Market Roundup (ZLC, AAPL, C, GS, AMR, BX)

Sources have stated that Citigroup (NYSE: C) is set to take advantage of "pent-up demand" by selling securities backed by 255 new mortgages, marking the first such sale in two years. The ratio of the original value of the mortgages to property value is 60.4%.

Blackstone (NYSE: BX) is said to be joining hands with Paulson & Co and Centerbridge Partners for a $905 million bid to take the Extended Stay hotel chain out of bankruptcy. In return for over $100 million as investment, BX will receive a minority stake of roughly 10%-20%.

American Airlines parent AMR (NYSE: AMR) has reported a quarterly loss of $505 million (or $1.52 per share), which is higher than that incurred a year ago, on revenues of $5.07 billion. CEO Gerard Arpey said that despite progress, AMR has been unable “to overcome the challenges of the global economic environment coupled with once-again escalating fuel prices."

Goldman Sachs (NYSE: GS) has retained one of Washington DC's most prominent Democratic lawyers, Greg Craig, as it gets ready to defend itself from civil charges. Greg (former Obama counsel) would be pitted against his former employer.

Analysts were all praises for Apple (NASDAQ: AAPL) a day after the company announced a 90% jump in its quarterly profits on record iPhone sales. The company had also offered strong revenue forecasts for its next quarter. At least eight investment firms have raised their price targets for AAPL.

Unidentified sources have disclosed that Zale (NYSE: ZLC) has planned to sell a minority stake to private-equity firm Golden Gate Capital, although the transaction is far from complete. ZLC had selected an offer from Golden Gate over proposals from Centerbridge Capital Partners and TPG.

More Analyst Color here.