Sourcefire, Inc. (NASDAQ: FIRE), Groupon (NASDAQ: GRPN), Southwest Airlines Co. (NYSE: LUV), MFA Financial, Inc. (NYSE: MFA), Hawaiian Holdings, Inc. (NYSE: HA), Jetblue Airways Corp. (NASDAQ: JBLU) and US Airways Group, Inc. (NYSE: LCC) getting new coverage from analysts.
Miller Tabak initiated coverage on Sourcefire, Inc. (FIRE). They placed a “Buy” rating and a price target of $42.00 on the company.
Northcoast Research initiated coverage on Groupon (GRPN). They placed a “Sell” rating on the company.
Maxim Group initiated coverage on Southwest Airlines Co. (LUV). They placed a “Hold” rating on the company.
JPMorgan Chase & Co. (NYSE:JPM) initiated coverage on MFA Financial, Inc. (MFA). They placed a “Neutral” rating and a price target of $7.00 on the company.
Maxim Group initiated coverage on Hawaiian Holdings, Inc. (HA). They placed a “Buy” rating and a price target of $9.00 on the company.
Maxim Group initiated coverage on Jetblue Airways Corp. (JBLU). They placed a “Hold” rating on the company.
Maxim Group initiated coverage on US Airways Group, Inc. (LCC). They placed a “Buy” rating and a price target of $9.00 on the company.
Showing posts with label Southwest Airlines. Show all posts
Showing posts with label Southwest Airlines. Show all posts
Tuesday, November 15, 2011
Tuesday, September 13, 2011
Novartis (NVS) (DGIT) (NIHD) (FDX) (FHN) (IPI) (LUV) Downgraded
Novartis (NYSE: NVS), DG FastChannel Inc. (NASDAQ: DGIT), NII Holdings (NASDAQ: NIHD), FedEx (NYSE: FDX), First Horizon National Co. (NYSE: FHN), Intrepid Potash, Inc. (NYSE: IPI) and Southwest Airlines Co. (NYSE: LUV) downgraded by analysts.
Novartis (NVS) was downgraded by Bank of America (NYSE:BAC) from a “Buy” rating to a “Neutral” rating.
DG FastChannel Inc. (DGIT) was downgraded by Piper Jaffray (NYSE:PJC) from an “Overweight” rating to a “Neutral” rating.
NII Holdings (NIHD) was downgraded by Morgan Stanley (NYSE:MS) from an “Overweight” rating to an “Equal Weight” rating.
FedEx (FDX) was downgraded by Bank of America from a “Buy” rating to a “Neutral” rating.
First Horizon National Co. (NYSE: FHN) was downgraded by analysts at Sterne Agee from a “neutral” rating to an “underperform” rating.
Intrepid Potash, Inc. (IPI) was downgraded by Goldman Sachs (NYSE:GS) to a “Sell” rating.
Southwest Airlines Co. (LUV) was downgraded by Raymond James (NYSE:RJF) from an “Outperform” rating to a “Market Perform” rating.
Novartis (NVS) was downgraded by Bank of America (NYSE:BAC) from a “Buy” rating to a “Neutral” rating.
DG FastChannel Inc. (DGIT) was downgraded by Piper Jaffray (NYSE:PJC) from an “Overweight” rating to a “Neutral” rating.
NII Holdings (NIHD) was downgraded by Morgan Stanley (NYSE:MS) from an “Overweight” rating to an “Equal Weight” rating.
FedEx (FDX) was downgraded by Bank of America from a “Buy” rating to a “Neutral” rating.
First Horizon National Co. (NYSE: FHN) was downgraded by analysts at Sterne Agee from a “neutral” rating to an “underperform” rating.
Intrepid Potash, Inc. (IPI) was downgraded by Goldman Sachs (NYSE:GS) to a “Sell” rating.
Southwest Airlines Co. (LUV) was downgraded by Raymond James (NYSE:RJF) from an “Outperform” rating to a “Market Perform” rating.
Thursday, June 2, 2011
Ex-Dividend for (APC) (GES) (KSS) (LUV) (PDLI) (AEE) is June 6
The ex-dividend date for Ameren Corporation (NYSE:AEE) Anadarko Petroleum Corp. (NYSE:APC), Guess (NYSE:GES), Kohl's (NYSE:KSS), Southwest Airlines (NYSE:LUV) and PDL BioPharma Inc. (NASDAQ:PDLI) is June 6.
Ameren Corporation pays a dividend of $0.39 with a yield of 5.22 percent.
Anadarko Petroleum Corp. pays a dividend of $0.09 with a yield of 0.47 percent.
Guess Inc. pays a dividend of $0.20 with a yield of 2.00 percent.
