Tuesday: E.I. DuPont de Nemours & Co. (NYSE: DD); Johnson & Johnson (NYSE: JNJ); McDonald’s Corporation (NYSE: MCD); Travelers Cos. Inc. (NYSE: TRV); and Verizon Communications Inc. (NYSE: VZ)

Wednesday: Boeing Co. (NYSE: BA) and United Technologies Corporation (NYSE: UTX)

Thursday: AT&T Inc. (NYSE: T) and Caterpillar Inc. (NYSE: CAT)

Friday: Chevron Corporation (NYSE: CVX) and Procter & Gamble Co. (NYSE: PG).

We have compiled Thomson Reuters estimates, when the earnings are due, and what the share pricing has been on each, and added in additional color if applicable.

TUESDAY

E.I. DuPont de Nemours & Co. (NYSE: DD), or just DuPont, just declared its normal dividend but it reports on Tuesday morning.  The chemicals giant is expected to have earnings of $0.33 EPS and $8.53 billion in revenues. Shares are just under $50.00 and the 52-week range is $37.10 to $57.00.

Johnson & Johnson (NYSE: JNJ) has news of a patent loss ahead of its earnings report due Tuesday morning.  The drug, medical products, and consumer products giant is expected to report earnings of $1.10 EPS and $16.28 billion in sales.  With shares close to $65.00, the 52-week range is $57.50 to $68.05.

McDonald’s Corporation (NYSE: MCD) reports on Tuesday morning and the Golden Arches’ estimates for the fast food giant are $1.29 EPS and $6.80 billion in sales.  Shares are within yet another hair of another all-time high and it has recently talked up sales and has already raised its dividend.

Travelers Cos. Inc. (NYSE: TRV) is still probably the most forgotten financial stock of the DJIA components.  The insurer is expected to report earnings of $1.52 EPS and $5.47 billion in sales.  With shares above $61.00, the 52-week trading range is $45.97 to $64.17.

Verizon Communications Inc. (NYSE: VZ) is due to lead of the telecom sector on Tuesday morning and earnings are expected to be $0.53 EPS on $28.4 billion in revenues.  With shares around $39.00, the 52-week range is $32.28 to $40.48.

WEDNESDAY

Boeing Co. (NYSE: BA) may have a boost from the rival A380 having cracks in its wings, if the rationale is not one that “all super-jumbos ar scary.”  Boeing reports Wednesday morning and the aerospace and defense giant is expected to report $1.00 EPS and $19.4 billion in revenues. With shares around $75.50, the 52-week range is $56.01 to $80.65.

United Technologies Corporation (NYSE: UTX) still appears to be the conglomerate with the most upside in 2012 according to analysts and GE’s recent earnings reaction has not done much to really amp-up expectations.  The earnings are due Wednesday morning and the consensus targets are $1.46 EPS and $15.07 billion in revenues.  With shares under $77.00, the 52-week range is $66.87 to $91.83 and the consensus price target is $89.44.

THURSDAY

AT&T Inc. (NYSE: T) is due on Thursday morning and estimates are $0.45 EPS and $31.94 billion in sales.  Shares are back above $30 around $30.40 and the 52-week range is $27.20 to $31.94.

Caterpillar Inc. (NYSE: CAT) is expected to report Thursday morning and estimates are $1.73 EPS and $16.04 billion in sales.  With shares back above $105.00, the 52-week range is $67.54 to $116.55 and the consensus price target is now $115.28.

FRIDAY

Chevron Corporation (NYSE: CVX) is due with earnings Friday morning and the oil giant’s consensus estimates are $2.93 EPS and $71.08 billion in sales.  With shares around $106.40, the 52-week range is $86.68 to $110.99 and the consensus price target is $124.95.  Keep in mind that Chevron is the second highest weighting in the DJIA due to its high share price.

Procter & Gamble Co. (NYSE: PG) is due to post the consumer product giant earnings report Friday morning.  The consensus estimates are $1.08 EPS and $22.2 billion in sales.  Shares are trading around $66.10 and the 52-week range is $57.56 to $67.72 and the consensus target is $72.37.

