Hot Stocks to Watch Tuesday
U.S. stocks experienced a roller coaster ride on Monday, after a global sell off was triggered by the collapse of Bear Stearns. The Federal Reserve took emergency action, cutting the discount rate by 25bp and offering to lend to securities dealers at the same rates as banks.
The Dow gained +21.16, while the Nasdaq Composite lost -35.48, and the S&P 500 -11.54.
Here are 7 stocks to watch...
Bear Stearns (NYSE:BSC) agreed to be sold to JPMorgan Chase for $2 per share, or $236 million. BSC shares closed at $30 on Friday, valuing the 85-year old investment bank at $3.5 billion. BSC's Short Term PowerRating is 8.
Many analysts felt the price JPMorgan Chase (NYSE:JPM) is paying significantly undervalues Bear Stearns, even allowing for litigation, de-leveraging and integration costs. Especially since the Fed is providing up to $30 billion in financing for BSC's illiquid assets. The decision means the Fed, not JPMorgan Chase, is carrying substantial risk. JPM's Short Term PowerRating is 3.
MF Global (NYSE:MF) shares fell as much as 80%, despite reassurances from the company that it was not experiencing liquidity problems.
Shares of Lehman Brothers (NYSE:LEH) plunged more than 20%, also on liquidity concerns. LEH is due to report earnings of $0.72 before the market open on Tuesday. LEH's Short Term PowerRating is 6.
Also before the market open, Goldman Sachs (NYSE:GS) is expected to report earnings of $2.58. GS's Short Term PowerRating is 5.
In deal news, CME Group (NYSE:CME) agreed to acquire Nymex Holdings (NYSE:NMX) for $9.3 billion. CME's Short Term PowerRating is 5. NMX's Short Term PowerRating is also 5.
And, International Paper (NYSE:IP) agreed to acquire the packaging and recycling businesses of Weyerhaeuser (NYSE:WY) for $6 billion. IP's Short Term PowerRating is 5. WY's Short Term PowerRating is 4.
Do you think International Paper will close up or down on Wednesday? Go to TradingMarkets.com to play our Up or Down Daily Stock Contest for the chance to win $1000 every month by predicting the direction of a stock.
The Dow gained +21.16, while the Nasdaq Composite lost -35.48, and the S&P 500 -11.54.
Here are 7 stocks to watch...
Bear Stearns (NYSE:BSC) agreed to be sold to JPMorgan Chase for $2 per share, or $236 million. BSC shares closed at $30 on Friday, valuing the 85-year old investment bank at $3.5 billion. BSC's Short Term PowerRating is 8.
Many analysts felt the price JPMorgan Chase (NYSE:JPM) is paying significantly undervalues Bear Stearns, even allowing for litigation, de-leveraging and integration costs. Especially since the Fed is providing up to $30 billion in financing for BSC's illiquid assets. The decision means the Fed, not JPMorgan Chase, is carrying substantial risk. JPM's Short Term PowerRating is 3.
MF Global (NYSE:MF) shares fell as much as 80%, despite reassurances from the company that it was not experiencing liquidity problems.
Shares of Lehman Brothers (NYSE:LEH) plunged more than 20%, also on liquidity concerns. LEH is due to report earnings of $0.72 before the market open on Tuesday. LEH's Short Term PowerRating is 6.
Also before the market open, Goldman Sachs (NYSE:GS) is expected to report earnings of $2.58. GS's Short Term PowerRating is 5.
In deal news, CME Group (NYSE:CME) agreed to acquire Nymex Holdings (NYSE:NMX) for $9.3 billion. CME's Short Term PowerRating is 5. NMX's Short Term PowerRating is also 5.
And, International Paper (NYSE:IP) agreed to acquire the packaging and recycling businesses of Weyerhaeuser (NYSE:WY) for $6 billion. IP's Short Term PowerRating is 5. WY's Short Term PowerRating is 4.
Do you think International Paper will close up or down on Wednesday? Go to TradingMarkets.com to play our Up or Down Daily Stock Contest for the chance to win $1000 every month by predicting the direction of a stock.
Labels: BSC, CME, CME Group Inc., Goldman Sachs Group Inc., GS, Hot Stocks, IP, JPM, LEH, Lehman Brothers Holdings Inc., MF, NMX, WY
posted by Stock Administrator @ 10:47 AM
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