Spotlight Stocks: Ambac, Merrill, Toyota, XTO
Wednesday's top stories and stocks with potential to move.
Stocks to watch for Wednesday, June 11, 2008:
- Ambac's (ABK) and MBIA's (MBI) recent downgrades by Moody's and S&P caught Wall Street executives off guard, reported the Financial Times. The execs said they weren't expecting the downgrades for several months. Now the banks could face further write-downs of up to $10 billion as a result of the monoline ratings cuts.
- Merrill Lynch (MER) won a summary judgment from a New York federal judge in a case with a unit of bond insurer Security Capital Assurance involving as much as $3.1 billion in credit-default swaps, reported The Wall Street Journal. Merrill Lynch International had alleged the SCA unit improperly issued notices that it would terminate seven credit-default swaps "without any basis and under a pretext based entirely on rank speculation," after entering into the binding contracts, the Journal said.
- Toyota's (TM) battery joint venture, Matsushita Electric Industrial, will begin production on longer-lasting lithium-ion batteries in 2009, as part of an effort to roll out more electric cars, reported Reuters. The company is aiming to lower costs as it produces the types of vehicles that are becoming largely in demand amid rising fuel prices. Full-scale production of lithium-ion batteries would start in 2010.
- XTO Energy (XTO) has said it will purchase Hunt Petroleum for $4.19 billion in cash and stock, more than doubling the company's next largest acquisition this year, said The Wall Street Journal. XTO will pay $2.6 billion in cash and about $1.6 billion in XTO common stock. The deal is expected to close in early September.
- Asian trading closed with the Hang Seng -0.21%, Nikkei +1.16%, Sensex +1.99%, Taiwan -0.29% and Shanghai -1.57%.
- A quick check of Europe finds the CAC +0.14%, DAX +0.06%, FTSE +0.06%, ATX +0.28%, Swiss Mkt. -0.16% and Stockholm +0.07%.
- In commodities, crude oil is higher +2.21 to 133.43 and gold is also up +3.9 to 871.8 this morning.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter