Dow 30 Weekly Recap: GE Nabs Huge Surveillance Contract, HP’s New Notebooks
The Walt Disney Company’s (NYSE:DIS) long-term investments have paid off, judging by the success of its film The Avengers, along with record attendance at its theme parks in the past months, according to the Wall Street Journal. Chief Executive Robert Iger calls these numbers more than a seasonal blip, and added that they mark a validation of the company’s decision make several long-term expenditures even during the recent recession and beyond it.
The Home Depot, Inc. (NYSE:HD) Director Armando M. Codina’s recent investment in his company of $998,800 is one of 13 such moves by directors and officers within the 30 components of the Dow Jones Industrial Average to see such buying over the trailing six month period. It is generally thought that these top insiders have a unique inside view into the company, so when they make purchases, keen investors should take notice.
Hewlett-Packard Company (NYSE:HPQ) is one of a few companies that led PC sales in the June quarter in India to a 17 percent jump in sales to 2.9 million units, says Gartner. Others were Dell Inc. (NASDAQ:DELL), Lenovo Group Ltd Avr (LNVGY.PK), and Accer, according to the Economic Times.
International Business Machines Corp. (NYSE:IBM) is introducing a new brand of mainframe computers on Tuesday, says The Washington Post. These new models have been enhanced on the traditional strengths of mainframe computers while at the same time adding more artificial intelligence capabilities. Mainframes remain popular among banks and telecom companies, and also in emerging markets.
Verizon Communications Inc.’s (NYSE:VZ) excess PCS and AWS spectrum in various markets across the United States will now be sold by Leap Wireless International, Inc. (NASDAQ:LEAP), following the previously announced transactions that will also allow Leap to purchase from Verizon Wireless 12 megahertz of 700 megahertz A block spectrum in Chicago. Once interference problems related to 700 megahertz A block licenses are resolved, the additional spectrum Leap buys will supplement the 10 megahertz of spectrum Leap now owns and operates in that city. Leap President and Chief Executive Doug Hutcheson commented that, “These transactions generated net cash proceeds of more than $120M that we plan to use to support our ongoing deployment of next-generation LTE network technology. We expect to offer LTE services to at least two-thirds of our current network footprint over the next two to three years.”
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Wal-Mart Stores Inc. (NYSE:WMT) has announced the return of its Great Gas Rollback program, which should help its customers save on their fuel purchases through three different ways. Customers who use a Walmart gift card will get a 10 cents per gallon discount, and if they use a Walmart MoneyCard or Walmart credit card, they will save 15 cents per gallon on their fuel purchase. The program will run from August 31st through December 24th.
Exxon Mobil Corp. (NYSE:XOM): A Reuters evaluation of the weekly rig count data provided by oil service firms, future energy data output, and interviews with officials at firms that are involved in collecting and compiling it, shows that the information compiled may sometimes be an arbitrary and misleading gauge which is subject to revisions, according to Reuters.
Bank of America Corporation (NYSE:BAC) has failed so far to complete any first-mortgage modifications that reduce loan balances for borrowers under the $25 billion agreement reached earlier in 2012, according to Joseph Smith, the official monitoring the agreement. However, five financial institutions which are a part of the settlement have provided $10.6 billion in relief for consumers from March 1st to June 30th, with $8.7 billion in the form of short sales through which customers sell their homes that are ‘under water’ for less than the value of the mortgage. Bank of America did produce $4.8 billion in short sales, which was the most of the five banks, according to the first report by the settlement monitor.
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Caterpillar Inc. (NYSE:CAT) faces a lawsuit brought by investors who allege that directors wasted corporate assets by not ensuring that executive-incentive plans would be tax-deductible. In addition, the suit alleges that board members wrongly enriched themselves by taking compensation that couldn’t be deducted, and that the firm made insufficient disclosures to stockholders, according to attorneys who represent a Philadelphia asbestos workers’ pension fund and the Lansing, Michigan, Police and Fire Retirement System in two lawsuits filed Tuesday in federal court in Wilmington, Delaware.
