Updated with E*Trade CEO news, Talbots earnings
NEW YORK (
) -- Here are the top stock market headlines for the morning of Wednesday, September 9, 2009.
Wednesday's Early Headlines
- Taxpayers to Lose on Auto Loans: TARP Oversight Panel. - The Congressional Oversight Panel released a report Wednesday saying that bailout money loaned to General Motors and Chrysler will likely go unpaid. "Although taxpayers may recover some portion of their investment in Chrysler and GM, it is unlikely they will recover the entire amount," the report said, adding that the estimates of loss vary. Since last year, the U.S. government pledged $60 billion in aid to the two automakers.
- New Regulations Will Curb Profits: JPMorgan. - The Financial Times reports that a study by JPMorgan Chase (JPM) - Get Report says that the global regulatory overhaul will likely cut into long-term profitability at U.S. and European investment banks by nearly a third, which could lead to bonus reductions and staff cuts.
- NYSE Euronext to Sell Stake in Amex Unit. - NYSE Euronext (NYX) said it has agreed to sell a "significant" equity stake in NYSE Amex options to seven Wall Street firms, including Bank of America (BAC) - Get Report, Citigroup (C) - Get Report and Goldman Sachs (GS) - Get Report.
- Cuomo Looks to Charge BofA Executives Over Merrill Bonuses. - New York Attorney General Andrew Cuomo appears poised to file charges against the bank related to its problematic acquisition of Merrill Lynch. On Tuesday, David Markowitz, the chief of Cuomo's investor-protection bureau, sent a letter to BofA demanding more information about conversations bank officials have deemed privileged. Markowitz demands that the firm provide more information or face charges "without giving credit to the advice of counsel defenses that Bank of America has not permitted us to test."
- CIC Looks to Invest in U.S. Real Estate. - The Wall Street Journal reports that China Investment Corp. has been eyeing investments in distressed U.S. properties, citing people familiar with the matter. CIC has held talks with U.S. private-equity fund managers, including BlackRock (BLK) - Get Report, and is also weighing investing through the Treasury's Public-Private Investment Program, or PPIP, the report said.
- E*Trade CEO Out By Year End - Donald Layton, the chairman and CEO of E*Trade Financial (ETFC) - Get Report, will step down from both positions by the end of 2009 when his contract expires. "Now that our major recapitalization is complete and the online brokerage business is growing again, I have accomplished what was needed for me to end my time as CEO on schedule," Layton said in a statement.
- An Apple (or Two) a Day - Apple (AAPL) - Get Report is scheduled to hold a media event at 1 p.m. EDT where it is expected to unveil a refresh to its iPod product line. In Apple news of a different sort, the Beatles will release their digitally remastered recordings and The Beatles: Rock Band video game today.
- Texas Instruments to Deliver Mid-Quarter Update - Texas Instruments (TXN) - Get Report will give analysts an update to how the current quarter is shaping up, and thhe pressure is already on after fellow chipmaker Intel (INTC) - Get Report raised its third-quarter sales forecast last month.
Wednesday's Earnings Roundup
- Talbot's (TLB) reported an adjusted second-quarter loss of 33 cents a share, better than the 52-cent-a-share loss predicted by analysts. Sales fell 23% from a year ago to $304.6 million, slightly below the Thomson Reuters consensus. Talbot's did offer better-than-expected earnings guidance for the third quarter, saying it expects a loss of 24 cents to 30 cents a share, compared with the consensus for a loss of 31 cents a share.
- Navistar (NAV) - Get Report is scheduled to report earnings after the closing bell Wednesday, and analysts expect the company to notch a profit of 70 cents a share on revenue of $2.67 billion.