Dow Jones Weekly Recap: HP Takes a Plunge, Qantas Cancels Boeing Orders
Bank of America Corporation (NYSE:BAC): Certain attorneys now think that banks are legally entitled by a new law to publish their initial public offering research on the day of the IPO, or perhaps prior to the completion of the deal, and thus not be required to wait the customary 40 days afterwards, according to the Wall Street Journal. Already, some 20 firms that are covered by the Jumpstart Our Business Startups, or JOBS, Act, which covers corporations having less than $1 billion in yearly revenue, have seen this research published only 25 days subsequent to their offerings, since April. Moreover, a number of lawyers and bankers have told the Journal that it is not a coincidence that the 25-day “quiet period” after an IPO is always observed, but is the result of an informal agreement reached by large Wall Street banks that are attempting to avoid potential legal actions arising from the JOBS Act.
EI DuPont de Nemours & Co. (NYSE:DD): The widely held view that the corn prices rally has stalled out following a recent pullback is unfounded, since supply and demand still remain out of equilibrium. A number of traders who deal in the physical market still say that prices need to increase to between $9 and $10 a bushel to force demand down, says the Financial Times.
General Electric Company’s (NYSE:GE) GE Capital’s Healthcare Finance unit will expand its equipment leasing facility to Hospedia, which employs over 400 persons and supplies some 69,000 bed-side terminals offering media, information and clinical support software including real-time patient feedback surveys and the electronic ordering of meals to more than 150 hospitals in the United Kingdom, comprising 75 percent of the acute hospitals on the NHS estate. Subsequent of its purchase of patient bed flow management firm Extramed in July, the company will enlarge its clinical offering by making Extramed’s Patient Flow management system available through its bedside terminals, which will enable the tracking and recording of patient movements and also schedule of more reliable discharge activities, allowing more patients to be discharged safely and on a timely basis.
Walt Disney Co. (NYSE:DIS): In a change in program scheduling that will be effective January 8th, ABC (NYSE:DIS) is moving Jimmy Kimmel Live! to 11:35 p.m. from midnight. The shift will set the show directly against NBC’s (NASDAQ:CMCSA) Jay Leno and David Letterman on CBS (NYSE:CBS), according to the Wall Street Journal.
Hewlett-Packard Company (NYSE:HPQ): Having a potential demand for a minimum of 10 million educational tablet PCs, the education market in China should become a new battleground for non-Apple tablet PC makers, say upstream supply sources to DigiTimes.
Intel Corporation (NASDAQ:INTC): Even automobiles are now more vulnerable to computer viruses, says a study conducted earlier in August by two universities, according to a Tuesday report in The Hill.
Johnson & Johnson (NYSE:JNJ): A Medical Device Recall letter was issued by Synthes on July 5th that requested medical facilities to go through their inventories and immediately cease the use of the identified part and lot numbers of the Hemostatic Bone Putty, as a potential exists that the material might ignite if contacted with electrosurgical cautery systems under certain conditions during surgery. The Putty is utilized to stop bone bleeding by establishing a physical barrier along the edges of bones which have been damaged by trauma or cut during a surgical procedure.
Boeing Co. (NYSE:BA) has reached an agreement with Avcorp Industries, through which a five-year contract extension was signed, for the former to supply the wheel wells for the Next-Generation 737 along with assemblies and components that support the Next-Generation 737, 747-8, 767, and 777. The value of the arrangement is around C$80 million over the term that starts in 2013. These parts and assemblies will be produced and delivered from Avcorp’s Delta, British Columbia facility.
Bank of America Corporation (NYSE:BAC): The Republican Party’s 2012 platform fails to endorse the mortgage interest tax deduction, according to a Bloomberg report.
Cisco Systems, Inc. (NASDAQ:CSCO) and Manila Electric Co., or Meralco, which is the largest distributor of electrical power in the Phillippines, are partnering on a holistic approach to supplying reliable computing and networking infrastructure as a foundation for operations on a smart grid. Expenditures in enterprise computing and smart grids will improve automation and intelligence at crucial points within the Meralco network, which will thus allow the company to achieve higher efficiency in utility operations and also to deliver better services to customers.
EI DuPont de Nemours & Co. (NYSE:DD) is among a group that opposes Proposition 37 in California, that upon approval would mandate labels on genetically modified food. The coalition has so far has collected $25 million from such corporate sponsors as The CocaCola Company (NYSE:KO), PepsiCo Inc. (NYSE:PEP), and Monsanto Company (NYSE:MON), according to The Los Angeles Times.
AT&T, Inc. (NYSE:T) fires back at those who are critiquing its decision to restrict the use of FaceTime over its cellular network to users who sign up for its shared data plans. Chief privacy executive Bob Quinn, via a post on the firm’s official public policy blog, commented that, “The FCC’s net neutrality rules do not regulate the availability to customers of applications that are preloaded on phones. Indeed, the rules do not require that providers make available any preloaded apps. Rather, they address whether customers are able to download apps that compete with our voice or video telephony services. AT&T does not restrict customers from downloading any such lawful applications, and there are several video chat apps available in the various app stores serving particular operating systems.”
