Stocks to Watch On Monday, Sept. 8

The End for Fannie and Freddie Shareholders? A government takeover of Fannie Mae (FNM) and Freddie Mac (FRE) could be announced as early as today, with shareholders of the common stock facing the grim prospect of having their equity completely erased along with other major executive changes at the companies in a move to stabilize the mortgage market and housing recession.

Altria Acquires a Taste for Smokeless Tobacco: Shares of smokeless tobacco company UST surged 25% on Friday on word that Altria (MO) will buy its smaller rival for $10 billion with a deal expected as early as tomorrow morning.

Lehman Interest from the Far East? Japan-based Nomura Holdings may consider a strategic investment in Lehman Brothers (LEH), pending a review of the investment bank's operating results as early as this week.

Boeing and machinists work to avert strike: Boeing (BA) was in last-minute discussions last with the union for its largest labor group to avoid a costly strike, which could cost the Company as much as $100M per day and further delay delivery of the 787 Dreamliner. However, the two sides failed to reach an agreement after two extra days of talks failed and the Company's 27,000 machinists walked off the job Saturday.

A Bear Market for Stocks and Oil? Despite the recent fall in crude oil and my expectation that it will close the year below $100 somewhere in the nineties, the overall market will likely end the year with modest losses (5%) and continued high volatility due to the worldwide slowdown and domestic uncertainties such as rising unemployment, the presidential race, and the continued housing recession. Defensive sectors such as consumer staples, healthcare, and tobacco should continue to outpace the overall markets for the remainder of 2008.

Comments

[andyn:]

Get ready for another 300 point move, this time to the upside, with the financials zooming up.
Who said the US was a "free market economy"? Thanks to the govt for giving us such money-making opportunities. I hope the "free market" republicans stay in office (not sure the Democrats will dole such money out to the stock market).
Buy XLF, JPM and WB tomorrow.

2008 Sep 07 12:34 PM

[Kunst:]

"Get ready for another 300 point move, this time to the upside, with the financials zooming up. "

Kind of like a hit of methamphetamine, and about as lasting.

2008 Sep 07 09:27 PM