Kohl's Corporation pays a dividend of $0.25 with a yield of 1.84 percent.
Southwest Airlines Company pays a dividend of $0.02 with a yield of 0.20 percent.
PDL BioPharma Inc. pays a dividend of $0.15 with a yield of 9.27 percent.
Ameren Corporation pays a dividend of $0.39 with a yield of 5.22 percent.
Anadarko Petroleum Corp. pays a dividend of $0.09 with a yield of 0.47 percent.
Guess Inc. pays a dividend of $0.20 with a yield of 2.00 percent.
Kohl's Corporation pays a dividend of $0.25 with a yield of 1.84 percent.
Southwest Airlines Company pays a dividend of $0.02 with a yield of 0.20 percent.
PDL BioPharma Inc. pays a dividend of $0.15 with a yield of 9.27 percent.
Thursday, May 19, 2011
Dividends on (SPTN) (SYBT) (XEL) (LUV) (APD) Declared
Spartan Stores Inc (NASDAQ:SPTN), S Y BANCORP INC (NASDAQ:SYBT), Xcel Energy Inc (NYSE:XEL), Southwest Airlines Inc. (NYSE:LUV) and Air Products And Chemicals Inc. (NYSE:APD) declare dividends.
The Board of Directors of Spartan Stores Inc (SPTN) declared a quarterly common stock dividend of $0.065 per share payable 6/15/11 to shareholders of record at the close of business on 6/1/11.
The Board of Directors of S Y Bancorp Inc (SYBT) declared a quarterly common stock dividend of $0.18 per share payable 7/1/11 to shareholders of record at the close of business on 6/13/11.
The Board of Directors of Xcel Energy Inc (XEL) declared a quarterly common stock dividend of $0.26 per share payable 7/20/11 to shareholders of record at the close of business on 6/23/11.
The Board of Directors of Southwest Airlines Inc. (LUV) declared a quarterly common stock dividend of $0.0045 per share payable 6/22/11 to shareholders of record at the close of business on 6/8/11.
The Board of Directors of Air Products And Chemicals Inc. (APD) declared a quarterly common stock dividend of $0.58 per share payable 8/8/11 to shareholders of record at the close of business on 7/1/11.
The Board of Directors of Spartan Stores Inc (SPTN) declared a quarterly common stock dividend of $0.065 per share payable 6/15/11 to shareholders of record at the close of business on 6/1/11.
The Board of Directors of S Y Bancorp Inc (SYBT) declared a quarterly common stock dividend of $0.18 per share payable 7/1/11 to shareholders of record at the close of business on 6/13/11.
The Board of Directors of Xcel Energy Inc (XEL) declared a quarterly common stock dividend of $0.26 per share payable 7/20/11 to shareholders of record at the close of business on 6/23/11.
The Board of Directors of Southwest Airlines Inc. (LUV) declared a quarterly common stock dividend of $0.0045 per share payable 6/22/11 to shareholders of record at the close of business on 6/8/11.
The Board of Directors of Air Products And Chemicals Inc. (APD) declared a quarterly common stock dividend of $0.58 per share payable 8/8/11 to shareholders of record at the close of business on 7/1/11.
Monday, May 9, 2011
Ratings on (HP) (INFI) (LUV) (MAIN) (MLR) Upgraded
Analysts upgraded their ratings on Helmerich & Payne (NYSE: HP), Infinity Pharmaceuticals Inc (NASDAQ: INFI), Southwest Airlines Co. (NYSE: LUV), Main Street Capital Co. (NASDAQ: MAIN) and Miller Industries, Inc. (NYSE: MLR) today.
Duncan Williams upgraded Helmerich & Payne (HP) from a “reduce” rating to a “strong buy” rating. They have a price target of of $72.00 on the company. They cited valuation as the catalyst behind the call.
Piper Jaffray upgraded Infinity Pharmaceuticals Inc (INFI) from a “neutral” rating to an “overweight” rating. They have a price target of $9.00 on the company, up from $6.00.
Dahlman Rose upgraded Southwest Airlines Co. (LUV) from a “hold” rating to a “buy” rating. They have a price target of $15.00 on the company.
Ladenburg Thalmann upgraded Main Street Capital Co. (MAIN) from a “neutral” rating to a “buy” rating. They have a price target of $19.50 on the company, up from $17.75.
Bank of America (NYSE:BAC) upgraded Miller Industries, Inc. (MLR). They have a price target of $53.00 on the company, up from $46.00.
Duncan Williams upgraded Helmerich & Payne (HP) from a “reduce” rating to a “strong buy” rating. They have a price target of of $72.00 on the company. They cited valuation as the catalyst behind the call.
