report and worries about Hungary's finances rekindled worries about growth. The Dow Jones Industrial Average (DJIA 9,931, -324.06, -3.16%) fell 323 points, or 3.2%, to end at 9,931.97, its worst one-day drop since May 20. Cyclical blue-chip stocks such as Caterpillar Inc. (CAT 57.76, -3.35, -5.48%) , off 5.5%, and Alcoa Inc. (AA 10.84, -0.53, -4.66%) , down 4.7%, led the way lower. The S&P 500 (SPX 1,065, -37.95, -3.44%) fell 37.95 points, or 3.4%, to 1,064.88. Of the S&P's 10 sectors, industrials fell the hardest, off 4.6%, followed by financials and materials, both down 3.9%. The Nasdaq Composite (COMP 2,219, -83.86, -3.64%) fell 83.86 points, or 3.6%, to 2,219.17. For the week, the Dow fell 2%, the S&P was down 2.3%, and the Nasdaq dropped 1.7%

AT&T T $24.17 -0.63 2.54% 35,933,216 NYSE: Barron's "Last Week Review" says Hewlett-Packard plans to cut 9,000 jobs and revamp its computer services business to better compete with IBM. WalMart plans to add more than 500,00 employees in the next 5 years and would repurchase $15 bil of shares. AT&T said it would start charging new smartphone and iPad customers more money for heavy bandwidth use. The change could mean lower rates for those who use phones mainly for email, Web browsing and phone calls.

Alcoa AA $10.84 -0.53 4.66% 29,974,464 NYSE: No mentions found.

American Express AXP $38.41 -2.13 5.25% 13,237,302 NYSE: WSJ pB2 "Caterpillar, Boeing And AmEx Pace Slide" by Donna Yesalavich says stocks tumbled broadly Fri, with Caterpillar, American Express and Boeing among the decliners following a disappointing report on US jobs and as Hungary emerged as Europe's latest economic problem.

Bank of America BAC $15.35 -0.46 2.91% 144,907,877 NYSE: No mentions found.

Boeing BA $61.1525 -3.1575 4.91% 8,060,166 NYSE: Barron's pM9 "Striking Price Options" by Steven Sears says investors shold sell Aug $70 calls against Boeing stock for $1.79 a contract because the higher the volatility the higher the premium and Boeing's stoc volatility is high. Theory is Boeing's stock won't go above $80 before Sept due to low 787 margins and low hance of multiple expansion in an up-cycle.

WSJ pB2 "Caterpillar, Boeing And AmEx Pace Slide" by Donna Yesalavich says stocks tumbled broadly Fri, with Caterpillar, American Express and Boeing among the decliners following a disappointing report on US jobs and as Hungary emerged as Europe's latest economic problem.

Caterpillar CAT $57.76 -3.35 5.48% 10,109,432 NYSE: WSJ pB2 "Caterpillar, Boeing And AmEx Pace Slide" by Donna Yesalavich says stocks tumbled broadly Fri, with Caterpillar, American Express and Boeing among the decliners following a disappointing report on US jobs and as Hungary emerged as Europe's latest economic problem.

Chevron CVX $71.28 -2.63 3.56% 17,640,790 NYSE: No mentions found.

Cisco CSCO $22.955 -0.765 3.23% 59,440,210 NASDAQ-GS: No mentions found.

Coke KO $51.27 -1.48 2.81% 11,579,395 NYSE: No mentions found.

DuPont DD $34.41 -1.37 3.83% 8,277,034 NYSE: No mentions found.

Disney DIS $33.69 -1.02 2.94% 21,385,867 NYSE: No mentions found.

ExxonMobil XOM $59.525 -2.035 3.31% 43,869,833 NYSE: No mentions found.

GE $15.71 -0.74 4.5% 112,715,200 NYSE: WSJ pB14 "GE Needs Deeper paper Cut" by Peter Eavis says market jitters have made it harder for European banks to issue short term debt or commercial paper. GE has slashed its commercial paper outstanding to $46 bil from $101 bil at the end of '07 but that may still be too high. Other firms are becoming more cautious about commercial paper. If the markets freeze again, GE could get hurt.

Hewlett-Packard HPQ $46.05 -1.43 3.01% 18,232,218 NYSE: Barron's "Last Week Review" says Hewlett-Packard plans to cut 9,000 jobs and revamp its computer services business to better compete with IBM. WalMart plans to add more than 500,00 employees in the next 5 years and would repurchase $15 bil of shares. AT&T said it would start charging new smartphone and iPad customers more money for heavy bandwidth use. The change could mean lower rates for those who use phones mainly for email, Web browsing and phone calls.

