Late Market Roundup (JACK, RIG)

Equities have started to recover slowly after an unpleasant opening. By 12:45 pm, S&P index was down by just 1.9% to 1,053, while DOW shed 180 points. Today’s trading would, however, reflect how investors, who are already nervous after the May 6 “flash crash,” will react. The Finance Ministry of Germany has proposed to extend the ban on "naked" short selling, adopted last week, to cover all German stocks and a few euro-currency derivatives. Earlier, the ban was applicable on the naked short-selling of certain financial stocks. Spain, one of Europe’s debt-laden economies, has successfully raised cash in the bond markets, despite concerns regarding its banking system. Spain has sold 3-month and 6-month Treasury bills worth around €3 billion for €2.5- €3.5billion. The private equity firms are continuing their search for potential targets across the mid-tier restaurant landscape. Jack in the Box JACK is viewed as the next stock for private-equity takeout as it has a cheap valuation and low debt liabilities. Analyst Steve West of Stifel Nicolaus mentions, "I think, Jack would be the most attractive, at least in my view if I am a private equity investor." An request for investigation has been submitted by eighteen senators to the Department of Justice for Transocean RIG after the company announced dividends worth $1 billion to shareholders. The operator of the Deepwater Horizon offshore drilling rig may also earn a profit of $270 million on the insurance policy for the rig. Read more from Benzinga's Markets.