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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.
Notable Earnings (Full List Here):
Checkpoint Systems (NYSE:CKP) Before Open
10:00 AM: Pending Home Sales
10:30 AM: Crude Inventories