Stocks in the news: Toyota, Wells Fargo, McDonald's
Banks and stress test:
- Wells Fargo (WFC) said Thursday it will be offering $6 billion in stock expected to price between $20.50 and $22 a share. WFC just announced this morning it priced $7.5 billion in stock offering. WFC shares declined 4.5 percent before the bell.
- Morgan Stanley (MS) said Thursday it will be selling $2 billion in common stock and $3 billion in debt, which will not be backed by the government, and which should be priced before the open. First reports indicate it raised $7.5 billion. MS shares declined over 7 percent in pre-market trading.
- Bank of America Corp. (BAC) needs by far the most -- $33.9 billion. Ken Lewis, who was ousted as chairman last month, said he plans to close the capital gap by selling assets and tapping future profits. BAC shares climbed over 7 percent before the bell.
- Citigroup (C) also plans to launch its exchange offer "as quickly as we can." It would increase its planned public exchange offers by $5.5 billion to meet the requirements. C shares jumped over 8 percent before the bell.
- Wells Fargo & Co. (WFC) needs $13.7 billion, General Motors' (49 percent owned) GMAC LLC $11.5 billion, Citigroup Inc. (C) $5.5 billion and Morgan Stanley (MS) $1.8 billion.
- Of the smaller regional banks, Regions Financial (RF) requires $2.5 billion, SunTrust (STI) needs $2.2 billion, Fifth Third Bancorp (FITB) needs $1.1 billion and KeyCorp (KEY) needs $1.8 billion. FITB jumped over 30 percent before the bell, RF was up nearly 9 percent, KEY over 7 percent and STI over 3 percent.
- Following stress tess, UBS on Friday lifted its weighting on U.S. banks to Neutral from Underweight.
McDonald's (MCD) said that its April comparable sales rose 6.9 percent. Same-store sales at U.S. restaurants climbed 6.1 percent, while European orders rose 8.4 percent. Sales in Asia, the Middle East and Africa gained 6.5 percent. Shares gained over 2 percent in pre-market trading.
Royal Bank of Scotland (RBS) swung to a net loss of 857 million pounds ($1.29 billion), but reported strong growth in underlying revenues. Shares jumped 13 percent in pre-market trade.
Activision Blizzard Inc. (ATVI) beat Wall Street's earnings targets for the first quarter on strong sales of its video game franchises. ATVI jumped over 4 percent in pre-market trading.
American International Group Inc. (AIG) reported a narrower first-quarter net loss of $4.35 billion, or $1.98 a share. On an adjusted basis, AIG reported a loss of $1.6 billion compared with a loss of $3.56 billion a year earlier.
CBS Corp. (CBS) swung to a first-quarter loss on plunging advertising revenues at its television stations, radio stations and outdoor displays.
Crocs Inc. (CROX) said its first-quarter loss widened to $22.4 million, or 27 cents a share as revenue fell to $135 million from $198.5 million last year. This was inline with estimates, but outlook disappointed. CROX plunged over 17 percent in pre-market trade.
VeriSign Inc. (VRSN) beat analyst estimates for its first quarter results. Shares jumped over 10 percent before the bell.