We will be releasing more detailed previews on each of these the day ahead of each earnings report this week.  Additional data will be around forward earnings estimates for guidance, what the implied valuations are, color on what to look for in addition to earnings, as well as opinions from analysts, what the charts are showing, and what the options traders are expecting for a price move.

JON C. OGG

We have compiled Thomson Reuters estimates, when the earnings are due, and what the share pricing has been on each, and added in additional color if applicable.  There are a few additional themes we would watch: dividend coverage, how a strong dollar is impacting earnings and competitiveness, making earnings on cost monitoring while revenues may be soft, and exposure to Europe.

TUESDAY

E.I. DuPont de Nemours & Co. (NYSE: DD), or just DuPont, reports on Tuesday morning.  The chemicals giant is expected to have earnings of $0.33 EPS and $8.53 billion in revenues. Shares are just under $50.00 and the 52-week range is $37.10 to $57.00.

Johnson & Johnson (NYSE: JNJ) is due Tuesday morning.  The drug, medical products, and consumer products giant is expected to report earnings of $1.10 EPS and $16.28 billion in sales.  With shares close to $65.00, the 52-week range is $57.50 to $68.05.

McDonald’s Corporation (NYSE: MCD) is due to report on Tuesday morning and estimates for the fast food giant are $1.29 EPS and $6.80 billion in sales.  Shares are within yet another hair of another all-time high and it has recently talked up sales and has already raised its dividend.

Travelers Cos. Inc. (NYSE: TRV), the most forgotten financial stock of the DJIA, is expected to report earnings of $1.52 EPS and $5.47 billion in sales.  With shares above $61.00, the 52-week trading range is $45.97 to $64.17.

Verizon Communications Inc. (NYSE: VZ) is due to lead of the telecom sector on Tuesday morning and earnings are expected to be $0.53 EPS on $28.4 billion in revenues.  With shares around $39.00, the 52-week range is $32.28 to $40.48.

WEDNESDAY

Boeing Co. (NYSE: BA) is due Wednesday morning and the aerospace and defense giant is expected to report $1.00 EPS and $19.4 billion in revenues. With shares around $75.50, the 52-week range is $56.01 to $80.65.

United Technologies Corporation (NYSE: UTX) may be the conglomerate with the most upside in 2012 according to analysts.  The earnings are due Wednesday morning and the consensus targets are $1.46 EPS and $15.07 billion in revenues.  With shares under $77.00, the 52-week range is $66.87 to $91.83 and the consensus price target is $89.44.

Read Also: Why The DJIA Could Peak Up 12% at 13,678 in 2012

THURSDAY

AT&T Inc. (NYSE: T) is due on Thursday morning and estimates are $0.45 EPS and $31.94 billion in sales.  Shares are back above $30 around $30.40 and the 52-week range is $27.20 to $31.94.

Caterpillar Inc. (NYSE: CAT) is expected to report Thursday morning and estimates are $1.73 EPS and $16.04 billion in sales.  With shares back above $105.00, the 52-week range is $67.54 to $116.55 and the consensus price target is now $115.28.

FRIDAY

Chevron Corporation (NYSE: CVX) is due with earnings Friday morning and the oil giant’s consensus estimates are $2.93 EPS and $71.08 billion in sales.  With shares around $106.40, the 52-week range is $86.68 to $110.99 and the consensus price target is $124.95.  Keep in mind that Chevron is the second highest weighting in the DJIA due to its high share price.

Procter & Gamble Co. (NYSE: PG) is due to post the consumer product giant earnings report Friday morning.  The consensus estimates are $1.08 EPS and $22.2 billion in sales.  Shares are trading around $66.10 and the 52-week range is $57.56 to $67.72 and the consensus target is $72.37.

We will be releasing more detailed previews the day ahead of each DJIA earnings report this coming week.  Additional data will be around forward earnings estimates for guidance, what the implied valuations are, color on what to look for in addition to earnings, as well as opinions from analysts, what the charts are showing, and what the options traders are expecting for a price move.