Verizon Communications Inc. (NYSE:VZ): Deutsche Telekom’s T-Mobile USA, the nation’s fourth-largest carrier, is introducing an unlimited data plan as it hopes to make itself distinct, but still keep up with larger United States competitors as well. T-Mobile has been losing subscribers at a fast rate since it remains the sole national carrier without Apple Inc.’s (NASDAQ:AAPL) iPhone, the next-generation of which should produce a flood of smartphone purchases later in 2012. Verizon Wireless and AT&T Inc. (NYSE:T), the largest providers, have shifted away from offering unlimited data while at the same time Sprint Nextel Corp. (NYSE:S) is aggressively marketing its unlimited plans.
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McDonald’s Corp. (NYSE:MCD) is one of four companies that has been accused by a body of organizations of violating federal statutes by obtaining personal information concerning children under 13 without parents’ consent, says The New York Times. Complaints with the Federal Trade Commission will be filed against Viacom Inc. (NYSE:VIA), General Mills, Inc. (NYSE:GIS), and Time Warner Inc. (NYSE:TWX), along with McDonald’s.
JPMorgan Chase & Co. (NYSE:JPM): The Republican Party’s 2012 platform fails to endorse the mortgage interest tax deduction, according to a Bloomberg report.
Kraft Foods Inc. (NYSE:KFT) is forming a joint venture partnership with Back To Nature brand food business, in which the former will hold a majority interest and also have board representation. At the same time, Brynwood Partners reported that it has reached a definitive agreement to purchase a controlling interest in Back To Nature. Financials and conditions of the deal, which should close in October, will not be divulged.
The Coca-Cola Company (NYSE:KO) is among a group that opposes Proposition 37 in California, which upon approval, would mandate labels on genetically modified food. The coalition has so far has collected $25 million from such corporate sponsors as PepsiCo Inc. (NYSE:PEP), Monsanto Company (NYSE:MON), and E.I. DuPont de Nemours and Company (NYSE:DD), according to The Los Angeles Times.
Microsoft Corporation (NASDAQ:MSFT) came in second in the monthly analysis of domestic web activity at the leading online properties for the month of July, as released by comScore. The data were from the comScore Media Metrix service. Microsoft sites had 169 million visitors, and was second only to Google Sites (NASDAQ:GOOG) with 190 million visitors. Third on the list was Yahoo! Sites (NASDAQ:YHOO) with 163 million, followed by Facebook.com (NASDAQ:FB) with 161 million. New on the list was Comcast NBCUniversal (NASDAQ:CMCSA), placed there by its coverage of the London Olympics, which gave it 76.8 million visitors.
Pfizer Inc. (NYSE:PFE) Canada and Stellar Pharmaceuticals Inc. (SLXCF.PK) have reached an agreement granting the later the exclusive Canadian promotional rights for Gelfoam from the former. Through the promotional arrangement terms, Stellar is granted the exclusive Canadian rights to Gelfoam by Pfizer, and will act on behalf of Pfizer in the promotion, sales and marketing of Gelfoam to surgeons and other health care practitioners in Canada. For its part, Pfizer will be responsible for all distribution activities, regulatory affairs and medical related activities.
Wal-Mart Stores Inc. (NYSE:WMT) loses the most recent round in its price war with Target Corporation (NYSE:TGT), as its prices in August were higher for the first time since October. Research conducted by Bloomberg Industries reported that Target led Wal-Mart by its widest margin since the monthly study commenced two years ago.
Exxon Mobil Corp. (NYSE:XOM): The Securities and Exchange Commission voted 2 to 1 on Wednesday that domestic oil and mining companies must disclose taxes and other fees in excess of $100,000, that they pay to foreign governments, says The New York Times.
Walt Disney Co. (NYSE:DIS) Studios is the subject of an inquiry by Federal and state regulators as to whether the company could have been one of the facilities that contaminated groundwater with chromium 6, which is a carcinogenic agent, according to The Los Angeles Times.
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Hewlett-Packard Company (NYSE:HPQ) reports that it has been chosen by the United States Air Force to supply business PCs and workstations, through its enterprise IT purchase program. This award constitutes a part of the Air Force Client, Computing and Servers, Quantum Enterprise Buy, and will increase the 1 million units of H-P products the USAF has deployed throughout the United States, Europe and Asia Pacific during the past seven years. In compliance with Air Force requirements, the company will include customized agency configurations that adhere to strict standards and tests for memory, video, audio, and other specifications. More PCs and workstations have been procured from Hewlett-Packard than from any other supplier or maker.
Johnson & Johnson (NYSE:JNJ) division Janssen Biologics said that it has started the Phase 3 development program for sirukumab as part of a collaboration with GlaxoSmithKline (NYSE:GSK). The drug is a human anti-interleukin-6 monoclonal antibody which is being evaluated for the treatment of adults who suffer from moderately to severely active rheumatoid arthritis.
