DJIA Week in Review: Johnson & Johnson Detoxes, IBM’s Shopping Spree Continues
Your Cheat Sheet to the last week in DJIA news:
Exxon Mobil Corporation (NYSE:XOM): United States Secretary of the Interior Ken Salazar announced a plan on Monday that would permit drilling on 50 percent of the nearly 23 million acre National Petroleum Reserve in Alaska, according to The Washington Post. However, the decision drew fire from oil and gas backers.
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Johnson & Johnson (NYSE:JNJ) expects to take dangerous chemicals from the majority of its cosmetic products and adult toiletries worldwide by the end of 2015, according to the Associated Press. In addition, the firm says that it is set to have baby products reformulated with safer ingredients by the end 2013.
JPMorgan Chase & Company’s (NYSE:JPM) private investment division One Equity Partners and M*Modal Inc. (MODL) say that Legend Acquisition Sub, Inc.’s tender offer to purchase the remaining outstanding shares of common stock of M*Modal at $14.00 a share, net to the seller thereof in cash, without interest thereon and less any applicable withholding taxes, expired at 11:59 p.m., Eastern Time, on August 14, 2012. All shares validly tendered into the offer and not properly withdrawn are accepted for payment, and will be paid promptly through the terms of the offer. The depositary for the tender offer has advised that, ‘as of the offer’s expiration, 46,488,790 shares of common stock of M*Modal had been validly tendered and not properly withdrawn pursuant to the tender offer, which represent approximately 79 percent of the outstanding shares of M*Modal on a fully diluted basis’.
Kraft Foods Inc. (NYSE:KFT): Nestle (NSRGY.PK) Chairman Peter Brabeck says that his company does not intend to split itself or spin off its Nespresso coffee division, according to Reuters.
Microsoft Corporation (NASDAQ:MSFT) has encountered a problem with the digital certificates used to sign applications, which is preventing some phones from installing some applications that were published during the last few days. A company statement reads: “We’ve investigated and determined the issue only affects phones that upgraded to Windows Phone 7.5 from an earlier version of the operating system. It does not appear to impact phones sold with Windows Phone 7.5 preinstalled. We estimate the issue also affects only a small percentage of the 100,000-plus apps in Marketplace. We know what’s causing the issue and are already planning to roll out a fix. Until that’s finished, we’re going to temporarily stop publishing new apps in Marketplace.”
AT&T, Inc. (NYSE:T) might pull the plug on its own Content Delivery Network and re-sell those services from either Limelight Networks, Inc. (NASDAQ:LLNW) or Akamai Technologies, Inc. (NASDAQ:AKAM), say several sources to StreamingMediaBlog.com. Although an agreement hasn’t been completed, the sources indicate that though Limelight has been favored to be awarded the transaction, the re-seller business is “Akamai’s to lose”.
Wal-Mart Stores Inc. (NYSE:WMT) is among more than a dozen big merchants, which includes Target Corporation (NYSE:TGT), that are expected to announce on Wednesday plans to jointly develop a mobile-payments network that will be named Merchants Customer Exchange, say sources to the Wall Street Journal. The new network will compete against similar services from Google Inc. (NASDAQ:GOOG) and other firms.
Exxon Mobil Corportion’s (NYSE:XOM) consortium has been named by Ukraine to develop its Skifska gas field in the Black Sea as the country attempts to free itself from increasingly expensive Russian gas imports. The consortium also includes Royal Dutch Shell (NYSE:RDSA).
Cisco Systems, Inc. (NASDAQ:CSCO) will post its fourth quarter earnings after the market close on Wednesday in a conference call scheduled for 4:30 pm Eastern Time. An earnings per share of 46 cents and $11.60 billion for revenue is expected by consensus, says First Call, while guidance from the May 9 call was for a range between 44 and 46 cents, with revenue up 2 to 5 percent, and the gross margin between 61 and 62 percent. The company warned at the start of the quarter that the worldwide economic slowdown would impact its results. Avondale believes that Cisco’s fourth quarter results will be in-line with the consensus estimates. In addition, the firm thinks that Cisco experiences fairly steady demand for its video products, in the current market uncertainty over Google’s (NASDAQ:GOOG) likely goal of divesting Motorola’s Home Networking business. In addition, Avondale is confident that Cisco’s results and outlook will prove to be “a hair better than forecasts.”
Bank of America Corporation (NYSE:BAC) Chief Executive Brian Moynihan said that “Corporate social responsibility is an extension of the values we stand for as a company. Our goal is to connect the people and businesses we serve with the products, tools, and resources they need to accomplish their goals, drive economic growth and make communities and the world better.”
