Wall Street Brief: Knight Capital Facing BANKRUPTCY, LinkedIn Revenue POPS

Knight Capital’s (NYSE:KCG) shares continue plummeting in pre-market trading with shares down 6.59 percent after Thursday’s 63 percent fall. Investors expressed fears that the company could face bankruptcy after its $440 million trading glitch loss on Wednesday. Knight is seeking either an emergency loan or a buyer; prospective buyer Virtu Financial is supposedly not interested.

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For the second quarter, LinkedIn’s (NYSE:LNKD) numbers either matched or beat estimates. The company increased its third quarter and full year guidance higher than analysts’ expectations. Net profit dropped 38 percent to $2.8 million from rising costs and investments while revenue jumped 89 percent to $228.2 million; adjusted earnings per share increased 60 percent to $0.16. LinkedIn’s Hiring Solutions sales more than doubled (53 percent) of the total, exemplifying the company is taking share away from Monster (NYSE:MWW).

Toyota (NYSE:TM) reported its greatest quarterly profit in four years as its fiscal quarter one earnings increased to YEN290.3 billion ($3.7 billion) from the previous year’s YEN1.16 billion; this had been affected by country’s devastating earthquake. This number and revenue’s 60 percent rise to YEN5.5 trillion exceeded estimates. Contributing to the earnings jump was sales in Japan of the Prius and the Camry in the U.S. Toyota increased its 2012 outlook for group sales to 9.76 million vehicles, up from 9.58 million.

AIG’s (NYSE:AIG) net profit increased 27 percent to $2.3 billion in the second quarter; its $1.06 per share operating income was almost double of estimates with earnings increasing from healthy insurance operations performance. CEO Robert Benmosche said while the company is accumulating cash, it is “close to achieving our goal of returning to America all that it provided to AIG during the crisis, plus a profit.”

Bank of America (NYSE:BAC) received information requests from U.S. and U.K. authorities for setting Libor and other interbank rates. The company and other banks have been named defendants in investor lawsuits over incident. In addition, Bank of America will take a third quarter $800 million charge for the U.K. tax rate decline and give $738 million to the U.S. price-fixing settlement for credit cards.

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