DJIA Week in Review: JPMorgan CEO Testifies, Chevron and Kosmos Make a Deal

Tuesday

American Express Company (NYSE:AXP): On Tuesday the Consumer Financial Protection Bureau initiates the first part of an online database of complaints from credit card customers in the $2.05 trillion industry, says a Wall Street Journal report.

Boeing Co. (NYSE:BA) reports that it’s growing its Flight Services division in China, a move that will notably increase training capacity for airlines in the region. The firm is tripling its courses at the Boeing Flight Services Shanghai training campus with the launch of an advanced 787 Dreamliner training suite for pilot and maintenance training, plus a newly-installed 747-400 full-flight simulator. These new training devices are being added to an existing 757/767 full-flight simulator at the facility.

Bank of America Corporation’s (NYSE:BAC) shares are among several bank stocks in a rally that is caused in part by new plans by the Federal Housing Finance Agency, or FHFA, that should help banks avoid the situation of being forced to repurchase mortgages due to worries concerning increasingly rigorous lending regulations, according to Bloomberg. FHFA spokesperson Stefanie Johnson says that the Agency will describe the situations within banks that would trigger a pullback request; meanwhile, shares of Citigroup (NYSE:C), PNC Financial (NYSE:PNC), Wells Fargo (NYSE:WFC), as well as previously mentioned BofA are all enjoying the FHFA rally.

Cisco Systems, Inc. (NASDAQ:CSCO) CEO John Chambers is currently developing a leadership succession plan, according to Valor.

Chevron Corp. (NYSE:CVX): Jacobs Engineering Group (NYSE:JEC) has won a contract from Chevron Phillips Chemical, under which it will supply front end engineering and design services for two polyethylene facilities. The financials of the contract were not divulged.

Microsoft Corporation (NASDAQ:MSFT): Dell (NASDAQ:DELL) will commence the sale in India of personal computers that run on the free operating system Ubuntu, through its line of two Inspiron-series budget models, according to the Economic Times. Dell is India’s second largest computer vendor, and currently sells PCs loaded with Microsoft’s Windows.

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Pfizer Inc. (NYSE:PFE) reports that the Profile 1007 evaluation met its primary endpoint, showing that Xalkori significantly improved progression-free survival when compared with pemetrexed or docetaxel, in previously treated patients suffering from anaplastic lymphoma kinase-positive advanced non-small cell lung cancer. Profile 1007 marks the first randomized Phase 3 trial in ALK-positive advanced NSCLC patients; the adverse events seen on crizotinib and chemotherapy in Profile 1007 were generally consistent with their respective known adverse event profiles. Full efficacy and safety data from this evaluation will be featured at an upcoming medical congress.

Procter & Gamble Co. (NYSE:PG): Brightpoint’s (NASDAQ:CELL) subsidiary, Brightpoint North America L.P., has reached distribution and services agreements with Duracell Powermat, LLC., under which BrightPoint Americas will supply a comprehensive, end-to-end suite of product lifecycle services for Duracell Powermat’s branded wireless charging products. The range of the products goes from receivers, mats, bundles to accessories throughout the U.S., which include retail distribution, portfolio management, transportation management, reverse logistics and a hosted e-commerce solution which supports end user consumer sales and fulfillment. Duracell Powermat arose from two industry-defining pioneers: Duracell and Powermat and is a division of Procter & Gamble.

United Technologies Corp. (NYSE:UTX) unit Pratt & Whitney and South African Airways Technical have reached an agreement to collaborate on JT9D-7R4G2 repair work at SAAT’s facility in Johannesburg. The UTX division will also partner with SAAT to expand the facility’s aftermarket services in the future.

EI DuPont de Nemours & Company’s (NYSE:DD) Pioneer Hi-Bred division is being sued by Monsanto (NYSE:MON) concerning patent infringement allegations on its “seed chipper” tech. The court is being requested to compel Pioneer to cease the use of the technology and stop selling any products developed through it, according to STLToday.com., which cited court documents.

General Electric Co. (NYSE:GE) reports that it has finalized a commercial alliance agreement with Norway-based Sargas AS, to supply a gas turbine for among the world’s first gas-fired plants that has an integrated carbon capture for enhanced oil recovery. The Sargas plant will integrate a configuration of GE’s existing LMS100 aeroderivative gas turbine package with Sargas’ patented combustion and carbon-capture technology which permits low emissions power generation. The technology that Sargas supplies captures carbon dioxide at pressure, which allows lower capital investment costs and can be built quickly with current or slightly modified subsystems and equipment.