Chevron Corp. (NYSE:CVX): A Reuters evaluation of the weekly rig count data provided by oil service firms, future energy data output, and interviews with officials at firms that are involved in collecting and compiling it, shows that the information compiled may sometimes be an arbitrary and misleading gauge which is subject to revisions, according to Reuters.
EI DuPont de Nemours & Co. (NYSE:DD) DuPont Professional Products insecticide division will be purchased by Syngenta AG (NYSE:SYT). The acquired company is a top provider of innovative products for the home pest control, professional turf, and ornamentals markets. Through the terms of the $125 million transaction, Syngenta will acquire a world-scale business that includes established pest control brands Advion and Acelepryn along with other intellectual property, and a number of employees. The buyer will also have access to the related active ingredients and formulated products from DuPont through exclusive supply and licensing arrangements. The acquisition should close in the fourth quarter.
General Electric Company’s (NYSE:GE) GE Aviation has won a contract worth nearly $9 million, which supports surveillance systems such as the United States Marine Corps Ground-Based Operation Surveillance System program. The terms include lab testing assets, integration, the inertial reference unit, repairs and engineering support for the program. The work will be accomplished at GE’s facility in Grand Rapids, with deliveries beginning in 2012 and ending in the third quarter of 2017.
Intel Corporation (NASDAQ:INTC) has named Integrated Device Technology, Inc. (NASDAQ:IDTI) to develop an integrated transmitter and receiver chipset for its wireless charging tech based on resonance technology. Wireless charging ICs by Integrated Device will allow industry-leading size and cost reduction, while at the same time simplifying product development and integration. Both Intel and IDT, intend to provide validated reference designs that are targeted for deployment in smartphones, all-in-one PCs, Ultrabooks, and standalone chargers.
JPMorgan Chase & Co. (NYSE:JPM): A shortage of loanable funds is plaguing several companies in Southern Europe, as Eurozone lending if off 43 percent from this time a year ago, and has fallen by 68 percent in five years, says Dealogic. This deficit is sending the companies all over the world to seek funding, as their local banks pull back; the United States and parts of Latin America are currently areas in which the cash may be found, according to the Wall Street Journal.
Microsoft Corporation (NASDAQ:MSFT) just might be the other winner as the turmoil sorts out after Apple’s (NASDAQ:AAPL) patent suit victory. The only problem is that consumers need to be convinced that they actually want what Microsoft is selling, according to the Wall Street Journal.
Microsoft Corporation (NASDAQ:MSFT): Hewlett-Packard Company (NYSE:HPQ) unveiled three consumer notebooks containing multitouch displays, among which include a uniquely designed hybrid PC that allows users more choices in how they access information. The HP ENVY x2 is a powerful and ultrathin hybrid PC that boasts the advantages of two devices within one, in that it’s a notebook that doubles as a tablet. The HP SpectreXT TouchSmart Ultrabook and HP ENVY TouchSmart Ultrabook 4 allow the intuitive power of touch to come to ultramobile PCs. These notebook PCs mark the first Hewlett-Packard products announced with Microsoft Windows 8, with additional notebooks, desktops and tablets will be launched later this year.
AT&T, Inc. (NYSE:T) will move in at Chicago’s renowned Magnificent Mile, launching a 10,000 square-foot flagship store on September 1st. This new Michigan Avenue location will offer customers insight into the future, which will feature the company’s first retail demonstrations of the new AT&T Digital Life home security and automation services along with a connected car that shows how wireless tech can assist driving; these new offerings are in to products and services also found at the firm’s more than 2,300 retail stores across the country. In addition, shoppers will find exclusive accessories by Chicago-area artists and other products unique to the city. Equipped with more than 100 digital screens throughout the store, every aspect of the location is designed to educate customers regarding future wireless technologies and services.
