AI
Monday, May 05, 2008 8:11:01 PM
Market Update 080505
http://biz.yahoo.com/mu/update.html
4:20 pm : The stock market settled with modest losses on Monday. Traders were hesitant to buy stocks in the face of the S&P 500's 12% surge from its low in March to Friday's closing level. Record crude oil prices and news of a failed takeover didn't help matters either. The day was mostly uneventful with stocks heading sideways for the majority of the session, in relatively light trading volume.
The top story on Monday was news that Microsoft (MSFT 29.08, -0.16) abandoned its acquisition plans after its increased offer was rejected at Yahoo! (YHOO 24.37, -4.30). Microsoft raised its offer to $33 per share, or $47.5 billion, from its Feb. 1 offer of $31 per share, or $44.6 billion. However, Yahoo rejected the offer, as it was not willing to accept anything below $37 per share. As a result, shares of Yahoo plummeted 15%, but remain well above the Jan. 31 preoffer level of $19.18 -- indicating traders feel there is still a chance a deal will be made. Shares of Microsoft were up as much as 3.4% on the news, but eventually ended the day with a slight loss.
Sprint Nextel's (S 8.72, +0.83) stock spiked higher on two reports. Its shares were initially higher on a Wall Street Journal report that Deutsche Telekom (DT 17.93, -0.18) is pondering an offer to acquire Sprint. Shares then spiked higher on a separate Wall Street Journal report that indicated Sprint is considering spinning off or selling its Nextel unit, according to the Journal's sources.
Countrywide (CFC 5.36, -0.62) was back in the spotlight after Friedman Billings said Bank of America (BAC 38.97, -0.82) may renegotiate its deal to acquire Countrywide from $7 per share to $2 per share or less. Friedman noted Bank of America faces $20 billion to $30 billion in loan write-downs on the close of the Countrywide transaction. The financial sector (-1.5%) was a laggard throughout the session.
The April ISM services reading was the sole item on the economic calendar. The services reading unexpectedly rose to 52.0 from 49.6, which topped the consensus estimate of 49.1. Since the number is above 50 it reflects the services sector expanded in April, albeit at a slow pace. The stock market got a short-lived boost from the report, but quickly slipped back into negative territory.
Stocks may have had a subdued day of trading, but that was not the case for commodities, which rose 1.4%. Crude oil spiked 3.3% to an all-time intraday high of $120.21 per barrel, before settling at an all-time closing high of $119.94 per barrel. Crude prices advanced on the 0.40% slip in the dollar, and reports of unrest in Nigeria.
Eight of the ten economic sectors ended the day with a loss. Financials (-1.5%) and utilities (-1.4%) were the main laggards. The gain in commodities and oil helped lift the materials (+1.5%) and energy (+1.0%) sectors into leadership positions.DJ30 -88.66 NASDAQ -12.87 SP500 -6.41 NASDAQ Dec/Adv/Vol 1620/1242/2.08 bln NYSE Dec/Adv/Vol 1777/1331/1.11 bln
3:30 pm : The major indices are attempting to recover, although there is not much conviction behind the buying interest. As has been the case for the majority of the session, the energy ( +1.3%) and materials (+1.4%) sectors stand alone in positive territory.
Airlines (-2.6%) are underperforming in the face of record crude oil prices. Transports as a whole are faring better with a 0.5% loss. The Amex Airline Index is down 31% this year, while the Dow Transports are up 16%.DJ30 -84.59 NASDAQ -13.35 SP500 -5.81 NASDAQ Dec/Adv/Vol 1686/1159/1.73 bln NYSE Dec/Adv/Vol 1786/1314/854 mln
3:00 pm : The major indices remain in the red, and have not been able to put forth a substantial recovery effort.