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AGCO Corporation (NYSE: AGCO) Maintained Outperform as Bull of the Day at Zacks.
Apollo Group Inc. (NASDAQ: APOL) Reiterated Outperform and Raised Target to $60 at Credit Suisse.
Boston Scientific Corporation (NYSE: BSX) Maintained Hold but lowered estimates at Argus.
Career Education Corporation (NASDAQ: CECO) Cut to Hold at Argus.
Dendreon Corporation (NASDAQ: DNDN) Reiterated Neutral with $10 target at Baird.
FedEx Corporation (NYSE: FDX) Started as Outperform at Wells Fargo.
Goldman Sachs Group Inc. (NYSE: GS) Cut to Market Perform by Wells Fargo.
Huntsman Corporation (NYSE: HUN) named as Value Stock of the Day at Zacks.
Illinois Tool Works. Inc. (NYSE: ITW) Cut to Neutral at Credit Suisse.
Intel Corporation (NASDAQ: INTC) Cut to Neutral at Stern Agee.
Kohl’s Corporation (NYSE: KSS) Cut to Hold at Argus.
SanDisk Corporation (NASDAQ: SNDK) Raised to Buy at Stern Agee.
TD AMERITRADE Holding Corporation (NASDAQ: AMTD) Raised to Buy at Deutsche Bank.
The Travelers Companies, Inc. (NYSE: TRV) Raised to Outperform at Wells Fargo.
United Parcel Service, Inc. (NYSE: UPS) Started as Market Perform at Wells Fargo.
Urban Outfitters Inc. (NASDAQ: URBN) Started as Underperform and named as Bear of the Day at Zacks.
Vodafone Group PLC (NYSE: VOD) Raised to Buy at Goldman Sachs.
Zhongpin, Inc. (NASDAQ: HOGS) Started as outperform at Oppenheimer.

If you enjoyed this morning’s Wall Street research notes, you can sign up to receive these directly in your inbox each morning by joining our free email list in the box below.  We also include major movers, key stock calls, news on Warren Buffett and other gurus, as well as special exclusive feature stories.

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JON C. OGG

The big question is whether or not the economy can hold up enough to support gains of that magnitude.  China and India are both still soft, Europe is in crisis, corporate profits are slowing, and many are still very uncertain in the economy.  The good side of the equation is that many corporations are still managing to grow their profits, companies are buying back stock, and they are still raising their dividends.  After our peak forecast of 13,678 for the DJIA at some point in 2012, we just published the five DJIA stocks with the most implied upside but now we want to know which five of the thirty DJIA stocks may have the least appreciation opportunity for investors in 2012.

The least attractive stocks in the DJIA are The Home Depot, Inc. (NYSE: HD), McDonald’s Corporation (NYSE: MCD), The Travelers Companies, Inc. (NYSE: TRV), Verizon Communications Inc. (NYSE: VZ), and Wal-Mart Stores Inc. (NYSE: WMT).  We took a look at the share prices with the expected move to the Thomson Reuters consensus data on each and added color and other data on each.

The Home Depot, Inc. (NYSE: HD) might seem like a no-brainer for limited upside when you consider the poor state of the housing market.  Amazingly, this one was a major performing stock at the end of 2011 and the stock was up a massive 50% from its 52-week low.  It is as if the market is trying to signal a major resurgence of home improvements ahead.  At $42.04, the implied upside is only 1.2% if the consensus price target from analysts of $42.55 is all that the stock can rise to.  Imagine if the company starts giving really good news again.

Read Also: The Highest Yielding DJIA Stocks, The Dogs of the Dow

McDonald’s Corporation (NYSE: MCD) was the top DJIA performing stock in 2011, so it should be no shock at all that there is little implied upside to the consensus analyst price target.  At $100.33, the consensus upside is only about 3.1% to the target of $103.48.  Its shares also just at the end of 2011 hit new all-time highs and media and market pundits expect strong performance ahead to remain.  if so, then analysts will have to raise their price targets.  It already yields close to 3% in dividends and its payout was recently raised.

