24/7 Wall St. » MKC

24/7 Wall St. Closing Bell (GD, VALE, GMCR, GLW, CHK, ARG, ACAT, T, BMY, CAT, CY, LMT, MKC, MWW, POT, RTN, VIST, RNWK, MNTA, NFLX, EFSC)

Paul Ausick — Thu, 26 Jan 2012 21:08:29 +0000

All three major US indexes opened higher this morning, but enthusiasm tapered off quickly and steadily, if not sharply. A drop in the number of new home sales and a smaller-than-expected rise in the leading economic indicators index. Hope that talks between Greece and its creditors would yield an agreement also pushed markets higher. But the weak housing report and no further news from Europe kept share prices moving down. WTI crude gained 0.35% at $99.75/barrel and Brent crude is up 1.02% at $110.93. Gold is higher by 1.27% at $1,724.60.

The unofficial closing bells put the DJIA down more than 22 points to 12,734.63 (-0.18%), the NASDAQ fell about 13 points (-0.46%) to 2,805.28, and the S&P 500 fell -0.57% or nearly 7 points to 1,318.45.

There were several analyst upgrades and downgrades today, including General Dynamics Corp. (NYSE: GD) cut to ‘perform’ at Oppenheimer; Vale S.A. (NYSE: VALE) cut to ‘hold’ at Deutsche Bank; Green Mountain Coffee Roasters Inc. (NASDAQ: GMCR) started as ‘perform’ at Williams Capital; Corning Inc. (NYSE: GLW) cut to ‘underweight’ at Morgan Stanley; and Chesapeake Energy Corp. (NYSE: CHK) cut to ‘underweight’ at JPMorgan.

Earnings reports since markets closed on last night have led to some price changes as of the last half hour of trading today: Airgas Inc. (NYSE: ARG) is down -3.66% at $77.29; Arctic Cat Inc. (NASDAQ: ACAT) is up more than 19% at $28.40 after posting a new 52-week high of $29.20 earlier today; AT&T Inc. (NYSE: T) is down -2.65% at $29.41; Bristol-Myers Squibb Co. (NYSE: BMY) is down -0.92% at $32.40; Caterpillar Inc. (NYSE: CAT) is up 1.95% at $111.18; Cypress Semiconductor Corp. (NASDAQ: CY) is down more than -11% at $17.03; Lockheed Martin Corp. (NYSE: LMT) is up 0.95% at $82.51; McCormick & Co. Inc. (NYSE: MKC) is up 0.90% at $78.55; Monster Worldwide Inc. (NYSE: MWW) is down more than -20% at $7.18; Potash Corp. of Saskatchewan Inc. (NYSE: POT) is up 1.61% at $45.96; and Raytheon Co. (NYSE: RTN) is up 0.34% at $49.88.

Other standouts from today include the following stocks:

VIST Financial Corp. (NASDAQ: VIST) is up more than 62% at $11.20 after posting a new 52-week high of $11.50 earlier today. The bank holding company has agreed to be acquired by Tompkins Financial Corp. (AMEX: TMP) in an all-stock deal at an 86% premium to last night’s closing price, or about $85 million.

RealNetworks Inc. (NASDAQ: RNWK) is up more than 35% at $9.98. The digital media company has sold a video codec and a number of patents to Intel Corp. (NASDAQ: INTC) for $120 million.

Momenta Pharmaceuticals Inc. (NASDAQ: MNTA) is down nearly -21% at $15.13. The biotechnology company lost its bid for an injunction against certain competitors.

Netflix Inc. (NASDAQ: NFLX) is up about 22% at $116.01. The digital video streaming and rental company reported a better-than-expected number of new subscribers after markets closed last night.

Enterprise Financial Services Corp. (NASDAQ: EFSC) is down more than -19% at $12.51. The bank holding company will restate earnings for 2010 and the first three quarters of 2011 and expects to dilute 2010 earnings by half as a result.

Stay tuned for Friday. New York Fed President William Dudley is giving a speech in the morning. We have noted the following events on the schedule (all times Eastern):

8:30 a.m. – US GDP report
9:55 a.m. – Reuters/University of Michigan consumer sentiment index

Paul Ausick

Filed under: HI/LOW, Market Close, The Day Tagged: ACAT, ARG, BMY, CAT, CHK, CY, EFSC, GD, GLW, GMCR, LMT, MKC, MNTA, MWW, NFLX, POT, RNWK, RTN, T, VALE, VIST

The Week’s Market Losers: Best Buy, Altria, And More

247wallst — Sat, 02 Jul 2011 12:29:03 +0000

Investment bank UBS suggested that smartphone sales have slowed and the the weakest companies in the sector, which includes Motorola Mobility (NYSE: MMI) , might be crippled long-term

Best Buy (NYSE: BBI) was hit with a racial profiling suit.

