DJIA Weekly Review: Chinese Oil Demand DROPS, GE & Boeing Carry Index Higher
Boeing Co. (NYSE:BA) raised its earnings guidance for the current year to between $4.40 and $4.60 from $4.15 to $4.30 against consensus of $4.56, pointing to a strong core operating performance. The firm at the same time raised its revenue guidance to between $79.5 billion and $81.5 billion with consensus of $79.54 billion, citing higher Defense, Space & Security revenues, and affirmed its 2012 operating cash flow outlook In a statement, Boeing said that, “Increased revenues and strong operating performance across both our major businesses drove significantly improved first-half 2012 results for Boeing. Commercial airplane deliveries increased 27 percent in the second quarter, and our defense, space and security business also produced higher revenues and strong margins in a difficult market environment. As a result of this solid first-half performance, we have strengthened our outlook for the year, and our people remain focused on disciplined execution, quality and productivity, and meeting customer commitments.”
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Bank of America Corporation’s (NYSE:BAC) America Merrill Lynch was among a group including Citigroup (NYSE:C) and Goldman Sachs (NYSE:GS), who won CDOs in the auction from the Maiden Lane III portfolio, held by the New York Federal Reserve Bank. Meanwhile, Credit Suisse Group (NYSE:CS) was clearly leading the bidding for $3.5 billion of complex mortgage debt sold yesterday from the Fed’s crisis-era portfolio, according to the Wall Street Journal.
Caterpillar Inc. (NYSE:CAT) union workers appear to be crossing the picket line in larger numbers, says the Wall Street Journal. Caterpillar said that 95 of the International Association of Machinists and Aerospace Workers members had returned out of around 780, in Joliet, Illinois, three months into their strike.
Cisco Systems, Inc. (NASDAQ:CSCO): Worldwide shipments of white-box tablet PCs are now projected to reach 40 million units during the current year, which is up from the original forecast of 30 million, against rising demand in emerging markets which is driving the charge, according to Digitimes.
Walt Disney Co. (NYSE:DIS): Senator Jay Rockefeller (D-WV), Chairman of the Senate Commerce committee, has sharply criticized TV providers for rising cable prices, forced bundling, and retransmission disputes, according to The Washington Post Tuesday afternoon. The Senator added that cable companies should refund payments to consumers who don’t receive channels due to fights over retransmission fees, but Senator Jim DeMint (R-SC) said that the whole broadcasting sector should be deregulated.
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Hewlett-Packard Company’s (NYSE:HPQ) are insured against the possibility of default by debtors, as measured by instruments known as credit default swaps, but the price of doing so has risen notably of late and is now significantly more costly than similar protection on the debt of some large technology peers, says AllThingsD. In addition, it’s likely that this type of movement can negatively impact upon the overall cost of the firm’s financing activities.
JPMorgan Chase & Co. (NYSE:JPM) accumulated billions of dollars in losses resulting from bad trades in its London investment office, but more than a year prior to this, Bank of England officials worried internally about potential risks from some of the office’s activities, and failed to formally alert other regulators, say sources to The Wall Street Journal.
McDonald’s Corp. (NYSE:MCD): The International Monetary Fund reported on Tuesday that China’s economy might be experiencing a soft landing, and that the country is fully able to respond to external macro economic deterioration, according to Xinhua. On the downside, further deterioration of the euro zone could be a “key risk” to China’s outlook.
Microsoft Corporation (NASDAQ:MSFT): Worldwide shipments of white-box tablet PCs are now projected to reach 40 million units during the current year, which is up from the original forecast of 30 million, against rising demand in emerging markets which is driving the charge, according to Digitimes.
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Procter & Gamble Co. (NYSE:PG) and Teva Pharmaceutical Industries (NASDAQ:TEVA) will establish a joint venture in India, and construct its first manufacturing facility there, reports the State of Gujarat’s Commissioner for Food and Drug Control Administration H G Kohsia, according to The Economic Times.
