NEW YORK (TheStreet) -- Here are the top stock market headlines for the morning of Thursday, July 1, 2010.
Thursday's Early Headlines
- Treasury Gets $10.5 Billion in Citigroup Stock Sale -- The Treasury Department said it has sold approximately 1.1 billion shares of Citigroup (C - Get Report) common stock under its second trading plan. To date, the Treasury said it has sold a total of approximately 2.6 billion shares of Citigroup common stock at an average price per share of $4.03 for total gross proceeds of approximately $10.5 billion. The Treasury Department said it still owns about 5.1 billion shares of Citigroup but will temporarily halt share sales until after Citigroup reports second-quarter earnings.
- House Passes Financial Reform Legislation -- The House on Wednesday passed a massive overhaul of financial regulations by a 237-to-192 vote that fell largely along party lines. Three Republicans voted for the bill, while nineteen Democrats voted against it. The Senate will vote on the compromised bill next, although that vote will be delayed until after the Independence Day holiday break.
- Jobless Claims Rose Last Week -- The Labor Department said initial jobless claims rose by 13,000 to 472,000 last week from the previous week's revised figure of 459,000. The data surprised economists who had expected a slight decline to 458,000, according to a Briefing.com consensus. The four-week moving average was 466,500, an increase of 3,250 from the previous week's revised average of 463,250.
- Spain Raises $4.3 Billion in Bond Auction -- Spain raised €3.5 billion ($4.3 billion) in an oversubscribed auction of five-year notes, The Associated Press reports. The auction comes a day after Moody's placed Spain's debt on review for possible downgrade. The average interest rate was 3.65%, up from 3.53% at the last such auction in May, the AP report adds.
- AIG CEO Reportedly Threatened to Resign Unless Chairman Quits -- American International Group (AIG - Get Report) CEO Robert Benmosche last week threatened to resign from the insurer unless Chairman Harvey Golub left, Bloomberg reports, citing two people familiar with the matter. After AIG's failure to sell its Asian unit to Prudential PLC (PUK) for $35.5 billion, Benmosche said during a June 25 board meeting that he wanted more control over the divestiture, the report says. Golub reportedly was opposed the sale of AIA because even though it would yield more money that could be used to repay bailout funds, it was riskier, one person told Bloomberg. Benmosche, on the other hand, favored a sale as opposed to an initial public offering.
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Thursday's Earnings Roundup
- Constellation Brands (STZ - Get Report) said it had a first-quarter adjusted profit of 38 cents a share on revenue of $788 million, compared to the Thomson Reuters average estimate for earnings of 35 cents a share on revenue of $798.5 million. Constellation upped its full-year guidance to a range of $1.63 to $1.78 a share due to the benefit of share repurchases. Analysts expect a full-year profit of $1.70 a share.
- MSC Industrial (MSM - Get Report) reported third-quarter earnings of 69 cents a share on revenue of $450.4 million, coming in ahead of the average analyst target that called for earnings of 66 cents a share on revenue of $445.1 million. The company's fourth-quarter outlook calls for earnings in a range of 61 cents to 65 cents a share on revenue of $446 million to $458 million.