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Dow 30 Stock Roundup: Boeing Bags Air Force Orders, DuPont to Sell Part of Crop Protection Biz
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The Dow experienced a relatively quiet week as investors eagerly awaited the outcome of the Trump Xi meeting. Markets were especially cautious ahead of crucial payrolls data to be released on Friday. Dismal auto sales and manufacturing data shaved a few points off the index on Monday.
Gains on Tuesday and Thursday were largely a result of rising oil prices. However, investors also initially reacted adversely after minutes of the Fed’s March meeting was released on Wednesday.
Last Week’s Performance
The Dow declined 0.3% last Friday dragged down primarily by financials as investors remained focus on the upcoming corporate earnings reports to justify the market's lofty valuations. Meanwhile, U.S. oil prices finished slightly higher on Friday in spite of record increase in oil production, which eventually placed pressure on energy stocks.
The index lost 0.7% during March. The first-quarter rally slowed during last month, after Trump's presidency took a hit following the failure to pass a Republican-led Healthcare bill. A relatively conservative stance on rate hike outlook from the central bank also kept financials in check.
During the first quarter, the Dow gained 4.5%, backed by a Trump-led rally. However, U.S. oil prices recorded its worst quarterly loss of 5.7% since late 2015, pressured by oversupply of crude in the global market.
The DowThisWeek
The index declined marginally on Monday, even as broader markets were dragged down by weak auto sales data and a dip in manufacturing growth rate. The failure of Trump administration to pass the healthcare bill intensified investor concerns about Trump’s ability to implement pro-growth policies.
The index gained 0.2% on Tuesday even as investors remained cautious ahead of a meeting between President Donald Trump and his Chinese counterpart Xi Jinping. Energy shares rose following a rise in oil prices on expectations of lower U.S. crude inventories and hopes that OPEC led output cut would have a positive impact in the near future. Trump’s comments on higher infrastructure pending and Dodd-Frank banking regulations helped industrial and material stocks end higher.
On Wednesday, the index lost 0.2% following the release of minutes of the Federal Reserve’s March meeting. The broader market suffered a setback after the central bank said it was looking to reduce the $4.5 trillion in bonds on its balance sheet and expressed concerns that stocks were overvalued.
Meanwhile, investors digested bullish ADP data before the release of nonfarm payrolls data on Friday. Oil prices pared some gains due to an increase in U.S. crude inventories and increase in U.S. oil production.
The index gained 0.1% on Thursday, boosted primarily by energy shares following a rise in U.S. oil prices which closed at a nearly one-month high. Investor kept a close watch on the outcome of the meeting between President Donald Trump and his Chinese counterpart President Xi. Meanwhile, investors also remained focus on the upcoming nonfarm payrolls data, due on Friday.
Components Moving the Index
The Boeing Co. (BA - Free Report) and Lockheed Martin Corp. (LMT - Free Report) joint venture United Launch Alliance’s subsidiary United Launch Services, LLC, has won two modification contracts, totaling $416.9 million, from the U.S. Air Force for launch vehicle production services (“LVPS”). Both the contracts were awarded by the Space and Missile Systems Center, Los Angeles Air Force Base, CA.
The first contract is valued at $270.4 million. Per the contract, United Launch Services will provide the required LVPS to support the Air Force Delta IV Heavy’s launch vehicle configuration and transportation. The modification includes pre-priced contract line items for the Delta IV Heavy LV configuration. (Read: Boeing/Lockheed JV Unit Wins Two Contracts Totaling $417M)
In a separate development, Zacks Rank #3 (Hold) rated Boeing has won a modification contract from the U.S. Air Force to upgrade F-15 Combined APG-63 Version 3 (V3) Radar Improvement Program and APG-82 Version 1 Radar Modernization Program (RMP) radar. The contract is valued at $168.8 million. (Read: Boeing (BA - Free Report) Wins $169M Air Force Contract to Upgrade Radars)
Exxon Mobil Corp. (XOM - Free Report) has recently announced a promising deepwater oil find on the prolific Stabroek Block at Snoek well, located offshore Guyana. This marks the company’s third such discovery on the Stabroek Block, after Liza and Payara discoveries.