Piper Jaffray upgraded Infinity Pharmaceuticals Inc (INFI) from a “neutral” rating to an “overweight” rating. They have a price target of $9.00 on the company, up from $6.00.
Dahlman Rose upgraded Southwest Airlines Co. (LUV) from a “hold” rating to a “buy” rating. They have a price target of $15.00 on the company.
Ladenburg Thalmann upgraded Main Street Capital Co. (MAIN) from a “neutral” rating to a “buy” rating. They have a price target of $19.50 on the company, up from $17.75.
Bank of America (NYSE:BAC) upgraded Miller Industries, Inc. (MLR). They have a price target of $53.00 on the company, up from $46.00.
Tuesday, May 3, 2011
Price Targets on (IPHS) (JKS) (LUV) (LYB) (MCP) Updated
Price targets on Innophos Holdings, Inc. (NASDAQ: IPHS), JinkoSolar Holding Co., Ltd. (NYSE: JKS), Southwest Airlines Co. (NYSE: LUV), LyondellBasell (NYSE: LYB) and Molycorp, Inc. (NYSE: MCP) were updated today by analysts.
Oppenheimer raised their price target on Innophos Holdings, Inc. (IPHS) from $47.00 to $56.00. They have an “outperform” rating on the company.
Brean Murray raised their price target on JinkoSolar Holding Co., Ltd. (JKS) from $32.00 to $35.00. They have a “buy” rating on the company.
Deutsche Bank (NYSE:DB) raised their price target on Southwest Airlines Co. (LUV) to $18.00. They have a “buy” rating on the company.
Citigroup (NYSE:C) raised their price target on LyondellBasell (LYB) from $46.00 to $55.00. They have a “sell” rating on the company.
Dahlman Rose raised their price target on Molycorp, Inc. (MCP) from $85.00 to $125.00. They have a “buy” rating on the company.
Oppenheimer raised their price target on Innophos Holdings, Inc. (IPHS) from $47.00 to $56.00. They have an “outperform” rating on the company.
Brean Murray raised their price target on JinkoSolar Holding Co., Ltd. (JKS) from $32.00 to $35.00. They have a “buy” rating on the company.
Deutsche Bank (NYSE:DB) raised their price target on Southwest Airlines Co. (LUV) to $18.00. They have a “buy” rating on the company.
Citigroup (NYSE:C) raised their price target on LyondellBasell (LYB) from $46.00 to $55.00. They have a “sell” rating on the company.
Dahlman Rose raised their price target on Molycorp, Inc. (MCP) from $85.00 to $125.00. They have a “buy” rating on the company.
Thursday, April 21, 2011
No Earnings Love for Southwest (LUV)
Southwest Airlines (NYSE:LUV) got no love today from its earnings report, as the company reported net income in the first quarter below analysts’ estimates.
Net income for Southwest Airlines dropped to $5 million, or 1 cent a share, against $11 million or 1 cent a share last year in the same quarter, a drop of 54.5 percent.
Revenue for the quarter jumpted to $3.1 billion, an 18 percent boost.
Analysts on average had been looking for a gain of 3 cents a share.
Chairman, CEO and President Gary C. Kelly, said, “While escalating jet fuel prices and inclement weather challenged our first quarter profitability, our people prevailed.”
The airline's major competitors include Alaska Air (NYSE:ALK), AMR Corporation (NYSE:AMR), Delta Air Lines(NYSE:DAL), United Continental (NYSE:UAL), US Airways (NYSE:LCC), AirTran Holdings (NYSE:AAI) and JetBlue (NASDAQ:JBLU).
Southwest Airlines was trading at $11.44, down $0.19, or 1.63 percent, as of 11:55 AM EDT
Net income for Southwest Airlines dropped to $5 million, or 1 cent a share, against $11 million or 1 cent a share last year in the same quarter, a drop of 54.5 percent.
Revenue for the quarter jumpted to $3.1 billion, an 18 percent boost.
Analysts on average had been looking for a gain of 3 cents a share.
Chairman, CEO and President Gary C. Kelly, said, “While escalating jet fuel prices and inclement weather challenged our first quarter profitability, our people prevailed.”
The airline's major competitors include Alaska Air (NYSE:ALK), AMR Corporation (NYSE:AMR), Delta Air Lines(NYSE:DAL), United Continental (NYSE:UAL), US Airways (NYSE:LCC), AirTran Holdings (NYSE:AAI) and JetBlue (NASDAQ:JBLU).
Southwest Airlines was trading at $11.44, down $0.19, or 1.63 percent, as of 11:55 AM EDT
Monday, April 4, 2011
Southwest (LUV) Cancelling 70 Flights on Safety Concerns
Southwest Airlines (NYSE:LUV) said it will probably cancel 70 additional flights in response to concerns over small cracks in the skin of some planes.