The Travelers Companies, Inc. (NYSE: TRV) has been an anomaly for investors.  While banks and many financial stocks have been in the gutter for 2011, it ended 2011 within just a few percent of a multi-year high.  At $59.17, the Thomson Reuters consensus price target of $61.37 leaves only 3.7% implied upside and the 52-week trading range is $45.97 to $64.17.  It does have a 2.8% yield.  This is often considered the least visible of the thirty DJIA stocks, so maybe there is more to this story than what the analysts think.

Verizon Communications Inc. (NYSE: VZ) was the only one of the thirty DJIA stocks which ended up above its consensus price target objective.  Shares closed at $40.12, about 2.5% above the Thomson Reuters target of $39.14.  Still, the telecom giant has a massive 5% dividend yield and its shares just hit a 52-week at the end of last week.

Wal-Mart Stores Inc. (NYSE: WMT) is almost odd to see here because it was so unattractive for years.  This time is has the least implied upside to its consensus price target from Thomson Reuters of $61.70 because its stock has been trying to make new multi-year highs.  At $59.76, that leaves only about 3.2% implied upside, but it has a 2.4% dividend that should be raised very soon and its 52-week trading range is $$48.31 to $60.00.  While it has a low dividend, this is actually a really high yield compared to most retail stocks.  It will not be surprising if analysts start to see more upside by raising their price targets.

Before you run out thinking that all of the analysts will be right, consider how the game is played on Wall Street.  As share prices rise, analysts tend to get more positive and tend to raise their price targets further.  Conversely, they tend to lower expectations and price targets if share prices fall.  It is just part of the game.

If the DJIA does somehow manage to hit that 12% gain to 13,678, it would seem very unlikely that these five get left in the dust.

JON C. OGG

Allstate Corporation (NYSE: ALL) Started as Outperform at Credit Suisse.
Amazon.com Inc. (NASDAQ: AMZN) Started as Hold with $225.00 price target “due to low margins through 2012″ at Canaccord Genuity.
The Blackstone Group LP (NYSE: BX) Raised to Buy with $20.00 price target at Argus.
CenturyLink, Inc. (NYSE: CTL) named as value stock of the day at Zacks.
Chubb Corporation (NYSE: CB) Started as Outperform at Credit Suisse.
Darden Restaurants Inc. (NYSE: DRI) Cut to Hold from Buy at Argus.
Freescale Semiconductor Inc. (NYSE: FSL) Reinstated as Outperform at Credit Suisse.
GeoResources, Inc. (NASDAQ: GEOI) Started as Buy with $43 price target “on a concentrated Eagle Ford/Bakken exposure” by Canaccord Genuity.
Google Inc. (NASDAQ: GOOG) was initiated with a ‘Buy’ rating and $725.00 price target “on robust growth and great value” by Canaccord Genuity.
JDS Uniphase Corporation (NASDAQ: JDSU) Started in new coverage as Buy with a $14.75 price target at Jefferies.
LinkedIn Corporation (NYSE: LNKD) Started as Buy with $85 price target as “growth trumps valuation” by Canaccord Genuity.
Peabody Energy Corporation (NYSE: BTU) Downgraded to Neutral from Buy with $43 price target by Goldman Sachs.
Public Service Enterprise Group Inc. (NYSE: PEG) Downgraded to Neutral from Buy with $33 price target at Goldman Sachs.
Quest Diagnostics Inc. (NYSE: DGX) Started as Hold with $51 target at Auriga.
The Talbots, Inc. (NYSE: TLB) maintained Neutral with $3.00 fair value by Janney Capital Markets.
Travelers Cos. Inc. (NYSE: TRV) Started as Outperform at Credit Suisse.
Unisys Corporation (NYSE: UIS) Raised to Outperform as Bull of the Day at Zacks.
UnitedHealth Group Inc. (NYSE: UNH) added to the US Focus List at Credit Suisse.
Urban Outfitters, Inc. (NASDAQ: URBN) Maintained Neutral with $23.00 price target at Janney Capital Markets.
Willis Group Holdings, PLC (NYSE: WSH) named Bear of the Day at Zacks.

