BoA TARP Repayment Boosts Financial Sector

by: optionMONSTER

By Jon "DRJ" Najarian

TARP Repayment Has Ripple Effect

BAC ChartThe news that our friend Charlie Gasparino broke Wednesday on CNBC, that Bank of America (NYSE:BAC) would repay $45 billion in TARP funds in part through the sale of $18.8 billion of securities, is helping lift the financial sector. BAC trades up $0.60, Goldman Sachs (NYSE:GS) is higher by $1, Fifth Third Bancorp (NASDAQ:FITB) is up $0.35, Morgan Stanley (NYSE:MS) is higher by $0.40, and JP Morgan (NYSE:JPM) is up $0.45 in the pre-market on our Heat Seeker tracking program.

Targacept Up on Drug Pact

Major Depressive Disorder is a common illness, affecting approximately 42 million people worldwide, and the global antidepressant market is valued at over $20 billion. Serotonin re-uptake inhibitors are the most commonly prescribed class of drugs for depression, but many patients fail to respond adequately, which is why Targacept's TC-5214 treatment holds so much potential. AstraZeneca (NYSE:AZN) and Targacept (TRGT) announced a collaboration and license agreement for the global development and commercialization of the late-stage investigational product. TRGT closed at $23.51 yesterday but is trading at $25.03 in the pre-market on our Heat Seeker.

Ambac Assurance Upgraded

Standard & Poor's raised its counterparty credit rating on Ambac Assurance (ABK), citing an improved financial position. The rating for the bond insurance unit of Ambac Financial Group was raised to CC, 10 levels below investment grade, from "selective default." Shares of ABK are trading at $0.95 after a closing at $0.81.

(Chart courtesy of tradeMONSTER)

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