The 82 feet, high quality oil bearing sandstone reservoir – Snoek well – was drilled by Zacks Rank #3 rated Exxon Mobil’s affiliate Esso Exploration and Production Guyana Ltd using Stena Carron drillship. Post the completion of the drilling of Snoek well, Stena Carron drillship has resumed boring the Liza-4 well. (Read: Exxon Mobil Announces Major Oil Discovery Offshore Guyana)
DuPont (DD - Free Report) has struck a deal to sell part of its Crop Protection business to chemical company, FMC Corp. (FMC - Free Report) . Moreover, DuPont has agreed to buy substantially all of FMC's Health & Nutrition business. DuPont will get $1.6 billion from the transaction, reflecting the difference in the value of the assets.
The divestment will satisfy DuPont’s a commitment to the European Commission in connection with the latter’s conditional regulatory approval of the proposed $130 billion mega-merger of DuPont and Dow Chemical (DOW - Free Report) .
Under the deal terms, FMC will buy DuPont's Cereal Broadleaf Herbicides and a Chewing Insecticides portfolio as well as some of the latter’s Crop Protection research and development pipeline and organization. The assets being put up for sale generated revenues of around $1.4 billion last year.
As part of the deal, DuPont will purchase FMC's Health & Nutrition business that raked in more than $700 million in revenues in 2016. The acquisition, which is highly complementary to DuPont's Nutrition & Health business, will boost the company’s nutrition and health capabilities with expanded offerings and footprint. The stock has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer, Inc. (PFE - Free Report) announced that its supplemental new drug application (sNDA) to convert accelerated approval for Ibrance to regular approval has been approved by the FDA.
Ibrance is approved in the U.S. for the treatment of HR+/HER2- advanced or metastatic breast cancer, in combination with Novartis AG’s (NVS - Free Report) Femara (letrozole), as initial endocrine-based therapy in postmenopausal women. It is also indicated to be used with AstraZeneca plc’s (AZN - Free Report) Faslodex in women with disease progression following endocrine therapy.
Ibrance, in combination with Femara, was cleared in the U.S. under accelerated approval in Feb 2015.Zacks Rank #3 rated Pfizer has now received regular approval for the drug based on data from the phase III PALOMA-2 trial. Also, with the latest approval, Ibrance’s indication has been expanded to be used in combination of any aromatase inhibitor and not just letrozole. (Read: Pfizer Gets Regular Approval for Breast Cancer Drug Ibrance)
Caterpillar Inc. (CAT - Free Report) is closing its machine production plant in Aurora and will shift production to other sites. This move will lead to a retrenching of about 800 employees. Per the plan, it will shift production of large wheel loaders and compactors to its Decatur, IL plant while production of medium wheel loaders will move to North Little Rock, AR plant.
Although manufacturing will shift from the Aurora plant, Zacks Rank #3 rated Caterpillar will still have about 1,200 workers, including management, engineering and support jobs in Aurora. As per a tentative agreement between Caterpillar and the United Auto Workers, severance benefits for affected Aurora workers will include 40 hours of pay for each year of service.
Following the move, about 500 positions will likely be added in Decatur and about 150 positions in North Little Rock. Some jobs will move to various suppliers, and other positions will be eliminated. Expected to be completed by the end of 2018, this move will help the company to efficiently leverage manufacturing space while still having the capacity to meet demand in the case of a revival in demand. (Read: Caterpillar (CAT - Free Report) to Shut Plant in Illinois, Lay off 800 Jobs)
Performance of the Top 10 Dow Companies
The table given below shows the price movements of the 10 largest components of the Dow, which is a price weighted index, over the last five days and during the last six months. Over the last five trading days, the Dow has lost 0.1%
Ticker
Last 5 Day’s Performance
6-Month Performance
MMM
-0.7%
+10.8%
GS
-1.1%
+34.6%
IBM
-1%
+10.8%
HD
+0.4%
+14.8%
BA
-0.4%
+32.5%
UNH
-0.9%
+20.1%
MCD
+0.5%
+14.7%
TRV
+0.6%
+5.3%
JNJ
+0.9%
+4.9%
AAPL
-0.2%
+26%
Next Week’s Outlook
Markets traversed a relatively quiet period this week as investors remained watchful ahead of Friday’s crucial nonfarm payroll numbers. Meanwhile, market watchers also anxiously awaited the outcome between Trump and his Chinese counterpart. The tone of the statements emanating at the conclusion of this meet is likely to have a major impact on stocks in the days ahead. That apart, data on retail sales, inflation and jobs scheduled for release next week will also play an important role in determining the movement of stocks.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
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Dow 30 Stock Roundup: Boeing Bags Air Force Orders, DuPont to Sell Part of Crop Protection Biz
The Dow experienced a relatively quiet week as investors eagerly awaited the outcome of the Trump Xi meeting. Markets were especially cautious ahead of crucial payrolls data to be released on Friday. Dismal auto sales and manufacturing data shaved a few points off the index on Monday.