Crude ended the day with a gain of $3.62 to $119.94 per barrel, which marks a new all-time closing high. Gold ended the session higher by $16 to $874.00 per ounce. Commodities as a whole are up 1.3% in today's session.DJ30 -89.80 NASDAQ -14.91 SP500 -6.59 NASDAQ Dec/Adv/Vol 1703/1125/1.60 bln NYSE Dec/Adv/Vol 1855/1220/769 mln
2:30 pm : The major indices are trading slightly above their session lows. Buyers have not been showing much interest.
A Federal Reserve study showed tighter standards on mortgage loans compared to January, according to Dow Jones. The survey indicates 60% of domestic respondents have tightened lending standards on prime mortgages.DJ30 -88.66 NASDAQ -14.09 SP500 -6.97 NASDAQ Dec/Adv/Vol 1693/1141/1.47 bln NYSE Dec/Adv/Vol 1860/1214/704 mln
1:55 pm : The major indices are trading at or near their session lows, with the Dow down more than 100 points. Financial stocks (-1.5%) are acting as the main drag on the broader market.
The stock market has spent nearly the entirety of the session in negative territory, with a brief stint in the green following the better than expected ISM services report at 10:00 AM.DJ30 -109.67 NASDAQ -17.48 SP500 -8.52 NASDAQ Dec/Adv/Vol 1711/1093/1.35 bln NYSE Dec/Adv/Vol 1855/1183/636 mln
1:30 pm : The major indices are trading in a relatively tight range in subdued trading. Market breadth leans negative with decliners outpacing advancers by 3-to-2 on the NYSE and by 7-to-5 on the Nasdaq.
The Dollar Index (-0.33%) has given back some of last week's gains, with the euro up 0.57% against the dollar. The dollar is up 1.7% in the last 30 days.DJ30 -97.29 NASDAQ -14.04 SP500 -7.42 NASDAQ Dec/Adv/Vol 1633/1143/1.25 bln NYSE Dec/Adv/Vol 1788/1225/588 mln
1:05 pm : Stocks continue to trade sideways, largely unchanged from earlier levels and holding on to modest losses.
Energy (+1.2%) remains the session's best performing economic sector, helped by spiking oil prices. In turn, energy exploration and production company Apache (APA 132.67, +3.86) is a leader among sector members.
Oil reached a new intraday record high of $120.21 per barrel earlier in the session, but is now trading at $119.70 per barrel. The current price is up 2.9% from the session's start.DJ30 -73.93 NASDAQ -8.38 SP500 -5.30 NASDAQ Dec/Adv/Vol 1585/1174/1.15 bln NYSE Dec/Adv/Vol 1730/1273/541.90 mln
12:30 pm : The major indices continue to trade with modest losses. The Dow is underperforming with only five of its 30 components posting a gain. Chevron (CVX 95.91, +0.59) and American Express (AXP 50.50, +0.10) are the main leaders. 3M (MMM 77.48, -1.07) and AIG (AIG 47.78, -1.26) are the main laggards.DJ30 -87.17 NASDAQ -12.00 SP500 -7.32 NASDAQ Dec/Adv/Vol 1591/1138/1.05 bln NYSE Dec/Adv/Vol 1763/1221/487 mln
12:05 pm : The S&P 500 spiked 12% from March 17 to Friday's closing level, so traders are taking some profits on Monday. Losses are modest at midday, with eight of the ten economic sectors in negative territory.
News that Microsoft (MSFT 29.68, +0.44) has decided to abandon its bid for Yahoo! (YHOO 24.63, -4.04) has dominated headlines. Microsoft raised its offer to $33 per share from $31, but Yahoo's management rejected the offer, saying Yahoo was worth more. As a result, shares of Yahoo have plummeted 14%, but remain well above the $19.18 Jan. 31 closing price the day before Microsoft's original offer -- indicating traders feel there is still a chance a deal will be made. Shares of Microsoft have gotten a 1.5% lift, and shares of Google (GOOG 592.88, +11.59) are up 2.0% on the news.
In additional merger and acquisition news, shares of Sprint Nextel (S 8.28, +0.39) are up 5.0% on a Wall Street Journal report that indicated Deutsche Telekom (DT 17.93, -0.18) is pondering an offer to acquire Sprint. The German-based Deutsche Telekom already has a U.S. wireless presence with T-Mobile.
