* 3M

-3M stated that the weakening euro could shave an extra five cents from full-year earnings compared to the company’s existing guidance.

* Amgen

-Shortly after receiving marketing approval for Prolia for the treatment osteoporosis in postmenopausal women in Europe, the US FDA also granted approval. The FDA approval for the twice-yearly injectable treatment came two months earlier than expected. Amgen plans to price Prolia at approximately $825/shot.

-The 46 th annual American Society of Clinical Oncology (ASCO) meeting started on June 4 th.

-Merck said it is ending its development of its first attempt to manufacture a follow-on biologic drug. Merck was hoping to make a biosimilar of Aranesp.

-Moody’s changed its outlook on Amgen to Positive from Stable following the approval of Prolia.

-A small study of Amgen’s AMG 479 indicated that adding the antibody to chemotherapy improved overall survival at six months and showed progression-free survival in patients with metastatic pancreatic cancer.

-Citigroup upgraded Amgen to a buy from hold. The target is $64.

-WSJ 5/24/10 “New Threats to US Blood Supply.”

* Bank of New York Mellon

-BK plans to offer $700M in shares at a 1% discount. The company plans to use any proceeds it receives after the settlement of the forward sale, expected within five months, to help fund its $2.31B acquisition of PNC Financial.

-BK priced $650M of medium-term notes.

* Berkshire Hathaway

-Warren Buffett told CNBC in an interview that the credit rating firms played a role in, but shouldn’t be blamed for, the housing bubble or ensuing subprime-mortgage crisis. In an interview with Fox, Buffett said that changing the way credit rating agencies make money from an “issuer-pay” model would be difficult.

-The 11 th annual charity auction of lunch with Warren Buffett brought in more than $2.6M. That tally broke the previous record, set in 2008, of $2.1M.

* Boeing

-BA won a U.S. research and development support contract valued at up to $1.7B for upgrading the nation’s air traffic management system. NextGen uses the GPS to allow aircraft to fly together more closely and on more direct routs, reducing delays, fuel burn and emissions.

-Fitch Ratings has affirmed BA’s ratings at A+. Outlook remains negative. The negative outlook reflects various 787-program risks. If the 787 program remains on track or suffers only modest additional delays, Fitch believes this year could be the peak of BA’s current product development cycle, as well as the low point of the commercial aerospace downcycle. Next year could be positive for BA, with strong revenue growth, substantial cash flow, lower R&D, and reduced capital expenditures.

-WSJ 6/8/2010 “Boeing Aims For Marine One Deal”

-Workers at BA’s C-17 facility have ratified a new labor contract and will return to work ending a month-long strike.

* BP

-U.S. officials were poised to begin building massive sand barriers in the Mississippi Delta in a last-ditch bid to keep oil from reaching Louisiana’s wetlands.

-WSJ 5/31/10 “BP Made Flurry Of Requests To Change Oil Well Week Before Blast”

*Just a week before the Deepwater Horizon exploded, BP asked regulators to approve three successive changes to its oil well over 24 hours. The MMS approved all the changes quickly, in one instance within five minutes of submission.

-A federally convened group of scientists is set to recommend that BP and the government continue spraying chemicals into the GoM to help prevent leaking oil from washing ashore.

-BP has concluded that its “Top-kill” attempt to seal its broken well may have failed due to a malfunctioning disk inside the well about 1,000 feet below the ocean floor. The broken disk may have prevented the heavy drilling mud injected into the will from getting far enough down the well to overcome the pressure from the escaping oil and gas.

-The U.S. has launched criminal and civil investigations into the GoM oil spill. Attorney General Holder said there is “a wide range of possible violations.” BP said it will cooperate with any inquiries.

-JPM is keeping BP at overweight. Firm says the events surrounding BP are a “one-off” that do not materially change the long-term underlying earnings power of the company.

-WSJ 6/9/10 “BP Feels Heat On Dividend Decision”

-The U.K. government has been under pressure from U.K. business organizations, companies and some politicians to stick up for BP amid a barrage of hostile comment from U.S. politicians.

* Bristol-Myers -Favorable data from a 670-patient study on ipilimumab was presented at the ASCO meeting. The data indicates that melanoma patients who receive the vaccine lived 4 months longer in the final stage of the disease. The drug could receive approval by next year and be available by 2012.

-Following the news on ipilimumab, Goldman Sachs upgraded BMY to a buy from neutral. The target is $30.

-UBS has a neutral rating on BMY with a target of $26.

-Jefferies has a hold rating on BMY with a target of $24.50

* Caterpillar

-CAT said it will pay $820M for Electro-Motive Diesel. The investment will make CAT the second largest locomotive and rail services provider in the U.S. behind GE. Electro-Motive had sales of $1.8B in 2009.

-Moody’s boosted its outlook on CAT to stable from negative. The agency said the raised outlook reflects its belief that the company has ample operating and financial strengths to restore credit metrics to levels that are much stronger than current levels.

-CAT’s board elected Doug Oberhelman as chief executive and member of the board, effective July 1.

