Stocks to Watch: Knight Capital, Chesapeake
Earnings season is wrappping up with Dillard's, Tyson and Cognizant reporting today.
By Joseph Woelfel, TheStreet.com
Knight Capital Group (KCG) is discussing a possible rescue involving TD Ameritrade (AMTD), Getco and other investors, according to a report.
Under the plan being discussed, TD Ameritrade and Getco would be the primary investors in a consortium of more than six entities that would provide a total of $400 million in capital to Knight, The Wall Street Journal reported. A Knight representative declined to comment, the Journal said.
Knight, the Jersey City, N.J-based market maker, last Wednesday suffered a software glitch that caused it to send out erroneous trading orders. On Thursday, the company announced it had suffered a $440 million pretax loss as a result.
Under the consortium plan, the investors would purchase debt that would convert into stock at $2.50 a share, the Journal report said. Jefferies (JEF) also is involved in setting up the arrangement, the report said.
Here are more stocks to watch today:
Chesapeake Energy (CHK) is expected by analysts Monday to post fiscal third-quarter earnings of 8 cents a share on revenue of $2.5 billion.
Tyson (TSN), the meat and chicken processor, is expected Monday to post a profit of 55 cents a share on revenue of $8.75 billion.
Earnings are also expected Monday from Dillard's (DDS), Cache (CACH) and Cognizant Technology (CTSH).
The U.S. attorney's office in Los Angeles is investigating whether Las Vegas Sands (LVS) violated money-laundering laws by not reporting money transfers to its casinos from two big gamblers, according to the Journal.
Teva Pharmaceutical (TEVA), the Israeli generic drugmaker, is being investigated by the Securities and Exchange Commission for possible violations of a U.S. antibribery law.
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