Market Update – Ford Motor Company (NYSE:F), American International Group (NYSE:AIG), Morgan Stanley (NYSE:MS), Goldman Sachs Group (NYSE:GS), Intel Corporation (NASDAQ:INTC)
The Congressional committee on housing, the Federal Housing Committee, is meeting today to decide what the next move is with Fannie Mae and Freddie Mac. The government nationalized the two massive companies during the housing crisis and they have helped stabilize the housing market since then, in part through subsidies. Last year, the two managed the White House’s $75 billion loan modification program, all while they backed approximately 70 percent of all home loans. Talks will begin today on the future of the two companies, and whether there’s still a place for the duo moving forward.
Home sales are an important economic bellwether; Today’s reports will certainly have an impact on the market, so hopefully the news is better than predicted. In other news, the price of gold has fallen $6 to $1,101 an ounce, and Crude oil is down 41 cents a barrel. The dollar index is trading higher, up 0.4% against other currencies. The dollar has been gaining strength recently by investor wariness over the Greece debt situation, as Greece is on the Euro. The pound sterling and Euro are both down.
In specific corporation news, Ford Motor Company (NYSE:F) has announced in a press release that they were recently named one of the world’s most ethical companies by an ethics think tank, Ethisphere Institute. They are the only automaker to receive this honor in 2010. Normally, something like this isn’t enough to make our market update, because it’s really not a big deal in the grand scheme of investing news. However, this PR release is a sharp contrast to the negative press being heaped (fairly, or not) on Ford’s direct competitors recently, and builds on the American automakers feel good 2010 story.
News that former CEO Hank Greenberg’s company, Starr International, is looking to sell up to 10 million shares of American International Group (NYSE:AIG). The struggling insurance giant has been in the process of untangling itself recently, most notably through high profiles sales. Mr. Greenberg’s move helped drive down the price of shares of the bailed-out insurance behemoth, which lost ground yesterday and has performed poorly so far this morning.
Certain firms that received government handouts during the financial crisis will be getting a review on their year-end bonus practices, and notices of this review are expected to be delivered today. Firms that experts are anticipating to be included in this government review through the Troubled Assets Relief Program include Morgan Stanley (NYSE:MS) and Goldman Sachs Group (NYSE:GS). Ken Feinberg, a special master for executive compensation in the Treasury Department, is reported to be the person in charge of notifying the corporations of the coming scrutiny.
Finally for the day, tech stocks appear to be doing well this Tuesday morning. Intel Corporation (NASDAQ:INTC) has broken its resistance level of 22.39, according to TradersHuddle.com. The company recently announced a quarterly cash dividend of 15.75 on it’s common stock, payable on June 1st.
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