U.S. stock futures fell Monday morning, indicating a sharply lower open on Wall Street as the world's financial crisis rather than get a boost from the $700 billion rescue plan, seemed to have deepened in Europe. This as well as economic fears depressed world markets. Most major global markets plunged at least over 4%. Wachovia Corp. (NYSE: WB) -- After a lower court decided in favor of Citigroup (NYSE: C), a state appeals court blocked the ruling late Sunday night, thus tilting the battle over Wachovia in favor of Wells Fargo (NYSE: WFC). Both banks want Wachovia for its deposits and branches. Despite that, WB shares are down about 18% in pre-market trade, WFC's down 2.7% and C's down 3.7%.
Bank of America (NYSE: BAC) -- a subsidiary has agreed to modify loans to tens of thousands of borrowers -- previously Countrywide Financial clients -- in 11 states that would enable them to keep their homes, or even help them move to a new home. If all 50 states were to join, the settlement could provide $8.7 billion in relief to 400,000 borrowers. BAC shares are down 4.3% in pre-market action.
National City Corp. (NYSE: NCC) shares are down over 22% in pre-market action as its debt was downgraded by Fitch Ratings.
ImClone Systems Inc. (NASDAQ: IMCL) - Eli Lilly & Co. (NYSE: LLY) said Monday that it will acquire ImClone for $70 a share in cash, or about $6.5 billion. The acquisition is expected to close in either the fourth quarter of 2008 or the first quarter of 2009. Seems like Bristol-Myers Squibb (NYSE: BMY) will not get IMCL after all. IMCL shares are up 5.7% this morning.
Starbucks Corp. (NASDAQ: SBUX) -- The coffee chain, trying to reduce labor costs, is changing its scheduling system so that fewer employees will work more hours at its coffee shops.
Yahoo! Inc. (NASDAQ: YHOO) and Google Inc. (NASDAQ: GOOG) agreed to delay their Internet-advertising partnership until U.S. regulators end their investigation and reach a conclusion.
Analyst calls:
Coca-Cola (NYSE: KO) was downgraded to Hold from Buy by Deutsche Bank on the potential for slower volumes and currency headwinds. KO shares are down 2.7% in pre-market trade.
Adobe Systems (NASDAQ: ADBE) was downgraded by Friedman Billings from Outperform to Market Perform.
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