The Deal
Tuesday, November 24, 
2:06 pm

Deal Stocks: AIG, CIT, GS, MSFT, IACI

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stock_ticker125x100.jpgWelcome to Deal Stocks. In the news Thursday are American International Group Inc. (NYSE:AIG), Goldman Sachs Group Inc. (NYSE:GS), CIT Group Inc. (NYSE:CIT), Microsoft Corp. (NASDAQ:MSFT) and IAC/InterActiveCorp (NASDAQ:IACI).

For more hot stocks, check out the arbitrage charts in The Deal Pipeline (subscription required) or stocktwits.

Stocks rallied on reports that the economy is expanding and unemployment claims are falling. The Dow closed up 199.89, or 2.05%, to 9,962.58, and the Nasdaq jumped 37.94, or 1.84%, to 2,097.55.

  
 

  • Movie Gallery Inc. (OTC: MVGR), owner of the Hollywood Video chain, is looking to save money by renegotiating leases and past-due rent and may close 200 more stores. The video store chain is suffering from competition from mail-order services such as Netflix Inc. (NASDAQ:NFLX), kiosk retailers as well a on-demand services offered by cable companies.

  • Meanwhile, credit default swaps may have brought in as much as $3 billion in payments to AIG in recent months, with Goldman Sachs Group Inc. (NYSE:GS) paying $1 billion, according to The Wall Street Journal.
  • CIT Group Inc. (NYSE:CIT) secured a $4.5 billion loan expanding a $3 billion secured credit line to $7.5 billion. The new credit line, maturing in January 2012, is from a number of lenders including undisclosed CIT bondholders. CIT's other lenders must decide by midnight tonight whether to support its proposed debt exchange, a prepackaged bankruptcy plan or neither. (The Deal Pipeline subscribers can read more here.)
In economic news:
  • The economy expanded at a 3.5% pace from July through September, according to Bloomberg.
  • There were 530,000 initial job claims filed in the week ended Oct. 24, the Labor Department reported, according to CNN.

- George White, Maria Woehr and Gerald Magpily


VITAL SIGNS

Figures are calculated according to the latest stock data available at approximately 4:30 pm ET

October 29, 2009

Benchmark
Spread
Change from previous day
1 week ago
1 month ago
1 year ago

LIBOR 1-MONTH
0.24
+0.001
0.25
0.25
3.12

LIBOR 3-MONTH
0.28
-0.001
0.28
0.29
3.42

TED
0.22
+0.008
0.23
0.17
3.57

Exchange
Average
Change from previous day
1 week ago
1 month ago
1 year ago

VIX
24.69
-3.22 (-11.54%)
20.69
25.19

69.96


T-bond
Current Price/Yield
Price/Yield change

3-Year
99-20.5 / 1.50
-0-05.5 / .060

5-Year
99-23+ / 2.43
-0-09+ / .063

10-Year
101-03+ / 3.49

-0-20 / .075



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