Barron's p38 "Palm to Power HP Tablets" by Mark Veverka says Hewlett-Packard's plans for recently acquired handset maker, Palm, will include a rollout of tablet computers, smartphones and other wireless gadgets, based on Palm's mobile operating system, Web OS. Palm's Web OS is better for mobile computing than the Microsoft opeating system HP has been using.

Home Depot HD $32.15 -1.28 3.83% 19,694,651 NYSE: No mentions found.

Intel INTC $20.945 -0.955 4.36% 66,497,279 NASDAQ-GS: No mentions found.

IBM $125.28 -2.68 2.09% 9,384,744 NYSE: Barron's "Last Week Review" says Hewlett-Packard plans to cut 9,000 jobs and revamp its computer services business to better compete with IBM. WalMart plans to add more than 500,00 employees in the next 5 years and would repurchase $15 bil of shares. AT&T said it would start charging new smartphone and iPad customers more money for heavy bandwidth use. The change could mean lower rates for those who use phones mainly for email, Web browsing and phone calls.

JPMorgan Chase JPM $37.62 -1.48 3.79% 51,383,890 NYSE: No mentions found.

Johnson & Johnson JNJ $58.01 -1.76 2.94% 21,221,999 NYSE: No mentions found.

Kraft KFT $28.51 -0.77 2.63% 11,562,536 NYSE: No mentions found.

McDonalds MCD $66.7 -1.15 1.69% 7,327,313 NYSE: WSJ pB5 "McDonald's Recalls Glasses used in Shrek Promotion" by Paul Ziobro, Fin Times p9 "McDonald's initiates Shrek glasses recall" by Greg Farrell,NYT pB1 "Mcdonald's to Recall Glasses, Citing Cadmium" by William Neuman say McDonald's is recalling 12 mil glasses sold as a promotional tie in to the latest Shrek movie because they contain the toxic metal cadmium. The US Consumer Product Safety Commission said the designs on the glasses, which were sold for $2 since May, contain cadmium which can pose health risks with long term exposure. Walmart recently began limiting the use of cadmium in a variety of children's products after voluntarily recalling some pieces of kid's jewelry that were found to have have high levels of cadmium.

Merck MRK $33.17 -1.12 3.27% 17,736,294 NYSE: WSJ pB1 "Drug makers Provide View of Sampling Practices" by Jared Favole says Pfizer gave out 101 mil drug samples worth $2.7 bil in '07. Patients and doctors often welcome the free medicines but the custom has its critics who cite safety issues and say samples induce prescriptions for more costly brand name medicines when cheaper generics are available. The health overhaul passed in Mar. requires firms to tell Congress how many samples they distribute in an effort to change the culture of firms wooing docs with free goods. Merck dispensed 39 mil samples worth about $356 mil, Lilly gave out 33 mil worth $67 mil. Wyeth which was bought by Pfizer last year gave out 52 mil worth $64 mil.

Microsoft MSFT $25.79 -1.07 3.98% 88,308,275 NASDAQ-GS: Barron's p37 "A Beehive of Buzz at a Top Tech Confab" by Eric Savitz says the 8th Annual All Tings Digital conference was held last week in Rancho Palos Verdes, Calif and Steve Balmer of Microsoft was there along with Steve Job and Mark Zuckerberg.

Barron's p38 "Palm to Power HP Tablets" by Mark Veverka says Hewlett-Packard's plans for recently acquired handset maker, Palm, will include a rollout of tablet computers, smartphones and other wireless gadgets, based on Palm's mobile operating system, Web OS. Palm's Web OS is better for mobile computing than the Microsoft opeating system HP has been using.

AJC pA13 "Microsoft to terminate Bing cashback program" says Microsoft is shutting down a program that gave online shoppers rebates when they found items through Bing search that started in May '08.

Pfizer PFE $14.755 -0.4775 3.13% 76,422,012 NYSE: WSJ pB1 "Drug makers Provide View of Sampling Practices" by Jared Favole says Pfizer gave out 101 mil drug samples worth $2.7 bil in '07. Patients and doctors often welcome the free medicines but the custom has its critics who cite safety issues and say samples induce prescriptions for more costly brand name medicines when cheaper generics are available. The health overhaul passed in Mar. requires firms to tell Congress how many samples they distribute in an effort to change the culture of firms wooing docs with free goods. Merck dispensed 39 mil samples worth about $356 mil, Lilly gave out 33 mil worth $67 mil. Wyeth which was bought by Pfizer last year gave out 52 mil worth $64 mil.

