Filed under: Before the bell, Analyst reports, Analyst upgrades and downgrades, Deals, Apple Inc (AAPL), Market matters, Nokia Corp. (NOK), Advanced Micro Dev (AMD), Altria Group (MO), Boeing Co (BA), Federal Natl Mtge (FNM), ConocoPhillips (COP), Goldman Sachs Group (GS), Washington Mutual (WM), Economic data, Marvell Technology Group (MRVL), Lehman Br Holdings (LEH)

Stock futures jumped higher, signaling a stock markets could have a significant rally when they open this morning Monday morning. Investors were relieved the government bailed out Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE), taking over the mortgage financiers giants, perhaps triggering a bottom of the credit crisis as trillions of dollars in mortgage-backed securities won’t default now.

Still, Merrill Lynch analysts stated Monday they believe it’s still too early for investors to be overweight in financial stocks. Instead, rallies in the sector should still be used as opportunities to sell, Merrill stated. The Fannie/Freddie bailout is solution to a one-off problem rather than solution of a systemic problem, it added. Indeed, it was only Friday that regulators shut down the 11th bank this year, Silver Say Bank. There is no pre-market trading on FNM and FRE stocks. Analyst calls at the end.

Meanwhile, adding to positive sentiment, Altria (NYSE: MO) shut the deal talked about Friday to buy smokeless tobacco maker UST (NYSE: UST) for $11.7 billion, including the assumption of $1.3 billion in assumed debt. That’s $69.50 per share in cash, which is a 29% premium to its three-month average stock price. Altria anticipates the acquisition to increase adjusted diluted earnings per share within twelve months of closing. Altria stock is trading 1.3% higher in pre-market trading.

And another deal is in the works as ConocoPhillips (NYSE: COP) has agreed to pay up to $8 billion for a half-share in the coal seam gas assets of Australia’s Origin Energy Ltd. Origin will handle the coal seam gas production while ConocoPhillips will operate the downstream refinery.

Continue reading Before the bell: Stocks to rally; FNM, MO, LEH, BA, WM, AAPL…

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This entry was posted on Thursday, September 11th, 2008 at 4:52 pm and is filed under Latest News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.