DJIA Week in Review: Verizon and AT&T’s iPhone Halo, Disney Hits New Highs
Here’s your Cheat Sheet to the top business headlines for Dow 30 stocks this week:
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Verizon Communications Inc. (NYSE:VZ) reports that Verizon Wireless’s board doesn’t plan to discuss a potential dividend at its September 19th meeting, according to Bloomberg, so investors in Vodafone (NASDAQ:VOD) might have to wait longer for a dividend to be approved from their U.S. mobile-phone venture, say sources.
Don’t Miss: Apple Builds iPhone 5 Fortress of Secrecy.
Wal-Mart Stores Inc. (NYSE:WMT): Domestic retail sales are expected to rise by 3.3 percent for the 2012 holiday season, which would mark the first increase in shopper traffic since 2007. This is according to a forecast released by the research firm ShopperTrak on Wednesday, according to Reuters.
The Coca-Cola Company (NYSE:KO) has reported several leadership appointments in support of its new global operating structure. As previously announced, Ahmet Bozer, Steve Cahillane and Irial Finan will head the firm’s three operating businesses Coca-Cola International, Coca-Cola Americas and Bottling Investments Group, respectively, effective Jan. 1, 2013. Alexander Sandy Douglas Jr., who is currently President of Coca-Cola North America, will become Global Chief Customer Officer. Katie Bayne, who is now President of North America Sparkling Beverages, will become President of North America Brands. Brian Kelley, who is currently Chief Product Supply Officer for Coca-Cola Refreshments, will be President and Chief Operations Officer of Coca-Cola Refreshments. Jose Octavio Pacho Reyes, now President of the Latin America Group, will be appointed as Vice Chairman of the The Coca-Cola Export Corporation. Brian Smith, who now serves as President of the Mexico Business Unit, will be named as President of the Latin America Group. Nathan Kalumbu, now President of the Central, East and West Africa Business Unit, will become President, Eurasia & Africa Group. Dominique Reiniche, who now serves as President of the Europe Group, will be appointed Chairman of the Europe Group.
Don’t Miss: Wal-Mart Has BIG Plans to Take Over India.
McDonald’s Corporation’s (NYSE:MCD) same-store sales figures for August suggest that the company will continue to face problems that likely won’t go away in the near future, which include competition in the United States, worldwide macroeconomic uncertainty, decreased same-store sales, plus few notable product intros, says Barron’s. In the longer-term, a stronger case can be made for the stock, and the shares come with a 3.1 percent yield that is supported by a strong cash position and a return on equity approaching 38 percent.
Microsoft Corporation’s (NASDAQ:MSFT) Windows Phone operating system is headed by Instagram, according to The Verge, which cites sources who are familiar with Microsoft’s Windows Phone plans, who add that Instagram app will be made accessible to the platform.
Procter & Gamble Co. (NYSE:PG): Claims made by L’Oreal Co. Adr (LRLCY.PK) concerning a group of high-end anti-wrinkle products have sparked a warning by the FDA, which says that they have been ‘pushed too far’, and as a result sales could be caused to cease if the firm doesn’t pull them back, according to the Wall Street Journal.
AT&T Inc. (NYSE:T) will not make use of Apple’s (NASDAQ:AAPL) FaceTime video-calling feature over its cellular network on its data plans, according to the Wall Street Journal. However, Verizon Wireless will include FaceTime, while Sprint Nextel Corporation (NYSE:S) reports that it would not set limits on FaceTime use.
Wal-Mart Stores, Inc. (NYSE:WMT): Retailers of television sets will not have new innovations to sell in the upcoming shopping season, so they will be trying to push shoppers into larger screen sizes, a move that some say will be bad for margins, according to Reuters.
The Boeing Company (NYSE:BA): A proposed European aerospace and defense super-merger between European Aeronautic Defence and Space (EADSY.PK) and BAE Systems (BAESY.PK), might trigger the biggest shake-up among the United States’ rivals in almost 20 years, says the Wall Street Journal.
Don’t Miss: AIG: US Taxpayers, You are (Almost) Free.
Bank of America Corporation (NYSE:BAC): Some economists are dubious regarding economic benefits from another round of bond buying by the Federal Reserve, although that would be the course of action that most think the central bank will announce when its latest policy meeting concludes later Thursday, according to the most recent forecasting survey by the Wall Street Journal.
Cisco Systems, Inc. (NASDAQ:CSCO): Tablet PCs are forecast to reduce e-book reader and notebook sales in the second half of 2012, says DigiTimes, citing market observers, adding that tablet products such as the Kindle Fire HD, Nexus 7, and the reported 7.85-inch iPad are enjoying higher demand.
E.I. DuPont de Nemours and Company (NYSE:DD) has said in conference presentation slides that it will maintain a target of long-term sales, or compound annual growth rate, of 7 percent and long-term earnings CAGR of 12 percent, while excluding significant items. In addition, the firm it expects the Performance Coatings sale to close in the first quarter of next year.
