News Highlights Top Equities Stories Of The Day
Last update: 6/7/2007 7:00:00 PM
TOP STORIES
US STOCKS PLUMMET AS BOND YIELDS SURGE
Shares end sharply lower for the third consecutive session, as yield on 10-year Treasurys blows past 5%. Worries about higher global interest rates have driven bond yields sharply upward in recent weeks, which in turn makes the bond market more appealing than equities and could hamper spending as borrowing becomes more expensive. Dow Jones Industrial Average falls nearly 200 points, while Nasdaq Composite drops 46 points.
ITC PUTS PARTIAL IMPORT BAN ON QUALCOMM CHIPS International Trade Commission imposes partial ban on imports of third-generation cellular phones using Qualcomm's microchips in a ruling over a patent dispute between the company and rival Broadcom. Qualcomm shares up 3.5% late.
NATIONAL SEMI NET DOWN, BUT TOPS VIEW National Semiconductor's fiscal 4Q earnings fall 24% to $90.1 million, or 28c a share. Revenue drops 20% to $455.9 million. Analysts expected EPS of 23c on revenue of $451 million. CEO says company now in a "growth phase." Shares up 9% late.
RETAIL SALES HINT CONSUMER SLOWDOWN Retailers report modest sales increases for May, rebounding from a dismal April but confirming a broad consumer slowdown that's now stoking worries about the crucial fall and holiday seasons. Luxury stores post outsized gains.
PIMCO'S GROSS SEES END TO BONDS' BULL MARKET In his latest "Secular Forum" discussion, PIMCO's Bill Gross says the benchmark 10-year Treasury yield could head as high as 6.5% within the next five years. It's a far cry from the 5.5% he had previously envisioned.
MORGAN TO KEEP OPENING FEE-BASED BROKERAGE ACCOUNTS Morgan Stanley has given its brokers a go-signal to open new fee-based brokerage accounts despite a court ruling that raised questions about whether they are permitted.
AMARANTH FILES MOTION TO QUASH SUIT Amaranth Advisors, a hedge fund that collapsed last year with losses of more than $6 billion, has filed a motion to dismiss a lawsuit filed by the San Diego County Employees Retirement Association.
US JOBLESS CLAIMS DIP; INVENTORIES WEAK Jobless claims fall by 1,000 to 309,000 on a seasonally adjusted basis in the week ending June 2. A separate report shows U.S. wholesalers' inventories increase by 0.3% in April; Wall Street was looking for a 0.4% gain.
BIOMET BOARD BACKS RAISED OFFER OF $11.4B A private-equity consortium raises its offer for orthopedic device-maker by 4.5% to $11.4 billion amid signs that a prior deal might not win shareholder approval. Biomet's board recommends shareholders accept the new offer. Shares rise 3%.
CFOS TURN GLOOMY ON US ECONOMIC OUTLOOK Rising labor costs and weak consumer demand in the U.S. top the list of worrisome issues for chief financial officers, who are far less optimistic this quarter about the economic outlook than they were in March.
PUTIN SAYS HIS MISSILE PLAN HALTS AGGRESSION Putin won't retarget Russian missiles in Europe if the U.S. accepts his plan to put a U.S. missile shield in the central Asian nation of Azerbaijan. Separately, G-8 agrees to consider seriously cutting greenhouse-gas emissions in half by 2050.
BALLY MAY FACE SUIT OVER BANKRUPTCY PLAN Bally Total Fitness's second-largest shareholder threatens to haul the troubled fitness chain into bankruptcy court, claiming shareholders got a raw deal in a proposed restructuring agreement. Shares trade down 11% on the Pink Sheets.
ACS SHAREHOLDERS ELECT DIRECTORS Shareholders of Affiliated Computer Services, which is entangled in a stock options backdating investigation, elect eight directors, including seven opposed by proxy advisers.
DELPHI REACHES $44M DEAL WITH GM GM has agreed to reimburse its biggest supplier, Delphi, for up to $44 million in tooling and equipment that Delphi will have to buy to make wheel bearings for a new generation of fuel-efficient GM automobiles.
INFINERA SURGE IN MARKET DEBUT Investors rush to grab shares of the photonic chip company in their first day of trading. Stock opens up 32% from its higher-than-expected and rallies from there, gaining as much as 63%.
US CONSUMER CREDIT EDGES 1.3% HIGHER Consumer credit outstanding grew a weaker-than-expected $2.6 billion in April to $2.429 trillion, rising at the lowest rate in six months as consumers tighten the grip on their plastic. Wall Street expected a $5.8 billion gain.
HOME DEPOT DIRECTOR HAD OPPOSITION IN VOTE Final vote tallies from Home Depot's shareholder meeting last month show lead director and co-founder Kenneth Langone received more votes opposing his re-election than the other nine board members.
TIERNEY SHOWS INTEREST IN DOW JONES Brian Tierney, the public relations and advertising executive who last year led an investor group that bought the Philadelphia Inquirer and the Philadelphia Daily News, says he is interested in Dow Jones.
======= DOW JONES NEWSWIRES ANALYSIS AND COMMENTARIES =======
LATE TRADING
National Semi, Qualcomm Up National Semiconductor rises 9% after it reports earnings that beat analysts' estimates. Qualcomm up 3.5% after International Trade Commission imposes partial ban on imports of 3G cellular phones that use Qualcomm's microchips.
PRACTICE MANAGEMENT
Interest In Private Jets By Wealthy Soars Demand for private jets is rising, and financial advisors and private bankers can play a key role connecting their jet-setting clients with colleagues savvy about aviation finance, writes Kristen McNamara.
============ U.S. MARKETS ACTION ===========
DJIA down 198.94 points to 13266.73
NASDAQ down 45.80 points to 2541.38
S&P 500 down 26.66 points to 1490.72
10-year T-note down 39/32 at 95 04/32 yield 5.132
NYMEX Spot Crude up $0.97 at $66.93/bbl at close
Dollar/Euro down 0.0071 at 1.2433
(END) Dow Jones NewswiresJune 07, 2007 19:00 ET (23:00 GMT)
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