DJIA Wrap: P&G Update, Exxon Faces NEW Rules
Alcoa, Inc. (NYSE:AA) and Ma’aden’s joint venture has awarded a contract to Fluor Corporation (NYSE:FLR) to supply engineering, procurement, and construction management services for an automotive sheet factory at Ras Al-Khair in Saudi Arabia. Fluor booked $337 million into backlog in the second quarter.
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Bank of America Corporation (NYSE:BAC): A former employee at Citigroup, Inc. (NYSE:C) has been found not guilty in the first court test of the Securities and Exchange Commission’s claims that investors were misled by banks during the financial crisis when they bought mortgage-linked securities, according to the Financial Times. Citigroup had agreed to pay $285 million to resolve the charges, without admitting or denying wrongdoing, but a judge rejected that agreement, and it is on appeal.
Chevron Corp. (NYSE:CVX) is defending itself against what it calls false claims that it is responsible for alleged environmental and social damages in the Oriente region of Ecuador. The company never conducted oil production operations in Ecuador, and its subsidiary Texaco Petroleum Co. fully resolved its share of environmental impacts originating from oil production operations prior to its exit from Ecuador in 1992. After that settlement was certified by all agencies of the Ecuadorian government responsible for oversight, Texaco Petroleum received a complete release from Ecuador’s national, provincial, and municipal governments that extinguished all claims prior to being acquired by Chevron in 2001. All legitimate scientific evidence absolves Chevron and thus proves that the sites pose no significant threats to human health or the environment.
EI DuPont de Nemours & Co. (NYSE:DD): The United States House of Representatives is set to vote on a $383 million agriculture disaster aid package Thursday, according to Politico. The legislation would restore expired livestock indemnity and forage programs and allow some assistance for specialty crops as well, but the House Republican leadership does not currently want to extend the full farm aid program which is set to expire at the end of 2012.
Exxon Mobil Corp. (NYSE:XOM): Senior Senate Finance Committee Democrats and Republicans have reached an agreement which will extend billions of dollars in business and personal tax breaks beyond the current year, reports Politico. The two sides are reducing the total amount of the tax breaks by approximately 25 percent, but which tax breaks would not be renewed or reduced through the deal was not divulged. Historically, Republicans have fought against tax breaks for solar energy firms, while Democrats have typically fought against the breaks for Big Oil.
General Electric Company (NYSE:GE): MarineMax (NYSE:HZO) has extended its current financing facility with GE Capital Commercial Distribution Finance which allows for as much as $150 million of floorplan financing. The facility’s three-year term expires in June 2015 and contains two, one-year options to renew. The firm’s real estate is not pledged, nor were there significant changes made to the existing facility.
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JPMorgan Chase & Co. (NYSE:JPM): Goldman Sachs Japan, a subsidiary of Goldman Sachs Group Inc. (NYSE:GS), made the most eliminations of jobs in foreign banks at their Japanese brokerages in the last fiscal year. Filings showed that the company decreased headcount by 14 percent to 847, according to Bloomberg.
The Coca-Cola Company (NYSE:KO) is looking at a bid for the beverage division of Singapore’s Fraser and Neave. If successful, such a move would allow Coke the largest share of soft-drink sales in Malaysia and Singapore, say sources to Bloomberg.
Boeing Co. (NYSE:BA) and EL AL reported that the Israeli national carrier has completed an order for two additional Next-Generation 737-900ERs. When the two are added to EL AL’s previous order of March 2011, the total number of 737-900ERs on order rises to six., and the value of the new order is about $179.2 million at current list prices.
Bank of America Corporation (NYSE:BAC): Goldman Sachs Japan, a subsidiary of Goldman Sachs Group Inc. (NYSE:GS), made the most eliminations of jobs in foreign banks at their Japanese brokerages in the last fiscal year. Filings showed that the company decreased headcount by 14 percent to 847, according to Bloomberg.
