Intel & American Express Downgrades Hurting the DJIA (INTC, AXP, MER)

Investing

Published: September 14, 2007 6:53 am

Last Updated: March 26, 2020 12:27 pm

Intel Corp. (NASDAQ:INTC) shares are trading down about 1.7% in very earlybird trading this Friday. The bulge bracket brokerage firm Merrill Lynch has downgraded the processor giant shares from a "Buy" rating down to the beloved "Neutral." First and foremost, this downgrade looks like a transition in coverage inside the brokerage firm. It says it expects Intel to benefit from a healthy PC demand, but notes that at 18-times CY2008 EPS that it is at the high-end of its recent valuation range.

American Express (NYSE:AXP) was also downgraded at Merrill Lynch from a "Buy" rating to a "Neutral." 2008 EPS were cut to $3.85 from $3.96 and even 2009 cut to $4.20 from $4.33.

Ironically, this downgrade that includes American Express is having a share indication impact on Merrill Lynch’s own share price. There have not been trades yet that crossed the tape pre-market, but indications have the stock around $74.00 to $74.60, versus the $75.14 close yesterday.

Sometimes butchers do cut their fingers off if they take too wide of a cut.

Jon C. Ogg
September 14, 2007

Jon Ogg can be reached at [email protected]; he produces the 24/7 Wall St. Special Situation Investing Newsletter and he does not own securities in the companies he covers.

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%¹ today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

¹https://www.fdic.gov/national-rates-and-rate-caps