EU Rescue Plan: Monday's Headlines

NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Monday, May 10, 2010.

Monday's Early Headlines

• EU Creates $1 Trillion Plan to Save Euro -- European leaders have agreed to a $1 trillion package to rescue European nations plagued by debt. The rescue is part of the European Commission's plan to avoid a major debt crisis and to support the euro currency. Under the three-year plan, the European Commission will make 60 billion euros ($75 billion) available while countries from the 16-nation eurozone would promise backing for 440 billion euros ($570 billion), the AP reports. The International Monetary Fund would contribute an additional sum of at least half of the EU's total contribution, or 250 billion euros.
• U.S., Foreign Banks Rally on EU Rescue Package -- Several overseas banks were rallying on the EU's rescue plan, including National Bank of Greece (NBG), Allied Irish Banks (AIB), Bank of Ireland (IRE), and Lloyds Banking Group (LYG). In the U.S., MBIA (MBI), Ambac Financial (ABK), Citigroup (C) and Bank of America (BAC) were among the early winners in the financial sector.
• Fannie Mae Asks For More Taxpayer Money -- Fannie Mae (FNM) said it has a net worth deficit of $8.4 billion, and it has asked for more money from the Treasury to cover continued losses. This comes as the mortgage finance giant posted a first-quarter loss of $13.1 billion, or $2.29 a share.
• Feds Probe JPMorgan's Trading: Report -- Federal officials are conducting criminal and civil investigations into whether JPMorgan Chase (JPM) improperly tried to depress silver prices, according to a report by The New York Post. The Commodity Futures Trading Commission is looking into filing civil charges, while the Department of Justice's Antitrust Division is managing the criminal investigation, according to the report, published Sunday. The report, which cited anonymous sources, described the probes as "far-ranging" and said officials were looking into JPMorgan's trading on exchanges in New York and London.
• McDonald's Same-Store Sales up 4.9% in April -- McDonald's (MCD) said global comparable store sales rose 4.9% in April. Broken down by region, U.S. sales were up 3.8%, Europe sales rose 5.3% and Asia, Middle East and Africa saw sales climb 3.9%.
• Peabody Reduces Macarthur Bid to $3.4 Billion -- Peabody Energy (BTU) submitted a reduced proposal to acquire a controlling interest in Australia's Macarthur Coal partly because of a new tax in Australia on mining profits. Peabody, the U.S. coal miner, is now offering 15 Australian dollars a share, down from A$16 a share. The total offer falls to $3.4 billion from $3.8 billion.
• Comtech Buying CPI in $472 Million Deal -- Comtech Telecommunications (CMTL) agreed to acquire CPI International (CPII) in a deal with an enterprise value of about $472.3 million. CPI shareholders will receive a combination of cash and stock currently valued at about $16.40 a share, a premium of 25.7% to CPI's closing price Friday of $13.05. Comtech said Monday it would fund the acquisition by redeploying about $372 million of its existing cash and will issue about 4.4 million common shares.