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Chevron Corp. (NYSE:CVX): Israel’s outgoing home front defense minister said that his country is prepared for a 30 day, multi-front war that could ignite should it decide to bomb Iran, according to an interview the minister gave to Israeli newspaper Ma’ariv, which was reported in Defense News. The minister added that “Israel is ready to face the consequences of such a war,” but added that “Jerusalem should always coordinate its actions with the United States.”
Hewlett-Packard Company’s (NYSE:HPQ) domestic sales executive John Solomon has praised Microsoft’s (NASDAQ:MSFT) Surface tablet, saying that it’s “great” and also that the firm is “showing what’s possible in the tablet space,” according to Business Insider. Additionally, Solomon said the relationship has not changed due to the recent announcement, in an interview with CRN’s Kevin McLaughlin.
Hewlett-Packard Company’s (NYSE:HPQ) HP Application Lifecycle Management has been selected by the worldwide investment manager BlackRock, Inc. (NYSE:BLK) along with Lab Management Automation, for the improvement of the delivery of application updates for its investment-management platform, which supplies sophisticated risk analytics with portfolio management, trading and operations tools.
International Business Machines Corp. (NYSE:IBM) reported that it will purchase private equity Houston-based Texas Memory Systems, which is a developer of high-performance flash memory solutions. TMS employs around 100 people. Financials of the transaction were not divulged, but the deal should close later in the current year.
Intel Corporation (NASDAQ:INTC): Microsoft Corporation’s (NASDAQ:MSFT) rumored $199 price for its Surface tablet could push PC suppliers out of the market, say unnamed sources to DigiTimes, adding that Windows RT partners sych as Samsung (SSNLF.PK), Dell Inc. (NASDAQ:DELL), Lenovo Group Ltd Avr (LNVGY.PK), and Asustek might have to shut down their development if the rumored price proves to be correct.
JPMorgan Chase & Co. (NYSE:JPM) will add Nigeria to its Government Bond-Emerging Markets Index in three phases, starting in October, according to a research note issued on Wednesday. That country’s inclusion in the Index could become a catalyst for capital inflows into its debt market and thereby freeing funds that could be loaned to companies and households, say analysts. Nigeria will command a weight of approximately 0.59 percent in the Index, which has around $170 billion of assets under management benchmarked against it.
Microsoft Corporation (NASDAQ:MSFT) Windows 8 operating system is not doing very well in early reviews, according to Business Insider, which says that they are “not good”. Woody Leonhard at InfoWorld declares “Yes, it’s that bad,” and Kyle Wagner at Gizmodo says that Windows 8 is “seems like a rough draft of a deeply interesting idea.”
Verizon Communications Inc. (NYSE:VZ): The United States Justice Department has filed a Consent Decree and Competitive Impact Statement regarding the Verizon Wireless (VZ, VOD) -SpectrumCo, LLC, which represents a joint venture between Comcast Corporation (NASDAQ:CMCSA), Time Warner Cable (NYSE:TWC), and Bright House Networks, which are commercial agreements with the United States District Court for the District of Columbia. Comcast comments that, “We appreciate the timely completion of the antitrust review by the government of the proposed sale of spectrum and associated commercial agreements between Verizon Wireless, Comcast, and the other cable companies… We are also pleased that the FCC is circulating an order proposing approval of the spectrum sale and we are hopeful that a final order will be issued shortly.”
AT&T Inc.’s (NYSE:T) domain name system servers’ data traffic for some customers has sustained a distributed denial-of-service attack, which caused some disruption for several hours, beginning Wednesday morning Pacific Daylight Time. Hours later, the attack had apparently not been mitigated, as a company spokesperson said to IDG News Service by email that “Due to a distributed denial of service attack attempting to flood our Domain Name System servers in two locations, some AT&T business customers are experiencing intermittent disruptions in service. Restoration efforts are underway and we apologize for any inconvenience to our customers.” It now seems that this attack affected enterprise customers using AT&T’s managed services DNS product.
Boeing Co. (NYSE:BA) and Commercial Aircraft Corporation of China, or COMAC, launched the Boeing-COMAC Aviation Energy Conservation and Emissions Reductions Technology Center, which represents a collaborative effort in support of commercial aviation industry growth. The two firms also reported that the Center’s first research project will search out methods to refine waste cooking oil, often referred to in China as “gutter oil,” into sustainable aviation biofuel. Further, the new Center reflects Boeing’s companies’ mutual commitment to progress on industry challenges, the need to reduce carbon emissions being a prime example.
