DOJ Sues to Block US Airways-AMR Merger and 2 Other Hot Stocks to Watch
US Airways Group Inc. (NYSE:LCC): Current price $16.88
After all this time, on Tuesday the United States Justice Department sued to block the imminent merger of AMR Corp and US Airways Group, a deal that would form the number-one airline on the planet. The lawsuit was filed in United States District Court for the District of Columbia; the government said that the transaction would harm consumers by causing higher fares and fees. The Department indicated that it was joined in its suit by a number of states, including Arizona and Texas. Observers may well wonder why the Department allowed the merger to progress this far, before coming to its conclusion.
Facebook Inc. (NASDAQ:FB): Current price $37.33
Facebook has made a deal with the online restaurant booking service OpenTable Inc. that will permit users to reserve tables at restaurants by means of a Facebook app as the social network behemoth continues to build out its mobile services. Through an announcement on its website, Facebook said that the feature will be available on its mobile pages for over 20,000 OpenTable restaurant customers spanning North America, but it did not say if the company would receive any commission from OpenTable bookings.
Bank of America Corp. (NYSE:BAC): Current price $14.44
The BofA Merrill Lynch Fund Manager Survey for August said that global investors are now significantly more confident in the outlook for growth as a net 72 percent of respondents now believe that the world’s economy will improve during the next 12 months, marking the survey’s strongest reading on the measure in close to four years, and an impressive jump from July’s net 52 percent. Further, investors remain worried about a “hard landing” in China, although this has dissipated somewhat since July. However, a net 32 percent of investors think that economic growth in that country will be weaker. Meanwhile, attitudes towards the eurozone have improved notably, as no fewer than 88 percent of European fund managers now expect the region to strengthen in the year ahead, which is twice the level recorded in July.