The Walt Disney Company (NYSE:DIS) says that it will collaborate as a charter client with Arbitron, Inc. (NYSE:ARB) and comScore, Inc. (NASDAQ:SCOR) in their agreement through which to develop a five-platform measurement initiative which would provide persons-level insights, by integrating the complementary resources of both firms, with the census and panel-based PC, mobile and TV set-top box measurement capabilities of comScore along with enhanced, single-source, multiplatform measurement capabilities of the Arbitron Portable People Meter tech.
Don’t Miss: New Kindle Fire Could MAKE OR BREAK Amazon.
General Electric Company (NYSE:GE) shares are moving due to a comment made at the Morgan Stanley Industrials & Auto Conference. GE just hit another 52-week high of $22.24 per share today.
Hewlett-Packard Company (NYSE:HPQ): Tablet PCs are forecast to reduce e-book reader and notebook sales in the second half of 2012, says DigiTimes, citing market observers, adding that tablet products such as the Kindle Fire HD, Nexus 7, and the reported 7.85-inch iPad are enjoying higher demand.
Johnson & Johnson’s (NYSE:JNJ) Bengay is among a few over-the-counter pain relievers that are subject to an FDA warning, which says that some consumers have reported receiving serious skin injuries during their use. It appears that then when applied to the skin to relieve mild muscle and joint pain, there have been some 43 reported cases of burns linked to the active ingredients menthol, methyl salicylate and capsaicin. A Thursday FDA press release indicated that the the injuries have ranged from mild to severe chemical burns; Sanofi-aventis’ (NYSE:SNY) Icy Hot is another product in the group.
JPMorgan Chase & Co. (NYSE:JPM): It is reported that underwriters are permitting corporate insiders to work around the usual agreements that would disallow them from quickly divesting shares following initial public offerings, according to the Wall Street Journal. As is typical with these lockups, underwriters keep company insiders from selling their shares, usually for 180 days subsequent to an IPO, but this year the insiders have seen 10 such agreements expire early, at times even months prior to the planned exit date.
Microsoft Corporation (NASDAQ:MSFT): Tablet PCs are forecast to reduce e-book reader and notebook sales in the second half of 2012, says DigiTimes, citing market observers, adding that tablet products such as the Kindle Fire HD, Nexus 7, and the reported 7.85-inch iPad are enjoying higher demand.
Pfizer Inc. (NYSE:PFE) and Zhejiang Hisun Pharmaceuticals have introduced the startup of their Hisun-Pfizer Pharmaceuticals Co., Ltd. joint venture to develop, produce and commercialize off-patent pharmaceutical products in China and in worldwide markets. This move represents an important step in strengthening the ability of both firms to allow more patients access to high-quality and low-cost branded generic medicines.
Kraft Foods Inc. (NYSE:KFT) expects both the shares of Kraft Foods Group, Inc. common stock and Mondelez International, Inc. common stock, ex-distribution, to start trading on a “when-issued” basis on The NASDAQ Global Select Market on September 17th, under the symbols “KRFTV” and “MDLZV,” respectively. Kraft Foods Inc. will still trade, with the entitlement to the shares of Kraft Foods Group, Inc. common stock that will be distributed in the spin-off, on The NASDAQ Global Select Market under the symbol “KFT.” Kraft Foods Group will begin “regular-way” trading on The NASDAQ Global Select Market on October 2nd, under the ticker symbol “KRFT.” Kraft Foods Inc. will take the name, Mondelez International, Inc. and will begin “regular-way” trading also on October 2nd, on The NASDAQ Global Select Market under the ticker symbol “MDLZ.”
Don’t Miss: Here’s Why Kraft is Getting Kicked Off the Dow.
McDonald’s Corporation (NYSE:MCD): The government of India has approved a previously held-up proposal to allow as much as 51 percent Foreign Direct Investment in multi-brand retail, so long as the states will be permitted to decide if they want it, according to The Economic Times. However, for single-brand retail, the Cabinet maintains that any company seeking waiver of the mandatory 30 percent local sourcing rules would have to establish an Indian manufacturing facility, though such a decision would need to be put to the Cabinet once again for finalization.
Microsoft Corporation’s (NASDAQ:MSFT) researchers are looking into the sale of counterfeit software that included malware, installed on new, unused laptops in China, which shows the vulnerabilities faced by consumers from weaknesses in computer supply chains, says the Associated Press.
AT&T Inc. (NYSE:T) is taking part in a joint venture with Deutsche Telekom’s (DTEGY) T-Mobile USA and Verizon Wireless (VZ, VOD), which is developing a mobile-payments service. The JV has postponed its first major test of the product, that was scheduled for Austin and Salt Lake City, with no reason given according to the Wall Street Journal.