* CVS Caremark

-Walgreen said it will drop out of CVS Caremark’s network due to CVS’s promotion of its stores and its mail-order pharmacy. WAG said current CVS Caremark plans will not be affected, nor will contracts already signed for next year. CVS said it was disappointed by the announcement, which it views as an effort to raise reimbursement rates. A number of analysts concur with CVS. Most analysts expect the two companies will reach an agreement.

-CVS CEO Tom Ryan is set retire in May 2011. Ryan will be replaced by Larry Merlo, who is currently in charge of the retail division. Some analysts were surprised given Ryan’s young age and others were not given the recent PBM contract losses. The news set off speculation about the PBM/retail model. Ryan said CVS is not backing away from the integrated model.

-CVS was inadvertently over charging some customers in its SilverScript Medicare program due to a computer error. CVS will offer refunds to those who were affected.

-Medco and CVS Caremark have both made positive comments about wins in the 2011 contract-selling season.

-Fitch ratings reported that 1Q prescription drug volume in the US grew 5.7% from a year ago. The report also said that PBMs had stronger dispensing trends than retail drug stores.

-WSJ 6/3/10 “Walgreen Set to Serve UP Wine, Beer Once Again.”

*CVS already sells beer and wine in a number of its stores (over 60%).

-Barron’s 5/21/10 – Hot Research “Walgreen Hampered by Poor Execution.”

-OWH 6/3/10 “New Dundee pharmacy backed.”

-UBS has CVS at a buy rating with a target of $46.

* Devon

-DVN said it elected President John Richels to the additional role of chief executive, succeeding Larry Nichols. Nichols, who also served as chairman and co-founded the company, will take the newly created position of executive chairman. He had been CEO since 1980. Richels, 59, has been president since 2004.

* General Electric

-WSJ 5/27/10 “Jet-Engine Plan Divides Lawmakers”

*House of Representatives voted in favor of continued funding for the competitive engine being developed by GE and Rolls-Royce for the JSF.

-GE forecast rising revenue and profit in 2010 for its appliances unit. Sales of appliances in the U.S. are up about 14% industry-wide so far in the second quarter, an increase the company credited largely to the stimulus program.

-GE Capital reiterated that the company expects real estate losses to peak this year. The company aims to pare the real estate portfolio down to about $40B to $50B, from about $80B.

-Insiders buy

* Honda

-WSJ 5/26/10 “Honda Aims To Buff Up Minivan’s Image”

-HMC said it is installing brake override systems in all of its Honda and Acura brand vehicles in the U.S. The entire lineup would have the system, which ensures that the brakes can overpower the engine if the accelerator and brake are both depressed, by the end of 2011.

-Honda Division had an 18.6% sales increase compared to May of 2009.

-Acura Division had a 24.3% sales increase compared to May of 2009.

-Honda’s VFR1200 DCT motorcycle now comes with an automatic transmission option. They are using an electronic double-clutch gearbox, which is used in the Porsche and other high-performance vehicles. (USATODAY)

-Honda is marketing its new CR-Z hybrid to video gamers. Honda presented the vehicle at the Electronic Entertainment Expo.

-June 9th, Factory workers in China went on strike again demanding another wage increase. The workers agreed to come back to work for three days during negotiations until June 18th, unless and agreement is made.

-Goldman Sachs expects Honda’s profits to be cut by 10 billion yuan ($109 million) due to the strikes in China.

* Johnson & Johnson

-The FDA said JNJ’s McNeil division had systemic quality problems at the manufacturing facility for the children’s medicines that were recently recalled. JNJ could face civil or criminal charges. The FDA will review the company’s plans to fix the problems before the facility can reopen, which could take weeks. JNJ said estimates of a $200-$300 million sales hit from the recall are not unreasonable.

-Vertrex reported strong results from a Phase III trial on its hepatitis-C treatment, telaprevir. A filing could come in the second half of the year. If approved, JNJ will help sell the drug overseas.

-Ethicon is planning to make a US filing for the Fibrin Pad in the 4Q.

-The Swiss biotech Addex entered into a development agreement with JNJ for its schizophrenia treatment.

* Kimberly-Clark

-KMB opened its first manufacturing facility in Russia.

* McDonald’s

-MCD voluntarily recalled 12 million promotional glasses due to the Shrek designs that contained the carcinogen cadmium. There have not been any reported injuries related to the glasses, which were manufactured in New Jersey. MCD is offering a full refund. The glasses were reported tested, but later tests came back with a level that is slightly above the safety standard set by the US Consumer Product Safety Commission.

-At the annual shareholders’ meeting, MCD CEO Jim Skinner said he expects the chain to do well in an improving economy, just as it did in a challenging one. MCD, which has increased market share, plans to continue the lead by remodeling its restaurants, improving service and adding new menu items. Skinner said the company would NOT retire Ronald McDonald, despite pressure from the advocacy group Corporate Accountability International, which claimed the clown promoted unhealthy food. Skinner noted that Ronald no longer promotes food, but he is used as a promoter of the Ronald McDonald House.

-Beef prices are up significantly from last year. Rather than pass along the costs, most chains are making attempts to steer customers towards non-beef offerings. MCD, given its supply chain and size, has been able to moderate costs and has even absorbed some.