Hewlett-Packard Company (NYSE:HPQ) unveiled three consumer notebooks containing multitouch displays, among which include a uniquely designed hybrid PC that allows users more choices in how they access information. The HP ENVY x2 is a powerful and ultrathin hybrid PC that boasts the advantages of two devices within one, in that it’s a notebook that doubles as a tablet. The HP SpectreXT TouchSmart Ultrabook and HP ENVY TouchSmart Ultrabook 4 allow the intuitive power of touch to come to ultramobile PCs. These notebook PCs mark the first Hewlett-Packard products announced with Microsoft Corporation (NASDAQ:MSFT) Windows 8, with additional notebooks, desktops and tablets will be launched later this year.
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Johnson & Johnson’s (NYSE:JNJ) Janssen Pharamaceutical Company’s Janssen Biotech, Inc. division will partner with Genmab A/S in a worldwide license and development arrangement for daratumumab, a human CD38 monoclonal antibody. Daratumumab is currently being developed for multiple myeloma and could have potential in other cancer indications such as acute myeloid leukemia. Through the terms, Genmab will grant Janssen an exclusive global license for the development and commercialization of daratumumab along with a backup human CD38 antibody, and will receive an upfront license fee of $55 million. Johnson & Johnson Development Corporation will invest around $80 million to subscribe for 5.4 million new shares of Genmab at a price of Danish krone 88 per share. Genmab’s closing share price on August 29th was Danish krone 67.85. Janssen will be fully accountable for all costs incurred with developing and commercializing daratumumab going forward, which will include the costs of two ongoing Phase I/II studies.
JPMorgan Chase & Co. (NYSE:JPM) fallout from its “London Whale” debacle caused mutual find managers to divest the shares, and in one sense had the lowest weighting of the stock in their portfolios in at least seven years, according to analysts at Bernstein Research, says Reuters.
McDonald’s Corp. (NYSE:MCD), along with Chipolte Mexican Grill (NYSE:CMG), Starbucks Corporation (NASDAQ:SBUX), and other restaurant chains are now concentrating more on efficiency, arising from new tech or improved worker scheduling, to allow customers to move more rapidly through the lines and thus generate more sales during their busiest hours, according to the Wall Street Journal. The moves are in response to the slower economy.
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Want news like this in real-time so you can get an edge? Click here for Wall St. Cheat Sheet Pro.Boeing Company’s (NYSE:BA) new Dreamliner 787 will be used by United Airlines (NYSE:UAL) on domestic routes beginning in November, as the carrier readies its previously-announced international service to start in December and January. United should take delivery of the first five new Dreamliners in 2012 from its total order for 50 of the aircraft.
Bank of America Corporation (NYSE:BAC) is now among five of the Unites States’ top lenders, which have provided $10.6 billion in relief through a resolution of foreclosure abuses, that includes the reduction of struggling homeowners’ mortgage balances by $1.3 billion, according to the Wall Street Journal. The other companies included are JPMorgan Chase & Co. (NYSE:JPM), Wells Fargo & Co. (NYSE:WFC), Citigroup Inc. (NYSE:C) and Ally Financial.
EI DuPont de Nemours & Co. (NYSE:DD) and The Carlyle Group (NYSE:CG) have reached a definitive agreement through which the latter will acquire DuPont Performance Coatings in a cash transaction for $4.9 billion, which should close in the first quarter of next year. Beginning with the third quarter, DuPont will classify and post results of DPC as discontinued operations on a retroactive basis, and expects that 2012 full-year earnings from discontinued operations to be between 41 to 47 cents per share. As a part of the arrangement, Carlyle will assume $250 million of DuPont’s unfunded pension liabilities.
General Electric Company’s (NYSE:GE) GE Capital is now the administrative agent on a $150 million senior secured credit facility in support of the combination of Golf Town and Golfsmith. The unified entity operates under the name Golfsmith International, establishing the world’s largest golf specialty retailer. The above credit facility will support working capital and refinance existing debt.