Warren Buffett's Berkshire Hathaway (BRK.A 131,910, -1,690) reported first quarter net income fell 64% from last year, largely due to a $1.6 billion unrealized loss in derivative contracts. Operating income, which excludes this loss, fell by 13% to $1,247 per share. This fell short of the expected earnings of $1,477 per share. Because it is a holding company, Berkshire is not included in the S&P 500.
Countrywide (CFC 5.13, -0.85) is back in the news after Friedman Billings said Bank of America (BAC 39.03, -0.76) may renegotiate its deal to acquire Countrywide from $7 per share to between $0 and $2 per share. Friedman notes Bank of America faces $20 billion to $30 billion in loan write-downs on the close of the Countrywide transaction. The financial sector (-1.2%) has been a laggard throughout the session.
Only one item was on the economic calendar, and it was better than expected. The April ISM services reading unexpectedly rose to 52.0 from 49.6. Economists expected the number to come in at 49.1. Since the reading is above 50 it reflects the services sector expanded in April, albeit at a slow pace. The market got a short-lived boost from the report, but quickly slipped back into the red.
In commodity trading, crude oil has spiked 3.3% to $120.21 per barrel, eclipsing its previous all-time high by roughly $0.30. According to reports, prices are up on continued unrest in Nigeria. As a result, the energy sector (+1.2%) is showing some strength. DJ30 -70.18 NASDAQ -7.36 SP500 -5.24 NASDAQ Dec/Adv/Vol 1532/1193/961 mln NYSE Dec/Adv/Vol 1684/1276/443 mln
11:30 am : Selling pressure eases, as the major indices trade slightly above their recently reached session lows. Market-moving news has slowed considerably.
The Volatility Index (VIX) is up 5.1%, indicating increased expectations of the size of the S&P 500's expected movement over the next 30 days. At current levels, the VIX indicates the S&P 500 will move up or down by 5.5% over the next 30 day period.DJ30 -97.02 NASDAQ -10.94 SP500 -7.26 NASDAQ Dec/Adv/Vol 1578/1114/830 mln NYSE Dec/Adv/Vol 1772/1179/382 mln
11:05 am : The major indices fall to session lows, as the financial sector extends its loss to 1.6%. Dow components AIG (AIG 47.89, -1.15) and Bank of America (BAC 39.29, -0.50) are the main laggards. Friedman Billings said AIG may report $12.7 billion in CDS losses. Friedman also reported that Bank of America could face $20 billion to $30 billion in loan write-downs when it closes its deal with Countrywide (CFC 5.26, -0.72), and may renegotiate the transaction down to the $0 to $2 level.
Shares of Warren Buffett's Berkshire Hathaway (BRK.A 131,500, -2,100) are down roughly 1.6%. The company reported a 64% drop in net income, largely due to unrealized derivative losses. Meanwhile, operating earnings also fell, but by a smaller amount of 13%.DJ30 -105.11 NASDAQ -13.16 SP500 -9.35 NASDAQ Dec/Adv/Vol 1567/1094/708 mln NYSE Dec/Adv/Vol 1782/1106/322 mln
10:30 am : The Nasdaq and S&P 500 briefly traded in positive territory following the better than expected services sector economic data, but have since retreated near their session lows.
The tech sector is performing in-line with the broader market with a 0.3% decline, even as Yahoo! (YHOO 23.97, -4.70) plummets 16% on the pulled Microsoft (MSFT 30.00, +0.76) bid. Yahoo's decline is taking 0.72 points off the S&P 500, but is being offset by Microsoft adding 0.70 points. Further, Google (GOOG 594.02, +12.73), is adding 0.34 points as traders bet the search giant will benefit from the failed takeover.DJ30 -77.02 NASDAQ -7.58 SP500 -5.26 NASDAQ Dec/Adv/Vol 1447/1143/542 mln NYSE Dec/Adv/Vol 1632/1197/243 mln
10:05 am : The April ISM Services Index, a national nonmanufacturing survey, unexpectedly rose to 52.0, from 49.6. This was higher than the expected reading of 49.1, and reflects expansion because it is above the 50 level.
