This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

March 27 Premarket Briefing: 10 Things You Should Know

Updated from 6:50 a.m. EDT

Here are 10 things you should know for Thursday, March 27:    

1.-- U.S. stock futures were suggesting Wall Street would rebound Thursday ahead jobless claims and growth data.

European shares were mixed in early trading. Asian shares ended Thursday's session mixed. Japan's Nikkei 225 index rose 1%.

2.-- The economic calendar in the U.S. on Thursday includes weekly initial jobless claims at 8:30 a.m. EDT, the third estimate of fourth-quarter GDP at 8:30 a.m., and pending home sales for February at 10 a.m.

3.-- U.S. stocks on Wednesday fell as the latest headlines on durable goods orders ultimately failed to generate enthusiasm about U.S. manufacturing conditions.

Must Read: Will The Box IPO Disrupt These 3 Cloud Stocks With Encouraging Sales Trends?

The  Dow Jones Industrial Average lost 0.6% to close at 16,268.99, while the  S&P 500 dropped 0.7% to 1,852.56. The  Nasdaq fell 1.43% to 4,173.58.

4. --  Citigroup  (C - Get Report) and  Zions Bancorp (ZION)  had their capital plans rejected by the Federal Reserve following the central bank's annual Comprehensive Capital Analysis and Review.

Five of 30 banks had their 2014 capital plans rejected by the Fed. The others include three foreign-held U.S. bank holding companies : HSBC North America Holdings (a unit of  HSBC  (HSBC)),  RBS Citizens Financial Group (held by  Royal Bank of Scotland  (RBS) and Santander Holdings USA, which is held by  Banco Santander  (SAN).

It wasn't a surprise to see Zions have its capital plan rejected when the Fed completed CCAR, in light of the bank's failure in in the first round of last week's stress tests. 

The Federal Reserve objected to the other four banks' capital plans, based on "qualitative concerns."

All five banks will be expected to submit revised capital plans to the regulator, and aside from Zions, could still deploy excess capital over the next year.

CCAR is the second part of the Fed's annual stress-test process for the largest U.S. banks. 

Shares of Citigroup fell 6% in premarket trading to $47.15.

5. -- Bank of America (BAC - Get Report) will spend $9.33 billion to resolve a dispute over mortgage securities with the Federal Housing Finance Agency, the regulator that oversees Fannie Mae and Freddie Mac.

The agency sued 18 financial institutions in 2011 over their sales of mortgage securities to Fannie and Freddie. It alleges many banks falsely represented the mortgage loans behind the securities. These soured after the housing bubble burst and lost billions in value.

Bank of America said it will make cash payments of roughly $6.3 billion and also purchase securities from Fannie and Freddie worth more than $3 billion. It is one of several banks to settle with the FHFA, which announced the agreement Wednesday.

Bank of America shares rose 1.4% to $17.42 in premarket trading.

6. -- Yoga-apparel and accessories retailer Lululemon (LULU) reported fourth-quarter profit of 75 cents a share, unchanged from a year earlier.

Revenue rose 7% to $521 million.

Analysts were looking for fourth-quarter earnings of 72 cents a share on sales of $515.1 million.

Lululemon said it expects fiscal first-quarter earnings of 31 cents to 33 cents a share.

The stock declined 1.3% in premarket trading to $47.60.

7. -- Yahoo Japan will buy mobile and broadband provider eAccess from its parent SoftBank for 324 billion yen ($3.17 billion) in a bid to expand its services for tablets and smartphones, Reuters reported.

SoftBank owns about 42.5% in Yahoo Japan.

8. -- GameStop (GME)the video game retailer, is expected by Wall Street to post earnings of $1.96 a share on fourth-quarter revenue of $3.81 billion.

9. -- Software company Red Hat (RHT) is forecast after Thursday's closing bell to report earnings in the fourth quarter of 37 cents a share on sales of $399 million.

10.-- Brookstone, which sells consumer gadgets ranging from travel electronics to massage chairs, is preparing to file for bankruptcy protection as early as Sunday, with a plan in place to be bought by another specialty retailer, Spencer Spirit Holdings, people familiar with the matter told The Wall Street Journal.

Spencer Spirit Holdings is expected to pay around $120 million for Brookstone, the people said. Brookstone has about $140 million in debt.

-- Written by Joseph Woelfel

To contact the writer of this article, click here:Joseph Woelfel

To submit a news tip, send an email

Follow @josephwoe58


Copyright 2014 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BAC $14.80 -1.50%
C $46.73 -1.16%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs