HEADLINE STOCKS-Some U.S. stocks to watch on July 1

NEW YORK, July 1 (Reuters) - Some U.S. stocks to watch on
Tuesday:

LEHMAN BROTHERS LEH.N

Shares of the investment bank rose 4.1 percent to $20.62 in
extended trade on Monday after CNBC television said Morgan
Stanley had initiated Lehman's shares with an "overweight"
rating.

CIT GROUP INC (CIT.N)

The commercial lender agreed to sell its home lending
business to private equity firm Lone Star Funds for $1.5
billion in cash to increase liquidity, and will take a related
second-quarter charge of $2 billion

Shares rose 11 percent before the bell.

ANHEUSER-BUSCH BUD.N

InBev INTB.BR stuck to its proposal to take over
reluctant bid target Anheuser-Busch and said it would seek to
give the latter's shareholders a direct voice if the U.S.
brewer still refused to talk.

Anheuser-Busch shares closed at $62.12 on the NYSE.

LEGG MASON INC (LM.N)

The U.S. money manager said on Monday it is stepping in
again to bail out more money market funds that made risky
investments and expects to take a cumulative quarterly charge
of $154.5 million, or $1.09 per share, for the bailouts.
[ID:nN30440723]

Shares closed at $43.57 on the NYSE.

VF CORP (VFC.N)

Shares of VF Corp (VFC.N) rose 4.3 percent in trading after
the bell on Monday, after the apparel and footwear maker said
its second quarter results would exceed prior guidance. For
details, see [ID:nWNAS9755]

Shares rose to $74.25 in extended trade, from a close of
$71.18 on the NYSE.

FORTUNE BRANDS (FO.N)

Shares of Fortune Brands (FO.N) fell 5.5 percent in trading
after the bell, after the company cut its outlook, citing
weakening consumer sentiment and an ongoing correction in the
housing market. [ID:nWNAS9750]

Shares fell to $59 from a close of $62.41 on the NYSE.
(Editing by James Dalgleish)