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Stocks Rally 2% on Wells Fargo, Crude Declines
Jul 16, 4:55 PM EDT |
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| Banks and financial stocks rallied after Wells Fargo increased its quarterly dividend and reported 25% decline in earnings, but exceeding estimates. |
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| U.S. benchmark indexes increased more than 2% after investors bid up banks and other lenders. Wells Fargo reported 25% decline in earnings but exceed expectations of some investors and increased its quarterly dividend by 10% to 34 cents per share. The news of better earnings lifted stocks of banks, insurers and lenders. Crude oil futures dropped as much as 5% after the weekly inventories data showed an increase. |
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Alpha Agrees to $10 B Offer; Wells Fargo Up
Jul 16, 4:57 PM EDT |
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| U.S. stocks rebound in the early hours of trading. Cleveland-Cliffs and Alpha Natural Resource agree to merge. Wells Fago jump on earnings. |
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| U.S. stocks rise after $10 billion merger deal, losses fom American Air and Delta Air Lines and talks of dividend cut at Fanne and Freddie. Cleveland-Cliffs agreed to acquire coal miner Alpha Natural Resources for $128 a share or $10 billion. AMR, the parent of American Air reported quarterly loss of $1.45 billon and Delta Air Lines lost $1.04 billion. Wells Fargo rose afte it reported second quarter profit of $1.75 billion or 53 cents per shrare on reveue rise of 16% to $11.5 billion. |
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AIG, Banks New Lows; Oil Down $6
Jul 15, 11:13 PM EDT |
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| Cautious comments from Fed Chairman Bernanke on economy drove crude oil futures $6 lower as investors feared economic slowdown. |
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| Investors continue to sell financial stocks and stocks of Fannie and Freddie. Both lenders dropped 27% and led the decliners in the S&P 500 index. Kimberly Clark lowered its annual earnings outlook. State Street Corp rose after earnings increase more than 50%. UK inflation rose in June to 3.8% and the Bank of Japan left its key rate unchanged at 0.5%. Markets in Shanghai and Hong Kong dropped more than 4% and in India plunged 5%. Intel profit rises 25% on 9% sales increase. |
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Oil Drops $7, Financials at New Lows
Jul 15, 1:03 PM EDT |
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| Crude oil drops $7 a barrel after the Fed Chairman Bernanke view on the economy cited decline in economic growth and expectations of fall in demand. |
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| U.S. stocks recovered from the lows of the day as tech stocks edged to the positive territory. Nasdaq recovered from the loss of 1% but Dow and S&P 500 indexes continue to trade near loss of 0.4%. Kimberly Clark dropped more than 5% after it released premiminary results and lowered annual earnigs outlook. Citigroup, Fannie Mae, Freddie Mac and Bank of America fell to their new lows. |
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Fear Grips Banks; World Markets Decline
Jul 15, 5:52 PM EDT |
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| U.S. markets indexes trade lower as financial stocks drop to their new lows. Asian and European markets drop between 2% and 3%. |
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| Unhappy investors are increasingly distrustful of the U.S. government bailout plan of Fannie and Freddie that includes bond holders and excludes stock holders. Fannie and Freddie dipped to another low with a loss of more than 20% today and dragged stocks of banks and financial companies. Citigroup, SunTrust, Wachovia and Bank of America declined to their new lows not seen at least in the last ten years. General Motors cut its dividend. |
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Regional Banks Drop; InBev and Santander Deals
Jul 14, 5:55 PM EDT |
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| Merrill Lynch is seeking to sell its 20% stake in Bloomber LP, financial information provider at more than $5 billion. |
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| The rescue plan proposed for two troubled lenders by the U.S. Treasury and Fed underwhelmed investors. The bail out plan is expected to excude shareholders. Fearful investors sold regional and large bank stocks. Of the S&P 500 index stocks, top fifteen decliners were banks with a los between 36% and 11%. Citigroup, AIG, Merrill Lynch and Wachovia were among the leading decliners. Washington Mutual, the worst decliner in the S&P 500 index said after the close it has $40 billion liquidity. |
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InBev and Anheuser Agree to $52 B Offer
Jul 14, 3:27 PM EDT |
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| Anheuser-Busch reversed its earlier opposition to the deal after key shareholders in the family controlled brewer agreed to a revised offer. |
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| Anheuser-Busch, the century old family controlled beer brewer agreed to a hostile offer of $70 per share or $52 billion from InBev NV. The newly merged company will not only have the largest market share in the U.S. but also will have largest worldwide revenue, surpassing SABMiller sales. The all-cash offer was agreed on Sunday and investment stake controlled by Warren Buffet expects to make $770 million in capital gains. |
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Banks, Lehman, Citi, Merrill Drop 5%
Jul 14, 2:10 PM EDT |
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| Banks and brokers fell more than 5% after the U.S. Treasury plan to rescue Fannie and Freddie rattled investors. |
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| U.S. stocks traded lower as financial stocks declined. Zions Bancorp, SunTrust, Bank of America and Comercia fell after Goldman Sachs lowered the outlook for the banks. Lehman Brothers, Merrill Lynch and Citigroup fell more than 5% after Fannie and Freddie rescue plan failed to impress investors. Yahoo dropped after it rejected another overture from Carl Ichan and Microsoft. Apple gained after it sold more than one million iPhone 3G version in the first three days of launch. |
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Santander Resuces A&L for £1.26 B
Jul 14, 1:58 PM EDT |
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| Santander, the largest euro zone bank offeres £1.26 billion to the troubled UK lender Alliance & Leicester. |
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| The largest euro zone bank Santander offered to purchase Alliance & Leicester for 317 pence per share. The deal values the company at 1.26 billion pounds and includes an interim dividend of 18 pence to shareholders. Santander returned to purchase the troubled UK lender at a lower price after three months as credit market weakness have persisted and A&L trades at nearly 50% lower price. The deal is fraught with risks at UK economy slows down and credit market remain jittery. |
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Confidence Crisis at Fannie and Freddie
Jul 14, 10:53 AM EDT |
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| The U.S. Treasury Secretary Paulson asked Congress permission to increase its lending limit and buy stake in the two troubled lenders. |
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| U.S. Treasury Secretary Paulson asked Congress an authority to take a stake in the two troubled mortgage lending agencies Fannie Mae and Freddie Mac. The Secretary also wants to increase lending limits of two agencies and the Fed will open its discount window to lenders. Freddie Mac sold $3 billion in short term debt with higher than average interest from investors. The stocks of two companies remain volatile and investors fear a further decline in their values in the near future. |
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