Stocks Surge to Start Q2
Stocks started the second quarter with a strong rally, with financial stocks leading the advance despite massive subprime losses at UBS and Deutsche Bank.
The Dow rose+391.47, the Nasdaq Composite +83.65, and the S&P 500 +47.48.
UBS
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PowerRating) reported a loss of $11.9 billion, due to a $19 billion subprime write-down. Today’s announcement took UBS’ total write-down to almost $38 billion since Q3 2007. However, UBS shares surged 14.6%.
Deutsche Bank
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PowerRating) announced a $4 billion write-down, also due to further subprime losses. DB shares rose 4.2%.
Lehman Brothers
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PowerRating) raised $4 billion in an effort to shore up its capital base through the sale of 4-million convertible preferred shares. LEH jumped 17.8%.
Shares of Blackstone Group
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PowerRating) rose 8.3% after the company raised $10.9 billion to invest in property, citing "attractive investment opportunities" due to the plunge in global real estate prices.
International Business Machines
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PowerRating) has been temporarily suspended from participating in new business with federal government agencies after an investigation by the Environmental Protection Agency found possible violations of the Office of Federal Procurement Policy Act.
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