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March 27 Premarket Briefing: 10 Things You Should Know

Stocks in this article: CBACLULURHTGMEZIONHBCRBSSANYHOO

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. 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) 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) 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 to:tips@thestreet.com.

Follow @josephwoe58

 

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 This material may not be published, broadcast, rewritten, or redistributed.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

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