Chevron Corp. (NYSE:CVX): The United States Congress passed legislation on Wednesday which imposes a new round of sanctions against firms that help Iran sell its oil, says Reuters. The bill will now be sent to President Obama for his signature.
EI DuPont de Nemours & Co. (NYSE:DD) strongly disagrees with the verdict that was reached in favor of Monsanto Company (NYSE:MON), in the latter’s patent case against DuPont in the U.S. District Court in St. Louis, Missouri. The firm believes that the jury was not allowed to see certain crucial facts and arguments due to fundamental errors in the case, and that this led to the disappointing outcome. The verdict will be appealed at the earliest possible opportunity and DuPont believes that it will be overturned, as the company’s Senior Vice President and General Counsel Thomas L. Sager commented that “DuPont believes that the evidence presented during the trial demonstrated clearly that Monsanto’s Roundup Ready soybean patent RE 39,247 is invalid and unenforceable and that Monsanto intentionally deceived the U.S. Patent and Trademark Office on several occasions as it sought patent protection. Further, DuPont believes that the damages awarded of $1 billion are unjustified, particularly considering that Pioneer has never sold a single Optimum GAT seed and has no plans to do so in the future. DuPont’s license to sell Roundup Ready soybeans remains in place and is not impacted by this verdict.” Certain factors involving Monsanto’s misconduct involving this patent, which were not allowed in this case, will be presented to a different jury as a part of DuPont’s antitrust and patent misuse lawsuit against Monsanto in September 2013. Sager remarked that “We continue to stand by our position that we did not infringe the Roundup Ready soybean patent and that the Monsanto patent is invalid. DuPont will continue to fight hard to ensure American farmers have choices and that no one company decides what is best for them.”
Microsoft Corporation’s (NASDAQ:MSFT) most recent Webmail remake, Outlook.com, is drawing large numbers of Hotmail users along with neophytes. The new service will at some point supplant Hotmail, and less than 24 hours after it was introduced, one million people were already using it, reports an official tweet from Microsoft. The new Outlook is the latest in the company’s overhaul of all its Web properties towards the new touch-centric Metro feel, which is the same look that will be featured on the Windows 8 Start Screen and is on Windows Phone already.
AT&T, Inc. (NYSE:T) will purchase all outstanding common shares of NextWave Wireless Inc. (WAVE) at $1.00 per share, along with a contingent payment option that represents a $25 million interest in an escrow fund, which works out to around $0.95 per share. At the time of the transaction, NextWave will hold only its domestic WCS and AWS spectrum assets, with the remainder of its assets and liabilities, including its Canadian WCS spectrum and its 2.5 megahertz EBS/BRS spectrum assets, held by a new holding company.
Exxon Mobil Corp. (NYSE:XOM): The United States Congress passed legislation on Wednesday which imposes a new round of sanctions against firms that help Iran sell its oil, says Reuters. The bill will now be sent to President Obama for his signature.
American Express Company (NYSE:AXP) doesn’t formally agree to participate in Google Wallet (NASDAQ:GOOG), although in previous versions of Google Wallet, that card was an accepted form of payment, according to AllThingsD. For its part Google explains that its new, cloud-based version of the Google Wallet application supports all credit and debit cards from Visa Inc. (NYSE:V), MasterCard Incorporated (NYSE:MA), Discover, and American Express.
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Boeing Co. (NYSE:BA) is among three companies that have new arrangements with NASA through which to design and develop the next generation of United States human spaceflight capabilities, allowing a launch of astronauts from American soil in the next five years. NASA has commented that advances made by these firms under newly signed Space Act Agreements through its Commercial Crew Integrated Capability initiative are expected to ultimately lead to the availability of commercial human spaceflight services for both government and commercial customers. Boeing’s CCiCap partners include Sierra Nevada Corporation, and SpaceX.
Bank of America Corporation (NYSE:BAC) is in discussions to resolve a multi-billion dollar allegation from Fannie Mae, although inside sources said that the sides are not near an agreement and the case might still need to be decided in court, says the Financial Times.