Intel Corporation’s (NASDAQ:INTC) Ivy Bridge processors are said to be used in Apple’s (NASDAQ:AAPL) updated iMacs which are to be released soon. In the meantime, each of the two 27-inch iMac configurations is now out of stock at almost 50 percent of all Apple retail stores, according to a survey of retail store stock availability through the “Personal Pickup” program, says Mac Rumors.
Johnson & Johnson (NYSE:JNJ) loses its appeal of the $258 million Risperdal ruling in Louisiana, according to Bloomberg.
JPMorgan Chase & Co. (NYSE:JPM) and Siemens AG (NYSE:SI) were the top borrowers who sold corporate bonds in August with a total of $237.6 billion of debt by the former, which was more than the $235.3 billion raised in August 2010, according to Bloomberg data. August has seen a record jump in global sales of corporate bonds, as issuers hurried to lock in record-low borrowing rates.
Microsoft Corporation (NASDAQ:MSFT) and Nokia Corporation (NYSE:NOK) are staking $23 million in 36 application startups through the companies’ AppCampus joint venture, says TechCrunch. The venture is reportedly actively searching for its subsequent group of startups for 2013.
International Business Machines Corporation (NYSE:IBM) introduced a new cloud platform for consumer electronics companies and said that it will power the Philips (NYSE:PHG) Smart TV platform for Internet services. This platform will deliver greater interactive services to millions of television viewers in more than 30 countries in Europe, along with Brazil and Argentina. The statement at the IFA consumer electronics event in Berlin says that IBM cloud services will be provided on a pay-per-use basis to TP Vision, a joint venture based in Amsterdam between Philips and TV manufacturer TPV, which is responsible for the development of Philips Smart TV.
Bank of America Corporation (NYSE:BAC): Federal Reserve Chairman Bernanke is widely expected to acknowledge that the United States’ central bank is actively thinking of another round of monetary easing in his keynote speech at Jackson Hole today. However, if he fails to signal that another round of buying bonds is going to take place in the near-term, it could disappoint the financial markets, according to Reuters.
Caterpillar Inc. (NYSE:CAT) group president for customer and dealer support, Stuart Levenick, says that the Chinese economy will likely start to recover later this year or early next year, according to China Daily. Levenick added that he expects Beijing to cut interest rates, as well.
E.I. DuPont de Nemours & Co. (NYSE:DD) Senior Vice President and General Counsel Thomas L. Sager issued the following statement following a ruling Thursday by the United States Federal Court in Richmond, which ordered Kolon Industries to cease the production and selling of their Heracron aramid fiber: “The injunction, coming on the heels of DuPont’s $920 million damages award from last September, reaffirms what was already clear: that Kolon Industries willfully and maliciously misappropriated DuPont’s proprietary Kevlar technology. The trial court ordered Kolon to not produce, market or sell any para-aramid fiber products, worldwide, for 20 years; it also permanently enjoined Kolon from using any of the trade secrets it stole from DuPont. Additionally, Kolon has until Oct. 1 to remove and return DuPont’s trade secrets or face contempt proceedings. In so ruling, the court found Kolon’s conduct to be ‘brazen,’ adding that ‘Kolon’s conduct shows a complete disregard for DuPont’s trade secret rights and a disregard for the law that protects such secrets.’”
AT&T, Inc. (NYSE:T): The Federal Communications Commission might decide to adopt a single standard of measurement as to whether companies have obtained too much spectrum, according to The Hill on Thursday night, which added that the Commission currently uses a different set of criteria for each spectrum transaction.
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Verizon Communications Inc. (NYSE:VZ) should be able to lure customers away from AT&T Inc. (NYSE:T) by a 4 gigabyte LTE-enabled iPhone 5, reports analyst Thomas Seitz at Jefferies & Co., who wrote to investors Friday that the new iPhone will probably be LTE capable, a view upon which many analysts and Apple observers agree. At this time, Verizon’s LTE network reaches approximately 230 million people spanning 337 markets, which is more than all of the other domestic carriers together. By the end of 2012, Verizon intends to cover an additional 260 million people in more than 400 locations.
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