Movers: AIG, WaMu, Circuit City, Lennar, GE

Stocks in the news on Tuesday

From Standard & Poor's Equity Research

American International Group (AIG) rose 0.28 to 5.00 after AIG suspends common stock dividend. Separately, CNBC's Charlie Gasparino reported that AIG told employees in a memo that they may lose money in a deferred savings plan, as the funds could go to paying off debts. Earlier, Reuters said AIG shares were higher as CEO Edward Liddy said late Monday on CNBC that he expected AIG to emerge from a federal bailout as a leaner, stronger co. S&P reiterates hold.

WSJ reports that Toronto-Dominion Bank (TD) is among the companies now weighing a bid for Seattle thrift Washington Mutual (WM), according to people familiar with the situation. In addition to TD, potential suitors include Citigroup(C), JM Morgan (JPM), Wells Fargo (WFC) and Banco Santander SA (BCDRF), according to people familiar with the situation.

Oppenheimer cuts estimates on Wachovia (WB), Citigroup, Bank of America (BAC), and Wells Fargo.

Citigroup downgrades Regions Financial (RF) to sell from hold, and downgrades Zions Bancorp (ZION) to hold from buy.

Circuit City Stores (CC) expects to deliver second quarter results that are slightly better than the previously provided range of a loss from cont. ops before income taxes of $170-$185 million, before any unusual/non-cash charges. Also says Philip J. Schoonover, chairman, president and CEO, has agreed to step down from those positions, effective immediately. Schoonover has also resigned as a director. Jefferies says while investors may initially applaud mgmt change, thinks investors should sell into any strength; downgrades to underperform.

Lennar (LEN) posts $0.56 third quarter loss, vs. $3.25 loss a year ago, on 53% revenue drop. Notes third quarter fiscal year 2008 loss includes $0.53 per share charge related to valuation adjustments, other write-offs.

Bristol-Myers Squibb (BMY) increases its offer to buy ImClone Systems (IMCL) to $62 a share from its initial offer of $60 a share. BMY intends to commence a tender offer, valued at about $4.7 billion, for all outstanding IMCL shares not already owned by BMY.

Citigroup (C) names Mike Corbat as CEO of its Global Wealth Management unit (GWM) and Edward Kelly as Head of Global Banking for the Institutional Clients Group (ICG). Also confirms that Sallie Krawcheck has decided to leave the firm to pursue other opportunities and will remain as Chairman of GWM through the end of the year.

General Electric (GE)- Merrill reportedly downgrades GE to neutral from buy.

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