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If you add up the past 12 SPDR Dow Jones Industrial Average (NYSE: DIA) dividend payments, the DJIA yield has been almost 2.5% over the last year. The good news is that the yield is already higher if you include the hikes that are likely to be announced. The price of the DJIA today should offer what will be closer to a 3% dividend yield in 2012.

The list of the 30 DJIA components is very long, but we have reviewed each and all of the following: Alcoa (NYSE: AA), American Express (NYSE: AXP), AT&T (NYSE: T), Bank of America (NYSE: BAC), Boeing (NYSE: BA), Caterpillar (NYSE: CAT), Chevron (NYSE: CVX), Cisco Systems (NASDAQ: CSCO), Coca-Cola (NYSE: KO), DuPont (NYSE: DD), Exxon Mobil (NYSE: XOM), General Electric (NYSE: GE), Home Depot (NYSE: HD), Hewlett-Packard (NYSE: HPQ), International Business Machines (NYSE: IBM), Intel (NASDAQ: INTC), Johnson & Johnson (NYSE: JNJ), JPMorgan Chase (NYSE: JPM), Kraft Foods (NYSE: KFT), McDonald’s (NYSE: MCD), 3M (NYSE: MMM), Merck & Company (NYSE: MRK), Microsoft (NASDAQ: MSFT), Pfizer (NYSE: PFE), Procter & Gamble (NYSE: PG), Travelers Companies (NYSE: TRV), United Technologies (NYSE: UTX), Verizon Communications (NYSE: VZ), Walmart Stores (NYSE: WMT) and finally Walt Disney (NYSE: DIS).

We have broken out each DJIA component to review the history and expected dividend action individually. While this is a no short read, dividend and income investors better pay close attention here. Value investors should pay attention as well. It is these DJIA components that are often considered as the prize of the sector and many peers are facing the same trends today and tomorrow. Our review focuses on when the last hikes have been seen, when the next dividend hike will come, and what the price and implied upside to the Thomson Reuters consensus price target offers. We also even have shown an expected income payout ratio on each if applicable to further show which companies can boost their payouts ahead.

Alcoa is still hanging its hat on the notion that the aluminum market will double by 2020, so we have to at some point expect the DJIA component to boost its dividends again in the years ahead. Still, the company is trying to accumulate more liquidity and the current climate is a choppy one for metals players. The dividend has been stuck at $0.03 since the first of 2009 and it was $0.17 per quarter before then. Any hikes might only be nominal until the business climate becomes a bit more steady and predictable. The 1.1% is very unimpressive for a DJIA component and we have no great dividend ambitions in the near-term for Alcoa, even if only 10% to 15% of expected 2012 income is slated for payouts. At $10.35, the consensus price target of about $13.25 is well under the 52-week high of $18.47.

American Express has had its dividend steady at $0.18 per quarter since its January 2008 payment and the current yield is only 1.4%. The company’s credit metrics keep improving and its payout is not quite 19% of expected earnings next year. Still, this is a financial stock and it is hard to a financial stock to boost dividends right now. It has no branch bank operations but the climate remains tenuous. At $49.70, the consensus price target is around $55.75 if you trust price targets on financial firms.

AT&T has had four quarters in a row of $0.43 and it has a history of raising its dividend each year. The question that hangs over it is the regulatory block over the T-Mobile buyout and the huge penalty that AT&T will ultimately have to pay out of it cannot clear regulatory hurdles. This is one of the dividend stars with a 5.8% yield but it also pays out more than 70% of its expected income. Another hike is possible, but our take is that the dividend yields are now so high that telecom giants will only ratchet them up slightly. At $29.20, the consensus price target is $31.90.

