Bank of America Corp (NYSE:BAC): The Wall Street Journal writes that the Consumer Financial Protection Bureau has issued a warning that new regulations may be necessary to address hidden dangers in reverse mortgages, a $90B industry of loans that let cash-strapped seniors borrow against the equity in their property.
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Arena Pharmaceuticals, Inc. (NASDAQ:ARNA): Jeffries stands by being a buyer of Arena shares after FDA approval of the company’s obesity medication, believing the Belviq label is a big positive due to lacking a restrictive REMS or cardiovascular monitoring regulations. Jefferies is holding to a Buy rating on the stock.
JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo (NYSE:WFC) shares are suggested purchases by Atlantic Equities ahead of the banks’ Q2 results, as the firm thinks JPMorgan will move up on clarity around the CIO trading loss and Wells Fargo will turn in encouraging numbers fueled by mortgages. Both are rated Buy.
Cisco Systems, Inc. (NASDAQ:CSCO): Following attendance at a Huawei investor meeting, Nomura’s Stuart Jeffrey believes the company, dreaded for its win-at-all-costs attitude, will be less aggressive in its telecom equipment pricing in an effort to subsidize work toward winning new phone and enterprise deals. He views this as a boon for Ericsson (NASDAQ:ERIC), Alcatel-Lucent (NYSE:ALU), and Nokia Siemens (NOK, SI). Jeffrey also believes Huawei’s limited enterprise presence will lessen the damage it makes for Cisco (NASDAQ:CSCO) in the coming two years.
Tenet Healthcare Corporation (NYSE:THC): The Supreme Court ruled that the vast majority of the healthcare reform law, among that majority the insurance mandate, is constitutional. In a 5-4 decision, the court determined that Congress’ taxing power Constitutionally includes the authority to enforce the mandate. The five justices who voted this way write that the law’s penalty for not purchasing health insurance is a tax. The majority decided that the law’s extension of Medicaid is constitutional, but that states that opt not to meet its Medicaid requirements cannot be stripped of all Medicaid funding. Rather, these states can only be kept from new Medicaid funding. Most major insurance companies fell after the decision was reported. The law includes provisions that restrict the profits of the insurers and at the same time impose costly mandates on them. However, hospital stocks are up, as this is presumed to aid them in getting more payments from poorer clients.
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