Cisco Systems, Inc. (NASDAQ:CSCO): Economic factors are triggering unseasonably large price decreases for a large number of electronic parts, which provides a near-term buying opportunity for purchasers, says IHS iSuppli. Prices for widely used components including crystals, filters, magnetics, capacitors, oscillators and printed circuit boards all are set to fall at above-average rates in the third and fourth quarters.
General Electric Company (NYSE:GE): The Senate Finance Committee voted Thursday to extend a tax credit for wind energy producers until the end of next year, reports The New York Times. The credit would have expired at the end of 2012, and should save wind energy producers $3.3 billion in 2013.
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Hewlett-Packard Company (NYSE:HPQ): Economic factors are triggering unseasonably large price decreases for a large number of electronic parts, which provides a near-term buying opportunity for purchasers, says IHS iSuppli. Prices for widely used components including capacitors, crystals, filters, magnetics, oscillators and printed circuit boards all are set to fall at above-average rates in the third and fourth quarters.
Intel Corporation (NASDAQ:INTC) is reportedly trying to integrate specifications for mSATA SSDs targeted at ultrabook applications, and is also is exploring cooperation with PC vendors and NAND flash companies, according to sources at memory makers to DigiTimes.
Johnson & Johnson (NYSE:JNJ) has made a deal in principle with the United States Justice Department and certain states on resolving inquiries into marketing practices which include the illegal promotion of the antipsychotic Risperdal.
JPMorgan Chase & Co. (NYSE:JPM) has found, following an internal inquiry into the recent trading losses, that one of its executives talked London trader Bruno Iksil into raising valuations on some bets that were losing money, according to the Wall Street Journal.
The Coca-Cola Company (NYSE:KO) might have Fraser & Neave’s food and beverage division in mind, while the latter ponders whether to take Heineken’s (HINKY.PK) offer for Asia Pacific Breweries, according to the Wall Street Journal.
Microsoft Corporation (NASDAQ:MSFT): Economic factors are triggering unseasonably large price decreases for a large number of electronic parts, which provides a near-term buying opportunity for purchasers, says IHS iSuppli. Prices for widely used components including capacitors, crystals, filters, magnetics, oscillators and printed circuit boards all are set to fall at above-average rates in the third and fourth quarters.
Pfizer Inc. (NYSE:PFE) reports that a Phase 4 evaluation that assessed the efficacy and safety of Toviaz, or fesoterodine fumarate, in patients suffering from overactive bladder, or OAB, has met its primary endpoint. Toviaz decreased urge urinary incontinence, or UUI, in patients with OAB who had a suboptimal response to Detrol LA, or tolterodine tartrate extended release, which is a routinely-prescribed treatment for the condition.
Procter & Gamble Co. (NYSE:PG) expects its net sales for fiscal year 2013 to be in-line, falling 2 percent year-over-year, including a decrease of 4 percent from foreign exchange. However, organic sales should rise between 2 and 4 percent, with pricing predicted to contribute 2 percent to sales. The unfavorable product and geographic mix could decrease sales by 1 percent, at the same time. In addition, P&G reported that it will buy $4 billion in its stock back over the course of the fiscal year.
AT&T, Inc. (NYSE:T) will purchase spectrum from Comcast Corporation (NASDAQ:CMCSA) and Horizon Wi-Com, which is a firm that tried to start up its own wireless broadband network, according to Associated Press reports. This move is in addition to AT&T’s acquisition of NextWave Wireless Inc. (WAVE); the company expects to initiate deployment of the spectrum in three years.
Verizon Communications Inc. (NYSE:VZ) and Vodafone Group’s (NASDAQ:VOD) joint venture, Verizon Wireless, might face rigorous conditions if it wants to get regulators to approve its proposed arrangement with cable companies, say unnamed inside sources to Reuters. Regulators are worried about Verizon and Comcast Corporation’s plans to market each other’s products, and also a new joint venture among Verizon and cable companies which would develop new technologies.
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