Closing Bell: Roubini saves the day (CIT, STP, MOT, JPM)

Posted Jul 16th 2009 4:00PM by Jon Ogg
Filed under: Motorola (MOT), JPMorgan Chase (JPM), CIT Group (CIT), Suntech Power Hldgs ADS (STP)

Today's jobless claims data came in strong enough that we would have expected further recovery, but the fears over all this CIT fallout weighed on investors' minds. Hank Paulson took his grilling. Homebuilders even started sounding less negative again. But then came reports that perma-bear Nouriel Roubini was finally throwing in the towel and showing that the recession would end. His report was what helped traders have comfort in buying stocks at the end of the day.

Here are the unofficial closing bell levels:

Dow 8,709.02 +92.81 (1.08%)
S&P 500 940.54 +7.86 (0.84%)
Nasdaq 1,884.66 +21.76 (1.17%)

Top Analyst Upgrades
Top Analyst Downgrades

CIT Group, Inc. (NYSE: CIT) was down huge now that the hoped for help was not coming and a bankruptcy may happen. Shares were down sharply by 75% at $0.40 ahead of the close. These 400+ million shares that traded are nothing more than bets, so here are at least a few ways to play CIT by looking higher in the capital structure than common stock.

Suntech Power Holdings Co. (NYSE: STP) rose on a faster-delivery partnership. This was one of the three big solar winners as shares were up 3% at $15.77 late in the day.

Motorola Inc. (NYSE: MOT) was a soft spot today. Goldman Sachs panned the valuation based on the run-up. Shares were down 4.4% at $6.32 ahead of the closing bell.

JPMorgan Chase & Co. (NYSE: JPM) posted earnings that blew away earnings estimates. But shares were down by 0.2% right before the close, and the warnings about commercial real estate could end up being the next big thorn in the side of the industry.

Tags: cit, hank paulson, HankPaulson, housing, roubini