Market Snapshot October 19, 2009, 4:40PM EST

Stocks Push Higher

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According to a Reuters report Monday, Carl Icahn said he offered to underwrite a $6 billion loan to CIT Group and complained that horse-trading between the troubled lender and its largest creditors was harming other bondholders. In a letter to CIT's board, Icahn said the cash-strapped commercial lender is offering certain large bondholders the opportunity to purchase $6 billion in secured loans well below their fair market value. Icahn said the offer comes at the expense of thousands of smaller bondholders who would not have the same opportunity.

The National Association of Home Builders reported its homebuilder sentiment index dipped to 18 in October from 19 in September. Analysts expected the index to climb to 20. The index had been improving since early in the year when it hit an all time low of 8 in January. The present single family sales index dipped to 17 from 18. The future index fell to 27 from 29. The index of prospective buyer traffic fell to 14 from 17. It's the first time since November that all three indexes declined. The real time data could provide some rationale for profit taking in stocks but the market isn't responding.

Among companies in the news Monday, Eaton Corp. (ETN) reported third quarter earnings per share from operations of $1.21, vs. $1.95 EPS one year earlier, on a 26% revenue decline. Wall Street was looking for EPS of $0.92. The company sees 2009 op. EPS of $2.40-$2.50.

Hasbro (HAS) reported third-quarter earnings per share of $0.99, vs. $0.89 EPS one year earlier, on a 1% revenue rise (excluding the impact of foreign currency). The company sees 2009 revenue growth, if its consumer retail takeaway continues to improve in line with recent fourth-quarter trends, along with growth in EPS (including expected dilution from investment in a joint venture with Discovery Communications).

IPCS (IPCS) agreed to be acquired by Sprint Nextel (S) a in deal valued at about $831 million, including assumption of $405 million of net debt, or $24.00 per IPCS share.

CME Group (CME) is putting out feelers to the Chicago Board Options Exchange about a takeover that would value the biggest U.S. stock-options market at as much as $5 billion, according to an article in Crain's Chicago Business.