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Contributors: Douglas McIntyre Jon C. Ogg

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Friday, July 21, 2006

Weekly Wrap (July 21, 2006) For DJIA Components

Stock Tickers: MSFT INTC IBM JPM AA C CAT GE MMM UTX HON JNJ PFE KO MCD WMT

Daily Change for the markets:
DJIA 10,868.38; Down 59.72 (0.55%)
NASDAQ 2,020.39; Down 19.03 (0.93%)
S&P500 1,240.29; Down 8.84 (0.71%)
10YR-Bond 5.045%

Weekly Index Price Changes:
DJIA +129.03
NASDAQ -16.96
S&P500 +4.089

The markets finished this week in mixed territory. We had to digest hundreds of earnings reports, had to endure an actually pleasant Bernanke, saw many economic numbers signalling a slowdown, and had to digest the war of Israel fighting Hizbollah going into what looks nothing short of an invasion set for tonight.

This week is a little different weekly wrap than on most weeks for a weekly wrap. In truth, we had approximately 200 earnings per day this week and trying to pinpoint all of these would turn into a novella and we could be here all weekend summarizing. So to keep this normal and timely, it seemed worth focusing on a key group. We have already had 16 of the DJIA 30 components either make their various earnings reports or issue guidance ahead of time.

So what we decided would be the best would be to compare the average DJIA component's earnings and their performance to the performance of the DJIA the day before it warned going into earnings season. We will show you how each component reported earnings without forward guidance, and how it has performed since each reported.


Microsoft (MSFT): on July 20 after the close MSFT beat earnings at $0.31 EPS vs $0.30e, but announced its two $20 billion share buyback plans.
July 20 Close: $22.85
July 21 close: $23.83

Intel (INTC): on July 19 after the close INTC reported earnings of $0.15 EPS vs $0.138e, but we won't bother reminding the poor guidance impact.
July 19 close: $18.49
July 21 close: $17.15

IBM (IBM): on July 18 after the close IBM reported EPS at $1.30 vs. $1.29e.
July 18 close: $74.26
July 21 close: $74.86

JPMorgan (JPM): on July 19 pre-market JPM reported $0.99 EPS vs $0.87e, but its CFO said to use $0.94 as EPS so it still Beat Estimates.
July 18 close: $40.71
July 21 close: $43.15

Alcoa (AA): On July 10 after the close AA beat earnings with $0.90 EPS vs $0.86e, but it was $0.86 after estimates so it met expectations.
July 10 close: $33.41
July 21 close: $29.56

Citigroup (C): Citigroup reported on July 17 pre-market EPS of $1.05 from operations vs. $1.05e, but items created a missed earnings reaction.
July 14 close: $47.58
July 21 close: $46.93

Caterpillar (CAT): on the morning of July 21 CAT reported EPS of $1.52 vs $1.43e.
July 20 close: $69.08
July 21 close: $68.35

General Electric (GE): GE reported on the morning of July 14 EPS of $0.47 EPS vs $0.47e.
July 13 close: $32.67
July 21 close: $32.25

3M (MMM): MMM on July 7 right before the open came clean and lowered guidance ahead of earnings.
July 6 close: $81.39
July 21 close: $70.70

United Tech (UTX): On July 18 pre-market UTX beat earnings with $1.09 EPS vs. $1.01+e.
July 17 close: $57.96
July 21 close: $59.96

Honeywell (HON): HON reported pre-market on July 20 of $0.63 EPS vs $0.61e, but items were a concern.
July 19 close: $38.24
July 21 close: $36.21

Johnson & Johnson (JNJ): J&J posted earnings pre-market on July 18 of $0.98 EPS vs $0.97e.
July 17 close: $60.91
July 21 close: $61.73

Pfizer (PFE): on July 20 pre-market PFE reported earnings at $0.50 EPS vs $0.48e.
July 19 close: $23.30
July 21 close: $23.83

Coca-Cola (KO): on July 18 pre-market KO beat earnings with $0.74 EPS vs $0.72e.
July 17 close: $42.70
July 21 close: $43.90

McDonalds (MCD):MCD on July 17 pre-market gave preliminary guidance of $0.57 EPS vs $0.56e.
July 14 close: $33.04
July 21 close: $34.70

Wal-Mart (WMT): WMT on July 6 pre-market issued EPS guidance of $0.70 to $0.74 on lower sales vs. $0.73e.
July 5 close: $47.02
July 21 close: $43.72

These are the earnings we are still expecting: AXP MO T VZ PG WMT HPQ XOM HD GM DD AIG BA MRK DIS.

Jon C. Ogg
July 21, 2006
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