DJIA Week in Review: Coca-Cola Stock Split, IBM to Partner with Cloudera
The Dow is up 0.43 percent today and currently stands at 13,056. These stocks are moving on the following news:
Boeing Co.’s (NYSE:BA) net orders for the first quarter totaled $42 billion, due to jumps in backlogs for both Commercial Airplanes and Defense, Space & Security. Further, the company forecasts Commercial Airplane deliveries of between 585 and 600, and that the unit has booked 412 new orders during the quarter.
Caterpillar Inc.’s (NYSE:CAT) first quarter earnings call contained information about the structure of the oil and gas business, which is said to be worldwide: “The largest segment of our oil and gas business is gas compression and actually the ample supply and relatively low prices are very positive for consumption. If you are going to consume it, you have got to move it, so actually what we are seeing in our oil and gas business overall has been pretty positive.”, according to a company executive.
International Business Machines Corp. (NYSE:IBM) has reached a definitive agreement to purchase private equity Pittsburgh firm Vivisimo, which supplies federated discovery and navigation software that assists in organizations gaining access to big data across the enterprise, and its analysis. The deal’s financials were not reported.
The Coca-Cola Company’s (NYSE:KO) Board of Directors okays a two-for-one stock split to shareholders. This is the first such split in the last 16 years, and only the eleventh in the 92 years of the stock being traded. Implementation of the move, which will bring the number of authorized shares of common stock from 5.6 billion to 11.2 billion, must be confirmed by shareholders, at a special meeting that is expected to be held on July 10th. If the split goes through, its record date will likely be July 27th, and each holder of record will receive one additional share of common stock for each share held, with new shares to be distributed on or around Aug. 10th.
Hewlett-Packard Company (NYSE:HPQ) — along with other PC sellers Dell (NASDAQ:DELL), Sony (NYSE:SNE), and Lenovo (LNVGY) — are introducing notebook products in an assertive way. New products rolling out will use Intel’s (NASDAQ:INTC) third-generation Ivy Bridge-based core processors, according to a DigiTimes report.
General Electric Co. (NYSE:GE) has reported the results from four pooled brain biopsy studies, plus key returns from a brain autopsy study, of the investigational PET amyloid imaging agent, flutemetamol. Both biopsy and autopsy study images had high sensitivity and specificity, according to the data, which additionally imply that a strong correlation exists between flutemetamol PET images and Alzheimer’s disease-associated beta amyloid brain pathology. A potential use for flutemetamol as an imaging agent to detect beta amyloid plaque, a pathology associated with Alzheimer’s disease, in living patients, is thus indicated.
The Dow is up 0.72 percent today and currently stands at 13,185. These stocks are central to the trend.
General Electric Co. (NYSE:GE) shareholders defied the board at their annual meeting and nearly voted themselves more control, as a proposal to allow them to make decisions about the company by written consent garnered around 47.5 percent of the votes that were cast, according to a Financial Times report.
International Business Machines Corp. (NYSE:IBM) will be partnered with Cloudera, which says that it wants to join its Distribution including Apache Hadoop and Cloudera Manager with IBM’s Big Data platform.
Johnson & Johnson (NYSE:JNJ) reports a 7 percent rise in its quarterly dividend rate from 57 to 61 cents per share. CEO William Weldon commented that, “In recognition of our 2011 results, our strong financial position, and confidence in the future of Johnson & Johnson, the Board has voted to increase the dividend for the 50th consecutive year.” The increased rate represents $2.44 per share on an annual basis, against $2.28 previously. This new rate will be payable on June 12 to shareholders of record as of May 29.
Exxon Mobil Corp. (NYSE:XOM) says that its domestic upstream profits fell 26.6 percent to $1.01 billion, while overseas upstream slid 8.17 percent to $6.79 billion. Oil-equivalent production decreased by more than 5 percentage points.
Chevron Corp. (NYSE:CVX) will report its first quarter earnings results pre-market on Friday, and a conference call is set for later that morning at 11:00. First Call says that an earnings per share of $3.26 on revenue of $72.42 billion is expected, against a consensus ranging between $2.92 to $3.51, and $56.32 billion to $95.1 billion, respectively.
JPMorgan Chase & Co. (NYSE:JPM) has been retained by Carlyle Group to sell its 23.76 percent investment in Taiwan’s Ta Chong Bank, which sources estimate to be worth approximately $330 million. Reuters says that such a sale could bring consolidation to Taiwan’s low profit bank industry, but another source opined that ‘through options and other vehicles, Carlyle’s investment totals about 40 percent’.
Pfizer Inc. (NYSE:PFE) and Mylan (NASDAQ:MYL) report that Pfizer subsidiary Meridian Medical Technologies has reached a settlement with Teva (NASDAQ:TEVA), resolving pending patent litigation related to its abbreviated new drug application for a generic epinephrine auto-injector. Under the settlement’s terms, the latter is allowed to introduce a generic epinephrine auto-injector covered by its ANDA on or before June 22, 2015 under certain circumstances, and subject to FDA approval (which it does not currently have).
