What You Need To Know About The Google IPO
Stocks are
lower Monday as investors worry about the Q2 earnings outlook.Â
This is a busy week for earnings. ExxonMobil
(
XOM |
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Chart |
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PowerRating) is scheduled to
report on Thursday; Chevron Texaco
(
CVX |
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Chart |
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PowerRating) reports on Tuesday. Mylan
Labs
(
MYL |
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PowerRating) will acquire King Pharmaceuticals in a stock swap worth about
$4 billion.
Google said its IPO
would offer 24.6 million shares priced between $108 and $135/share, making the
deal worth as much as $3.3 billion, with a market cap of 36.25 billion. The
company plans to list on the Nasdaq with the symbol “GOOG.” The company
will be coming in at 60 times earnings; Yahoo, by contrast, is trading at 110
times earnings.The company will sell 14.1 million shares with insiders selling
another 10.5 million shares. After the offering, co-founders Sergey Brin and
Larry Page will retain about 16% each of Google voting power. Q2 profits for the
search engine company rose 24% for last quarter. The road show begins tonight
in New York.
After the close today, look for
earnings from Centex
(
CTX |
Quote |
Chart |
News |
PowerRating) (1.29 estimate) and American Express
(
AXP |
Quote |
Chart |
News |
PowerRating) (estimate 0.67).
| Dow | -21.90 | 9940.24 |
| S&P 500 | -5.11 | 1081.09 |
| Nasdaq | -15.19 | 1833.90 |
Strong today are: Utilities
(
UTY.X |
Quote |
Chart |
News |
PowerRating) +0.41%, Telecom
(
XTC.X |
Quote |
Chart |
News |
PowerRating) +0.20%.
Weak today are: Biotech
(
BTK.X |
Quote |
Chart |
News |
PowerRating) -2.68%. Amex Gold Bugs
(
HUI.X |
Quote |
Chart |
News |
PowerRating) -2.27%,
Semis
(
SOX.X |
Quote |
Chart |
News |
PowerRating) -1.75%.
The dollar
is -0.26 at 89.00
Gold is -2.20 at 389.70
Crude Oil is -0.23 at
41.48
Volume is 766 million on
the NYSE, and 957 million on the Nasdaq.
Market breadth is negative
| NYSE | Issues | |
| Advancing | 988 | Up Vol 178 |
| Declining | 2157 | Down Vol 535 |
| Ratio | 2.18 | 3.00 |
| Nasdaq |
||
| Advancing | 885 | Up Vol 236 |
| Declining | 2068 | Down Vol 668 |
| Ratio | 2.33 | 2.83 |
Stocks in the news:
Tyson Foods
(
TSN |
Quote |
Chart |
News |
PowerRating) said its
quarterly earnings doubled from a year ago but the full year forecast
disappointed the Street. TSN is trading at 19.05, down 0.90.
Even after a large charge related to its
Taxus stent, the net at Boston Scientific
(
BSX |
Quote |
Chart |
News |
PowerRating) nearly tripled. BSX
is trading at 35.62, up 2.03.
Merck
(
MRK |
Quote |
Chart |
News |
PowerRating) and Schering
Plough
(
SGP |
Quote |
Chart |
News |
PowerRating) won FDA approval to sell a 2:1 cholesterol pill, Vytorin,
which was found to be as effective as Pfizer’s
(
PFE |
Quote |
Chart |
News |
PowerRating) Lipitor. PFE is
trading at 31.48, down 0.82.
Brice Wightman
bricew@tradingmarkets.com