Alon USA Energy, Inc. (NYSE: ALJ) is the value stock of the day at Zacks.
Apache Corp. (NYSE: APA) Started as Buy at Deutsche Bank.
Carbonite, Inc. (NASDAQ: CARB) Started as Buy at Canaccord Genuity; Started as Outperform at Oppenheimer; Started as Outperform at William Blair; Started as Buy at BofA/ML.
Chesapeake Energy Corporation (NYSE: CHK) Started as Hold at Deutsche Bank.
Devon Energy Corporation (NYSE: DVN) Started as Hold at Deutsche Bank.
JinkoSolar Holding Co., Ltd. (NYSE: JKS) Cut to Neutral at Credit Suisse.
Logitech International SA (NASDAQ: LOGI) Cut to Sell at Goldman Sachs.
Marvell Technology Group Ltd. (NASDAQ: MRVL) Cut to Market Perform at JMP Securities.
MGM Resorts International (NYSE: MGM) Raised to Overweight at Morgan Stanley.
Molycorp, Inc. (NYSE: MCP) Cut to Neutral at JPMorgan.
Mosaic Co. (NYSE: MOS) Raised to Sector Outperform at CIBC.
PulteGroup, Inc. (NYSE: PHM) Raised to Buy at UBS.
SandRidge Permian Trust (NYSE: PER) Started as Outperform at Oppenheimer; Started as Market Weight at Wells Fargo; Started as Outperform at Baird.
SAP AG (NYSE: SAP) Raised to Outperform at Wells Fargo.
SM Energy Co. (NYSE: SM) named Bull of the Day at Zacks.
The Travelers Companies, Inc. (NYSE: TRV) Raised to Buy at Goldman Sachs.
VMware, Inc. (NYSE: VMW) Started as Buy at Merriman (Monday night).

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Imagine a world where an investor, before federal income tax and before inflation, is willing to loan a cash-strapped and debt-burdened nation funds that will only roughly double in thirty years.  What about Dow Jones Industrial Average stocks that yield more than the 30-Year Treasury?

• AT&T Inc. (NYSE: T) yields about 6.2% after the trouble arose from the T-Mobile deal, and at $28.22 it is down 11.5% from its 52-week high.
• Chevron Corporation (NYSE: CVX) yields 3.30%, and at $96.75 it is down 11.9% from its 52-week high.
• Dupont, or EI DuPont de Nemours & Co. (NYSE: DD) yields 3.7%, and at $45.20 it is down just over 20% from its 52-week high.
• General Electric Co. (NYSE: GE) is now close to a 4.0% dividend yield, and at $15.57 it is down 28% from its 52-week high.
• Intel Corporation (NASDAQ: INTC) now yields 4.1%, and at $21.05 it is down about 12% from its 52-week high.
• Johnson & Johnson (NYSE: JNJ) now yields about 3.6%, and at $63.50 it is down 6.7% from its 52-week high.
• Kraft Foods Inc. (NYSE: KFT) yields 3.4%, and at $34.35 it is down 5% from its 52-week high.
• Merck & Co. (NYSE: MRK) yields about 4.8%, and at $31.95 it is down 15% from its 52-week high.
• Pfizer Inc. (NYSE: PFE) yields 4.4%, and at $18.30 it is down almost 15% from its 52-week high.
• Procter & Gamble (NYSE: PG) yields 3.4%, and at $62.56 it is down 7.6% from its 52-week high.
• The Travelers Companies, Inc. (NYSE: TRV) yields 3.3%, and at $48.75 it is down 24% from its 52-week high.
• Verizon Communications Inc. (NYSE: VZ) yields 5.7%, and at $35.40 it is down 9% from its 52-week high.

These incredibly yields almost certainly will have to compete with higher interest rates at some point over the next 29.875 years.  That means that the face value will likely be lower, and the face value (market price) could possibly be significantly lower.  To become a member of the famed Dow Jones Industrial Average, a company is supposed to have significant ability to maintain a dividend payout through most business cycles and they are expected to be key contributors of the economy.

With this many yields this high, will these share prices remain under pressure at all points along the next 30-years?  Some might say yes, but this is making stocks look dirt cheap.  That is why they call it “Risk versus the safety premium.”

