Stocks in the news: Bank of America, Walt Disney, Marsh & McLennan
Bank of America (BAC) -- reports suggest that the big bank will be asked to raise $34 billion in new capital. The bank can sell some assets or convert some preferred shares, but could also get special treatment from the government as it helped clean up the mess of Merrill and mortgage lender Countrywide Financial Corp. Already BAC shares declined over 9 percent in early pre-market trade, but then rebounded and last trade as of 8:50 was 4 percent higher.
Citigroup (C) and Wells Fargo (WFC) are also widely believed to face shortfalls in the stress test. Both banks' shares climbed over 4 percent before the bell.
Walt Disney & Co. (DIS) shares climbed over 6 percent after it reported a 46 percent profit drop late Tuesday. Results beat expectations. Disney President and Chief Executive Robert Iger said the company was seeing signs that the economic situation has begun to stabilize.
General Motors Corp. (GM) said Tuesday it is planning a reverse stock split that would give shareholders one share of new stock for every 100 shares they currently own. Shares dropped over 15 percent in pre-market trade.
- Marsh & McLennan (MMC) swung to a first-quarter net profit of $176 million, or 33 cents a share. Revenue for the quarter fell 13.5 percent. Adjusted earnings were 40 cents a share, lower than 44 cents a share estimates. Shares climbed 12 percent before the bell.
- Garmin Ltd. (GRMN) said first-quarter adjusted net income totaled 25 cents a share as revenue fell 34 percent. Results were below expectations. Shares plunged over 11 percent in pre-market trade.
- Fortress Investment Group (FIG) shares jumped over 15 percent after it reported a first-quarter loss as redemptions by clients continued to erode assets under management and reduce fees, and announced a $2 billion take over of DB Zwirn & Co assets.
- Cisco Systems (CSCO) and News Corp. (NWS) are set to report after the close today. Both gained in pre-market trading.
eBay Inc. (EBAY) said late Tuesday that it will shut a customer service facility in Vancouver, Canada, which employs roughly 700 people, but increase employees at its customer service facility in Salt Lake City and elsewhere.
Boeing Co. (BA) received an order to provide Turkish Airlines with five model 777-300 Extended Range jets valued at $1.36 billion at current prices.