JPMorgan Chase & Co. (NYSE:JPM): The Federal Reserve has strongly indicated that it’s readying new steps through which it should reinforce the economic recovery, saying that the measures would be needed fairly soon unless growth substantially and convincingly increases. This prediction is from the minutes of the July 31st to August 1st policy meeting, according to the Wall Street Journal.
Boeing Company’s (NYSE:BA) 787 aircraft delivery timetable will be revamped by the Qantas Group, as part of the five-year Qantas International turnaround plan, with no changes foreseen to the Group’s plans for the B787-8 aircraft. Scheduled deliveries of 15 B787-8s to Jetstar will proceed as planned, with the first aircraft set to arrive in the second half of next year. Fifty B787-9 options and purchase rights will be kept and brought forward by nearly two years, and will be available for delivery starting in 2016, although firm commitments for 35 B787-9s will be cancelled. The schedule restructure will result in a two-year delay in the Group’s initial B787-9 delivery, but will also lead to a decrease in capital expenditure commitments that would equal $8.5 billion at list prices.
Bank of America Corporation (NYSE:BAC): The Federal Reserve has strongly indicated that it’s readying new steps through which it should reinforce the economic recovery, saying that the measures would be needed fairly soon unless growth substantially and convincingly increases. This prediction is from the minutes of the July 31st to August 1st policy meeting, according to the Wall Street Journal.
Caterpillar Inc.’s (NYSE:CAT) top-line year-to-date growth has been affected by the economic slump in China, especially at its Construction Industries division, where sales have decreased when compared to mid-2011 levels. This growth setback has been caused by measures taken by the Chinese government in order to slow mounting real estate prices, and also to put a lid on high inflation by maintaining high interest rates. These factors can be seen as the primary contributors for the firm’s stock price slump, which is almost 25 percent off from peak levels of between $115 and $116 in February, compared to the current $86 to $90 range.
Chevron Corp. (NYSE:CVX): The Securities and Exchange Commission voted 2 to 1 on Wednesday that domestic oil and mining companies must disclose taxes and other fees in excess of $100,000, that they pay to foreign governments, says The New York Times.
General Electric Co. (NYSE:GE) will upwrap a new generation of railroad locomotives Friday that will meet United States 2015 emission standards, according to Reuters. This new Evolution locomotive should helps GE remain out front of Caterpillar’s (NYSE:CAT) Electro-Motive Diesel train business.
Hewlett-Packard Company (NYSE:HPQ) is plunging from bad to worse, says Barron’s. Its assertive restructuring and strengthening 2.7 percent yield might be a plus, but weak demand for PCs, fierce competition from tablets and its slumping printer business are pulling it down. In addition, Microsoft Corporation (NASDAQ:MSFT) poses more and more a threat to H-P’s PC division. Currently, the average price target on Hewlett-Packard is around $23.50, with half of analysts covering the stock rating it a Hold, with 17 percent rating it a Sell.
JPMorgan Chase & Company’s (NYSE:JPM) Libor inquiry takes yet another turn, as Bruno Iksil, the “London Whale” at the center of the criminal investigation surrounding the firm’s $5.8 billion trading loss, is said by two sources to have retained a lawyer in Paris, according to a Reuters report. United States federal investigators are examining whether Iksil and his superiors deliberately attempted to cover up the losses by mismarking the value of some of the trading positions.
Microsoft Corporation (NASDAQ:MSFT) shares might jump more than 30 percent to around $38, say some bullish observers, according to Barron’s. The company currently has a free cash flow of approximately $29 billion which was generated from its existing business, along with a pipeline that features the Windows 8 intro in October, plus the possibility of a bonus to its 2.6 percent dividend. In addition, shares are really inexpensive, but trade at around 10 times the estimated earnings of $3.02 for fiscal year 2013, and less than 9 times if the cash is subtracted. A growth in earnings of 10 percent is projected for fiscal year 2014, to $3.32 a share.
Boeing Co. (NYSE:BA) has seen the cancellation of orders for 35 of its 787 Dreamliners by Qantas Airways. This blow makes it more unlikely that Boeing can make a profitable go of its flagship jet programs, says the Wall Street Journal.
Bank of America Corporation (NYSE:BAC): Securities and Exchange Commission member Luis Aguilar discovered during his vacation that the Commission Chair Mary Schapiro’s office provided lawmakers with a slanted view (in his opinion) regarding the risks of money funds, so he voted against new rules on the funds, according to the Wall Street Journal.
Caterpillar Inc. (NYSE:CAT) along with Komatsu and Sany have all sharply reduced production in China’s construction-equipment market due to continuing stalled-out demand, says Bloomberg. Sales of large excavator sales dropped in July the most since January of 2009, and total excavator sales fell 24 percent year-over-year in July to 5,827.
Walt Disney Co. (NYSE:DIS): Television broadcasters are pulling back the decades-old voluntary restrictions that relegated their national alcohol ads to beer and wine (and not liquor), according to the Wall Street Journal. This new environment enables them to generate new streams of revenue, while advertisers more and more shift their advertising budgets to cable TV, the Internet and online videos.
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