Cracks in the fuselage are what has generated the concerns and response.
This came form the close call Friday when a Boeing 737-300 (NYSE:BA) jet developed a 5-foot hole in the roof of the plane right after takeoff from Phoenix on Friday. Southwest canceled close to 600 flights over the weekend while grounding 79 planes.
The plane was forced to make an emergency landing. No serious injuries were reported from the incident.
Of the grounded planes, spokeswoman Brandy King said today 33 similar planes have been inspected and returned to service, with the rest expected to be completed by late Tuesday.
Two planes have been found to have cracks similar to those in the Phoenix jet, and a third plane has reportedly found to have cracks developing.
Southwest was trading at $12.39, falling $0.28, or 2.21 percent, as of 1:33 PM EDT. Boeing was trading at $73.71, down $0.30, or 0.41 percent.
Cracks in the fuselage are what has generated the concerns and response.
This came form the close call Friday when a Boeing 737-300 (NYSE:BA) jet developed a 5-foot hole in the roof of the plane right after takeoff from Phoenix on Friday. Southwest canceled close to 600 flights over the weekend while grounding 79 planes.
The plane was forced to make an emergency landing. No serious injuries were reported from the incident.
Of the grounded planes, spokeswoman Brandy King said today 33 similar planes have been inspected and returned to service, with the rest expected to be completed by late Tuesday.
Two planes have been found to have cracks similar to those in the Phoenix jet, and a third plane has reportedly found to have cracks developing.
Southwest was trading at $12.39, falling $0.28, or 2.21 percent, as of 1:33 PM EDT. Boeing was trading at $73.71, down $0.30, or 0.41 percent.
Monday, March 7, 2011
Southwest (LUV) Joins (DAL), (JBLU), (AAI), in Boosting Fares
Southwest Airlines Co. (NYSE:LUV) is the latest of the numerous airlines to boost fares in response to rising fuel costs, joining JetBlue (NASDAQ:JBLU), AirTran (NYSE:AAI), Delta (NYSE:DAL) and Virgin America.
Domestic round-trip airfares were increased by Southwest by $10.
Jet fuel prices have jumped over than 50 percent in the last year to more than $3 a gallon, although the majority of airlines have offset some of the boost in prices via hedging - where they're basically paying extra to lock in the top price they'll pay for some of their fuel.
After Southwest announced its rate hike, competitors in the same markets raised their prices as well.
Southwest was trading at $11.75, down $0.05, or 0.42 percent, as of 2:44 PM EST.
Domestic round-trip airfares were increased by Southwest by $10.
Jet fuel prices have jumped over than 50 percent in the last year to more than $3 a gallon, although the majority of airlines have offset some of the boost in prices via hedging - where they're basically paying extra to lock in the top price they'll pay for some of their fuel.
After Southwest announced its rate hike, competitors in the same markets raised their prices as well.
Southwest was trading at $11.75, down $0.05, or 0.42 percent, as of 2:44 PM EST.
Southwest Airlines (LUV) Facing Challenges of its Success
In an uncharacteristic manner, Southwest Airlines (NYSE:LUV) has been facing challenges concerning quality they've rarely had to face in the past, as increased business and the promise of flying free with bags are weighing on the company.
Bags still fly for free on Southwest Airlines, but travelers are paying a price in other ways.
They're encountering more lapses in Southwest's hallmark on-time performance as the carrier departs from what once was its core principles of avoiding congested airports and shunning hub-and-spoke complexity in favor of getting passengers to their destinations on a single aircraft.
Revenue soared as Southwest added business destinations such as New York's LaGuardia Airport and connecting flights at Chicago's Midway Airport. But as it struggles to cope with increasing numbers of passengers and bags, Southwest risks tarnishing the reliability it has touted since the 1970s.
The problems are so acute at Midway, Southwest's largest hub, that CEO Gary Kelly is dispatching a team of 10 station managers from other airports to get to the bottom of the bottlenecks next week.
Southwest closed Friday at $11.80, up $0.02, or 0.17 percent.
Source
Bags still fly for free on Southwest Airlines, but travelers are paying a price in other ways.
They're encountering more lapses in Southwest's hallmark on-time performance as the carrier departs from what once was its core principles of avoiding congested airports and shunning hub-and-spoke complexity in favor of getting passengers to their destinations on a single aircraft.
Revenue soared as Southwest added business destinations such as New York's LaGuardia Airport and connecting flights at Chicago's Midway Airport. But as it struggles to cope with increasing numbers of passengers and bags, Southwest risks tarnishing the reliability it has touted since the 1970s.
The problems are so acute at Midway, Southwest's largest hub, that CEO Gary Kelly is dispatching a team of 10 station managers from other airports to get to the bottom of the bottlenecks next week.
