Tuesday's Financial Winners & Losers

CBOT surges on CME merger, while Jefferies tumbles.
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CBOT

(BOT)

powered into the financial winner's circle Tuesday on news that the

Chicago Mercantile Exchange

(CME) - Get Report

would acquire the parent company of the Chicago Board of Trade for about $8 billion.

The deal between the two Windy City futures exchanges values the new marketplace at $25 billion and may turn Chicago into the global leader for derivatives trading. The CME and CBOT anticipate the new exchange will trade 9 million contracts a day. The new exchange, which will be headquartered in Chicago, will be called CME Group. CBOT shares climbed $17.42, or 13%, to $151.93, while the Chicago Mercantile Exchange rose $11.76, or 2.3%, to $515.01.

Merrill Lynch

(MER)

gained as the Wall Street investment giant said third-quarter earnings surged 121%. The firm benefited from gains in trading revenue and the completion of its merger with asset manager

BlackRock

(BLK) - Get Report

, which generated $1.1 billion in after-tax profit.

In the quarter, Merrill Lynch earned $3 billion, or $3.17 a share, up from $1.37 billion, or $1.40 a share, a year earlier. Excluding the impact of the BlackRock deal, Merrill Lynch earned $1.9 billion, or $2 a share. On an operating basis, Merrill Lynch easily surpassed the Thomson Financial consensus estimate of $1.47 a share. The firm's adjusted net revenue of $8.79 billion also was far ahead of the analyst estimate of $7.3 billion. Shares rose 49 cents to $84.60.

Jefferies

(JEF) - Get Report

slipped after the New York-based investment bank fell short of Wall Street's third-quarter revenue target. The company said third-quarter earnings rose 19% from a year ago, helped by its investment-banking business.

Jefferies earned $45.9 million, or 32 cents a share, in the quarter, compared with $38.6 million, or 28 cents a share, a year ago. Third-quarter revenue rose 13.8% to $340.6 million. Analysts were expecting earnings of 32 cents a share on revenue of $348.4 million. Shares were trading down $2.11, or 6.7%, at $29.56.

KeyCorp

(KEY) - Get Report

advanced after the Cleveland-based bank beat Wall Street's third-quarter earnings estimates. The company posted income of $312 million, or 76 cents a share, compared with $278 million, or 67 cents a share a year ago. Revenue totaled $1.3 billion, up from $1.26 billion a year ago. Wall Street was looking for earnings of 72 cents a share. Shares were trading up 99 cents, or 2.7%, to $37.34.

National City

(NCC)

advanced after the Cleveland-based bank posted a 15% increase in third-quarter earnings. The company reported net income of $551 million, or 90 cents a share, compared with $478 million, or 74 cents a share, a year ago. Wall Street was looking for earnings of 80 cents a share. Shares were trading up 33 cents, or nearly 1%, to $36.86.

Wells Fargo

(WFC) - Get Report

gained after the San Francisco-based bank said third-quarter profits rose 11%. The nation's fifth-largest bank earned $2.19 billion, or 64 cents a share, up from $1.98 billion, or 58 cents a share, a year ago. Revenue rose 5% to $8.93 billion. The bank beat the Thomson Financial consensus estimate of 63 cents a share. But revenue fell a bit short of the analyst estimate of $8.94 billion. Shares added 40 cents, or 1.10%, to $36.60.