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International Business Machines Corp. (NYSE:IBM) plans the opening of ten new branch offices across Russia and the Commonwealth of Independent States, as a part of its strategy to grow its footprint in one of the most rapidly growing markets on earth. The company will add an incremental investment of $6 million in that area in 2012, which should expand its presence there to 22 offices. In addition, IBM intends to double its staff in that part of the world by year’s end, to also to reinforce its business partner network across the area to more than 4,000 partners.

JPMorgan Chase & Co. (NYSE:JPM) CEO Dimon might find it a trickier business when he faces the United States House Financial Services Committee on Tuesday, than he did at his second congressional hearing earlier in June. Dimon must try to explain how his company lost at least $2 billion on trades to an audience which will likely be quite skeptical.

The Coca-Cola Company (NYSE:KO) stays optimistic regarding its prospects while its shares are at their highest level since the 1990s, as sales and margins soar, says the Wall Street Journal. Not even the New York mayor’s War On Sodas is taking the bloom off this rose, as Coke continues to cut costs, and relieves PepsiCo (NYSE:PEP) of its market share, while investing hugely in such emerging markets as Brazil and China.

Wednesday

Hewlett-Packard Company (NYSE:HPQ): Gartner (NYSE:IT) estimates that global expenditures on enterprise application software will amass $120.4 billion in the current year, which represents a 4.5 percent increase over the 2011 spending of $115.2 billion. However, taking into consideration the near term, which promises only limited signs of improvement, the growth trajectory for 2012 has been adjusted down from 5 percent in a previous forecast during the first quarter. Further, analysts at Gartner say that enterprise resource planning is the biggest enterprise application software market, with revenues forecast to reach $24.9 billion this year, followed by office suites at $16.5 billion. Business intelligence revenue is expected to reach $13 billion, and customer relations management is on track to exceed $13 billion this year.

JPMorgan Chase & Co. (NYSE:JPM) CEO James Dimon, testifying again before Congressional panels, maintained that his bank was truthful with investors about the trading loss, for which he apologized, but would not take personal responsibility. Regulators are looking into whether the company hid a dramatic rise in risk-taking.

The Coca-Cola Company (NYSE:KO) and Ford (NYSE:F) have each commented that they found value in Facebook (NASDAQ:FB) advertising, according to a Wall Street Journal report. Additionally, Ford intends to broaden its use of the social network.

Pfizer Inc. (NYSE:PFE) and Cold Spring Harbor Laboratory are partnering in the development of a next generation human shRNA library, which could be used to silence gene expression through the process of RNA interference, and then identify new therapeutic targets in cancer. The CSHL-Pfizer arrangement will combine the Laboratory’s academic researchers with Pfizer’s scientists in both the technology development and the training environments.

Procter & Gamble Co. (NYSE:PG) Chairman of the Board Bob McDonald, speaking at the Deutsche Bank Global Consumer Conference in Paris, presented an overview of his company’s strategic focus areas and preliminary financial guidance for its upcoming fiscal year 2013. McDonald, who is also the president and chief executive officer, commented that, “We are making the necessary adjustments to our growth strategy to increase focus on our core business and to achieve more balanced growth across geographies, product categories and the top and bottom lines. The entire P&G organization and specifically its leadership is committed to winning.”. In order to achieve its goals, the company is prioritizing investments in its largest and most profitable markets, on its largest innovations and in the biggest emerging countries. Further, the company stipulated that it means to keep the strong investment levels made in markets it has recently entered.

United Technologies Corp. (NYSE:UTX): Pratt & Whitney is in the market, potentially in Canada, for a site at which it may assemble engines for Airbus SAS (EADSY), which resemble those it will manufacture in Quebec for Bombardier’s new C Series plane, according to The Globe and Mail.

Wal-Mart Stores Inc. (NYSE:WMT) will work jointly with TruConnect Mobile LLC, to provide “Internet on the Go,” which is a new prepaid mobile broadband service that ‘offers a great value for casual users’.

Boeing Co. (NYSE:BA) says that it will work jointly with LOT Polish Airlines, Polish government agencies, and academic institutions in the country to help commercial aviation in Poland to become more efficient and to support airline profitability as well. In addition, the collaboration sets up a Boeing research and development presence in Poland which will pursue other situations in which to work with Polish research and development institutions.

Caterpillar Inc. (NYSE:CAT): Senate Democrats have put forward new proposals as they try to reach a deal with House Republicans on long-term highway funding legislation, according to The Hill. At the same time, top House leaders intervened in the negotiations, so as to reach an agreement before the current stop-gap highway funding authorization expires on June 30th.