Southwest closed Friday at $11.80, up $0.02, or 0.17 percent.
Source
Thursday, March 3, 2011
Apple (AAPL) At Top of Fortune's 'Most Admired' List
Of the top 50 most-admired companies in the world, Apple (NASDAQ:AAPL) landed at the top of the list of Fortune magazine. Following closely on the heels of Apple was nemesis Google (NASDAQ:GOOG), which came in at No. 2.
Fortune said about Apple, "The company's blistering pace of new product releases has continued to set the bar high for tech companies across the board."
Following the two tech giants was Warren Buffett's Berkshire Hathaway (NYSE:BRK-A), Southwest Airlines (NYSE:LUV) and Proctor & Gamble (NYSE:PG), in that order.
Others making the list were Coca Cola (NYSE:KO), in 6th place; Amazon.com (NASDAQ:AMZN) in 7th; FedEX (NYSE:FDX) in 8th; Cisco (Nasdaq:CSCO) in 9th. Microsoft (NASDAQ:MSFT) came in at 15th.
The rankings of the companies on the list were measured on innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment, quality of products/services and global competitiveness.
Fortune said about Apple, "The company's blistering pace of new product releases has continued to set the bar high for tech companies across the board."
Following the two tech giants was Warren Buffett's Berkshire Hathaway (NYSE:BRK-A), Southwest Airlines (NYSE:LUV) and Proctor & Gamble (NYSE:PG), in that order.
Others making the list were Coca Cola (NYSE:KO), in 6th place; Amazon.com (NASDAQ:AMZN) in 7th; FedEX (NYSE:FDX) in 8th; Cisco (Nasdaq:CSCO) in 9th. Microsoft (NASDAQ:MSFT) came in at 15th.
The rankings of the companies on the list were measured on innovation, people management, use of corporate assets, social responsibility, quality of management, financial soundness, long-term investment, quality of products/services and global competitiveness.
Tuesday, February 22, 2011
Alcoa (AA), Bank of America (BAC), JPMorgan, Delta Air Lines (DAL), United Continental (UAL), AMR (AMR), Southwest Airlines (LUV) All Drop on Down Trading Day
The Dow Jones Industrial Average fell more than than 180 points, led by Alcoa (AA), Bank of America (BAC), and JPMorgan (JPM). The plunge follows three weeks of gains for the Dow, which reached its highest level since June 5, 2008.
Kraft (KFT) and Chevron (CVX) were among the only gainers on the blue-chip index.
The S&P 500 fell more than 2.2 percent, while the tech-heavy Nasdaq sank nearly 3 percent after both indices posted three straight weeks of gains and ended last week at new multi-year highs. The CBOE Volatility Index, widely considered the best gauge of fear in the market, soared more than 24 percent to above 20.
All key S&P 500 sectors remained lower, led by materials, financials, and industrials.
At mid-morning, Libya declined a "force majeure" on exports of oil products, and blocked imports, according to Reuters, citing trade sources. Force majeure is a common contract clause that frees both parties from fulfilling their obligations when an extraordinary event occurs.
"Clearly the jitters in the Middle East have taken the forefront today," Ryan Detrick, senior technical analyst at Schaeffer's Investment Research, told CNBC.com.
But Detrick said the underlying news on the economy and corporate earnings remains strong, and most likely, buyers will continue to emerge if the Middle East concerns ease.
"That’s why you want to side with the bulls," Detrick said. "I wouldn’t hit the eject button here."
That could change, however, if there were several consecutive days of selling, he said.
Oil prices rose to 2.5-year highs above $92 a barrel as Libyan production fell amid violence in the country. Investors are concerned the revolt in Libya could spread to other major oil producers in the Middle East and North Africa, crippling supplies.
Oil companies, however, gained on soaring oil prices. More than 60 percent of all domestic and international oil producers edged higher, including Chevron and ExxonMobil (XOM).
But oil refineries—which will see higher input costs if prices remain high—suffered, including Valero Energy (VAL), Hess (HES) and Marathon Oil (MRO).
And airlines were hard hit by rising oil prices, as most major carriers sank, including Delta Air Lines (DAL), United Continental (UAL), AMR (AMR), Southwest Airlines (LUV) and US Airways.
Saudi Arabia’s deputy oil minister tried to calm investors’ nerves, telling CNBC the country will not allow any supply disruptions from the Middle East to impact global supplies of oil.
But the head of the IEA said higher oil prices posed a threat to the global economic recovery, warning that if oil prices stay at $100 per barrel or above this year it would be as much of a burden as high oil prices were for the world economy in 2008.