United Technologies Corporation’s (NYSE:UTX) Pratt & Whitney Rocketdyne, along with RD AMROSS, have successfully sent a critical United States government satellite into orbit, which again shows the consistency and reliability of their rocket launch propulsion systems. The spacecraft was launched from the Vandenberg Air Force Station in California on a United Launch Alliance Atlas V rocket, which is powered by the RD AMROSS RD-180 booster engine, and the upper-stage by the Pratt & Whitney Rocketdyne RL10 engine.
Verizon Communications Inc. (NYSE:VZ): A joint venture of AT&T Inc. (NYSE:T), Deutsche Telekom’s (DTEGY) T-Mobile USA and Verizon Wireless (NYSE:VZ)(NASDAQ:VOD), which is currently working on a mobile-payments service, has postponed the first major test of the product that was set for Austin and Salt Lake City, without a reason given, according to the Wall Street Journal.
Wal-Mart Stores, Inc. (NYSE:WMT) was added to a group of locations earlier on Friday at which Apple’s (NASDAQ:AAPL) iPhone 5 may be preordered, says Bloomberg. This marks the first time that iPhone preorders have been offered through this retailer.
Hewlett-Packard Company (NYSE:HPQ) is among a group of companies that Jim Cramer held up as an example when he told viewers that, when the top management exits a company, so should investors. Other firms were Francesca’s Holdings Corp. (NASDAQ:FRAN), Mellanox Technologies, Ltd. (NASDAQ:MLNX), Yahoo! Inc. (NASDAQ:YHOO) and First Solar, Inc. (NASDAQ:FSLR).
Don’t Miss: Johnson & Johnson and Sanofi Get BURNED.
Intel Corporation (NASDAQ:INTC) lost the stake of Berkshire Hathaway Inc. (BRK.A), which the latter sold within a year of its being bought, ignoring the buy-and-hold policy favored by its Chairman Warren Buffett. Berkshire’s Geico division had accumulated 11.5 million shares of Intel in the second half of last year for an average price of around $22. Then, Berkshire sold the stake for an average price of $27.25 in 2012 through May 8th, gaining approximately $60 million in profit, says Bloomberg.
Johnson & Johnson’s (NYSE:JNJ) Janssen Pharmaceuticals, along with ALZA Corporation, have resolved pending legislation in the United States with Impax Laboratories, Inc. (NASDAQ:IPXL) and Teva Pharmaceuticals USA (NYSE:TEVA) concerning the production and sale of generic formulations of Concerta. By the terms of the settlement, ALZA will grant Impax and Teva a license to sell generic versions of the drug on July 14, 2013 or earlier, given certain circumstances. Impax’s generic Concerta products form a part of its Strategic Alliance Agreement with Teva, and once the ANDA is approved by the FDA, the latter has the right to commercialize the products pursuant to the license agreement.
JPMorgan Chase & Co. (NYSE:JPM) shares have now erased the decline of as much as 24 percent that resulted from the firm’s famous multibillion-dollar trading loss. On Thursday, the shares rose by 3.7 percent to $41.40, passing the $40.74 May 10th closing price when a trading loss of approximately $2 billion (then) was announced. The total amount of the loss this year currently stands at $5.8 billion, according to Bloomberg.
The Boeing Company (NYSE:BA): The proposed merger of Airbus parent European Aeronautic (EADSY.PK) and BAE Systems (BAESY.PK) is to a great extent being structured to appease possible security worries of the United States Department of Defense, according to sources to the Wall Street Journal.
Don’t Miss: Ford Has a PLAN to Increase U.S. Market Share.
E.I. DuPont de Nemours and Company (NYSE:DD) and certain bioengineering firms such as Monsanto Company (NYSE:MON) are shelling out millions of dollars to stop a California ballot initiative which would mandate that companies identify genetically modified foods on labels, says The New York Times. Other firms fighting the initiative own large organic brands such as Dean Foods Company (NYSE:DF), Kellogg Company (NYSE:K), and J. M. Smucker Company (NYSE:SJM).
Home Depot, Inc. (NYSE:HD) is shutting its remaining seven big box stores in China, as it shifts its concentration in that market to specialty stores and online offerings. The closings will impact around 850 associates who will receive severance packages and assistance in job placement. As a result of this move, Home depot will post an after-tax charge of approximately $160 million, or about 10 cents per diluted share, in the third quarter, which includes lease terminations, impairment of goodwill and other assets, severance and other charges arising from the closure of the stores. Excluding the charge, the company said that it still expects its fiscal year 2012 diluted earnings per share to be up about 19 percent to $2.95 for the year, which is in-line with previous guidance. Home Depot will continue to employ around 170 associates in China, who work in the sourcing offices in Shanghai and Shenzhen, and on its new retail formats team and also in the specialty stores.
Are these stocks a buy or sell? Let us help you decide. Check out our Wall St. Cheat Sheet Stock Picker Newsletter now >>