Stocks to Watch: Knight Capital, Chesapeake

NEW YORK -- 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.

Knight in Talks on Potential Rescue: Report

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 (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.

Las Vegas Sands Target of Federal Probe: Report

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.

-- Written by Joseph Woelfel