Stocks to watch: Boeing, Lowe's
The aircraft maker wins an $18 billion order for 777s. The home improvement retailer posts better-than-expected earnings.
By Joseph Woelfel, TheStreet
Updated at 9:15 a.m. ET
Boeing (BA) shares were rising Monday after the aircraft maker won an order for 50 777s from Dubai airline Emirates. The order, valued at $18 billion, is Boeing's biggest single order in dollar terms. Emirates has options to buy additional planes, which could boost the value of the order to $26 billion.
Lowe's (LOW) said its third-quarter earnings fell 44% to $225 million, or 18 cents a share, including 17 cents of charges related to store closings and discontinued projects. On an adjusted basis, earnings in the quarter were 35 cents a share. The home improvement retailer’s sales rose 2.3% to $11.9 billion. Analysts were expecting Lowe's to earn 33 cents a share in the third quarter on sales of $11.69 billion.
Lowe's said it expects sales to increase 2% to 3% this year, with comparable-store sales declining by about 1%. Lowe's expects fiscal-year earnings of $1.37 to $1.40 a share, including charges of 20 cents a share.
Dynegy (DYN), whose parent company filed for bankruptcy last week, reported a third-quarter loss of $75 million, or 61 cents a share, compared with a loss of $24 million, or 20 cents, a year earlier. The Wall Street consensus was for earnings of 33 cents. Revenue of $516 million was well below the average forecast of $602 million.
Warren Buffett's Berkshire Hathaway (BRK.B) revealed that it had bought a 5.5% stake in Dow component IBM (IBM).
Mining giant BHP Billiton (BHP) plans to spend more than $4 billion on developing shale gas projects next year and about $6.5 billion a year on U.S. shale projects by 2020.
Chemicals company LyondellBasell (LYB) announced a special dividend of $4.50 a share to be paid on Dec. 16. The company also said that its quarterly dividend has been increased by 5 cents a share to 25 cents.
J.C. Penney (JCP) projects fourth-quarter earnings of $1.05 to $1.15 a share, compared with the average analyst estimate of $1.14 a share. The company reported third-quarter adjusted earnings of 11 cents a share, beating the average analyst estimate by 2 cents.
Deutsche Bank's (DB) CEO Josef Ackermann is being investigated by German prosecutors over his testimony in a civil suit brought against the bank by late German media magnate Leo Kirch. On Monday, the bank head warned that new bank regulations will cause European banks to be less competitive globally and even trigger a bout of consolidation.
Southwest Airlines' (LUV) AirTran unit will terminate routes to five airports including Miami International and Washington's Dulles in 2012 due to higher fuel costs and lackluster demand.
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Watch Lowes? The local Lowes can't even get tools to sale - tools that Walmart gets with no problem at all. The local Lowes appears to be ready to close - the attitude of their employees appears to support that - lazy - standing around talking to each other - even when a customer is standing at their check out register. When they keep talking for several minutes with a customer standing there looking at them - it means they don't care if the get fired - if Lowes is closing the store anyway why should they?
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