Procter & Gamble PG $60.8 -1 1.62% 17,449,846 NYSE: No mentions found.

3M MMM $76.1 -2.24 2.86% 7,967,806 NYSE: No mentions found.

Travelers TRV $48.61 -1.11 2.23% 6,141,242 NYSE: Barron's p21 "Can AIG Ante Up to Uncle Sam?" by Andrew Bary says AIG is riskier than other insurers such as MetLife, Travelers, Prudential all which trade around book value and for about 10 times estimated '10 profits.

United Technologies UTX $65.14 -2.71 3.99% 6,261,998 NYSE: No mentions found.

Verizon VZ $27.21 -0.43 1.56% 20,519,171 Dual Listed: Barron's p17 "Home on the Range" by Michael Santoli says Frontier provides wireline phone and broadband service to rural areas and is about to buy Verizon Communications' rural telecom assets, which will triple the size of the company.

WalMart WMT $50.4 -1.32 2.55% 23,649,120 NYSE: WSJ pB5 "WalMart's Chief Pledges to Pick Up The pace Online" by Miguel Bustillo, Ann Zimmerman, Fin Times p9 "Walmart targets e-commence for growth" by Jonathan Birchall, NYT pB3 "With a Backdrop of Glitz, WalMart Stesses Its Global Growth" by Stephanie Clifford, Stephanie Rosenbloom, AJC pA13 "WalMart announces worldwide growth plan" say WalMart's CEO Mike Duke at the annual meeting of shareholders promised to accelerate its retailing formula to online sales and answered questions about the costs of WlMart's recent legal settlements. WalMart has a plan to go from serving 200 mil customers a week to one billion over the next 20 years. Walmart has struggled for 4 straight quarters with tepid uS sales growth and is encountering limitations to its once breakneck domestic expansion after carpeting rural and suburban America with its trademark supercenters. The firm also continues to content with issues tied to its labor practices.

WSJ pB5 "McDonald's Recalls Glasses used in Shrek Promotion" by Paul Ziobro says McDonald's is recalling 12 mil glasses sold as a promotional tie in to the latest Shrek movie because they contain the toxic metal cadmium. The US Consumer Product Safety Commission said the designs on the glasses, which were sold for $2 since May, contain cadmium which can pose health risks with long term exposure. Walmart recently began limiting the use of cadmium in a variety of children's products after voluntarily recalling some pieces of kid's jewelry that were found to have have high levels of cadmium.

Barron's pM2 charts WalMart saying it approved a $15 bil stock buyback. Its shares are down more than 4% this year.

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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 1/2 billion as of 6/4/10 followed by number of shares outstanding rounded to the nearest 1/2 billion:

1. Exxon Mobil XOM $283 [4.5]
2. Procter & Gamble PG 244.5 [4]
3. Microsoft MSFT 229 [9]
4. WalMart WMT 190.5 [4]
5. GE 168 [10.5]
6. IBM 161 [1]
7. Johnson & Johnson JNJ 160 [3]
8. Bank of America BAC 155.5 [10]
9. JPMorgan Chase 152 [4]
10. Chevron CVX 144 [2]
11. AT&T 143 [6]
12. Cisco CSCO 132 [6]
13. Pfizer PFE 120 [8]
14. Coke KO 119 [2.5]
15. Intel INTC 117 [5.5]
16. Hewlett-Packard HPQ 108.5 [2.5]
17. Merck MRK 104 [3]
18. Verizon VZ 77 [3]
19. McDonald's MCD 72 [1]
20. Disney DIS 66.5 [2.5]
21. United Technologies UTX 61 [1]
22. 3M MMM 55 [1]
23. Home Depot 54.5 [1.5]
24. Kraft KFT 50 [2]
25. Boeing BA 47 [1]
26. American Express AXP 47 [1]
27. Caterpillar CAT 36.5 [.5]
28. DuPont DD 31 [1]
29. Travelers 24.5 [.5]
30. Alcoa AA 11 [1]

Here are the latest SEC filings as of 6/4/10 other than ownership filings, registration of shares for employee benefit plans, free writing prospectuses and third party shareholder proposals:

Symbol & Co. Name/Date of Filing/Form Filed/ Comments

AT&T T: 5/24/10 8K: re: sale ofl its Sterling Commerce subsidiary to IBM for $1.4 billion in cash. Sterling Commerce provides business to business applications and integration solutions to more than 18,000 customers worldwide. AT&T expects the transaction to close in the second half of '10, subject to receipt of regulatory approvals . AT&T expects to record a one-time, pre-tax gain of $750 million for the quarter in which the transaction closes.

