Custom Search

US HOT STOCKS: Home Depot, Fannie Mae, Freddie Mac, MF Global

Last Update: 5/20/2008 10:28:05 AM

Among the companies seeing active trade in Tuesday’s session are Home Depot Inc.
(HD), Microsoft Corp. (MSFT), Yahoo Inc. (YHOO), Fannie Mae (FNM) and Freddie Mac
(FRE).

Home Depot Inc. (HD, $27.61, -$1.26, -4.36%), the largest U.S. home-improvement
retailer, said its first-quarter net income fell 66%, hurt by economic worries
that curtailed home-improvement spending and by costs to close stores and abandon
some new openings in its pipeline.

Microsoft Corp.’s (MSFT, $28.95, -$0.51, -1.73%) proposed alternative to
acquiring Yahoo Inc. (YHOO, $27.75, $0.07, 0.25%) would involve a breakup of
Yahoo that people close to the Internet giant said is unlikely to win favor with
its board, The Wall Street Journal reported. In recent days, Microsoft floated a
proposal to acquire Yahoo’s search-advertising business, said people familiar
with the matter. Under the proposal, Yahoo would also sell its Asian assets, and
Microsoft would acquire a minority stake in what remained of Yahoo, the people
close to Yahoo said.

A Senate agreement pushed Congress significantly closer toward a bill that would
expand the federal government’s role in propping up the housing market. After
weeks of negotiations, Democratic Sen. Chris Dodd and Republican Sen. Richard
Shelby completed a plan Monday that would allow the government to insure up to
$300 billion in refinanced loans for struggling homeowners.

The agreement would also overhaul supervision of Fannie Mae (FNM, $28.02, -$0.93,
-3.21%) and Freddie Mac (FRE, $26.45, -$0.56, -2.07%), the enterprises that
provide the lion’s share of funding for U.S. mortgages.

Also, Fannie Mae and Freddie Mac’s ratings were taken off review for a downgrade
by Standard & Poor’s after the rating company affirmed the ratings of Freddie Mac
and lowered the risk-to-the-government ratings on Fannie Mae.

MF Global Ltd. (MF, $14.20, -$0.78, -5.21%) swung to a fiscal fourth-quarter loss
amid a bad-debt provision related to a February trading scandal. The world’s
largest independent derivatives brokerage also announced a $300 million backstop
commitment from J.C. Flowers & Co. to purchase equity-linked securities of the
company.

Staples Inc. (SPLS, $23.85, $0.28, 1.19%) reported a 1.5% rise in fiscal
first-quarter net income as the office-products giant issued a cautious outlook
for the current quarter amid expectations for “the weak economic climate to
continue throughout 2008.”

Target Corp. (TGT, $54.89, -$0.03, -0.05%) reported a 7.5% drop in fiscal
first-quarter net income and closed its credit-card deal with JPMorgan Chase &
Co. (JPM, $44.74, -$1.25, -2.72%) as the retailer saw softer-than-expected sales
amid a tough retail environment. The big-box, cheap-chic retailer posted net
income of $602 million, or 74 cents a share, down from $651 million, or 75 cents
a share, a year earlier. Revenue rose 5.4% to $14.8 billion.

Other Stocks In Focus:

American International Group (AIG, $38.01, -$0.94, -2.41%) will cut business
costs and sell off non-core businesses as part of its effort to recover from
losses caused by its investments in the U.S. mortgage market, the company’s chief
executive said Tuesday.

Possibly Related Posts:

• US debt clock runs out of digits —- BBCNews
• US to buy stake in banks; first since Depression
• A Great 2008-2009 Depression
• the fear is still there - doubt it will be gone by monday.
• Quote by Thomas Jefferson “If a Central Bank is ever created in America- Through Inflation and Deflation the “Bankers” will Rob The Americans”

Comments