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Intel, Citigroup: Tuesday's Headlines

Intel may settle charges with the FTC, while former Citigroup trader Andrew Hall raises $1.08 billion for a hedge fund.

NEW YORK (

TheStreet

) -- Here are the top stock market headlines for the morning of Tuesday, June 22, 2010.

Tuesday's Early Headlines

  • White House Budget Chief to Step Down -- White House Budget director Peter Orszag will leave the post in a few weeks, CNBC reports, citing Democratic sources, becoming the first senior member of President Obama's economic team to step down. Orszag plans to get married in September and never intended to stay more than two years, sources told CNBC. Orzag will leave before the next budget season begins in July.
  • Existing Home Sales Data Due; Fed Begins Meeting -- The National Association of Realtors will release existing home sales data for May at 10 a.m. ET, with economists forecasting an increase to 6.1 million from 5.77 million in April. Also on the economic front, the Federal Reserve will begin its two-day meeting on interest rates, with a decision expected Wednesday after 2 p.m. ET.
  • Former Citi Trader Raises More than $1 Billion for Fund -- Astenbeck Offshore Commodities Fund II Ltd, a Connecticut-based hedge fund run by former Citigroup (C) - Get Report trader Andrew Hall, has raised $1.08 billion, according to a filing with the Securities and Exchange Commission. Hall, the former head of Citigroup's Phibro Commodities Fund, received a $100 million pay package from the bank in 2009, which drew the ire of politicians who called the payout excessive. Citigroup eventually sold its Phibro energy-trading unit to Occidental Petroleum (OXY) - Get Report for $250 million.
  • Intel, FTC Seek Antitrust Settlement -- Intel (INTC) - Get Report and the Federal Trade Commission lawyers filed a joint motion to suspend administrative trial proceedings while the parties consider potential settlement of the case originally filed by the FTC in December 2009. The motion opens a month-long window through July 22, during which time the parties will review and discuss a proposed consent order.
  • J&J Pays $45 Million for Diabetes Treatment -- Johnson & Johnson (JNJ) - Get Report subsidiary Ortho-McNeil-Janssen Pharmaceuticals signed an agreement to pay Stockholm-based Diamyd Medical $45 million upfront to collaborate on developing and globally commercializing type-1 diabetes treatment and prevention. Under the agreement, Diamyd could receive additional development and sales milestone payments of up to $580 million, as well as royalties on future sales.
  • Aegon May Sell Transamerica Unit -- Aegon (AEG) - Get Report said Tuesday it is exploring options for its Transamerica life reinsurance business in the U.S. and plans to restructure its U.K. operations. Aegon in a statement Tuesday said it will look for a "suitable buyer" for the Transamerica business and that it "believes that, over the longer term, there is only a limited strategic fit between Transamerica Reinsurance and Aegon's core activities."

Tuesday's Earnings Roundup

  • Walgreens (WAG) reported an adjusted third-quarter profit of 47cents a share, which includes charges of 4 cents a share from the elimination of a tax benefit related to Medicare, 2 cents for the Duane Reade acquisition and 1 cent for restructuring. That was below the Thomson Reuters average estimate for a profit of 57 cents a share. Revenue of $17.2 billion was in line with consensus targets.
  • Carnival (CCL) - Get Report is scheduled to report earnings early Tuesday, with analysts forecasting a profit of 29 cents a share on revenue of $3.27 billion.
  • Adobe Systems (ADBE) - Get Report will open the books on its recent quarter after the close of trading Tuesday. Analysts expect a profit of 43 cents a share on revenue of $905.9 million.

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-- Written by Robert Holmes in Boston

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