TradingMarkets 7 Stocks You Need to Know for Tuesday
U.S. stocks experienced a roller coaster ride on Monday, after a global sell off was triggered by the collapse of Bear Stearns. The Federal Reserve took emergency action, cutting the discount rate by 25bp and offering to lend to securities dealers at the same rates as banks.
The Dow gained +21.16, while the Nasdaq Composite lost -35.48, and the S&P 500 -11.54.
Here are 7 stocks to watch…
Bear Stearns
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PowerRating) agreed to be sold to JPMorgan Chase for $2 per share, or $236 million. BSC shares closed at $30 on Friday, valuing the 85-year old investment bank at $3.5 billion.
Many analysts felt the price JPMorgan Chase
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PowerRating) is paying significantly undervalues Bear Stearns, even allowing for litigation, de-leveraging and integration costs. Especially since the Fed is providing up to $30 billion in financing for BSC’s illiquid assets. The decision means the Fed, not JPMorgan Chase, is carrying substantial risk.
MF Global
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PowerRating) shares fell as much as 80%, despite reassurances from the company that it was not experiencing liquidity problems.
Shares of Lehman Brothers
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PowerRating) plunged more than 20%, also on liquidity concerns. LEH is due to report earnings of $0.72 before the market open on Tuesday.
Also before the market open, Goldman Sachs
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PowerRating) is expected to report earnings of $2.58.
In deal news, CME Group
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PowerRating) agreed to acquire Nymex Holdings
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And, International Paper
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PowerRating) agreed to acquire the packaging and recycling businesses of Weyerhaeuser
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PowerRating) for $6 billion.
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