March 27 Premarket Briefing: 10 Things You Should Know
Here are 10 things you should know for Thursday, March 27:
1.-- U.S. stock futures were suggesting Wall Street would rebound Thursday ahead jobless claims and growth data.
European shares were mixed in early trading. Asian shares ended Thursday's session mixed. Japan's Nikkei 225 index rose 1%.
2.-- The economic calendar in the U.S. on Thursday includes weekly initial jobless claims at 8:30 a.m. EDT, the third estimate of fourth-quarter GDP at 8:30 a.m., and pending home sales for February at 10 a.m.
3.-- U.S. stocks on Wednesday fell as the latest headlines on durable goods orders ultimately failed to generate enthusiasm about U.S. manufacturing conditions.The Dow Jones Industrial Average lost 0.6% to close at 16,268.99, while the S&P 500 dropped 0.7% to 1,852.56. The Nasdaq fell 1.43% to 4,173.58.
4. -- Citigroup
Five of 30 banks had their 2014 capital plans rejected by the Fed. The others include three foreign-held U.S. bank holding companies : HSBC North America Holdings (a unit of HSBC
It wasn't a surprise to see Zions have its capital plan rejected when the Fed completed CCAR, in light of the bank's failure in in the first round of last week's stress tests.
The Federal Reserve objected to the other four banks' capital plans, based on "qualitative concerns."
All five banks will be expected to submit revised capital plans to the regulator, and aside from Zions, could still deploy excess capital over the next year.
CCAR is the second part of the Fed's annual stress-test process for the largest U.S. banks.
5. -- Bank of America
The agency sued 18 financial institutions in 2011 over their sales of mortgage securities to Fannie and Freddie. It alleges many banks falsely represented the mortgage loans behind the securities. These soured after the housing bubble burst and lost billions in value.
Bank of America said it will make cash payments of roughly $6.3 billion and also purchase securities from Fannie and Freddie worth more than $3 billion. It is one of several banks to settle with the FHFA, which announced the agreement Wednesday.
6. -- Yoga-apparel and accessories retailer Lululemon
7. -- Yahoo Japan will buy mobile and broadband provider eAccess from its parent SoftBank for 324 billion yen ($3.17 billion) in a bid to expand its services for tablets and smartphones, Reuters reported.