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Cisco Systems, Inc. (NASDAQ:CSCO) and SAP (NYSE:SAP) have reached a global reseller arrangement, under which SAP will offer its customers the SAP IT Process Automation application, which is a robust and flexible automation software developed by Cisco. The ap is said to deliver increased efficiency, visibility and control of IT operational processes in complex IT environments, while extending and complementing SAP solutions, increaseing the value of IT investments and reducing costs due to maintenance .

Chevron Corporation’s (NYSE:CVX) Chevron Global Energy and Kosmos (NYSE:KOS) have reached a deal, with under which Kosmos will assign 50 percent of its interest in Blocks 42 and 45, which lie offshore Suriname, to Chevron. Under the arrangement, Kosmos will retain a 50 percent working interest and remain operator of both blocks until completion of the exploration phase. For its part, Chevron will assume the remaining 50 percent working interest and will act as the development operator of any commercial discoveries.

Exxon Mobil Corp. (NYSE:XOM): The prominent oil companies of India and China are putting aside their competition, and have reached an agreement under which they will jointly explore for oil and natural gas on a worldwide basis, according to a Wall Street Journal report. This move requires that the two nations use their combined financial resources and expertise in order to obtain energy supplies.

Thursday

Boeing Co. (NYSE:BA) or Airbus SAS (EADSY) could get an order from Turkish Airlines, AKA Turk Hava Yollari AO, for at least 15 jumbo jets worth $4 billion as soon as next month, as it complements its routes and searches for acquisitions in emerging markets, according to a Bloomberg report. Delivery should begin after 2014.

Bank of America Corporation (NYSE:BAC): SEC Chair Mary Schapiro’s opinion that the $2.6 trillion money market mutual funds industry requires stronger oversight, seems to be affirmed by a new study by her agency that says that money market mutual funds have been rescued from financial trouble by their parent firms over 300 times the 1970s. This would be approximately 100 times more than previously reported, says the Wall Street Journal.

Cisco Systems, Inc.’s (NASDAQ:CSCO) position as the major rival to Juniper (NYSE:JNPR) was key to the research firm FBR Capital’s drastically cutting its price target for the latter on Thursday morning from $24 to $14. Juniper shares fell as FBR worried that the firm would not be able to contend with the new products being developed by Cisco, and also that Juniper’s current products might not perform well in the current environment, in which demand is building for network equipment that can help bring revenue or decrease network cost and complexity. In addition FBR is dubious as to whether Juniper will be able to fulfill its long-term guidance, and thus keeps its Market Perform rating on the shares, which fell 3.29 percent in mid-morning trading.

EI DuPont de Nemours & Co. (NYSE:DD) has filed a lawsuit in the United States Federal Court for the District of Oregon, in which it alleges that Heraeus Materials Technology and its customer SolarWorld Industries infringe DuPont U.S. Patent No. 8,158,504 B2, by manufacturing, selling and/or using Heraeus front-side silver pastes.

JPMorgan Chase & Co. (NYSE:JPM), Goldman Sachs (NYSE:GS) and other United States banks are monitoring the Commodity Futures Trading Commission, to see if it proposes guidance that could cause them to be subject to the Dodd-Frank Act swaps rules in their overseas offices, according to Bloomberg.

3M Co. (NYSE:MMM) okays a definitive agreement to purchase Federal Signal Technologies, LLC, or FSTech, a division of Federal Signal (NYSE:FSS), for $110 million in cash, subject to post-closing adjustments and regulatory approvals. The acquisition should close in the second half of this year. The seller intends to use the proceeds primarily to reduce debt.

Microsoft Corporation (NASDAQ:MSFT): Peter Moore, the Chief Operating Officer of Electronic Arts (NASDAQ:EA), said on Wednesday that the video game industry is experiencing an “unbelievably difficult transformation” and that the conventional wisdom “when the new consoles come out, everything is going to be fine again,” no longer pertains, according to an interview published by Kotaku.

Pfizer Inc.’s (NYSE:PFE) reports that its Lyrica (pregabalin) capsules CV for the management of neuropathic pain associated with spinal cord injury have won FDA approval, having first received a priority review designation for this new indication from the agency. It is believed that around 40 percent of the 270,000 patients with spinal cord injury in the U.S. suffer from this chronic, complex pain condition.

Verizon Communications Inc. (NYSE:VZ) is among the selected stores that will have Samsung’s (SSNLF) Galaxy S III smartphone, which has officially been launched in the U.S., in-store and online in the next few weeks, reports the latter. Other companies offering the new device include AT&T (NYSE:T), Sprint (NYSE:S), Verizon Wireless (VZ, VOD) and U.S. Cellular, and available online on T-Mobile’s (DTEGY) Web site.

