Todays' major Dow stocks:
Pfizer's (PFE) buyout out of Wyeth (WYE) is cheering stocks but not at Pfizer. Pfizer announced terrible earnings, layoffs & a big div cut which will remove it from the S&P 500 Dividend Aristocrat group at year's end (assuming they don't have a whopper extra div later in the year). PFE is down 9% on the news. Their chart below defines dreary.
Pfizer --- 10 years
Caterpillar (CAT) had another dreary earnings report. Q4 earnings were down over 30%. They forecast 2009 sales will $40B instead of $51B while EPS will plunge to $2.50 from $5.66 last year. The div will be earned but it is logical to expect that shareholders will have to share pain along with laid off workers & management salary cuts. The stock is down 2 to the 33s, but off it's lows.
Caterpillar --- 10 years
McDonald's (MCD) reported lower EPS due to a special credit last year. Factoring that item out, they reported a nice gain in Q4 with higher same-store sales in the US & globally. They gave encouraging guidance for 2009, stock up slightly. Their 10 year charts look fairly good, especially considering the depressed state of security prices today.
McDonald's 4Q profit falls due to year-ago benefit
McDonald's (MCD) --- 10 years
Home Depot (HD) is going thru a period of major belt tightening, job cuts & only opening 12 stores in 2009. Markets liked the news, up 1.20. Their 10 year chart is respectable, all considered.
Home Depot (HD) --- 10 years
These 4 are all div payers but will share various degrees of pain in 2009. The stocks should provide excellent rewards going forward, but that involves the long term. In the mean time, they have to deal with major bumps in the road.
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