Tobacco stocks were pressured as Australia pressed for more stringent warnings on packages, a trend which has spread in other developed countries recently

Douglas A. McIntyre

BIGGEST STOCK PRICE LOSERS

FOR WEEK, MONTH (JUNE) AND YEAR-TO-DATE AS OF JUNE 30

S&P 500 WEEK: BOTTOM 10 (24 JUN – 30 JUN)	Ticker	Weekly Price Change (%)	Close Price 30Jun11	Close Price 24Jun11	Market Cap ($Mil)
Motorola Mobility Holdings, Inc.	MMI	-4.6	22.04	23.11	7194.7
Best Buy Co. Inc.	BBY	-3.3	31.41	32.48	11665.4
Lorillard, Inc.	LO	-1.5	108.87	110.49	15786.0
Altria Group Inc.	MO	-1.4	26.41	26.79	56374.9
Urban Outfitters Inc.	URBN	-1.0	28.15	28.43	4514.4
McCormick & Co. Inc.	MKC	-0.9	49.57	50.00	6551.9
Windstream Corporation	WIN	-0.6	12.96	13.04	6614.3
Molex Inc.	MOLX	-0.5	25.77	25.91	4099.5
Quest Diagnostics Inc.	DGX	-0.5	59.10	59.41	9466.1
The Sherwin-Williams Company	SHW	-0.3	83.87	84.13	8731.1
Source: Capital IQ

Filed under: Research Tagged: BBY, DGX, LO, MKC, MMI, MOLX, SWH, URBN, WIN

Top Earnings Previews for the Week Ahead (NKE, AM, FDO, GIS, KBH, MON, APOL, STZ, DRI, MKC, SCHN)

Administrator — Fri, 24 Jun 2011 19:48:12 +0000

We have several key companies reporting earnings this coming week. While most will not be DJIA-moving stocks, there can have a large sector impact or can be volatile around earnings. Nike Inc. (NYSE: NKE) reports on Monday; on Wednesday we have reports from American Greetings Corporation (NYSE: AM), Family Dollar Stores Inc. (NYSE: FDO), General Mills Inc. (NYSE: GIS), KB Home (NYSE: KBH), and Monsanto Co. (NYSE: MON). On Thursday comes reports from Apollo Group Inc. (NASDAQ: APOL), Constellation Brands Inc. (NYSE: STZ), Darden Restaurants Inc. (NYSE: DRI), Mccormick & Co Inc. (NYSE: MKC), and Schnitzer Steel Industries Inc. (NASDAQ: SCHN).

We have provided an earnings preview on each, shown pricing data, and added color if applicable.

Nike Inc. (NYSE: NKE) reports on Monday. Thomson Reuters estimates for the sporting goods and apparel giant are $1.16 EPS and $5.54 billion in revenues; next quarter estimates are $1.27 EPS and $5.67 billion in revenues. With shares around $81.40, its 52-week trading range is $66.34 to $92.49. This one has recovered a bit after getting hit on its last earnings report when shares fell to $77 from $85 before the report.

Wednesday…

American Greetings Corporation (NYSE: AM) is due with its gift and greeting card earnings. Thomson Reuters estimates are $0.78 EPS and next quarter estimates are $0.27 EPS. With shares around $23.62, its 52-week trading range is $17.89 to $24.75. Why do we all accept paying so much for greeting cards?

Family Dollar Stores Inc. (NYSE: FDO) is due to report on Wednesday. Thomson Reuters estimates are $0.95 EPS and $2.17 billion in revenues; next quarter estimates are $0.65 EPS and $2.12 billion in revenues. With shares around $52.25, its 52-week trading range is $35.31 to $56.92. After the buyout interest was there and with sector consolidation being well documented, we’ll be paying close attention to ‘non-earnings news.’

General Mills Inc. (NYSE: GIS) will show us more about how the food business is going. Thomson Reuters estimates are $0.52 EPS and $3.68 billion in revenues; next quarter estimates are $0.69 EPS and $3.7 billion in revenues. With shares around $37.00, its 52-week trading range is $33.11 to $40.00.

KB Home (NYSE: KBH) is due with its homebuilder earnings. Thomson Reuters estimates are -$0.32 EPS and $257.05 million in revenues; next quarter estimates are -$0.05 EPS and $384.54 million in revenues. With shares around $11.75, its 52-week trading range is $9.43 to $16.11.

Monsanto Co. (NYSE: MON) will be key to watch as it has been in a turnaround mode. Thomson Reuters estimates are $1.11 EPS and $3.38 billion in revenues; next quarter estimates are -$0.18 EPS and $2.05 billion in revenues. With shares around $66.00, its 52-week trading range is $44.61 to $76.69.

Thursday…

Apollo Group Inc. (NASDAQ: APOL) is going to turn in its online university earnings, and we’ll get to see how much the pressure added when these were under the Washington scrutiny. Thomson Reuters estimates are $1.34 EPS and $1.2 billion in revenues; next quarter estimates are $0.92 EPS and $1.09 billion in revenues. With shares around $42.00, its 52-week trading range is $33.75 to $53.61.

Constellation Brands Inc. (NYSE: STZ) is due and Thomson Reuters estimates are $0.38 EPS and $648.48 million in revenues; next quarter estimates are $0.59 EPS and $715.92 million in revenues. With shares around $20.83, its 52-week trading range is $14.97 to $23.19.

