Stocks to Watch: KFT, C, KBH, LEN & More
Senior Producer, CNBC
Take a look at some of Tuesday’s morning movers:
Kraft Foods, Mondelez International - The split of the former Kraft Foods is now complete, with those shares ending their final trading day at a 10-year high. Starting today, two new stocks take its place: Kraft Foods Group, the spin-off which comprises the old company’s North American grocery business, and Mondelez International, the renamed version of the old Kraft which retains the snack and food brands.
Citigroup - Citi has been upgraded to "outperform" from "market perform" at Keefe, Bruyette & Woods. The firm cites a number of factors, including improved capital levels and earnings visibility, attractive valuation, and in increase in global trade finance market share.
KB Home, Lennar - Citi has upgraded Lennar to "neutral" from "sell," while downgrading KB Home to "sell" from "neutral." Citi says it's difficult to justify a "sell" rating for Lennar given above average growth and margins, while KB Home now holds more risk after showing the best stock performance in the group since June.
Thor Industries, Winnebago - Baird has downgraded both recreational vehicle makers to "neutral" from "outperform" on a valuation basis. The firm says the stocks have approached its price targets as industry fundamentals have improved.
Core Laboratories - The company has cut its current-quarter outlook, with the energy services company seeing a drop in North American oil and gas production. It now expects third-quarter earnings of $1.09 to $1.13 per share, down from the prior $1.17 to $1.25.
MetLife - MetLife has been granted three more months to submit a capital plan to the U.S. Federal Reserve. The insurance company wanted more time to get regulatory approval for General Electric’s proposed purchase of MetLife’s banking unit.
PetSmart - PetSmart will replace Sunoco in the S&P 500 index later this week. Sunoco is being bought by Energy Transfer Partners . Hunting and fishing gear maker Cabela’s will replace the pet supplies retailer in the S&P MidCap 400, while Accorda Therapeutics replaces Cabela’s in the S&P SmallCap 600.
JPMorgan Chase - The bank has been sued by New York State Attorney General Eric Schneiderman in a civil fraud case involving mortgage-backed securitiessold by Bear Stearns. The sales in question took place in 2006 and 2007, prior to JPMorgan’s purchase of Bear Stearns in 2008.
Boeing - Union members have rejected a four-year contract offer, and plan to resume talks today. The two sides are trying to work out a deal that covers 23,000 engineers and technical workers.
Zimmer Holdings - Zimmer has received a U.S. Food and Drug Administration warning letter concerning manufacturing and testing of artificial hip devices made in Zimmer’s Ponce, Puerto Rico, plant. The letter does not require withdrawal of any products from the market.
Morgan Stanley - Morgan Stanley Wealth Management could be subject to a talent raid by Bank of America’s Merrill Lynch unit, according to an article in The Wall Street Journal this morning. The paper said Merrill considers a large number of brokers ripe for defection, because of a recent tumultuous computer system conversion, the problems with Facebook’s botched IPO, and other factors.
Zumiez - The retailer reported a September same-store sales increase of 5.6 percent. (Read More: Holiday Sales Are Expected to Defy Economic Gloom.)
Travelers - The insurance company's stock has been cut to "buy" from "conviction buy" at Goldman Sachs.
—By CNBC’s Peter Schacknow
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