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U.S. Morning Call: Moody's reports and may get sued

Friday, February 08, 2013 - 03:46

Feb 8 - The Justice Department and multiple states are discussing also suing Moody's for defrauding investors, according to people familiar with the matter.

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Season morning call on Friday we're kicking off with earnings from AOL. Quarterly profit jumped by 13% rise -- ad sales chief executive Tim Armstrong celebrating a stellar 2012. One the company sold patents to Microsoft initiated a big buyback. And declared a special dividend one spot those subscription revenue for AOL's dial up services fell 10%. Take a look at the company shares there up almost 90% year over year. Moody's reporting a 66%. Jump in profits this morning as it benefited from a wave a debt issues revenues rose 33%. Well analysts -- optimistic about these earnings the New York AG isn't too sure about its ratings practices. New York attorney general Eric Schneider -- and not shy about Wall Street is going after all three ratings agencies just days after the department of justice and sixteen states. Soon as compete for five billion dollars over mortgage bond ratings fraud. A person familiar with the matter sanction item is now looking for information to see whether he can bring new action against S&P Moody's and Fitch. Meanwhile the DOJ in other states are discussing also suing Moody's. Many stock has fallen more than 15% since the lawsuit against McGraw-Hill unit S&P was first announced. In our stocks to watch were leading with linked in shares up close to 10% premarket to 135 bucks. A number of brokerages also raising their price targets on the stock including JPMorgan. Almost positive press after Lincoln beat earnings estimates for its seventh quarter in a row. Said one analyst quote you can pick out a lot of things that -- great from customer adds to accelerating revenue to growth -- international. Lincoln once again affirming it's the exception in a mostly disappointing social media sector. Take a look at the IPO prices of some of its rivals and where they're trading today compared to -- it. Next up an -- stocks to watch RadioShack the struggling retailer wrangling in new CEO after months of searching. Just of -- -- is a former walk green executive and RadioShack is hoping to happen to his merchandising and marketing expertise. An analyst at Barkley says he would continue to view RadioShack shares cautiously. And company gives -- the company is selling its optimum west unit to -- communications. For one point six billion dollars the deal is expected to close in the third quarter of this year. It's apparent the client okay it's a plane but it dreamliner. US agencies clearing bowing to restart test -- of the ground in seven -- seven jets. After a successful one time flight from Texas to Washington State yesterday. The FAA allowing test flights under more stringent rules to monitor those accident prone batteries in flight. Boeing investors taking the news in stride shares closing 8% higher on the day. And despite a halt in deliveries of its dreamliner Boeing still beating rival Airbus so far this year -- broadly higher orders and deliveries in January. Look at US markets stock futures according to. -- to open but a lot may depend on how earnings play out today. That's your Friday morning. All remember to follow us on Twitter at Reuters Insider and get more great players videos at Reuters dot com slash -- TV. I'm Lisa Bernhard this is way.

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U.S. Morning Call: Moody's reports and may get sued

Friday, February 08, 2013 - 03:46

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