(By Mayur Pahilajani - iStockAnalyst Writer)
Shares on Wall Street are pointing for higher gains with some trading with above average volumes, as the traders and financial sector await the U.S. Senate to vote on $700 billion bailout plan tonight. The markets around the globe are hopeful that the world's largest economy will rescue its tumbling financial sector with the proposal, which was rejected by the House of Representatives on Monday.
The Senate has decided to vote in favor of the bill if the Bush administration agrees to temporarily increase the cap on federal deposit insurance to $250,000 from $100,000. The House Republicans also asked to extend tax breaks for two years, which is aimed to benefit individuals and companies. The tax breaks will save the individual and corporate tax payers as much as $149 billion over the next 10 years.
Some of the unusual suspects trading higher during early morning trading on Wall Street include ENSCO International Incorporated (NYSE: ESV), Walter Industries Inc (NYSE: WLT), Live Nation Inc (NYSE: LYV), Gardner Denver Machinery Inc (NYSE: GDI), The Chubb Corporation (NYSE:CB), Adobe Systems Incorporated (NASDAQ GS: ADBE), Cimarex Energy Co (NYSE: XEC), Helmerich & Payne, Inc (NYSE: HP) and Energy Conversion Devices Inc (NASDAQ GS: ENER).
ENSCO International Incorporated (NYSE: ESV):
ENSCO International, a leading supplier of offshore contract drilling services to the oil and gas industry, looked strong on Wednesday as it one of the few firms whose oil facilities were spared by Hurricane Ike. Shares climbed after oil prices gained this week after dropping 22 percent over the period of last month. The market analysts have still rated the company on "Buy", citing better earnings outlook. The company's board recently approved the buyback of an additional $500 million of Ensco common stock. At 10:35am ET, shares of the company were trading down by $1.43 or 2.48 percent to $56.20, after reaching the day's high so far to $57.85.
Walter Industries Inc (NYSE: WLT):
Walter Industries announced late Tuesday that it plans to separate its financing business from the Company's core Natural Resources businesses. The leading producer and exporter of U.S. metallurgical coal for the global steel industry will give a way its 100 percent interest in JWH Holding Company, LLC, a wholly-owned subsidiary, to its shareholders. The firm also announced that it has entered into a definitive agreement to merge with New Jersey-based real estate investment trust, Hanover Capital Mortgage Holdings, Inc. (HCM). Shares of Tampa, Fla.-based company were trading lower by $2.90 or 6.11 percent to $44.55 at 10:50am ET in New York.