The unrest in Egypt kept gold at lofty levels of more than $1,400 an ounce. The dollar (.DXY), meanwhile, traded relatively flat against a basket of currencies.
The tech-heavy Nasdaq plunged as investors fled highly liquid technology names, including Nvida (NVDA), MEMC Electronic Materials (WFR), Micron (MU) and Applied Materials (AMAT), according to Dave Rovelli, managing director of equity trading at Canaccord Genuity.
Financials were also hit by investors who move quickly in-and-out of these stocks, including Citigroup (C), Bank of America and JPMorgan.
Bank of America shares also were hurt after news it was writing down goodwill for a credit card unit by $20 billion, which was more than investors had expected.
Among the day's earnings news, Home Depot (HD) was one of the few bright spots on the Dow after the home imrpovement retailer posted better-than-expected results. However, some analysts remained skeptical as S&P Equity lowered its rating on the firm to "sell" from "hold."
Macy's (M) gained after the department store chain reported higher profits on rising holiday sales. The firm expects sales and profits will continue to rise this year.
But Wal-Mart (WMT) sank, after posting its seventh straight quarterly drop in U.S. sales.
And Barnes & Noble (BKS) plunged more than 10 percent after the bookstore chain announced it would suspend its dividend, and didn't provide a final quarter outlook for its fiscal year because of the bankruptcy filing of rival Borders. In addition, S&P Equity cut its price target on Barnes & Noble to $19 from $21.
Hewlett Packard (HP) and Chesapeake Energy (CHK) were slated to post earnings after the bell tonight.
On the M&A front, BHP Billiton (BHP) said it plans to buy shale gas reserves from Chesapeake Energy (CHK) for $4.75 billion.
And Forest Laboratories (FRX) agreed to buy Clinical Data (CLDA) for $1.2 billion to add to its portfolio of drugs to treat depression.
In other corporate news, Apple (AAPL) shares declined following a report that the next version of the iPad tablet computer will be delayed is not true, according to a source familiar with the matter.
And Netflix (NFLX) sank after news that Amazon.com (AMZN) would offer a streaming TV and movie service to compete directly against NetFlix. The service will be available to Amazon's premium customers.
Dynegy (DYN) fell after news that billionaire investor Carl Icahn would not buy the power company, and that its chairman and CEO was stepping down.
Full Story
Kraft (KFT) and Chevron (CVX) were among the only gainers on the blue-chip index.
The S&P 500 fell more than 2.2 percent, while the tech-heavy Nasdaq sank nearly 3 percent after both indices posted three straight weeks of gains and ended last week at new multi-year highs. The CBOE Volatility Index, widely considered the best gauge of fear in the market, soared more than 24 percent to above 20.
All key S&P 500 sectors remained lower, led by materials, financials, and industrials.
At mid-morning, Libya declined a "force majeure" on exports of oil products, and blocked imports, according to Reuters, citing trade sources. Force majeure is a common contract clause that frees both parties from fulfilling their obligations when an extraordinary event occurs.
"Clearly the jitters in the Middle East have taken the forefront today," Ryan Detrick, senior technical analyst at Schaeffer's Investment Research, told CNBC.com.
But Detrick said the underlying news on the economy and corporate earnings remains strong, and most likely, buyers will continue to emerge if the Middle East concerns ease.
"That’s why you want to side with the bulls," Detrick said. "I wouldn’t hit the eject button here."
That could change, however, if there were several consecutive days of selling, he said.
Oil prices rose to 2.5-year highs above $92 a barrel as Libyan production fell amid violence in the country. Investors are concerned the revolt in Libya could spread to other major oil producers in the Middle East and North Africa, crippling supplies.
Oil companies, however, gained on soaring oil prices. More than 60 percent of all domestic and international oil producers edged higher, including Chevron and ExxonMobil (XOM).
But oil refineries—which will see higher input costs if prices remain high—suffered, including Valero Energy (VAL), Hess (HES) and Marathon Oil (MRO).
And airlines were hard hit by rising oil prices, as most major carriers sank, including Delta Air Lines (DAL), United Continental (UAL), AMR (AMR), Southwest Airlines (LUV) and US Airways.
Saudi Arabia’s deputy oil minister tried to calm investors’ nerves, telling CNBC the country will not allow any supply disruptions from the Middle East to impact global supplies of oil.
But the head of the IEA said higher oil prices posed a threat to the global economic recovery, warning that if oil prices stay at $100 per barrel or above this year it would be as much of a burden as high oil prices were for the world economy in 2008.
The unrest in Egypt kept gold at lofty levels of more than $1,400 an ounce. The dollar (.DXY), meanwhile, traded relatively flat against a basket of currencies.
