Breakout

Monday’s Stocks to Watch and Trading Headlines

A rested Wall Street is returning from the weekend to what looks to be a higher open Monday as commodities have regained some ground, the dollar has eased and the euro is advancing. Goldman Sachs, which predicted the commodities fallout, is calling for a recovery after last week's sell-off wiped away $99 billion of market value, Bloomberg reports. But there are differing opinions. CNBC said Monday that analysts are warning the downtrend is likely to stick for the next few months.

Meanwhile, top officials from China and the U.S. are meeting in Washington to talk about trade, finance and foreign policy. Treasury Secretary Tim Geithner will urge China to allow higher interest rates, as the U.S. continues to push for a stronger yuan. (Read the Bloomberg story.)

Europe is also in focus as speculation on Greece leaving the euro continues to swirl, even as the Greek finance ministry denies such a move will occur.

FROM TWITTER:

* @businessinsiderKyle Bass Just Went Long Silver

* @BudHaslett Defaults will lead to interesting opportunities - Malmgren

*@247WallSt IPO Watch: LinkedIn Sets IPO Terms, Worth Over $3 Billion

* @gtotoy $PPG long swing @ 90.80 stops at 89.75

FROM THE BLOGS:

Flip the Script, 2 Trends for the Second Half -- the Reformed Broker

When Should You Fire Your Mutual Fund Manager? -- The Big Picture

The Next Commodities Bubble -- It's Coming Sooner Than You Think -- Money Morning

STOCKS TO WATCH:

* Citigroup (C) will start trading on today at around $45 each for the first time since October 2007, as a result of a 1-for-10 reverse split. Citi shares were trading at about $4.52 on Friday.

 

* Apple (AAPL) has overtaken Google as the world's most valuable brand, which ends a four-year reign by the search leader.

* Hertz (HTZ) has made a new buyout offer for Dollar Thrifty (DTG).

* Mcdonald's (MCD) April same-store sales were up 6%, exceeding estimates.

* Biotech group Alkermes Inc. (ALKS) said it will merge with Elan Drug Technologies, a unit of Elan Corp (ELN).

UPGRADES & DOWNGRADES:

* Alcatel-Lucent (ALU) has been upgraded to hold from sell at Capstone.

* Southwest (LUV) has been upgraded to buy from hold at Dahlman Rose.

* T. Rowe Price (TROW) has been downgraded to buy from conviction buy at Goldman.

* PepsiCo (PEP) has been upgraded to conviction buy from buy at Goldman.

* BP (BP) has been upgraded to equal weight from underweight at Barclays.

HEADLINES:

* Goldman Sees Commodity Recovery as Slump Erases $99 Billion - Bloomberg

* Renewal Of Pacts Eases Fear For Munis - WSJ

* A 'Buy' Sign for Treasurys? - WSJ

* Does dollar strength herald another crash? - MarketWatch

* Of Hawks and Bulls - Barrons.com

* A Play for the Silver Lining - Barrons.com

* Tide Shifts Suddenly in Favor of Dollar - WSJ

* 'Bad News' Driving the Euro Again - CNBC

* Commodity Rout Hasn't Ended, Wait Before Buying: Analysts - CNBC

* Insider Trading Cases Stain Hedge Fund Manager's Reputation - NYTimes

* Housing crash is getting worse: report (But all this bearish news makes me bullish) - MarketWatch

* Guidance Is Sought on Private Trading of Closely Held Companies - WSJ

Compiled by Elizabeth Trotta and Rebecca Stropoli.

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