Tuesday's 5 Large-Cap Leaders

Each day, The Wall Street Journal publishes a list of large-cap winners. Here are Tuesday's best:

Company

Closing Price

CAPS Rating
(out of 5)

% Change

52-Week Range

State Street (NYSE:STT)

$74.68

*

8.34%

$59.13-$74.97

SLM (NYSE:SLM)

$47.09

**

2.57%

$40.30-$58.00

Northern Trust (NASDAQ:NTRS)

$71.37

**

2.29%

$56.00-$72.62

BlackRock (NYSE:BLK)

$184.19

***

1.59%

$139.20-$188.08

CSX (NYSE:CSX)

$42.83

****

0.97%

$33.50-$51.88

Sources: The Wall Street Journal, Yahoo! Finance, Motley Fool CAPS.

Our top gainer, broker State Street, jumped after reporting better-than-expected earnings. Interesting, but we Fools prefer buy-to-hold stock stories. Are any of our large-cap leaders worth owning over the next three to five years?

We know that railroad operator CSX could be. But none of the others gets the nod from the more than 70,000 professional and amateur investors in our Motley Fool CAPS database. Some even think State Street could be worth shorting.

Investor tenmiles writes:

State Street sponsors roughly $30 billion in ABCP conduits. The "equity" piece of these programs is very small -- let's say 2% of the deal. The bank doesn't hold any of this. As State Street doesn't have a traditional bank depositor base, however, if they are forced to unwind these programs at even 95 cents on the dollar, they would lose 3% on their total program exposure -- [a] $1 billion hit -- [a] big number for a firm even of their size. Sell here.

All-Star ThatGuy73 adds:

The fear -- some of it no doubt fanned by hedge funds -- is that these [State Street] conduits' portfolios, full of credit card, auto, and mortgage loans the bank uses as collateral for selling commercial paper to investors, have undisclosed losses. If spooked buyers were to balk at buying more commercial paper, State Street might have to provide some funding. Obviously, $29 billion is a big exposure relative to the bank's total capital of $113 billion.

Do you agree? Disagree? Let us know what you think by signing up for CAPS today. It's 100% free to participate.

See you back here tomorrow for more of the best of the biggest.

Cap off your day with related CAPS Foolishness:


Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 538675, ~/Articles/ArticleHandler.aspx, 10/21/2014 12:03:19 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement