7 Stocks You Need to Know for Wednesday

Stocks surged on Tuesday, after strong gains in Europe and Asia, with financial stocks leading the advance. Before the market open, Goldman Sachs and Lehman Brothers reported stronger than expected earnings. Later in the day, the Federal Reserve slashed its benchmark rate by 75bp to 2.25% in an attempt to ease the credit crisis and help the slowing U.S. economy.

The Dow gained +420.41, while the Nasdaq Composite lost +91.25, and the S&P 500 +54.14.

Here are 7 stocks to watch...

Goldman Sachs (NYSE:GS - News) reported a 53% decline in net profit, after writedowns and lower fixed income revenues. However, first quarter earnings of $3.23 per share beat estimates by $0.65. GS' Short Term PowerRating is 3.

Lehman Brothers (NYSE:LEH - News) reported first quarter earnings of $0.81, a 57% drop, but still beat estimates by $0.09. After the sudden collapse of Bear Stearns, speculation that LEH could be next to fall has been rampant, but today's numbers eased concern and led to a huge rally. LEH's Short Term PowerRating is 4.

Bloomberg reported a Wachovia analysts' note to investors that stated Merrill Lynch (NYSE:MER - News) "is the riskiest" of the remaining U.S. investment banks. MER's 4.

Yahoo! (NasdaqGS:YHOO - News) laid out its vision for the future, stating that it expects revenue to double over the next three years. The company also reaffirmed its Q1 and FY08 outlook. YHOO's Short Term PowerRating is 6.

After the close, Adobe Systems (NasdaqGS:ADBE - News) reported earnings of $0.48, beating estimates by $0.03. ADBE's Short Term PowerRating is 5.

Visa (NYSE:V - News) is set to make its debut as a publicly traded company tomorrow. The $17 billion IPO will be the biggest stock sale in U.S. history, second only to the $22 billion offering of Industrial & Commercial Bank of China.

Morgan Stanley (NYSE:MS - News) is scheduled to report before the market open on Wednesday, with analysts looking for $1.03 per share. MS' Short Term PowerRating is 4.

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