AT&T, Inc. (NYSE:T): The FCC okays T-Mobile USA to receive approximately $1 billion in wireless airwaves, which it is owed as a portion of the breakup settlement from AT&T’s failed $39 billion takeover attempt, according to a Wall Street Journal report.
Wal-Mart Stores Inc. (NYSE:WMT) announced the introduction of its “Pay with Cash” service for online orders at Walmart.com within the United States, becoming the first prominent retailer to offer online purchases that do not require banking services or a credit, debit or prepaid card. With “Pay with Cash”, shoppers can purchase a broader selection of products online, way beyond that of it its stores, at Walmart.com and pay for them with cash in all domestic Wal-Mart stores, and also in Neighborhood Markets.
The Dow is up 0.41 percent Friday and currently stands at 13,259. These stocks have some news you should know …
Exxon Mobil Corp. (NYSE:XOM) attains the honor of being the world’s largest dividend payer, according to Barron’s, when it announced a 21 percent increase (to 57 cents) in its quarterly payout on Wednesday. Shares have been trading higher than those of its largest industry peers, considering Exxon’s enterprise value to cash flow, and given its balance sheet strength.
Chevron Corp. (NYSE:CVX): Global net oil-equivalent production fell a bit year-to-year in the first quarter, as 2.76 million barrels per day pumped in 2011 dropped to 2.63 million barrels per day in the first quarter of 2012. Contributing to the decrease was the fact that normal field declines, maintenance-related downtime and dispositions from project ramp-ups in the U.S. and Thailand outweighed the associated increases in production at those sites. On the positive side, year-to-year U.S. upstream earnings of $1.53 billion in the first quarter 2012 increased by $80 million from 2011, and international upstream earnings of $4.64 billion rose $114 million from the first quarter of 2011. As for for downstream earnings, in the U.S. the first quarter saw a total of $459 million, and international operations $345 million in the same period.
Pfizer Inc. (NYSE:PFE): VIVUS’s (NASDAQ:VVUS) erectile dysfunction treatment Avanafil won FDA approval on Friday, according to the agency’s website. Vivus’ claim to fame is that it provides faster erections than does Viagra, which is made by Pfizer. Particulars of the FDA’s trials of the drug were not released.
Bank of America Corporation (NYSE:BAC): Charles Alexander will replace Liu Erh Fei as interim chief of Bank of America’s operations in China, according to the Wall Street Journal‘s Deal Journal. Alexander is currently head of Asia Pacific Corporate Banking at Bank of America Merill Lynch.
JPMorgan Chase & Co. (NYSE:JPM) CEO James Dimon has set up a conference between CEOs of four dominant banks and Fed Governor Daniel Tarullo, in which the Fed’s proposal to place limits on net credit exposures between the largest financial firms, will be the subject of discussion, say sources to the Wall Street Journal. Besides Dimon, CEOs from Bank of America (NYSE:BAC), Goldman Sachs (NYSE:GS), and Morgan Stanley (NYSE:MS) will take part.
Intel Corporation (NASDAQ:INTC): Aware (NASDAQ:AWRE) reports that it has inked a deal in which it will sell selected patents and patent applications, related to WiFi 802.11n/ac, LTE and Wireline Home Networking, to Intel for around $75 million, subject to the usual closing conditions and regulatory approvals. Global IP Law Group, LLC represented the seller, which commented, “The sale is part of our patent management operation’s efforts to sell and/or license portions of our patent portfolio.”.
Merck & Co. Inc. (NYSE:MRK) claims that it has not yet obtained national reimbursement for key products like JANUVIA and ZETIA in China and intends in the near term to file for approval for additional products, which should reinforce continued growth in that country and in Japan. In other comments from its earnings conference call, the firm reported first quarter growth in Japan at 9 percent, which is around 4 percent, excluding currency considerations.
Microsoft-Owned (NASDAQ:MSFT) Skype’s mobile video and VoIP services customers in Sweden might have to pay an additional usage fee, or be blocked by wireless provider Telia, according to a GigaOM report.
Procter & Gamble Co. (NYSE:PG) officials several comments during their third quarter earnings conference call, concerning prices and competitors. In certain category and country pairings, company brands lost significant market shares when prices were listed and those of their competitors were not. Domestically and in the United Kingdom, last summer’s 80 percent list price rises of powder laundry detergent were effectively reversed, and the buyers were notified of the change. Also noted were some additional category and country combinations in which market share was lost to increased competitive promotional activity, but increasing improvement is projected in the areas as pricing gaps are resolved. However, Procter does not see a large scale reduction in price rises that were put in during the last five quarters or are those placed currently.
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