NEW YORK (
) -- Here are the top stock market headlines for the morning of Tuesday, May 11, 2010.
Tuesday's Early Headlines
- Greece to Request First Tranche of Aid Tuesday -- A finance ministry official told Reuters that Greece will submit a request Tuesday to the European Commission for the first installment of aid, which would total 14.5 billion euros. Greece is expected to receive an additional 5.5 billion euros Wednesday from the International Monetary Fund, the report said. The funds will be used in part to refinance an 8.5 billion euro, 10-year bond that matures on May 19, Reuters reported.
- SEC: Exchanges OK 'Circuit Breakers' -- After a meeting with leaders of the New York Stock Exchange, the Nasdaq and four other exchanges, the Securities and Exchange Commission said that parties have agreed on a structural framework for strengthening circuit breakers and handling erroneous trades. The framework, which the SEC said will be refined over the next day, would include trading curbs when an index or individual stock climbs or drops by a specific mark during a trading session.
- China Inflation Rises 2.8% in April -- China's National Bureau of Statistics said April consumer prices rose 2.8% from a year earlier, below Beijing's full-year target of 3%, but up 0.4 percentage points from March. Asian markets fell on the report, as investors believed that inflation would prompt China to clamp down on credit and derail the country's economic recovery.
- Goldman, JPMorgan Traders Pitch A Perfect Quarter: FT -- The Financial Times reports that Goldman Sachs (GS) - Get Report and JPMorgan Chase (JPM) - Get Report saw their trading operations turn a profit every single business day in the first quarter, a first for both companies. Goldman's trading operations saw profit of at least $25 million on each of the quarter's 63 working days, the report said, citing a regulatory filing issued on Monday. JPMorgan, meanwhile, made an average of $118 million a day, the report said.
- Prudential, AIG Talk AIA Sale Restructure -- American International Group (AIG) - Get Report and Prudential (PUK) - Get Report are in advanced talks to restructure the $35.5 billion sale of AIG's Asian unit AIA, The Financial Times reports, in order to allay concerns of the U.K.'s Financial Services Authority. Under the new terms being discussed, the U.S. government would receive some $2 billion less in cash than the $25 billion foreseen by the original plan, the report said. Insiders told The Financial Times that AIG was seriously considering the new terms, although the insurer's board has not yet made a final decision.
- Small Business Optimism Improves in April -- The National Federation of Independent Business optimism index rose 3.8 points in April to 90.6, breaking a string of 18 consecutive monthly reading below 90. "The gains are a step in the right direction, but they are not enough to signal a solid recovery is in place," Bill Dunkelberg, NFIB's chief economist, said in a release. "Owners are feeling a little better about things, but not enough to turn them into concrete action."
Tuesday's Earnings Roundup
- Toyota (TM) - Get Report said net income for fiscal 2010 was 209.4 billion yen ($2.26 billion), a reversal from a year-earlier loss of 437 billion. Sales were 18.95 trillion yen, a decline of 7.7%. Toyota forecasts profit for fiscal 2011 to rise 48%, and that vehicle sales for the next fiscal year will be 7.29 million units, an increase of 53,000 from fiscal 2010.
- MBIA (MBI) - Get Report swung to a first-quarter loss of $7.22 a share from a year-ago profit of $3.34 a share. The current quarter loss came as MBIA recorded a $2.2 billion pre-tax unrealized loss on insured credit derivatives.
- JA Solar (JASO) posted a first-quarter profit of 24 cents a share as revenue jumped more than 700% o $279.2 million. Analysts were looking for a profit of 18 cents a share on revenue of $265.3 million, according to Thomson Reuters.
- Fossil (FOSL) - Get Report posted a first-quarter profit of 53 cents a share on sales of $393.2 million, above the Thomson Reuters consensus for earnings of 32 cents a share on revenue of $362.7 million. Looking ahead, Fossil upped its full-year earnings guidance, raising it above Wall Street's average view. The company also offered better-than-expected earnings guidance for its second quarter.
-- Written by Robert Holmes in Boston
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