Gains on Tuesday and Thursday were largely a result of rising oil prices. However, investors also initially reacted adversely after minutes of the Fed’s March meeting was released on Wednesday.
Last Week’s Performance
The Dow declined 0.3% last Friday dragged down primarily by financials as investors remained focus on the upcoming corporate earnings reports to justify the market's lofty valuations. Meanwhile, U.S. oil prices finished slightly higher on Friday in spite of record increase in oil production, which eventually placed pressure on energy stocks.
The index lost 0.7% during March. The first-quarter rally slowed during last month, after Trump's presidency took a hit following the failure to pass a Republican-led Healthcare bill. A relatively conservative stance on rate hike outlook from the central bank also kept financials in check.
During the first quarter, the Dow gained 4.5%, backed by a Trump-led rally. However, U.S. oil prices recorded its worst quarterly loss of 5.7% since late 2015, pressured by oversupply of crude in the global market.
The Dow This Week
The index declined marginally on Monday, even as broader markets were dragged down by weak auto sales data and a dip in manufacturing growth rate. The failure of Trump administration to pass the healthcare bill intensified investor concerns about Trump’s ability to implement pro-growth policies.
The index gained 0.2% on Tuesday even as investors remained cautious ahead of a meeting between President Donald Trump and his Chinese counterpart Xi Jinping. Energy shares rose following a rise in oil prices on expectations of lower U.S. crude inventories and hopes that OPEC led output cut would have a positive impact in the near future. Trump’s comments on higher infrastructure pending and Dodd-Frank banking regulations helped industrial and material stocks end higher.
On Wednesday, the index lost 0.2% following the release of minutes of the Federal Reserve’s March meeting. The broader market suffered a setback after the central bank said it was looking to reduce the $4.5 trillion in bonds on its balance sheet and expressed concerns that stocks were overvalued.
Meanwhile, investors digested bullish ADP data before the release of nonfarm payrolls data on Friday. Oil prices pared some gains due to an increase in U.S. crude inventories and increase in U.S. oil production.
The index gained 0.1% on Thursday, boosted primarily by energy shares following a rise in U.S. oil prices which closed at a nearly one-month high. Investor kept a close watch on the outcome of the meeting between President Donald Trump and his Chinese counterpart President Xi. Meanwhile, investors also remained focus on the upcoming nonfarm payrolls data, due on Friday.
Components Moving the Index
The Boeing Co. (BA - Free Report) and Lockheed Martin Corp. (LMT - Free Report) joint venture United Launch Alliance’s subsidiary United Launch Services, LLC, has won two modification contracts, totaling $416.9 million, from the U.S. Air Force for launch vehicle production services (“LVPS”). Both the contracts were awarded by the Space and Missile Systems Center, Los Angeles Air Force Base, CA.
The first contract is valued at $270.4 million. Per the contract, United Launch Services will provide the required LVPS to support the Air Force Delta IV Heavy’s launch vehicle configuration and transportation. The modification includes pre-priced contract line items for the Delta IV Heavy LV configuration. (Read: Boeing/Lockheed JV Unit Wins Two Contracts Totaling $417M)
In a separate development, Zacks Rank #3 (Hold) rated Boeing has won a modification contract from the U.S. Air Force to upgrade F-15 Combined APG-63 Version 3 (V3) Radar Improvement Program and APG-82 Version 1 Radar Modernization Program (RMP) radar. The contract is valued at $168.8 million. (Read: Boeing (BA - Free Report) Wins $169M Air Force Contract to Upgrade Radars)
Exxon Mobil Corp. (XOM - Free Report) has recently announced a promising deepwater oil find on the prolific Stabroek Block at Snoek well, located offshore Guyana. This marks the company’s third such discovery on the Stabroek Block, after Liza and Payara discoveries.
