Bank of America Corp. (NYSE: BAC) sold part of its stake in China Construction Bank Ltd., China's second-biggest commercial lender, for $2.8 billion. BAC reduced its stake form 19.1% to 16.6%. Despite the $15 billion bailout money it received from the government, it seems BAC needs more money to cope with the worst financial crisis for banks since the 1930s. BAC shares were over 1% lower in premarket tade at 7:38 am. BAC shares were 2.5% lower around 10:20 am.
Satyam Computer Sciences (NYSE: SAY) shares crashed 84.5% in premarket trading at 7:45 am after the software firm announced it had falsified accounts and assets for years and inflated cash and bank balances by more than $1 billion, leading the group's founder and chairman to quit. Credit Suisse said it was suspending its coverage of Satyam.
Reporting today are Monsanto (NYSE: MON), Constellation Brands (NYSE: STZ) and, after the close, Bed Bath & Beyond (NASDAQ: BBBY). MON shares are soaring 13% an hour after the open after it crushed analyst estimates and boosted guidance. STZ shares are down 6% after it cut profit forecast.
Dow Chemical Co. (NYSE: DOW) is prepared to miss next week's deadline to clinch the $15 billion takeover of Rohm & Haas (NYSE: ROH) in an effort to raise enough cash to complete the deal without taking on too much debt, according to the Financial Times. So far the stocks are reacting too much as this was quite expected after Kuwait pulled out of its joint venture with Dow.
Chemical stocks could be in focus today also because troubled LyondellBasell Industries said late Tuesday its U.S. units and one European unit voluntarily sought Chapter 11 bankruptcy protection.
Apple Inc. (NASDAQ: AAPL) announced Tuesday during the Macworld conference it is cutting the price of some songs in its iTunes online store to as little as 69 cents. Perhpas more importnat, it also plans to make every track available without copy protection. Record companies will choose the prices from three levels, 69, 99 cents and $1.29. Also, iPhone 3G users will be able to buy songs from the iTunes store using the cellular data network. Collins Stewart initiated AAPL with a Buy and $117 target price.
Intel (NASDAQ: INTC) slashed fourth-quarter revenue estimates. Shares are plunging around 6% an hour after the open. Time Warner (NYSE: TWX) also cut outlook. Shares are down 7.8% an hour after the open.
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