Exxon Sees Manufacturing Defects Causing Arkansas Oil Spill and 2 Other Dow Movers to Watch
Exxon Mobil Corp. (NYSE:XOM): Current price $93.23
Exxon Mobil said Wednesday that an independent report blames manufacturing defects for the failure of its pipeline that allowed 150,000 gallons of crude oil to spill into Mayflower, Arkansas. The report, which was provided to Exxon and the Pipeline and Hazardous Materials Safety Administration, discovered cracks close to a seam that failed on the ruptured Pegasus Pipeline. Neither Exxon nor the regulatory agency would not release the report, which was produced by Hurst Metallurgical Research Laboratory Inc., but the company said the defects identified in it reflect the “root cause of the failure.” Meanwhile, Exxon reported that it is still running tests to evaluate other possible factors in the March 29 spill. The cleanup is ongoing and the pipeline remains closed.
International Business Machines Corp. (NYSE:IBM): Current price $192.75
Subsequent to Superstorm Sandy striking the heavily populated East Coast, IBM responded with pro bono consultants, strategies for both an immediate and long-term response to disaster relief and recovery, and all of the tech and expertise required to help set up the Hurricane Sandy New Jersey Relief Fund. The SmartCloud for Social Business was one solution donated to the fund, which created the infrastructure needed to launch immediate relief efforts, and will supply the cloud-based social collaboration tools that will sustain the fund during the long-term recovery efforts.
Walt Disney Co. (NYSE:DIS): Current price $66.58
Disney shares are up more than 2 percent in afternoon trading after JPMorgan wrote that the company’s favorable long-term outlook outstrips the loss it will probably sustain on The Lone Ranger. Analyst Alexia Quadrani wrote to investors that Disney’s long-term outlook remains positive despite the film’s weak opening, and that Disney’s media and parks businesses are still set to perform well. Quadrani also predicted that Disney’s film studio, now under new management, will likely concentrate on lower-risk, less expensive movies in the future. She recommended the stock and maintained an Overweight rating.