News That Moved Tuesday's Market

by: Roy Mehta

U.S. Markets

Dow +51.29 (+0.40%)
Nasdaq +19.19 (+0.78%)
S&P 500 +10.77 (+0.77%)

News That Moved the Market

Market Bounces Back. Stocks fell early Tuesday, dragged down by dismal quarters at Fannie Mae (FNM, +8.9%) and UBS (UBS, -1.6%). UBS reported an $11 billion loss, but the company had already preannounced the loss, so the reaction was subdued. The bank added however that it would cut 5,500 employees by 2009 and sell $15 billion in mortgage assets to Blackrock (BLK, +1.7%). Fannie Mae lost $2.2 billion and was also initially down on the news. However, it led the market in a comeback later in the day after it announced it would cut its dividend and raise $6 billion to sure up its balance sheet. Markets finished near their highs and should begin Wednesday in positive territory after Disney (DIS, +1.3% Day; +1.7% A.H.) and Cisco (CSCO, +0.2% day; +0.4% A.H) reported better than expected earnings (see below).

Goldman Sees $150 -$200 Oil. Crude ripped higher, hitting a record $122.73/barrel. It ended up $1.87 to $122.73. Goldman Sachs (GS, +0.3%) released a report Tuesday predicting oil prices will rise to $150 -$200/barrel in the next 6 -24 months.

Cisco Higher in After Hours. Following the bell Tuesday, Cisco (CSCO, +0.2% day; +0.4% A.H.) and Disney (DIS, +1.3% Day; +1.7% A.H.) were trading higher after beating analysts' estimates. Disney exceeded estimates by $0.07/share ($0.58 vs. $0.51), as the company's profits were padded by an early Easter spurring higher resort traffic and the popularity of National Treasure 2. Cisco, a tech bellwether, said profits fell, but beat both the top and bottom-line estimates (EPS: $0.38 vs $0.36). "This quarter was a solid quarter given the challenges we are all witnessing in the market," CEO John Chambers said on the conference call.

Quick Tics: The S&P 500 has risen 13% from its low on March 17, but is still down 3.4% in 2008...Legg Mason (LM, -10.3%) reported its first loss ever as a publicly trading company.


Notable Earnings (Full List Here):

Checkpoint Systems (NYSE:CKP) Before Open

Economic Events:
10:00 AM: Pending Home Sales
10:30 AM: Crude Inventories