Wal-Mart Stores Inc. (NYSE:WMT): Sources to Bloomberg confirm that firms would have to divulge whether they acquire metals from central African warlords, under the so-called conflict minerals rule the Securities and Exchange Commission is poised to adopt in August.
Exxon Mobil Corporation (NYSE:XOM): Cnooc’s (NYSE:CEO) proposed $15.1 billion acquisition of Nexen, Inc. (NYSE:NXY) is probably only the beginning for China’s other state-controlled oil and natural gas companies to search out their own deals, as pressure increases for them to add reserves, say industry observers to The Wall Street Journal.
Boeing Co. (NYSE:BA) has received two new orders from Korean Air for 777s in its weekly order update. In addition, Boeing clarified an Ethiopian Airlines order for a 777 which was previously listed as unidentified.
Bank of America Corporation (NYSE:BAC): On Wednesday the European Commission proposed that the manipulation of key financial benchmarks should constitute a criminal offense, according to The Washington Post. At the same time, authorities in the United States are pursuing criminal cases against persons who were said to be involved in the Libor rigging scandal.
Cisco Systems, Inc. (NASDAQ:CSCO): Senate Majority Leader Harry Reid (D-NV) has scheduled an important procedural vote on cybersecurity legislation for Friday, according to Wednesday’s The Hill, which would provide critical infrastructure operators the incentive to accede to standards proposed by a government-led body.
Chevron Corp. (NYSE:CVX): Demand for oil inside China fell by 1.9 percent year-over-year in June, says China Daily, which pointed to an analysis by energy and metals information supplier Platts, which added that the decrease was the first such movement since the first quarter of 2009.
EI DuPont de Nemours & Co. (NYSE:DD): The United States House of Representatives is trying to complete its work on a farm bill and related drought relief payments for farmers, prior to the August recess, says Politico. Republicans are looking at the possibility of extending the expiring farm bill by one year along with adding disaster aid for some farmers, but the top Democrat on the House Agricultural Committee opposes such a shortcut.
General Electric Company (NYSE:GE): ePlus (NASDAQ:PLUS) says that its subsidiary, ePlus Technology, Inc., has amended and reaffirmed its credit facility with GE Commercial Distribution Finance Corp., or GECDF. The facility is comprised of both a floorplan component and an accounts receivable component, and was originally entered into on August 31, 2000, having been amended several times. The facility is for the financing of inventory and accounts receivable linked to the sale of computer tech, peripherals and software products. The modification provides ePlus Technology with a total credit limit of up to $175 million, which marks an rise of $50 million over the prior agreement, with a sub-limit of $30 million for the accounts receivable component; ePlus Inc. will guarantee this facility up to a limit of $10.5 million. Either party may terminate the new agreement with proper notice given.
International Business Machines Corp. (NYSE:IBM) is not considering a $6 billion acquisition of Mellanox (NASDAQ:MLNX), and neither is Oracle (NASDAQ:ORCL) according to its chief executive, who is denying the rumors, says Globes.
Intel Corporation’s (NASDAQ:INTC) plan for the growth of its android tablet PC will be affected by the delay of the intro of Lenovo (LNVGY) and Motorola’s (NASDAQ:GOOG) Medfield/Android tablet until after November, reports upstream suppliers to Digitimes.
JPMorgan Chase & Company’s (NYSE:JPM) former Chairman and Chief Executive William Harrison Jr. has responded to the idea asserted by the former Citigroup (NYSE:C) Chairman and Chief Executive Sandy Weill that the big banks should be broken up, by saying that “breaking up big banks into separate commercial and investment banking firms would be a huge mistake for the United States”, according to the Wall Street Journal.
3M Co. (NYSE:MMM) expects a full year of organic local-currency sales growth of between 2 and 5 percent, and also that foreign currency translation will shrink sales by about 3 percent for the year. In addition, the company projects operating income margins between 21.5 and 22.5 percent for the period.