The tech-heavy Nasdaq plunged as investors fled highly liquid technology names, including Nvida (NVDA), MEMC Electronic Materials (WFR), Micron (MU) and Applied Materials (AMAT), according to Dave Rovelli, managing director of equity trading at Canaccord Genuity.
Financials were also hit by investors who move quickly in-and-out of these stocks, including Citigroup (C), Bank of America and JPMorgan.
Bank of America shares also were hurt after news it was writing down goodwill for a credit card unit by $20 billion, which was more than investors had expected.
Among the day's earnings news, Home Depot (HD) was one of the few bright spots on the Dow after the home imrpovement retailer posted better-than-expected results. However, some analysts remained skeptical as S&P Equity lowered its rating on the firm to "sell" from "hold."
Macy's (M) gained after the department store chain reported higher profits on rising holiday sales. The firm expects sales and profits will continue to rise this year.
But Wal-Mart (WMT) sank, after posting its seventh straight quarterly drop in U.S. sales.
And Barnes & Noble (BKS) plunged more than 10 percent after the bookstore chain announced it would suspend its dividend, and didn't provide a final quarter outlook for its fiscal year because of the bankruptcy filing of rival Borders. In addition, S&P Equity cut its price target on Barnes & Noble to $19 from $21.
Hewlett Packard (HP) and Chesapeake Energy (CHK) were slated to post earnings after the bell tonight.
On the M&A front, BHP Billiton (BHP) said it plans to buy shale gas reserves from Chesapeake Energy (CHK) for $4.75 billion.
And Forest Laboratories (FRX) agreed to buy Clinical Data (CLDA) for $1.2 billion to add to its portfolio of drugs to treat depression.
In other corporate news, Apple (AAPL) shares declined following a report that the next version of the iPad tablet computer will be delayed is not true, according to a source familiar with the matter.
And Netflix (NFLX) sank after news that Amazon.com (AMZN) would offer a streaming TV and movie service to compete directly against NetFlix. The service will be available to Amazon's premium customers.
Dynegy (DYN) fell after news that billionaire investor Carl Icahn would not buy the power company, and that its chairman and CEO was stepping down.
Full Story
Monday, February 7, 2011
Apple (NASDAQ:AAPL) Must Answer Succession Plan Concerns
Apple (NASDAQ:AAPL) is going through a similar situation as Berkshire Hathaway (NYSE:BRK-A) when concerns over the aging Warren Buffett were aired as to what type of succession plan the company had in place when Buffett stepped down.
Shareholders in Apple have been saying similar things over the years, understanding how vital CEO Steve Jobs was to the success of the business.
The point isn't necessarily to reveal what is happening to Jobs, but to let shareholders and potential investors in Apple know what the company will do if Jobs will no longer be able to function as CEO.
This doesn't even mean naming a specific successor if that happens, but to reveal what type of plan is in place if it does.
For example, Berkshire and Warren Buffett eventually revealed to shareholders they had three potential candidates to fill Buffett's shoes if something happened to him or he retired.
Then they laid out what the qualifications for the position were in making their decision.
One reason Apple may not be talking of a plan is the effect it could have on the share price, but that's going to happen one way or the other concerning Jobs.
To talk of a succession plan and give details concerning the parameters of a replacement, is just good business, and being a public company, the shareholder public not only deserves to know, but need to know in order to make informed decisions.
Even though Steve Jobs may be a private individual, the second he became the CEO of Apple he no longer had the privacy privileges he had before he took on the role.
Again, this isn't referring to specific details of his condition, but could talk about his general condition, and, as mentioned, what the criteria for replacing him would be.
Institutional Shareholder Services said, "Such a report would enable shareholders to judge the board on its readiness and willingness to meet the demands of succession planning based on the circumstances at that time."
In the past when Andy Grove revealed he was battling cancer, it didn't hurt Intel (NASDAQ:INTC), and neither did it hurt high-flying Southwest Airlines (NYSE:LUV) when CEO Herb Kelleher announced he had cancer as well.
The point isn't whether or not Jobs has cancer again, but that those CEOs above were considered vital to the success of their companies as well, and Kelleher especially, was extremely charismatic and considered indispensable to Southwest at the time.
Apple could easily put together a plan that respects Jobs' privacy, but at the same time reveal a plan, and possibly a general prognosis as to Jobs' health.
Minimally a succession plan must be revealed by Apple; something they should have done far before Jobs' health became an issue.
Shareholders in Apple have been saying similar things over the years, understanding how vital CEO Steve Jobs was to the success of the business.
The point isn't necessarily to reveal what is happening to Jobs, but to let shareholders and potential investors in Apple know what the company will do if Jobs will no longer be able to function as CEO.
This doesn't even mean naming a specific successor if that happens, but to reveal what type of plan is in place if it does.
