Monday Morning Coffee with TradingMarkets

Good Morning!

Treasury Secretary to Propose Sweeping Changes... Lehman Loses $350M, Claims Fraud... More Changes at Citigroup... W.W. Grainger Names New CEO.

Asian stocks lower... European stocks down... And the futures flat half an hour before the open.

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TradingMarkets 5 Business Stories You Need to Know

Paulson Plan Begins Battle Over How to Police Market - Wall Street Journal
The Bush administration's plan to remodel the patchwork system of U.S. financial regulation, built piecemeal since the Civil War, is the biggest salvo in what will be a long-running debate about the role of government in financial markets.

Citigroup Separates Credit-Card Business in Banking Overhaul - Bloomberg
Citigroup, battling to restore profit after a record loss, will set up an independent credit- card unit and overhaul consumer banking along geographical lines.

Euro Hovers at 1.5800, Pound Dives - Daily FX
Start of the week’s trade in FX saw more back and fill price action as traders braced for a slew of US economic reports culminating in the all important release of Non-Farm Payrolls this Friday.

Lehman Alleges Massive Fraud in Japan - TheStreet.com
Lehman Brothers is alleging it was the victim of fraud in Japan that cost it as much as $350 million, according to published media reports.

Paulson to Propose Financial Market Overhaul - CNN Money
The Treasury department will unveil the plan which has been in the works for months in a speech on Monday. Plan not expected to be final before end of President Bush's term.

For more stories as they happen, go to our Breaking News section.

TradingMarkets 7 Stocks You Need to Know for Today

Here are 7 stocks for traders for today from TradingMarkets.com:

• J.C. Penney (JCP | Quote | Chart | News | PowerRating) lowered its first quarter sales and earnings outlook, citing weakness in consumer spending. JCP shares lost 7.5% and weighed on other consumer stocks.
  
  
• KB Home (KBH | Quote | Chart | News | PowerRating) lost 4.9% after the company reported earnings that missed estimates by a wide margin.
  
  
• Electronic Arts (ERTS | Quote | Chart | News | PowerRating) extended the deadline on its $2 billion offer for Take-Two Interactive Software (TTWO | Quote | Chart | News | PowerRating).
  
  
• Altria (MO | Quote | Chart | News | PowerRating) is spinning-off Philip Morris International. Altria shareholders will receive one share of Philip Morris International for each Altria share they own. The new company will replace Allegheny Technologies (ATI | Quote | Chart | News | PowerRating) in the S&P 100 and Circuit City Stores (CC | Quote | Chart | News | PowerRating) in the S&P 500.
  
  
• Before the market open on Monday, Shaw Group (SGR | Quote | Chart | News | PowerRating) is scheduled to report earnings, with analysts looking for $0.54 per share.
  
  
• Do you think eBay (EBAY | Quote | Chart | News | PowerRating) will close up or down on Tuesday? Play TradingMarkets Up or Down Daily Stock Contest and you could win over $13,000 in cash prizes predicting the direction of a stock!

For a list of today's highest PowerRating stocks, click here.

TradingMarkets 5 PowerRatings Stocks for Today

TradingMarkets Tracking the Wizards

Trader Vic Returns! - TradingMarkets
For a generation of futures traders, Victor Sperandeo was a trader's trader, being on the ground floor as options trading was born in the United States, as well as being a pioneer in the trading of the S&P 500 futures.

Is the S&P 500 Serving Turtle Soup? - PowerRatings
Are we seeing a classic set-up developing in the S&P 500 right before our eyes? The set-up I'm talking about is Larry Connors' Turtle Soup set-up, one of the great reversal spotting techniques.

Too Hot to Handle? - TradingMarkets
When a market sells off after a strong move higher, what kinds of stocks are traders selling?

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