Merck & Co. Inc. (NYSE:MRK) is forecast to post second quarter earnings Friday via a conference call scheduled for 8:00 am Eastern Time. Analysts expect earnings per share of $1.01 on revenue of $12.16 billion, against consensus of 96 cents to $1.05, and a range of $11.91 billion to $12.62 billion, says First Call. Merck posted slightly better-than-expected first quarter earnings but missed revenue estimates, and expected fiscal year 2012 earnings per share between $3.75 and $3.85. Impressive sales for Singulair, Januvia, Zetia, and Animal Health were also reported, as the firm continues to foresee 2012 revenue to be near 2011 levels, but with second quarter figures expected to be its strongest during the year. Investors expect more updates and sales numbers on major drugs as well as clinical trial updates for suvorexant and odanacatib. Shares were upgraded to Buy at Citigroup and its price target was elevated at Leerink, which pointed to positive feedback on odanacatib.
Microsoft Corporation (NASDAQ:MSFT): The Chinese Internet firm Tencent (TCEHY) has introduced an instant messaging service known as “WeChat” in India, in association with ibibo in which Tencent has a minority stake, according to the Economic Times. Users of iPhones (NASDAQ:AAPL), Android (NASDAQ:GOOG) and Windows operating system based phones are able to download the application.
United Technologies Corp. (NYSE:UTX) has obtained all the remaining regulatory approvals required by its proposed purchase of Goodrich Corporation (NYSE:GR). The finalization of the regulatory review by the United States Department of Justice and the European Commission permits United Technologies to proceed with the proposed acquisition which was announced on Sept. 21, 2011, and the transaction should close by the end of the week. As expected, the regulatory clearances mandate that UTC divest Goodrich’s Electric Power Systems unit and Goodrich’s Connecticut-based Pumps and Engine Controls division. Also, UTC will sell Goodrich’s stake in Aero Engine Controls, which is a joint venture with Rolls-Royce.
Wal-Mart Stores Inc. (NYSE:WMT) must deal with a lawsuit brought by disability rights advocates, who allege that the retailer has failed to make payment machines accessible to disabled customers in wheelchairs and scooters, says Reuters.
Exxon Mobil Corp. (NYSE:XOM): Demand for oil inside China fell by 1.9 percent year-over-year in June, says China Daily, which pointed to an analysis by energy and metals information supplier Platts, which added that the decrease was the first such movement since the first quarter of 2009.
Boeing Company’s (NYSE:BA) 787 Dreamliner will not see competition from the new A350 until 2014, as Airbus, which is part of EADS (EADSY), says it is postponing the its launch. The firm commented that, “Entry-into-Service has moved into second half of2014 mainly due to the time taken for the implementation of the automated drilling process for the wings. A charge of €124 million has been booked in the second quarter which accounts for the actual delay of around three months. The A350 XWB remains a challenging programme and any further delays would lead to higher rates of charges.”
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Bank of America Corporation (NYSE:BAC): The market for securities lending, which is worth approximately $800 billion, could become more transparent when Fidelity Investments initiates a pricing service designed towards that effect, say sources to the Wall Street Journal. This move is intended to go up against competitor Wall Street companies.
Cisco Systems, Inc. (NASDAQ:CSCO): Microsoft (NASDAQ:MSFT) concluded in its annual report submitted Thursday afternoon, that its new Surface tablet might possibly undermine PC maker support for Windows, as its devices will compete against tablets that they sell, according to a New York Times report.
Chevron Corp. (NYSE:CVX): Global net oil-equivalent production fell year-over-year in the second quarter of 2012 from 2.69 million barrels per day in the 2011, to 2.62 million barrels per day. Production was boosted by project ramp-ups in Thailand, the United States and Nigeria, but this was more than outweighed by normal field declines, the shut-in of the Frade Field in Brazil, maintenance-related offline time and dispositions. Domestic upstream earnings of $1.32 billion in the second quarter 2012 dropped $632 million from 2011, mostly because of lower crude oil and natural gas realizations, smaller production and the lack of gains on asset sales.
