3 Stocks to Watch in Today's Market

U.S. stocks are set for a modestly positive open to begin the week, with futures on the Dow Jones Industrial Average (INDEX: ^DJI  ) and S&P 500 (INDEX: ^GSPC  ) suggesting slight gains of about 0.2% to begin Monday's trading. The gains follow Friday's massive rally on a better-than-expected jobs report that saw employers add 163,000 jobs in July, well ahead of economist expectations of 100,000.

One story making headlines this morning is the fate of Knight Capital Group (NYSE: KCG  ) , which announced losses of $440 million following a trading blunder that caused major volatility in shares of more than 140 companies last Wednesday. The losses exceeded Knight's last reported cash balance of $365 million and raised concerns of bankruptcy should the company fail to obtain financing. This morning that financing has come, but at a steep cost to shareholders. Knight's sale of $400 million in convertible preferred stock succeeds in keeping the company afloat, but shareholders are giving away nearly 75% of the company to avoid a death sentence.

After a shakeup among the board of directors limited his control, infamous Chesapeake Energy (NYSE: CHK  ) CEO Aubrey McClendon will respond to calls for more prudent financial management during today's earnings report, which investors are anxiously awaiting. In the face of record-low natural-gas prices, Chesapeake, the second-largest natural-gas producer in the U.S., has been selling assets to raise cash, including the company's midstream assets, which it announced in June would be sold for $4 billion. For the quarter, earnings per share are expected to fall 90% to $0.08 on a 26% decline in revenue.

Also reporting today is IT outsourcing outfit Cognizant Technology Solutions (Nasdaq: CTSH  ) . Management offered a more muted full-year outlook after reporting in-line first-quarter results back in May. The company, which relies on the financial-services industry for about 40% of revenue, is expected to report revenue growth of 20.6% to $1.8 billion this quarter. Earnings per share are seen growing 19.4% to $0.80.

Serving big banks may not sound like a great gig, but don't tell that to Cognizant shareholders who have booked a 12-bagger over the past 10 years. The truth is, while some banks are struggling, others are as strong as they've ever been. In this brand-new special report, "The Only Big Bank Built to Last," we walk investors through the one major bank sticking to its knitting and providing investors solid returns in the process. Claim your copy of this exclusive report, completely free of charge, by clicking here now.

Brenton Flynn owns shares of Chesapeake Energy. The Motley Fool owns shares of Chesapeake Energy. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Read/Post Comments (1) | 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.

  • Report this Comment On August 06, 2012, at 12:09 PM, 1297US12 wrote:

    With the amount of volume that SIRI has why does it only go up and down a few cents a day?

Add your comment.

Compare Brokers

Fool Disclosure

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: 1973107, ~/Articles/ArticleHandler.aspx, 10/28/2016 12:45:01 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...

Today's Market

updated 3 hours ago Sponsored by:
DOW 18,169.68 -29.65 -0.16%
S&P 500 2,133.04 -6.39 -0.30%
NASD 5,215.97 -34.29 -0.65%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/27/2016 4:35 PM
^DJI $18169.68 Down -29.65 -0.16%
^GSPC $2133.04 Down -6.39 -0.30%
S&P 500 INDEX CAPS Rating: No stars
CHK $6.08 Up +0.08 +1.33%
Chesapeake Energy CAPS Rating: ***
CTSH $51.30 Up +0.43 +0.85%
Cognizant Technolo… CAPS Rating: *****
KCG $13.50 Down -0.22 -1.60%
Knight Capital Gro… CAPS Rating: *****