Darden Restaurants Inc. (NYSE: DRI): Thomson Reuters estimates are $1.00 EPS and $1.99 billion in revenues; next quarter estimates are $0.92 EPS and $1.92 billion in revenues. With shares around $48.52, its 52-week trading range is $37.08 to $52.12. This is one which we think can eventually challenge McDonald’s for the high dividends.

McCormick & Co Inc. (NYSE: MKC) will show the food and spices earnings. Thomson Reuters estimates are $0.54 EPS and $855.16 million in revenues; next quarter estimates are $0.70 EPS and $858.17 million in revenues. With shares around $50.00, its 52-week trading range is $37.37 to $50.68.

Schnitzer Steel Industries Inc. (NASDAQ: SCHN) is historically not a sector moving stock but right now it seems that investors want guidance of any bit from any company. Thomson Reuters estimates are $1.19 EPS and $831.16 million in revenues; next quarter estimates are $1.25 EPS and $841.31 million in revenues. With shares around $53.05, its 52-week trading range is $37.00 to $69.43.

You are invited to join our free daily email distribution list to hear more about analyst upgrades and downgrades, top day trader and active trader alerts, dividend trends, news on Buffett and other investment gurus, IPOs, secondary offerings, private equity, and more.

JON C. OGG

Filed under: Calendar, Earnings, The Week Tagged: AM, APOL, DRI, FDO, GIS, KBH, MKC, MON, NKE, SCHN, STZ

Gold-Plated Dividend Stocks Don’t Get Much Help from Tax Bill (LLY, SVU, TEG, MKC, HRL, ECL, USB, BK, GE, PFE)

Administrator — Thu, 09 Dec 2010 15:56:46 +0000

To make the cut onto the Standard & Poor’s Dividend Aristocrats Index a company has to have paid a dividend every year for at least 25 consecutive years. The index includes at least 40 stocks and is rebalanced every year in December. S&P announced early this month that it was dropping three stocks from the index and adding three others. The dropped stocks are Eli Lilly & Co. (NYSE: LLY), Supervalu Inc. (NYSE: SVU), and Integrys Energy Group Inc. (NYSE: TEG). The additions will be McCormick & Co. Inc. (NYSE: MKC), Hormel Foods Corp. (NYSE: HRL), and Ecolab Inc. (NYSE: ECL).

S&P reported that the Dividend Aristocrats posted an annualized dividend yield of 2.9% in 2009, compared with a yield of 2.01% for the S&P 500 Index. But MarketWatch notes that the Dividend Aristocrats gained an average of just $0.02 from late Monday to Wednesday’s close. That’s a gain of just 0.004%, compared with a gain of 0.4% in the S&P 500.

The proposed tax bill agreed to by President Obama and Republican legislators on Monday extends the 15% tax rate on dividends, but apparently that wasn’t enough to light a fire under the Aristocrats.

The performance of individual companies gets part of the blame for the weak showing. The other part of the blame goes to the temporary nature of the tax deal. In two years, the dividend tax rate could change again. Uncertainty is the bane of a dividend investor’s life.

Yet with all the cash available on corporate balance sheets, and no good place to spend it, the outlook for dividend hikes is promising. US consumers are not spending enough to convince companies to invest in new capacity or new hiring. Until that changes, dividend hikes and even special dividends are far more enticing to shareholders than stock buybacks.

MarketWatch notes that both US Bancorp (NYSE: USB) and Bank of New York Mellon (NYSE: BK) are among the financial sector stocks that could increase dividends in 2011. US Bancorp got bumped from the Dividend Aristocrats for 2010, as did General Electric Co. (NYSE: GE) and Pfizer, Inc. (NYSE: PFE).

Perhaps a larger problem for the Aristocrats than either uncertainty or weak performance by some companies is that as stocks move up, dividend investing looks pretty pokey and old-fashioned. There’s a lot more to be gained that a paltry 2.9%, and the risk is not too great as long as Uncle Sam keeps pumping out new dollars.

Paul Ausick

Filed under: Dividend, Tax Tagged: BK, ECL, GE, HRL, LLY, MKC, PFE, SVU, TEG, USB

Pre-Market Analyst Calls (June 7, 2007)

247wallst — Thu, 07 Jun 2007 06:41:05 +0000

ASML raised to Outperform at Bernstein.
CENT cut to Neutral at B of A.
COBZ raised to Outperform at KBW.
DCP raised to Outperform at CIBC.
DGX raised to Buy at UBS.
ECL raised to Buy at Jefferies.
FNM raised to Outperform at FBR.
GD raised to Overweight at Lehman.
HC raised to Overweight at JPMorgan.
IFX raised to Mkt Perform at Bernstein.
IO started as Buy at Jefferies.
KBR started as Outperform at Credit Suisse.
MHS raised to Buy at UBS.
MKC raised to Outperform at Bear Stearns.
OPTM started as Sector Perform at CIBC.
OREX started as Overweight at JPMorgan.
PDLI cut to Mkt Perform at Wachovia.
PG cut to Equal Weight at Lehman.
RDWR raised to Outperform at CIBC.
VOLV cut to Underweight at JPMorgan.
VRUS started as Outperform at JMP Securities.

Jon C. Ogg
June 7, 2007