The 82 feet, high quality oil bearing sandstone reservoir – Snoek well – was drilled by Zacks Rank #3 rated Exxon Mobil’s affiliate Esso Exploration and Production Guyana Ltd using Stena Carron drillship. Post the completion of the drilling of Snoek well, Stena Carron drillship has resumed boring the Liza-4 well. (Read: Exxon Mobil Announces Major Oil Discovery Offshore Guyana)
DuPont (DD - Free Report) has struck a deal to sell part of its Crop Protection business to chemical company, FMC Corp. (FMC - Free Report) . Moreover, DuPont has agreed to buy substantially all of FMC's Health & Nutrition business. DuPont will get $1.6 billion from the transaction, reflecting the difference in the value of the assets.
The divestment will satisfy DuPont’s a commitment to the European Commission in connection with the latter’s conditional regulatory approval of the proposed $130 billion mega-merger of DuPont and Dow Chemical (DOW - Free Report) .
Under the deal terms, FMC will buy DuPont's Cereal Broadleaf Herbicides and a Chewing Insecticides portfolio as well as some of the latter’s Crop Protection research and development pipeline and organization. The assets being put up for sale generated revenues of around $1.4 billion last year.
As part of the deal, DuPont will purchase FMC's Health & Nutrition business that raked in more than $700 million in revenues in 2016. The acquisition, which is highly complementary to DuPont's Nutrition & Health business, will boost the company’s nutrition and health capabilities with expanded offerings and footprint. The stock has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer, Inc. (PFE - Free Report) announced that its supplemental new drug application (sNDA) to convert accelerated approval for Ibrance to regular approval has been approved by the FDA.
Ibrance is approved in the U.S. for the treatment of HR+/HER2- advanced or metastatic breast cancer, in combination with Novartis AG’s (NVS - Free Report) Femara (letrozole), as initial endocrine-based therapy in postmenopausal women. It is also indicated to be used with AstraZeneca plc’s (AZN - Free Report) Faslodex in women with disease progression following endocrine therapy.
Ibrance, in combination with Femara, was cleared in the U.S. under accelerated approval in Feb 2015.Zacks Rank #3 rated Pfizer has now received regular approval for the drug based on data from the phase III PALOMA-2 trial. Also, with the latest approval, Ibrance’s indication has been expanded to be used in combination of any aromatase inhibitor and not just letrozole. (Read: Pfizer Gets Regular Approval for Breast Cancer Drug Ibrance)
Caterpillar Inc. (CAT - Free Report) is closing its machine production plant in Aurora and will shift production to other sites. This move will lead to a retrenching of about 800 employees. Per the plan, it will shift production of large wheel loaders and compactors to its Decatur, IL plant while production of medium wheel loaders will move to North Little Rock, AR plant.
Although manufacturing will shift from the Aurora plant, Zacks Rank #3 rated Caterpillar will still have about 1,200 workers, including management, engineering and support jobs in Aurora. As per a tentative agreement between Caterpillar and the United Auto Workers, severance benefits for affected Aurora workers will include 40 hours of pay for each year of service.
Following the move, about 500 positions will likely be added in Decatur and about 150 positions in North Little Rock. Some jobs will move to various suppliers, and other positions will be eliminated. Expected to be completed by the end of 2018, this move will help the company to efficiently leverage manufacturing space while still having the capacity to meet demand in the case of a revival in demand. (Read: Caterpillar (CAT - Free Report) to Shut Plant in Illinois, Lay off 800 Jobs)
Performance of the Top 10 Dow Companies
The table given below shows the price movements of the 10 largest components of the Dow, which is a price weighted index, over the last five days and during the last six months. Over the last five trading days, the Dow has lost 0.1%
Ticker
Last 5 Day’s Performance
6-Month Performance
MMM
-0.7%
+10.8%
GS
-1.1%
+34.6%
IBM
-1%
+10.8%
HD
+0.4%
+14.8%
BA
-0.4%
+32.5%
UNH
-0.9%
+20.1%
MCD
+0.5%
+14.7%
TRV
+0.6%
+5.3%
JNJ
+0.9%
+4.9%
AAPL
-0.2%
+26%
Next Week’s Outlook
Markets traversed a relatively quiet period this week as investors remained watchful ahead of Friday’s crucial nonfarm payroll numbers. Meanwhile, market watchers also anxiously awaited the outcome between Trump and his Chinese counterpart. The tone of the statements emanating at the conclusion of this meet is likely to have a major impact on stocks in the days ahead. That apart, data on retail sales, inflation and jobs scheduled for release next week will also play an important role in determining the movement of stocks.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>