Home / Markets
Tuesday, July 07, 2009
Market Winners & Losers: CIT Group, AIG
Michael Goldstein
FOXBusiness
The markets were down sharply on Tuesday, losing an average of over 2% following a 5-day decline in oil prices. Recent economic data also weighed on the markets Tuesday, spurring fears that the economy may not be as close to recovery as some believed.
Here are some of Tuesday’s winners and losers.
Winners
CIT Group Inc. (CIT)
Shares of this specialty-finance company have been under pressure recently amid concerns about the likelihood that the company’s
application to the FDIC’s Temporary Liquidity Guarantee Program will be approved. While concern still remains, the stock recovered
from Monday’s losses, gaining 22 cents, or 12.5%, to close at $1.98 on Tuesday.
Cigna Corp. (CI)
Managed-care stocks were up Tuesday, led by Cigna, after White House Chief of Staff Rahm Emanuel indicated that the government
might be open to implementing a public health-care plan as a fallback only if the marketplace did not provide enough competition
on its own. Cigna shares were up 7.5%, gaining $1.77, to close at $25.24.
Tenet Healthcare Corp (THC)
Shares of Tenet Healthcare moved higher with the rest of the sector, gaining 8.8%, or 23 cents, to end trading at $2.86.
MetroPCS Communications Inc. (PCS)
After dropping sharply recently, shares of this wireless services provider were up Tuesday after analysts said that the company
stock may have been oversold on competitive concerns and that there is still room for expansion in the prepaid wireless service
market. Shares were up 3.4%, gaining 40 cents to close at $12.17.
KeyCorp (KEY)
Shares of bank KeyCorp were up 4.1% as analysts at KBW upgraded the stock, citing the low stock price and its tangible common
equity ratio, which is better than its peers. The stock gained 21 cents to close at $5.29.
Losers
American International Group (AIG)
AIG shares were down sharply on Tuesday as a jury found that sister company Starr International was not liable in a breach
of trust suit. The dispute concerns a large number of shares set aside by AIG for deferred compensation, which AIG claims
were improperly diverted by Starr International’s management. AIG shares dropped 15%, losing $2.44 to close at $13.75.
Intercontinental Exchange (ICE)
The Intercontinental Exchange, a global electronic marketplace for commodities trading, took a big hit Tuesday after the U.S.
Commodity Futures Trading Commission announced a proposed plan to implement trading limits on oil and other commodities in
an effort to combat excessive speculation practices. The stock shed $12.05, or almost 11%, to close at $98.03.
Discover Financial Services (DFS)
Shares of this credit-card company dropped Tuesday after the announcement that the company would be issuing $500M in new shares.
In addition to the dilution in share price, the credit ratings agencies have recently been voicing concern about the rise
in credit card defaults. The stock was down $1.13, or 10.8%, closing at $9.37.
Dynergy Inc. (DYN)
Shares of this power utility have been under pressure after a recent downgrade by UBS and an EPA report of a potentially hazardous
coal ash site next to the company’s power plant in Illinois. The stock was down 11.6%, or 26 cents, to close at $1.99.
Weyerhaeuser Co. (WY)
Citing “extraordinarily weak market conditions” and a decline in demand for wood products in the depressed housing markets,
forest product company Weyerhaeuser announced that they would be closing a mill in Louisiana and would be cutting their quarterly
dividend by 80% to 5 cents. The company is also considering a conversion to a real estate investment trust (REIT) because
of tax efficiencies in an effort to further cut costs. Shares were down 7.1%, or $2.13, closing at $27.86.
Fox Business Video
-
-
The Business of Sports
-
Nov 7, 2009
FOXBusiness.com LIVE
-
-
-
Jim Caviezel: Hollywood and th...
-
Nov 7, 2009
Actor in life in film
-
-
-
Ticker Tape Parade Invades Downtown
-
Nov 7, 2009
Yankees celebrate 27th World Series win
-
-
-
Cavuto Business Report 11-06-09
-
Nov 7, 2009
Business Report: Cavuto
-
-
-
Pro Poker Player: $2M in 2 Months
-
Nov 7, 2009
Pro Poker player on growing success of sport
-






