wall street

Patent production continues to be a crucial issue for major drug companies. The expiration of a patent and the entry of a key drug into the public domain is a challenge for those U.S. stocks in the pharmaceutical industry hat have prospered thanks to the sales of a popular drug. Pfizer Inc., New York symbol PFE, makes Lipitor, a leading cholesterol drug. However, the U.S. patent for Lipitor expired in June 2011. That will let rival drug makers sell cheaper, generic versions of this drug. Even so, Pfizer has several new promising drugs in its pipeline, including Eliquis, a new anti-stroke drug that Pfizer developed along with another well-known U.S. pharmaceutical firm, Bristol-Meyers Squibb Co. (New York symbol BMY)....

GOOGLE INC., $524.85, Nasdaq symbol GOOG, has paid an undisclosed sum for privately held Zagat, which publishes reviews of restaurants, hotels, theatres and other tourist attractions in over 100 countries. Zagat, which was founded in 1979, bases its ratings on information it receives from consumer surveys. It then sells this information through printed guides and its web site. Zagat will give Google access to local content that is not available to other Internet-search providers. As well, the company can add Zagat’s reviews to its other services, like Google Maps, which displays street maps and helps users find their way to their destinations. Zagat’s reviews should also enhance the appeal of mobile devices powered by Google’s Android operating system....

IAMGOLD CORP., $22.39, symbol IMG on Toronto, owns the Niobec niobium mine in Quebec. Niobium is a rare metal that when used as an additive makes steel stronger, more heat resistant and easier to weld. Niobium is widely used in automobiles and oil and gas pipes. Right now, China accounts for about 25% of worldwide niobium consumption. IAMGold’s Niobec mine produces about 8% of the world’s niobium supply. The company is considering selling a 10% to 20% stake in Niobec, and using the proceeds to fund the mine’s expansion. After that, the company will consider selling more of the mine. IAMGold’s plan for Niobec looks especially attractive this week, after a consortium of five state-owned Chinese companies announced that they are buying 15% of the world’s largest niobium producer for $1.95 billion in cash. Brazil’s Companhia Brasileira de Metalurgia e Mineraçào, or CBMM, produces more than 80% of the world’s niobium supply....

International Business Machines Corp., New York symbol IBM, is the world’s biggest computer company. As one of the oldest tech stocks in the industry, IBM has been able to adapt itself to changes over the years. In the past few years, IBM has shifted its focus from making computers to designing computer systems and managing them on behalf of clients. We analyze IBM and other U.S. tech stocks in Wall Street Stock Forecaster, our newsletter that gives you stock trading information and advice on U.S. companies....

H.J. Heinz Co., symbol HNZ on New York, continues to see strong demand for its foods in China, Brazil and other fast-growing markets. The company now gets 70% of its sales from outside the U.S. Heinz is one of the stocks we analyze in Wall Street Stock Forecaster, our newsletter for U.S.A. stock market investing. Strong demand from overseas markets pushed up Heinz’s sales by 14.9% in the three months ended July 27, 2011, to $2.8 billion from $2.5 billion a year earlier. Emerging markets accounted for 23% of sales, up from 18% a year earlier. The company also raised its selling prices to offset rising ingredient costs....

AT&T INC., $28.05, New York symbol T, fell 3% this week after the Department of Justice said it would launch a court challenge to block the company’s deal to buy rival wireless carrier T-Mobile from Germany’s Deutsche Telekom AG. Adding T-Mobile would make AT&T the largest wireless carrier in the U.S., with 132 million subscribers. Regulators feel that the purchase would give AT&T too much control over the wireless market, and lead to higher rates for customers. AT&T is paying $39 billion ($25 billion in cash, and $14 billion in stock) for T-Mobile. That’s equal to 23% of AT&T’s $166.2-billion market cap. If the deal falls through, AT&T will pay Deutsche Telekom $3 billion, and give it the rights to some of its wireless spectrum....

Lower consumer confidence and higher gas prices are cutting U.S. store traffic. So, successful retailers will need to have a well-established niche and quality name-brand merchandise to attract customers. We also think it’s important, when investing in stocks in the retail industry, to focus on chains that can adapt quickly and prosper in the ever-changing economic landscape. In the latest issue of Wall Street Stock Forecaster, we updated our advice on one consumer stock that has a dominant position in its market. PetSmart Inc. (Nasdaq symbol PETM) is the biggest pet-supply chain in the U.S. In all, it operates 1,197 pet stores in the U.S. and Canada. It also has 185 in-store PetsHotels, which look after pets while their owners are away....

BHP Billiton Ltd. ADRs, New York symbol BHP, is the world’s largest mining company, with major operations in Australia, South Africa, Chile and the U.K. It produces iron ore, coal, oil, aluminum, manganese, diamonds and titanium. BHP is one of the blue chip mining stocks we analyze in our Wall Street Stock Forecaster newsletter. In the fiscal year ended June 30, 2011, BHP earned $21.7 billion, or $7.87 per ADR (each American Depositary Receipt represents two BHP common shares). That’s up 73.9% from $12.5 billion, or $4.48 per ADR, in fiscal 2010. Even so, the latest earnings missed the consensus forecast of $7.16 per ADR. Revenue rose 35.9%, to $71.7 billion from $52.8 billion....

APPLE INC., $383.58, Nasdaq symbol AAPL, announced this week that Steve Jobs has resigned as its chief executive officer. However, he will continue as chairman of Apple’s board of directors. Jobs’ health has been an ongoing risk factor for Apple investors. That’s because has played a large role in developing some of Apple’s most successful products, such as the iPhone and iPad. The stock fell 6% on the news, but quickly recovered. That’s because Jobs has hired executives who will probably continue to create innovative products....

Gannett Co. Inc., New York symbol GCI, reported revenue of $1.33 billion in the three months ended June 26, 2011. That’s down 2.2%, from $1.37 billion a year earlier. The company is seeing lower advertising revenue at its 82 newspapers, including its flagship paper, USA Today. That’s mainly because its 2010 revenue benefited from advertising tied to the U.S. midterm elections. However, the company’s revenue from its digital operations, such as CareerBuilder.com and newspaper web sites, rose 12.6% in the quarter. Earnings fell 13.5 %, to $151.5 million, or $0.62 per share, from $175.2 million, or $0.73 per share. The company’s publishing earnings were hurt by a 9.3% increase in newsprint costs. To cut costs, the company announced in June 2011 that it will cut 700 jobs, or 2% of its workers....