8/1/09 Chevron's Profits Fall 71%

Post #32 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. Click at the 7/23/09 Blog to find a description of this week's profiled company, AXP American Express Company. AXP closed Friday at $28.33 +0.10 0.35% on volume of 11,828,752 NYSE. AXP in terms of market value ranks 25th among the Dow Jones 30 Industrial Average with a market cap of approx $33 billion. For the complete list of ranking as of 7/30/09 see the listing after today's media report in today's Blog.

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 FOLLOWING APPEARED IN FRIDAY AFTERNOON'S BLOG:

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