-MCD is introducing an Angus Snack Wrap. The suggested price of $1.49 will likely entice customers to trade up from the Dollar Menu, which has slim margins. MCD plans to introduce oatmeal to the breakfast menu in 2011. Frappes and Smoothies will be launched nationally next month.

-MCD reports May same-store sales on June 8 th.

-Wendy’s is testing a new line of premium salads.

-Taco Bell is offering $2 “Meal Deals.”

-WSJ 5/11/10 “Starbucks To Roll Out Lower-Tier Coffee Brand.”

* Microsoft

-The Supreme Court refused to consider MSFT’s challenge to a ruling that said the company’s Outlook software and two other products infringed a patent held by ALU.

-MSFT reorganized its entertainment division. The president of the division, Robbie Bach, will retire this fall along with J Allard. CEO Steve Ballmer will take over leadership of the division.

-MSFT plans to launch its new software for mobile phone, Windows Phone 7, by the end of 2010.

-WSJ 5/28/10 “Tablet Mania Overshadows Other New Portable Category”

-Asustek joined the battle to take on AAPL’s iPad unveiling a tablet computer that will run on MSFT’s software.

-WSJ 6/9/2010 “Making Hotmail Hot Again”

*MSFT will try to change the way Hotmail is perceived by rolling out a revamped version. To spread the word, MSFT recently launched a massive marketing campaign, involving online, radio and outdoor ads running through the end of the year.

* Pfizer

-Pfizer’s experimental lung-cancer drug, crizotinib, shrank tumors in patients with a certain genetic variation. The genetic variation affects 3%-5% of people with non-small cell lung cancer, or about 40,000 patients annually.

-A Nigerian court will hear a motion this month that would bar Pfizer from conducting DNA tests to determine compensation for children affected by the 1996 test of a meningitis drug. The families involved have stopped accepting the $35 million settlement.

-PFE announced plans to close 8 plants and downsize six plants. The decision will affect about 6,000 workers and will take place over the next 18 months to five years. PFE also said it will layoff 800 to 1,400 employees at its headquarters in New York City.

-PFE voluntarily recalled Metronidazole (an injectable antibiotic) due to the presence of floating matter. There have been no customer reports of quality issues related to the medicine.

* PowerShares Water Resources Port

-WSJ 5/13/10 “Flash Crash May Be Blemish for ETFs.”

-Credit Suisse estimates that 68% of the trades that were canceled involved ETFs.

* Valero

-VLO said maintenance would soon begin at its Aruba refinery, which the company has been trying to sell and shuttered last year for economic reasons. A tax dispute with the Aruban government, which was seen as a hurdle to a possible transaction, was resolved. Under the settlement, VLO will pay the government about $110M and will make a minimum tax payment of $10M a year.

* Verizon

-HTC’s Droid Incredible for VZ is experiencing shortages. The phone sold out soon after its release and has been on back-order for a week.

-AT&T will eliminate its $30 unlimited data plan for new smartphone subscribers beginning June 7. The plan will be replaced by new offerings costing $15 a month for 200 MB of data traffic or $25 a month for 2 GB.

* Wal-Mart

-WMT reported 1Q EPS of $0.88 vs. $0.77. Estimates were $0.85. 1Q revenue was up 6% to $99.1B. The street was looking for revenue of $98.5B. 1Q profit was $3.32B compared to $3.02B.

-1Q details:

*The international markets offset the greater-than-expected drop in US same-store sales. US same-store sales fell 1.4% in the 1Q (Wal-Mart –1.4%, Sam’s +0.7%). Analysts were expecting a 1Q same-store sales decline of 0.6%. WMT had given guidance of –1.0% to +1.0%.

*US sales were pressured by the push of store brands. WMT has since added back about 300 SKUs.

*WMT expects 2Q EPS of $0.93-$0.98, which factors in the “continuing challenging sales environment.” WMT is expecting 2Q same-store sales to be –2.0% to +1.0%. WMT reports 2Q results on August 17 th.

-The WMT Board approved a new share repurchase program that authorizes the repurchase of $15B of company shares. The program replaces a previous $15B program, which has about $4.7B remaining.

-WMT said it plans to communicate its low-price strategy more aggressively online.

-The NY Times reported that WMT hired a prominent law firm to look over its vulnerability to a sexual discrimination suit six years before the Dukes case was filed. The report, “Akin Gump’s Report”, has never been made public, but is said to have found widespread gender disparities.

-WMT agreed to pay $86 million to settle a wage suit in California. The settlement still requires court approval.

-WMT has been reported to be preparing to step up its M&A activity in Japan.

-WSJ 6/7/10 “Rival Chains Secretly Fund Opposition To Wal-Mart.”

-BusinessWeek 4/26/10 “Why Wal-Mart Wants to Take the Driver’s Seat.”

*WMT is making efforts to overhaul its US transportation services, and in some cases overtake them from some suppliers, in order to reduce costs.

-WMT said it would commit $2B over five years to tackle US hunger.

-UBS has a buy rating on WMT with a target of $70.

* Zimmer

-ZMH CEO David Dvorak said he expects European replacement hip and knee markets to remain flat.