U.S. stock futures turned higher Monday morning despite a dip in the dollar and oil prices rising somewhat. Investors may focus on the financial sector again following some news while they await housing data later today. More inflation data is due Tuesday.UnionBanCal (NYSE: UB) accepted a sweetened bid from Mitsubishi UFJ Financial Group (NYSE: MTU). After rejecting two previous offers, UB accepted MTU's offer to pay $3.5 billion, or $73.50 a share, for the remaining 35% portion of the California bank that it doesn't already own. UB shares are trading 11.85% higher in premarket action.
Staying in financials, Lehman Brothers (NYSE: LEH) may see some action after The Wall Street Journal said some analysts believe it could lose $1.8 billion during the quarter. LEH shares are 2% lower in premarket trading. Meanwhile, Barron's said a government recapitalization of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) is almost inevitable, wiping out investors -- and management. Shares are 2% and 6% lower respectively in premarket trading.
Lowe's (NYSE: LOW), the home improvement retail chain, reported results this morning. Lowe's profit fell for the fourth straight quarter as the biggest U.S. housing slump since the Great Depression slowed spending. Net income declined 7.9% to $938 million, or 64 cents a share, exceeding analysts' estimates by 8 cents. Sales rose to $14.5 billion from $14.2 billion. Lowe's raised guidance, but stayed within estimates.
Mining giant BHP Billiton (NYSE: BHP) reported Monday a record annual profit and said it expects demand for commodities to remain strong. Net profit for the year ended June 30 climbed 14.7% to $15.39 billion,in line with analysts' forecasts. "The continuing massive industrialization in China is providing solid support to the global economy," the company said in a statement.
Quest (NYSE: Q), the telecommunications carrier, reached a tentative deal with two unions early Monday, averting a possible strike that may have affected the services it is to provide to the Democratic National Convention in Denver next week and the Republican National Convention that begins Sept. 1 in St. Paul, Minn.
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Reader Comments (Page 1 of 1)
8-19-2008 @ 12:01AM
NoviceInvestor said...
So, what's going to happen to the common stocks of Fannie and Freddie once or if, it gets bailed-out? Would it still be good? But, will be revalued? Can I buy it now at these current prices without losing any money once it gets bailed out?
Please advise...