DJIA Weekly Wrap: P&G Powers UP Index, GE Orders ESCALATE
Here’s your Cheat Sheet to the Dow stock components’ essential news catalysts from the week ending July 13th:
Alcoa, Inc. (NYSE:AA) has reached new multi-year supply arrangements with a lifetime worth of about $1.4 billion, with Airbus (EADSY), for Alcoa’s leading aerospace aluminum sheet, plate and hard alloy extruded products that utilize Alcoa’s current, advanced-generation and aluminum lithium alloys. The contracts were signed this week during the Farnborough Air Show; other financials were not divulged.
A Closer Look: Alcoa Earnings Cheat Sheet>>
Boeing Co. (NYSE:BA) and the Europe-based TUI Travel PLC have inked a five-year contract for the provision of 787 Dreamliner flight, maintenance and cabin safety training. Additionally, Boeing reported at the Farnborough International Airshow that it will install a second 787 full-flight simulator at its European training headquarters at London Gatwick, through which to support the training requirements of the TUI Group and European 787 customers. Finally, Boeing will supply training for other airplane types operated by Thomson Airways.
Bank of America Corporation (NYSE:BAC): Senate Banking Committee Chairman Tim Johnson (D-SD) announced his staff has started to set “bipartisan briefings with relevant parties” through which to learn more about the Libor allegations, according to the Wall Street Journal. In a statement, the Senator commented that, “It is important that we understand how any manipulation may impact American consumers and the U.S. financial system.” This move broadens the spotlight beyond the Bank of England so as to include regulators in the U.S. who are said to have known of the problem as early as 2007.
EI DuPont de Nemours & Co. (NYSE:DD): The USDA reports that its estimates of corn production prospects have been cut by1.8 billion bushels from June, which takes into account the rapid decline in crop conditions since early June as well as the latest weather data. The agency’s World Agricultural Supply and Demand Estimates report forecast 2012/13 U.S. corn production of 12.97 billion bushels. Lower supply amounts and higher prices are expected to sharply reduce the 2012/13 corn usage, with the biggest reduction expected to be feed and residual disappearance, and is projected to be down 650 million bushels.
General Electric Co. (NYSE:GE) and fellow jet leasing firm Air Lease (NYSE:AL) are providing a $19.7 billion premium for Boeing (NYSE:BA) at the Farnborough air show, while airlines do not seem to be buying, reports Bloomberg.
Hewlett-Packard Company (NYSE:HPQ) and IBM are viewed as new rivals by ABB Ltd. (NYSE:ABB), which is the world’s largest producer of power transformers. ABB sees the two firms as jockeying for orders to protect factories from cyber attacks, says a Bloomberg report.
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International Business Machines Corporation’s (NYSE:IBM) Smarter Commerce Initiative is being utilized by SHOP.CA, Canada’s largest online eCommerce marketplace, for the former’s analytics software which is expected to help engage increasingly empowered online consumers in a unique shopping experience, and also to build loyalty along with a sense of community.
Intel Corporation (NASDAQ:INTC): By the year 2015, some 49 percent of all devices that obtain TV services from 43 of the largest global pay-TV operators who use multiscreen devices, will be PCs, smartphones, and tablets, according to IHS as reported in Digitimes. This number represents a sharp rise from the 18 percent reported in 2011.
Johnson & Johnson (NYSE:JNJ), Pfizer (NYSE:PFE) and Elan (NYS E:ELN) have jointly developed Bapineuzumab, which is an investigational treatment its owners hope will be first broadly available drug designed to target a cause of Alzheimer’s, rather than just its symptoms, according to a Bloomberg report. An analyst at ISI estimates that the med has but a 25 percent chance for FDA approval; data from late-stage trials of the treatment, as well as one from Lilly (NYSE:LLY), are not expected before October, but the therapies will be explored next week at the Alzheimer’s Association International Conference.
JPMorgan Chase & Co. (NYSE:JPM) CEO Jamie Dimon’s agenda for this week includes the restoration of investor confidence. The now-famous executive will meet with analysts for two hours on July 13 at the bank’s New York headquarters to field questions, according to Bloomberg.
Don’t Miss: JPMorgan Earnings Cheat Sheet>>
McDonald’s Corp. (NYSE:MCD) Canada Executive Chef Dan Coudreaut walks viewers through the process of making a Big Mac at home in a new public relations campaign designed to help the company seem more in touch with its fans. In the video, Coudreaut reveals that every ingredient used to make both the Big Mac and the special sauce are available in any local grocery store.
