Tag - DSCP

Following the worst one-day point drop since the terrorist attacks of Sept. 11 and a lower opening, small caps are flickering in and out of the green, after news that the government might extend a lifeline to troubled insurance company AIG and ahead of the Fed’s policy decision this afternoon.

At 11:45 a.m. ET, the Russell 2000 (NYSE:IWM) was flat at 692.53, up 2.77, or 0.4%.

After turning AIG (NYSE:AIG) down Monday, the government is now reconsidering extending financial aid to the company, according to CNBC. Markets are watching the insurance juggernaut closely, as its fate remains uncertain and any potential failure would severely rock the financial system. The company must raise $75 billion today to remain afloat, which is on top of the $14.5 billion raised overnight to cover obligations in the wake of fresh rating agency credit downgrades. Shares remain down 50% midday. 

“My gut tells me that AIG will be rescued as it's not Lehman: $1 trillion in assets versus $629 billion,” Andy Busch, global foreign exchange strategist, said in an email. “More importantly, the insurance angle (lots of problems with an unwind) should be enough to get a package together.” 

Just one day after Lehman Brothers (NYSE:LEH) declared bankruptcy, the demolished U.S. investment bank is reportedly close to a deal with British bank Barclays, in which Barclays would acquire its U.S. broker-dealer unit for roughly $2 billion. Barclays, which initially walked away from a takeover deal over the weekend, has been looking to increase its exposure in the U.S. market.

Following the intense selling pressure Monday, the Federal Reserve aided liquidity levels in the market today by pumping $50 billion into the system. This is on top of the $20 billion the Federal Reserve Bank of New York was already slated . . .

After the worst one day point drop since the terrorist attacks of Sept. 11, small caps are lower this morning, as AIG’s (NYSE:AIG) fate remained uncertain and as investors surveyed the wreckage from Monday’s session.

At 9:45 a.m. ET, the Russell 2000 (NYSE:IWM) had fallen 5.85, or 0.85%, to 683.91.

Following one of the most cataclysmic days Wall Street has seen, investors’ focus has shifted to AIG from Merrill Lynch’s emergency sale to Bank of America (NYSE:BAC) and Lehman’s (NYSE:LEH) declaration of bankruptcy on Monday. The insurance juggernaut, which saw its stock plummet 61% on Monday on liquidity concerns, was forced to scramble to raise $14.5 billion overnight to cover obligations in the wake of fresh rating agency credit downgrades. The firm is seeking to raise $75 billion. Shares plunged 42%.

Just one day after Lehman Brothers declared bankruptcy, English bank Barclays’ interest has reemerged in the washed up bank’s core investment banking unit. Barclays, which initially walked away from a takeover deal over the weekend, has been looking to increase its exposure in the U.S. market.

In an effort to inject liquidity back into the markets, the Federal Reserve pumped $50 billion into the system. This is on top of the $20 billion the Federal Reserve Bank of New York was already slated to infuse the system with.

The Federal Reserve will meet today for a policy meeting, as the credit crisis has reached a climax. The central bank is expected to leave rates on hold, despite the market’s cries for a quarter point rate cut. The policy decision is . . .

Medical device company Datascope Corp. (Nasdaq:DSCP) said this morning that it will be acquired by medical technology company Getinge AB for $53.00 per share.

Shares gained 5%, or $2.27, to $51.50 at 9:55 a.m. ET. For detailed price information and news stories on Datascope, click DSCP.

Starrett LS Co. (Nasdaq:SCX), First Financial Corp. (Nasdaq:THFF) and Sciele Pharma Inc. (Nasdaq:SCRX) are among the new 52-week highs in Tuesday's trading among companies with market capitalizations under $1 billion.         

Also included among the results: CombiMatrix Corp. (Nasdaq:CBMX), Standex International Corp. (Nasdaq:SXI), Home Diagnostics Inc. (Nasdaq:HDIX), Medivation Inc. (Nasdaq:MDVN), DXP Enterprises Inc. (Nasdaq:DXPE) and Datascope Corp. (Nasdaq:DSCP).         

Here are the new 52-week highs among small caps: