Stocks in the news: CIT Group, Nike, Toyota
CIT Group (CIT) is nearing a plan that likely would hand the commercial lender over to its bondholders, sources familiar with the matter told Reuters on Tuesday. If not enough bondholders agree to the plan, the company could seek to restructure in bankruptcy court, possibly resulting in one of the largest Chapter 11 bankruptcy-court filings in U.S. history. Shares tanked 40 percent in pre-market trade on fears it is on a brink of collapse.
Nike Inc. (NKE) reported its fiscal first quarter numbers Tuesday after the close. Nike beat earnings expectations, but revenues came in slightly under expectations. Shares climbed over 6.5 percent ahead of the bell.
Kraft Foods Inc. (KFT) has six weeks -- to Nov. 9 -- to make a binding offer to buy Cadbury PLC (CBY) or else walk away for at least six months, Britain's mergers and acquisitions regulator said Wednesday.
Hewlett-Packard (HPQ) plans to combine H-P's printer and personal-computer businesses into one unit under current PC chief Todd Bradley, WSJ sources said.
Toyota Motor Corp. (TM) said Tuesday it will recall 3.8 million vehicles in the United States, the company's largest-ever U.S. recall, to address problems with a removable floor mat that could cause accelerators to get stuck and lead to a crash.
- Novartis AG (NVS) was upgraded to Buy from Hold at Citigroup. Shares climbed 1.4 percent higher in premarket action.
- UBS downgraded Target Corp. (TGT) to Neutral from Buy. Shares declined 1.4 percent.
- Archer-Daniels Midland (ADM) was upgraded from Market Perform to Outperform at BMO. Shares gained over 2 percent before the bell.
Wynn Resorts (WYNN) raised $1.63 billion after pricing its Asian IPO at the top of its indicated range, a sign that demand is still strong for certain offerings despite a glut of Asian stock deals. Wynn Macau is the fourth-largest global IPO this year after it sold 1.25 billion Hong Kong-listed shares at HK$10.08 each, according to Reuters.
Walmart Stores Inc. (WMT) warned Wednesday the global economic recovery will likely be lethargic, even as the retailing behemoth sees great growth potential in China and India. It also announced that it will aggressively expand its $10 toy program for the 2009 holiday season.
Bank of America (BAC) on Wednesday said it has reached an agreement to sell the long-term asset-management business of Columbia Management to Ameriprise Financial Inc. (AMP) for about $1 billion. Meanwhile, te FDIC's plan to rebuild its reserves may cost BAC and three of the largest U.S. banks more than $10 billion.