Stocks in the news: MGM Mirage, AIG, Dow Chemical

MGM Mirage (MGM), which last week made a $200 million payment to keep construction going on an $8 billion Las Vegas complex, said on Wednesday that it is able to meet its funding obligations to the development. MGM shares soared over 25 percent in pre-market trade.

American International Group's (AIG) former CEO Hank Greenberg is due to testify before a House oversight panel. The hearing is due to begin at 10 a.m. ET. AIG shares gained over 11 percent before the bell.

Costco Wholesale (COST) said it's closing in July its two Costco Home stores. While the concept served as a "valuable experiment," the current economic slowdown led management to conclude it doesn't fit into Costco's long-term plans. No layoffs are expected.

Qwest Communications International Inc. (Q) is looking to sell its long-haul voice and data network for $2 billion to $3 billion, The Wall Street Journal reported, citing people familiar with the matter. Potential bidders include AT&T Inc. (T), Verizon Communications Inc. (VZ) and Level 3 Communications Inc. (LVLT). Qwest shares climbed 3.7 percent in pre-market trade.

Reporting today:
  • CarMax (KMX) -- shares gained over 10 percent as profit rose.
  • Monsanto (MON) -- shares rose 2.3 percent as seed sales jumped.
  • Rite Aid (RAD) -- sahres gained 6.7 percent as loss below view.
  • Research in Motion (RIMM) -- shares gained 2.8 percent ahead of earnings.
  • Micron (MU) -- shares also gained 2.8 percent ahead of earnings. (CYOU) priced its $120 million initial public offering at $16 per share, the top of its indicated range. It will begin trading later on Thursday.

Dow Chemical (DOW) announced late Wednesday the sale of the salt business it bought in the Rohm & Haas deal, Morton International, for $1.68 billion in cash to K+S, a German agrichemicals firm. Dow is continuing to its process of de-leveraging, but rating agencies are still concerned. DOW shares gained 6.7 percent before the bell.

Legg Mason (LM) said it would repay $250 million of its revolving credit facility and that it sold the remaining $49 million in SIV exposure on its balance sheet. LM shares gained 6.1 percent in pre-market trade.

Phillip Morris (PM) and Altria (MO), among other tobacco companies, might be in focus today as a tobacco bill is up for vote at the House today. Expected to pass, the new legislation would, for the first time, allow government, through the Food and Drug Administration, regulation of tobacco products. After passing at the House it would need to pass by the Senate and get President Barack Obama's signature
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