JON C. OGG

Our intent is not to overhype the news like much of the media appears to have done.  Still, it is hard to not notice that this storm system has already developed into a formally named system while it is still located closer to Africa than it is to the Caribbean.  The media will probably play this one up on the “K” angle as it was Katrina that was such a hard lesson for the U.S. before.  Insurers will undoubtedly be watching this system in the days ahead regardless of which letter of the alphabet it has.  What makes this system unique is that the current trajectory is actually heading to what could be some of the same storm-damaged areas as Irene.  That would not be a welcoming event and we would only hope that the trajectory changes to send this up north to just dissipate in the colder waters of the North Atlantic.

Allstate Corporation (NYSE: ALL) and The Travelers Companies, Inc. (NYSE: TRV) have exposure in the areas around North Carolina as well as exposure further up the coast.  The Chubb Corporation (NYSE: CB) has exposure in New York and on north throughout southern New England.  Hartford Financial Services Group Inc. (NYSE: HIG) was on CNBC this week almost talking down some of the damages from the storm, which is a relief to everyone.

Berkshire Hathaway Inc. (NYSE: BRK-B) has insurance and/or reinsurance exposure, and Everest Re Group Ltd. (NYSE: RE) and PartnerRe Ltd. (NYSE: PRE) were also up on Monday after the damages were lower than the reinsurance threshold even while they are all set to raise rates.

The wild card in hurricane season is a small company called Crawford & Company (NYSE: CRD-B).  This outfit provides claims management solutions to insurance companies and self-insured entities.  Think of Crawford, well its associates, as army of individuals as insurance claims adjusters.

Lowe’s Companies Inc. (NYSE: LOW) and The Home Depot, Inc. (NYSE: HD) have slid after a poor confidence number, but they are obvious potential beneficiaries if any real hurricane damage comes.

A new update will be made around 11:00 AM or 2:00 PM EST, but as of now the National Hurricane Center issued advisories on the newly named storm.  This one is still quite a ways out at 535 miles from the Cape Verde islands.  Current maximum sustained winds are 35 knots (40 MPH) and it is moving West-Northwest at 15 knots (17 MPH). If the storm does not peter-out and continues at the same pace, this looks like it would be an issue for the Eastern Seaboard again the weekend after Labor Day.

Again, this is a storm which could change its path or it could just fizzle out all on its own.  We certainly hope it does that or even that it drifts north and just fizzles out in the colder North Atlantic.  We’ll be keeping an eye on Katia in the days ahead.

JON C. OGG

Here is the current NOAA image with a projected path (updated link path here):

What was bad news for insurance and reinsurance stocks last week is suddenly good news this week.  The insurance losses also appear to be low enough that most of the big reinsurance players appear to be escaping Irene’s liabilities either unscathed or only with a small amount.

Allstate Corporation (NYSE: ALL) and The Travelers Companies, Inc. (NYSE: TRV) have exposure in the areas around North Carolina, where the brunt of the hurricane force hit.  They both also had exposure further up the coast. Travelers is now up 3.4% at $49.97 and Allstate is up 4.5% at $25.32.

The Chubb Corporation (NYSE: CB) has exposure in New York and on north throughout southern New England and its shares are up 3.7% at $61.62 on the day.  Hartford Financial Services Group Inc. (NYSE: HIG) is also up over 4% at $18.00 this morning.

Berkshire Hathaway Inc. (NYSE: BRK-B) would have had exposure from insurance and/or reinsurance losses… This is being treated as lower now in liabilities and shares are up 2.5% at $71.72 so far on the news.  Everest Re Group Ltd. (NYSE: RE) is up 3.6% at $79.96 and PartnerRe Ltd. (NYSE: PRE) is up 3.7% at $56.40.

The surprise is actually in Crawford & Company (NYSE: CRD-B).  The company had a near-40% gain last week as it provides claims management solutions to insurance companies and self-insured entities.  Think of this as an employment clearing house for insurance claims adjusters.  This one is up again by more than 2% at $7.08, but after last week’s huge gain it would be one we would view a bit more cautiously.

This is one of those situations where less-bad news is good news.

JON C. OGG