From Fnno.com, this is the Financial News Network. Here's a few things to watch for in the financial world today August 6.
Knight Capital Group getting some help from investors after a computer glitch caused errant trades in dozens of stocks. The deal will involve a group of investors buying up $400 million in convertible preferred stock. The stock will have a 2 percent dividend and are convertible into about 267 million shares of Knight common stock, a little more than 70% of the company. The filing does not name investors but the deal should save Knight from complete collapse. The deal is expected to close later this morning.
Tyson Foods (NYSE:TSN) looking to trade a little lower this morning after its third quarter results. The company's profit fell 61% from the prior year to $76 million or 21 cents a share. This was well below the 54 cents analysts were expecting. The company said the reason for the slump in profit was due to challenges at its beef and pork businesses as well as rising grain costs.
Finally, some good news for Cognizant Technology. The company posted a second quarter profit increase of 21% to $251.9 million or 88 cents a share, excluding items. This was above the analyst estimate of 81 cents. Revenue was also up to $1.8 billion, just above the $1.79 billion estimate. Cognizant said the increase was due to increased demand for its services which includes information technology, consulting and business processing outsourcing services.
Those were a few things to watch out for here on the Financial News Network. For more coverage and analysis of the business world follow us on twitter @FNNOnline or check out our website at fnno.com.