Microsoft Corporation (NASDAQ:MSFT) is among several firms that are ‘requested’ to offer terms to Vevo, in an effort to persuade it to renew its contract with YouTube, says the Los Angeles Times. Doug Morris, the founder of Vevo, which is the music service jointly owned by Sony Music (NYSE:SNE), Universal Music (VIVHY), and Abu Dhabi Media, advises warned Google (NASDAQ:GOOG) that if the terms of its contract are not improved in its favor it might not renew with YouTube. Firms invited to offer deals to Vevo, along with Microsoft, include Facebook (NASDAQ:FB), Apple (NASDAQ:AAPL) and Amazon.com (NASDAQ:AMZN).
Boeing Co. (NYSE:BA) and Airbus (EADSY) currently have orders for over 8,000 aircraft, which should keep them occupied for six years, but they have to depend upon their suppliers for their ability to meet the demand on time, and it is unclear if they will be able to cope, according to a Reuters report.
Bank of America Corporation’s (NYSE:BAC) Countrywide, (acquired in 2008), assessed higher fees and interest rates on more than 200,000 black and Hispanic borrowers, said the Justice Department, as it extracted a record $335 million from the parent company in a deal announced in December. The Obama administration has stepped up scrutiny of banks to discourage loan discrimination as the housing bust drives loan defaults.
EI DuPont de Nemours & Co. (NYSE:DD) and Fiber-Line are partnering to develop a new protective plan to better connect the world. The latter has introduced a new line of cable components for broadband communications and above-ground installations, ensured by the durability, flexibility and lightweight strength of DuPont Kevlar fibers. With its patented Swellcoat tech, Fiber-Line’s new array of products eliminate water penetration, thus providing continued, reliable information flow.
Walt Disney Co. (NYSE:DIS) is among owners of large TV networks whose shares are slumping, following the news that a federal judge denied the networks’ request to shut down a competing online TV service. The service, called Aereo, allows users to view network TV shows on their mobile devices. U.S. District Judge Alison Nathan refused to grant a preliminary injunction during which time the networks’ copyright lawsuit against Aereo is litigated, says Bloomberg. On Thursday morning Wells Fargo noted to investors that Judge Nathan had written that the networks “have not shown a high likelihood of success on the merits” of their lawsuit. Howeever, Wells doesn’t think that the networks stand a real risk of losing their retransmission fees, and that Aereo does not seem to be a compelling product, and consequently isn’t a real threat to the “TV ecosystem.” Nonetheless, In early trading, News Corp. (NASDAQ:NWSA) shares fell 1.24 percent to $21.42, CBS (NYSE:CBS) slipped 2.94 percent to $30.01, Comcast (NASDAQ:CMCSA) 1.243 percent to $31.33, and Disney lost 0.47 percent to $47.05.
General Electric Co. (NYSE:GE): Bloomberg stated that GE orders exceeded the $8-$10B forecast that was predicted before their air show.
Hewlett-Packard Company (NYSE:HPQ): Hewlett-Packard’s (NYSE:HPQ) Deputy General Counsel, Paul Porrini, has resigned from the company, reported All Things D. According to his LinkedIn profile, Porrini, has taken another job as General Counsel and Secretary at YuMe, a video ad company. HP’s shares traded down $0.42 (2.13%) recently at $19.27.
Don’t Miss: Analyst: June iPad Sales Will SMASH Records.
International Business Machines Corp. (NYSE:IBM): After adopting IBM’s Smarter Computing approach to IT, several months ago, the company announced that Suffolk Life, one of the U.K.’s leading providers and administrators of specialist pensions, had decreased their energy consumption, and were still able to meet an increased demand from customers. In the four weeks following the completion of the project, overall power consumption, at Suffolk Life, was reduced by 37%, and a projected savings of approximately 30k pounds of Sterling per year was delivered. The company’s shares traded down $2.65 (1.43%), recently at $182.60.
Intel Corporation (NASDAQ:INTC): The Wall Street Journal said that research from Gartner Inc. (NYSE:IT) and International Data Corporation has shown that PC growth, during the second quarter, has stalled. This is in spite of the fact that there is heavy marketing by Intel (NASDAQ:INTC)and their customers, to push new Ultrabook notebooks.
