Lindblom, Ledwith, Mayerhofer (212) 829-5482
The BKX +1.2%. Regionals provided the upside leadership. CMA +3.6% upgraded at Baird. Firm cited recent price weakness, adding that while the low interest rate environment will hamper NIM expansion, expectations are sufficiently depressed. MI +2.5%, RF +2.2% and KEY +1.9%. Investment banks mostly higher with GS +1% and MS +1%. JEF (1.2%) a laggard following Monday's downgrade. Life insurers mostly higher on the day with LNC +2.5%, HIG +1.4% and PRU +1.3%. Recall the former has been boosted as of late by takeover speculations surrounding MFC +0.2%, which filed a $4B mixed shelf on Monday. The Group shook off another round of gains in Treasuries.
Leaders:
CPY+16.44%,FIG+5.68%,CCRT+5.30%,WL+4.14%,FFBC+3.71%
Laggards:
KCG -4.5%, HRB -4.04%, MGI -3.35%, ITG -13.29%, HALL -2.80%
FAC
First Acceptance reports Q4 GAAP EPS $0.02 vs year-ago ($1.50) -- 10K ($1.74)- Company reports revenues of $56.0M vs year-ago $61.7M.
NPBC
National Penn Bancshares upgraded to buy from neutral at B. Riley & Company ($5.81)- Based on valuation. Target decreased however to $6.75 from $7. Firm is also reducing 2010 EPS estimates to $0.12 from $0.13 and 2011 EPS estimates to $0.38 from $0.45 citing concerns regarding NIM pressure.
CIT
CIT Group initiated overweight at Barclays Capital (36.68)- Target is $46.
Big Banks - BAC, C, WFC, JPM, GS, FITB, HCBK, PBCT
Mid/SmallcapBanks/S&L- FBP, RBPAA, CVBF, PCBC, CARE, OZRK,
Brokers AMTD, ETFC,SWS
Asset Managers/Inv co’s- FIG, AMP, FNGN, PZN
Insurance- GNW, HIG, ALL, LNC, CB, SBX
CreditCards- AXP, COF, MA, V, DFS
Specialty Finance/Mort Insurers- ABK, MBI, AGO, OCN
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