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: 6/2/10 8K re: statistics re: worldwide billed business.

5/17/10 8K re: delinquency and write-off statistics for the lending portfolio of its U.S. Card Services operating segment for the months ended February 28, March 31 and April 30, 2010.

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: 6/4/10 Free Writing Prospectuses

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: 6/1/10 8K re: purchase of Electro-Motive Diesel, Inc. for $820 million in cash from Berkshire Partners LLC and Greenbriar Equity Group LLC.

5/28/10 8K re: retirement of David B. Burritt, VP & CFO as of 6/1/10.

5/20/10 8K re: statistics re: deliveries to users for its Machinery and Engines lines of business.

5/10/10 Definitive Proxy materials

5/510 8-K re: departure of directors and officers

5/3/10 10Q

Chevron CVX: 6/2/10 8K re: results of 5/26/10 vote at annual meeting for election of Directors & other matters.

5/19/10 definitive proxy materials

5/13/10 8K re: certain revisions of 10-K annual report for year ended 12/31/09.

5/5/10 10Q

Cisco CSCO: 5/26/10 10Q

5/12/10 8K re: results of operations for its fiscal third quarter 2010 ended May 1, 2010.

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: 5/11/10 10Q

5/11/10 8-K re: press release re: 10Q re: quarter ended 4/3/10.

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

4/27/10 10Q

ExxonMobil XOM: 6/1/10 8K re: voting results from 5/26/10 Annual Meeting of Shareholders

5/6/10 10Q

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

5/7/10 10Q

Hewlett-Packard HPQ: 6/1/10 8K re: plans to invest $1 billion in its enterprise services business to enhance client experience and better position the business for growth.

5/18/10 8K re: 2Qtr results

Home Depot HD: 6/3/10 10Q

5/25/10 8K re: voting results from 5/20/10 annual meeting of shareholders.

5/18/10 8K re: results for quarter ended 5/2/10

Intel INTC: 5/21/10 8K re: voting results from 5/19/10 annual meeting of stockholders.

5/12/10 8K re: info provided at an Investor meeting by Paul S. Otellini, Pres. & CEO.

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: 5/12/10 8K re: information presented at Investor Briefing on 5/12/10.

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

4/27/10 10Q

JPMorganChase JPM: 6/3/10 Rule 424 Prospectus

5/26/10 8K re: Washington Mutual Litigations.

5/20/10 8K re: voting results from 5/18/10 annual meeting of shareholders

5/10/10 10Q

Johnson & Johnson JNJ : 5/10/10 10 Q

Kraft KFT: 5/21/10 8K: re voting results from 5/18/10 annual meeting of shareholders

5/7/10 10Q

McDonalds MCD: 5/24/10 8K re: voting results of 5/20/10 annual shareholders' meeting

5/17/10 additional proxy materials

5/11/10 8K re: press release re: April and year to date '10 sales.

5/6/10 10Q

Merck MRK: 5/28/10 8K re: Kenneth C. Frazier to succeed Richard T. Clark as Pres. Of the Company as of 5/1/10 and Dr. Sam Their's retirement from the Board & voting results from 5/25/10 annual meeting of shareholders.

5/11/10 8K re: information presented at 5/11/10 Annual Business Briefing

5/7/10 10Q

Microsoft MSFT: 5/28/10 8K re: retirement of Robbie Bach, pres. Of Entertainment & Devices Div.

Pfizer PFE: 5/26/10 8K re: retirement of Dr. Martin Mackay, Sr. VP & Pres, Pharma Therapeutics R&D of Pfizer Inc.

5/13/10 10Q

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: 5/19/10 8K re: closing of 100 bil Euro 0.955 Note Offering due 2015.

4/30/10 10Q

3M MMM: 5/17/10 8K re: reclassification of certain data in 10K for 12/31/09.

5/12/10 8K re: voting results of 5/11/10 annual meeting of stockholders.

5/5/10 10Q

Travelers TRV: 5/7/10 8K re: voting results of 5/4/10 annual meeting of shareholders

4/23/10 10Q

United Technologies UTX: 5/14/10 8K re: exercise of its rights to redeem $500 mil of outstanding 7.125% Notes due 11/15/10.

4/26/10 10Q

Verizon Communications Inc. VZ: 5/27/10 8K re: record date of 6/7/10 re: proposed spinof of shares of New Communications Holdings.

5/12/10 8K re: voting results from 5/6/10 annual meeting of shareholders.

4/28/10 10Q

WalMart WMT: 6/14/10 10Q.

5/18/10 8K reconciliation of non-GAP measures.