Johnson & Johnson’s (NYSE:JNJ) ASR all-metal artificial hips were recalled two years ago in a move that cost the firm $3 billion, and now J&J might be liable for additional damaging and costly lawsuits, says Reuters. Currently, the Pinnacle metal-on-metal hip system, which was the successor to ASR, has about 1,600 lawsuits pending in U.S. courts. Physicians who keep track of large groups of patients with both products calculate that more than 10 percent of the Pinnacle all-metal hips will have failed during the next two to three years.
Don’t Miss: Analyst: June iPad Sales Will SMASH Records.
JPMorgan Chase & Co. (NYSE:JPM) has become the number one firm in U.S. equities research, according to a ranking of U.S. stock analysts by consulting firm Greenwich Associates, in association with Bloomberg Markets. Bank of America (NYSE:BAC) came in second, with Morgan Stanley (NYSE:MS) in third place, according to a Bloomberg report.
McDonald’s Corporation’s (NYSE:MCD) recently retired CEO James A. Skinner has been appointed as the new non-executive chairman of the board of Walgreens (NYSE:WAG), which is consistent with its board of directors succession and rotational planning process. Skinner has been a Walgreens board member since 2005, and will take the place of Al McNally, who has served on the Walgreens board since 1999 and as the firm’s non-executive chairman since 2009.
Microsoft Corporation (NASDAQ:MSFT) enters into a five-year Enterprise Agreement with the U.S. Department of Veterans Affairs, as it renews its commitment with the firm. The new arrangement should provide the flexibility to best suit users’ requirements and to help optimize the department’s technology expenditures, by allowing the VA access to all Microsoft’s current and oncoming technologies, which include Windows 7, Windows Server 2012, Microsoft SQL Server 2012, Microsoft SharePoint 2010, Microsoft Dynamics CRM, Microsoft System Center 2012, Bing Maps, the full suite of Microsoft Visual Studio developer tools, and many other products and services, including mobile devices.
Pfizer Inc. (NYSE:PFE) granted an exclusive license to VS-6063 to Verastem (VSTM), for which the latter provided updates to the product portfolio and advancements in the research and development pipeline. VS-6063, a focal adhesion kinase inhibitor that has completed a Phase 1 clinical evaluation in advanced solid tumors, was well tolerated, showed signs of clinical activity in the study, and is expected to enter into a Phase 2 mesothelioma evaluation in mid-2013. Upon completion, a positive Phase 2 in mesothelioma could yield an opportunity for an accelerated FDA approval. Clinical development is expected to begin in mid-2013 in advanced solid tumors with a high percentage of cancer stem cells.
Procter & Gamble Co. (NYSE:PG): Consumer products companies are employing new tech to discover what shoppers really think, by finding out what they say, according to the WSJ. They’re joining 3D computer simulations of product designs, and layouts of stores with tech that tracks eye movement, which is helping them launch new products more rapidly and create designs and shelf layouts that increase sales.
Wal-Mart Stores Inc. (NYSE:WMT) Sam’s Club is currently taking pre-orders for Google’s (NASDAQ:GOOG) Nexus 7 tablet, says the Sam’s Club’s website, which added that the device is expected to be shipped to the stores between July 17 and July 20.
Microsoft Corporation (NASDAQ:MSFT) operating systems were utilized in a bit more than 10 percent of domestic smartphone subscribers’ devices in June, according to 9to5Google, citing Nielson results. The top operating system in these devices was Google’s (NASDAQ:GOOG) Android operating system with 51 percent; next was 34 percent with Apple’s (NASDAQ:AAPL) iPhone, and 9 percent with Research In Motion’s (NASDAQ:RIMM) Blackberry.
Pfizer Inc. (NYSE:PFE): Some 16 emerging markets, including Brazil, China and Russia, will make up one third of worldwide drug expenditures within the next four years, and increasing spending in emerging pharmaceutical markets will drive the industry’s global sales growth by 2016, according to Bloomberg, citing a report by the IMS Institute for Healthcare Informatics.
Procter & Gamble Co. (NYSE:PG) should not be split in two, according to a source close to the firm, since there exists “real evidence that splitting could hurt them,” reports the New York Post. In addition, an advisor to consumer companies believes that activist investor Bill Ackman, whose Pershing Square purchased an undisclosed stake in P&G on Thursday, will probably push for a new board and chief executive.
Verizon Communications Inc. (NYSE:VZ): The Justice Department is delaying Verizon Wireless’s $3.9 billion deal to purchase cable company airwaves over worries that a related agreement will hurt competition for broadband Internet service, according to sources to the Wall Street Journal.
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