For example, Berkshire and Warren Buffett eventually revealed to shareholders they had three potential candidates to fill Buffett's shoes if something happened to him or he retired.
Then they laid out what the qualifications for the position were in making their decision.
One reason Apple may not be talking of a plan is the effect it could have on the share price, but that's going to happen one way or the other concerning Jobs.
To talk of a succession plan and give details concerning the parameters of a replacement, is just good business, and being a public company, the shareholder public not only deserves to know, but need to know in order to make informed decisions.
Even though Steve Jobs may be a private individual, the second he became the CEO of Apple he no longer had the privacy privileges he had before he took on the role.
Again, this isn't referring to specific details of his condition, but could talk about his general condition, and, as mentioned, what the criteria for replacing him would be.
Institutional Shareholder Services said, "Such a report would enable shareholders to judge the board on its readiness and willingness to meet the demands of succession planning based on the circumstances at that time."
In the past when Andy Grove revealed he was battling cancer, it didn't hurt Intel (NASDAQ:INTC), and neither did it hurt high-flying Southwest Airlines (NYSE:LUV) when CEO Herb Kelleher announced he had cancer as well.
The point isn't whether or not Jobs has cancer again, but that those CEOs above were considered vital to the success of their companies as well, and Kelleher especially, was extremely charismatic and considered indispensable to Southwest at the time.
Apple could easily put together a plan that respects Jobs' privacy, but at the same time reveal a plan, and possibly a general prognosis as to Jobs' health.
Minimally a succession plan must be revealed by Apple; something they should have done far before Jobs' health became an issue.
Monday, January 24, 2011
Southwest's (NYSE:LUV) EPS Slashed on Weak Guidance
Southwest Airlines (NYSE:LUV) had their first quarter and full year 2011 EPS estimates cut by Barclays, citing weaker-than-expected guidance.
Barclays says, "4Q numbers from LUV were a bit ahead of our estimates, but in line with consensus. While January RASM guidance was very much in line with our expectations, full quarter guidance was softer than we anticipated. Guidance also suggests that the other revenue that surprised us in the quarter is unlikely to repeat in 1Q11...Our 1Q11E EPS declines from $0.08 to $0.02, while FY11E declines from $0.80 to $0.72. The existing consensus of EPS of $0.07 in 1Q11 and $0.92 for the year appear difficult to achieve at this stage."
Barclays reiterates an "Equalweight" rating on Southwest (LUV), which closed Friday at $12.57, down $0.22, or 1.72 percent. Barclays has a price target of $16 on Southwest.
Barclays says, "4Q numbers from LUV were a bit ahead of our estimates, but in line with consensus. While January RASM guidance was very much in line with our expectations, full quarter guidance was softer than we anticipated. Guidance also suggests that the other revenue that surprised us in the quarter is unlikely to repeat in 1Q11...Our 1Q11E EPS declines from $0.08 to $0.02, while FY11E declines from $0.80 to $0.72. The existing consensus of EPS of $0.07 in 1Q11 and $0.92 for the year appear difficult to achieve at this stage."
Barclays reiterates an "Equalweight" rating on Southwest (LUV), which closed Friday at $12.57, down $0.22, or 1.72 percent. Barclays has a price target of $16 on Southwest.
Friday, December 17, 2010
Southwest Airlines (NYSE:LUV) Boosted on Revenue Momentum
Southwest Airlines (NYSE:LUV) had its rating upgraded by Soleil Securities, citing strong revenue momentum and their patient handling of the AirTran acquisition.
Soleil said, "First, revenue momentum remains strong and suggest upside to our 2011 forecast, which reflects much higher fuel prices than before - prices suggested by management that are higher than our reading of the forward curve. A second driver of the upgrade is a stronger sense that Southwest is going to handle the AirTran acquisition with a very light touch, taking their time in integrating it and reducing merger integration risk in the process while driving revenue benefits early on via increased connecting opportunities."
Southwest Airlines was upgraded to a "Buy" rating, and was trading at $12.85, up $0.21, or 1.66 percent, as of 11:55 AM EST. Soleil has a price target of $15 on them.
Soleil said, "First, revenue momentum remains strong and suggest upside to our 2011 forecast, which reflects much higher fuel prices than before - prices suggested by management that are higher than our reading of the forward curve. A second driver of the upgrade is a stronger sense that Southwest is going to handle the AirTran acquisition with a very light touch, taking their time in integrating it and reducing merger integration risk in the process while driving revenue benefits early on via increased connecting opportunities."
Southwest Airlines was upgraded to a "Buy" rating, and was trading at $12.85, up $0.21, or 1.66 percent, as of 11:55 AM EST. Soleil has a price target of $15 on them.
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