Stock Market Today: More Bad News for Citigroup and a Profit Hit at Greenbrier

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) has gained a modest 19 points in pre-market trading, suggesting a flat start to the stock market today. Still, that tiny rise would be enough to set a new record high for the Dow. The broader S&P 500, meanwhile, is already in record territory.

There isn't much on today's economic calendar that would take the focus off of tomorrow's highly anticipated employment situation report from the U.S. Department of Labor. The update is expected to show that private employers added roughly 200,000 new jobs in March, helping push the unemployment rate down slightly to 6.6%. Investors can expect that data to move markets when it is released tomorrow at 8:30 a.m EDT.

Unemployment rate. Source: Federal Reserve Economic Data.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Citigroup (NYSE: C  ) and Greenbrier (NYSE: GBX  ) .

Citigroup stock was down 0.7% in pre-market trading after The New York Times reported that federal law enforcement agencies have opened a new criminal investigation into the bank's lending practices. According to the article, the FBI is looking into whether a recent $400 million fraud that Citigroup uncovered in its Mexican unit could be part of a broader problem. While Citigroup lost money on the deal, authorities are considering whether the bank was "equal parts victim and enabler" of the fraud, the Times reported. The inquiry may not lead to any criminal charges, but it still adds to the spate of bad news for Citigroup recently, which included having its proposed capital allocation plan rejected by the Federal Reserve.  

Greenbrier today posted earnings results for its fiscal second quarter that failed to impress investors. The rail-car producer booked profit of $0.51 a share on $502 million in quarterly revenue, while analysts were expecting better results on both the top and bottom lines. A changeover in a manufacturing line and production issues at another factory pinched the company's earnings in the quarter. Still, with the changeover behind it, Greenbrier expects profit margins to bounce back in the second half of the year. And thanks to a near-record backlog of orders, the company said it remains on track to deliver over $2 billion in revenue this year and roughly $2.60 a share in profit. However, investors appear to be focused on the profitability hit that Greenbrier took, as the stock was down 4.6% in pre-market trading.

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  • Report this Comment On April 08, 2014, at 8:22 PM, stevebry56 wrote:

    According to BidnessEtc, Citigroup has reached a deal with 18 institutional investors which will see it pay $1.13 billion to settle claims related to residential mortgage-backed securities sold by the bank.

  • Report this Comment On April 08, 2014, at 8:25 PM, davidscott1 wrote:

    Citigroup Inc. announced recently that it will pay around $1.13 billion to settle claims relating to residential mortgage-backed securities sold by the bank in past few years

  • Report this Comment On April 08, 2014, at 8:25 PM, stevebry56 wrote:

    According to BidnessEtc, Citigroup will make a binding offer to the trustees of 68 Citi-sponsored mortgage securitization trusts to pay $1.125 billion to the trusts, plus certain fees and expenses.” Citigroup has already booked an additional charge of around $100 million for the first quarter of fiscal year 14.

  • Report this Comment On April 08, 2014, at 8:26 PM, davidscott1 wrote:

    According to BidnessEtc, Once the settlement offer is accepted by the trustees and approved by the regulator, Citigroup will be released from all obligations to buy back mortgages sold to these trusts

  • Report this Comment On April 08, 2014, at 8:31 PM, stevebry56 wrote:

    After the announcement that Citigroup made recently, it said in a statement: “This settlement resolves a significant legacy issue from the financial crisis and we are pleased to put it behind us.”

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Demitrios Kalogeropoulos

Demitrios covers consumer goods and media companies for, as well as broader moves in the economy.

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8/28/2015 4:55 PM
^DJI $16643.01 Down -11.76 -0.07%
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The Greenbrier Com… CAPS Rating: ****