Bank of America Corporation (NYSE:BAC) reports that it has not as of yet refinanced a significant number of the loans required by the industry’s $25 billion settlement of foreclosure abuses. JPMorgan Chase & Co. (NYSE:JPM) says that it has completed a significant portion of its $500 million program, while Wells Fargo & Co. (NYSE:WFC) expects to finish its $900 million quota two years prior to the 2015 deadline, according to Bloomberg.
Caterpillar Inc. (NYSE:CAT) has gotten mixed feedback from union leaders at its Joliet factory, from its revised pay offer that would ideally end a strike there that began more than three months ago.
General Electric Company’s (NYSE:GE) Capital division GE Antares was the administrative agent on a $85 million senior credit facility for Kele, Inc., which represented a portfolio investment of CHS Capital. The financing was in support of a dividend recapitalization. GE Capital Markets was the sole lead arranger and bookrunner on the transaction.
Bank of America Corporation (NYSE:BAC) reports that it has not completed a “significant number” of loan refinances, as part of the $25 billion settlement of foreclosure abuses, and is also slammed with complaints about customer service in its mortgage division. The company blamed the “time required to underwrite” loans as reason for its not having completed many of its scheduled $1 billion in modifications, from a filing earlier in August. In comparison, JPMorgan Chase & Co. announced last week that it has finished a “significant portion” of its $500 million program and Wells Fargo & Co. anticipates the completion of its $900 million requirement two years prior to the 2015 deadline.
Cisco Systems, Inc.’s (NASDAQ:CSCO) huge dividend rise increases the dividend yield from 1.8 percent to 3 percent, which is two-thirds more than the 10-year Treasury note. In addition, it out-yields Microsoft Corporation’s (NASDAQ:MSFT) 2.6 percent, Hewlett-Packard Company’s (NYSE:HPQ) 2.7 percent and International Business Machines Corporation’ (NYSE:IBM) 1.7 percent, while putting Cisco’ yield closer to Intel Corporation’s (NASDAQ:INTC) 3.4 percent, according to Barron’s. Investors in Cisco are having wait out the current spending slump and also the large restructuring endeavors that Cisco started in 2011.
Chevron Corp. (NYSE:CVX) has appealed an injunction that disallows it and its drilling contractor Transocean Ltd. (NYSE:RIG) from operating in Brazil pending civil and criminal charges over an oil spill last November, according to Reuters
Hewlett-Packard Company (NYSE:HPQ): The Chongqing City government will cease its exiting subsidies offered for the production of notebooks that offset higher production costs in eastern China in 2014, says a government official to DigiTimes. Toshiba Corp. (TOSBF.PK), Hewlett-Packard, Fujitsu Ltd Adr (FJTSY.PK), Acer and Asustek Computer are all stationed in Chongqing.
International Business Machines Corp. (NYSE:IBM) intends to keep its five-year long acquisitions spree going, even after its purchase of Texas Memory Systems, by snapping up additional firms in the storage industry, according to Bloomberg.
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Intel Corporation (NASDAQ:INTC): Lenovo Group Ltd. (LNVGY) predicts that Windows RT (NASDAQ:MSFT) tablets will cost between $200 and $300 less than other Windows 8 tablets, which implies that they could start near $300, says Business Insider.
Microsoft Corporation (NASDAQ:MSFT) is among retailers who are offering huge incentives and bargains to shoppers in an endeavor to grow their share of the back to school sales, says the Associated Press. The company is handing out free Xbox consoles to customers purchasing computers, J.C. Penney & Co. (NYSE:JCP) is giving free haircuts to kids, and Abercrombie & Fitch (NYSE:ANF) is marking jeans at a 50 percent discount.
AT&T, Inc. (NYSE:T) reported that wireline employees who are represented by the Communications Workers of America have voted to approve three-year contracts for the AT&T Midwest region and AT&T Corp., after tentative agreements were made on July 21st. The Midwest agreement covers more than 13,000 wireline workers in Ohio, Michigan, Indiana, Illinois, and Wisconsin, while the AT&T Corp. contract covers approximately 5,700 employees located throughout the United States. On August 7th AT&T Southeast reached a tentative settlement with the union in wireline contract talks in the Southeast region.
Wal-Mart Stores Inc. (NYSE:WMT) is facing a lawsuit brought by the shareholder Indiana Electrical Workers Pension Trust Fund IBEW in order to access thousands of internal documents linked to allegations that a Wal-Mart subsidiary bribed Mexican government officials, according to Reuters.
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