Friday

Caterpillar Inc. (NYSE:CAT): Brazilian President Dilma Rousseff is stepping up several stimulus projects around the country in order to boost the country’s growth, which has slowed down sharply recently, according to a The New York Times report. However, critics are calling the program ‘an abuse of power by the government’.

Chevron Corp. (NYSE:CVX) and McMoRan Exploration (NYSE:MMR) jointly made eight of the winning high bids in the Central Gulf of Mexico Lease Sale conducted by the Bureau of Ocean Energy Management on June 20th. McMoRan was solely the high bidder on a total of six lease blocks on the outer Continental Shelf of the Gulf of Mexico. McMoRan will pay about $3.1 million in bonuses for the leases, once the bidding process is officially approved by the BOEM, which should add over 65,000 gross acres to McMoRan’s leasehold inventory, which is around 900,000 gross acres as it now stands, including over 200,000 gross acres tied to the shallow water, ultra-deep plays.

Walt Disney Co. (NYSE:DIS): NBC’s (NASDAQ:CMCSA) “Today” show, for the first time in 16 years, is no longer Number One in the ratings. NBC News has other ratings problems, such as the Sunday talk shows and the evening news, says the Wall Street Journal.

Johnson & Johnson’s (NYSE:JNJ) Janssen division reported Thursday night that the FDA has provided a complete response letter regarding a supplemental New Drug Application for Xarelto for the reduction of the risk of secondary cardiovascular events in patients suffering from acute coronary syndrome. The letter is being evaluated and Janssen will respond to any questions the agency might have. The drug has been approved for three clinical uses in the U.S., namely, to decrease the risk of blood clots in the legs and lungs of people who have just had knee replacement surgery, in people who have just had hip replacement surgery, and to reduce the risk of both hemorrhagic and thrombotic strokes, as well as other blood clots in patients with atrial fibrillation that is not caused by a heart valve problem.

Microsoft Corporation (NASDAQ:MSFT) could be partnering with a contract manufacturer to develop its own handset for Windows Phone 8, says Reuters, referring to a Nomura analyst’s note to investors on Thursday that cited checks with industry sources.

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Pfizer Inc. (NYSE:PFE) and Protalix BioTherapeutics (AMEX:PLX) report that the Committee for Medicinal Products for Human Use, or CHMP, which is a part of the European Medicines Agency, or EMA, has adopted an opinion that recommends against the Marketing Authorization of taliglucerase alfa, which is an enzyme replacement therapy for the treatment of Gaucher disease. As part of its opinion, the CHMP provided a positive risk-benefit assessment for taliglucerase alfa, which stated that the benefits of the medicine surpassed its risks in the treatment of Type 1 Gaucher disease. However, in the face of the positive risk-benefit assessment, the Committee could not recommend Marketing Authorization due to Shire’s (NASDAQ:SHPGY) velaglucerase alfa, which had already received Marketing Authorization with orphan drug designation for the same condition, which means that Shire’s treatment maintains orphan market exclusivity in the European Union for ten years from the time of its authorization in August 2010. For its part, Pfizer pursued a request for derogation from Shire’s orphan market exclusivity based on a number of factors, but that request was rejected.

Exxon Mobil Corp. (NYSE:XOM): Suspicions that certain European banks are artificially embellishing a key yardstick to their financial wellbeing, has investors and regulators worried that the actions will further reduce the market ‘s confidence in banks on The Continent, according to a Wall Street Journal report.

Sony Corp. (NYSE:SNE) is winning the competition to be a capital investor in Olympus Corp. (OCPNY). The struggling maker of medical equipment is looking for a cash injection of approximately $622.65 million to rescue its finances after its 2011 accounting scandal, say sources to the Wall Street Journal.

BHP Billiton (NYSE:BHP) is said by investors and analysts to be looking at cutting the first stage of its estimated $10 billion iron ore port expansion by 50 percent, as it tries to reduce capital expenditures in the face of rising costs and an uncertain market outlook, according to Reuters.

Deutsche Bank (NYSE:DB) co-CEOs Anshu Jain and Juergen Fitschen might be thinking about making additional cost cutting moves, according to Frankfurter Allgemeine Zeitung, reports Reuters.

Rosneft (RNFTF.PK), the Russian crude oil company, is in discussions with ExxonMobil (NYSE:XOM) about partnering to drill Iraq’s huge West Qurna-1 oilfield, according to the Kommersant Daily, says a Reuters report.

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