Hewlett-Packard Company (NYSE:HPQ): Microsoft (NASDAQ:MSFT) concluded in its annual report submitted Thursday afternoon, that its new Surface tablet might possibly undermine PC maker support for Windows, as its devices will compete against tablets that they sell, according to a New York Times report.
International Business Machines Corp. (NYSE:IBM), along with Dell (NASDAQ:DELL) and BDT are the targets of an infringement action brought by Overland Storage (NASDAQ:OVRL), which reports that the United States International Trade Commission has released the public version of the Initial Determination in the said action. This document makes several key findings regarding Overland Storage’s U.S. Patent No. 6,328,766, which concerns the partitioning of media elements as it relates to automated data storage and retrieval systems methods for enabling two computers to store and retrieve data without interfering with each another.
Johnson & Johnson (NYSE:JNJ): Mylan (NASDAQ:MYL) said that its subsidiary Mylan Pharmaceuticals Inc. has won final FDA approval for its Abbreviated New Drug Application for 100 milligram Itraconazole Capsules, which is the generic version of Janssen Pharmaceutical’s Sporanox and is indicated for the treatment of fungal infections that originate in the lungs, blatsomycosis, histoplasmosis, and aspergillosis in patients who are intolerant of or who are refractory to amphotericin B therapy. Itraconazole capsules are also designd for the treatment of fungal infections of the toenails and fingernails in non-immunocompromised patients. Itraconazole Capsules, saw domestic sales of about $60 million for the 12 months ending March 31, 2012, reports IMS Health. Mylan begins shipping this medicine immediately.
JPMorgan Chase & Co. (NYSE:JPM) announced its next steps in the unification of some of its Chase-branded units to better serve consumer customers and to more formally bring in-line two of its J.P. Morgan-branded wholesale franchises for the benefit of corporate and investor clients globally. As part of this integrated approach, the firm is reporting changes in the organization and new and increased responsibilities for a number of its top executives. Frank Bisignano will transition the Mortgage Banking division to Gordon Smith in early 2013 and become co-Chief Operations Officer for the entire company. Todd Maclin and Gordon Smith will jointly head the Chase consumer units. Jes Staley, currently chief executive of the Investment Bank, will become Chairman of J.P. Morgan’s Corporate & Investment Bank, which is a new position, and will also stay on the company’s Operating Committee. Mike Cavanagh, head of TSS, and Daniel Pinto, head of EMEA and Global Fixed Income, will become co-Chief Executives of the Corporate & Investment Bank. Mary Erdoes remains Chief Executive of Asset Management, and Douglas Petno stays head the Commercial Bank. Matt Zames will stay on as head of the Chief Investment Office and Mortgage Capital Markets, and will also take over as co-Chief Operating Officer of the entire company with Frank Bisignano.
Merck & Co. Inc. (NYSE:MRK): The United States Supreme Court might take up the issue of pharmaceutical firms paying rivals to postpone selling generic drugs, after a Federal judge ruled earlier in July that they can not, according to a Thursday New York Times report.
Microsoft Corporation (NASDAQ:MSFT) concluded in its annual report submitted Thursday afternoon, that its new Surface tablet might possibly undermine PC maker support for Windows, as its devices will compete against tablets that they sell, says the New York Times.
Pfizer Incorporated’s (NYSE:PFE) jointly developed Alzheimer therapy bapineuzumab showed disappointing results, and the two other drug firms, Elan Corp. (ELIN) and Johnson & Johnson (NYSE:JNJ), who helped with the project, are seeing their shares down in reaction as well, according to Bloomberg. The situation leaves Elan with only one major product, namely the multiple sclerosis treatment Tysabri, which Biogen (NASDAQ:BIIB) co-owns, all of which prompts the $7.1 billion firm for a deal with Biogen, think Jefferies Group and Royal Bank of Canada.
Wal-Mart Stores Inc. (NYSE:WMT), along with some other retailers have already prepared defenses, in case the Justice Department and the Securities and Exchange Commission initiates an inquiry into the retail industry for violations of an anti-foreign bribery law, according to Reuters.
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