The stock market remains in the red despite the better than expected data. Eight of the ten sectors are posting a loss. Utilities (-1.1%) and consumer discretionary (-0.8%) are showing the most weakness. The energy sector (+1.5%) is posting the largest gain, as crude spikes 2.2% to $118.83 per barrel. The materials sector (+0.7%) is also showing strength, as gold advances 1.3%.DJ30 -55.69 NASDAQ -3.08 SP500 -2.41 NASDAQ Dec/Adv/Vol 1268/1216/348 mln NYSE Dec/Adv/Vol 1532/1229/160 mln
09:45 am : The major indices open modestly lower. Shares of Yahoo! (YHOO) are down a steep 19% after Microsoft (MSFT) pulled its offer to purchase Yahoo. Microsoft decided to not pursue the takeover after its raised offer of $33 per share (up $2) was once again rejected by Yahoo.
In other merger and acquisition news, struggling wireless telecom company Sprint Nextel (S) is seeing a lift of more than 7% on a Wall Street Journal report that Deutsche Telekom (DT) may consider putting in an offer to acquire Sprint.DJ30 -63.02 NASDAQ -5.04 SP500 -3.98
09:16 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -3.8.
08:59 am : S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -4.0.
08:30 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -4.8. Futures continue to indicate a lower start for the stock market. Sprint-Nextel (S) is trading more than 6% higher on a Wall Street Journal report that Deutsche Telekom (DT), which operates T-Mobile, might consider putting in a bid to buy Sprint.
08:05 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -4.5. Futures point to a lower start. The top story this morning is news that Microsoft (MSFT) decided to withdraw its bid to acquire Yahoo! (YHOO), sending shares of Yahoo down more than 20% in premarket trading. The decision came after Yahoo rejected Microsoft's raised offer of $33 per share (up from $31 per share). In earnings news, Berkshire Hathaway (BRK.A) said its profit fell 64% due to reduced rates from insurance operations and $991 million in investment losses related to markdowns in derivative contracts. Separately, the only major item on the economic calendar is the April ISM Services report (10:00 ET).
06:18 am : S&P futures vs fair value: -5.2. Nasdaq futures vs fair value: -6.5.
06:17 am : FTSE...Holiday......... DAX...7043.16...-0.07...0%.
06:17 am : Nikkei...Holiday......... Hang Seng...26183.95...-57.07...-0.2%.
http://biz.yahoo.com/mu/update.html
4:20 pm : The stock market settled with modest losses on Monday. Traders were hesitant to buy stocks in the face of the S&P 500's 12% surge from its low in March to Friday's closing level. Record crude oil prices and news of a failed takeover didn't help matters either. The day was mostly uneventful with stocks heading sideways for the majority of the session, in relatively light trading volume.
The top story on Monday was news that Microsoft (MSFT 29.08, -0.16) abandoned its acquisition plans after its increased offer was rejected at Yahoo! (YHOO 24.37, -4.30). Microsoft raised its offer to $33 per share, or $47.5 billion, from its Feb. 1 offer of $31 per share, or $44.6 billion. However, Yahoo rejected the offer, as it was not willing to accept anything below $37 per share. As a result, shares of Yahoo plummeted 15%, but remain well above the Jan. 31 preoffer level of $19.18 -- indicating traders feel there is still a chance a deal will be made. Shares of Microsoft were up as much as 3.4% on the news, but eventually ended the day with a slight loss.
Sprint Nextel's (S 8.72, +0.83) stock spiked higher on two reports. Its shares were initially higher on a Wall Street Journal report that Deutsche Telekom (DT 17.93, -0.18) is pondering an offer to acquire Sprint. Shares then spiked higher on a separate Wall Street Journal report that indicated Sprint is considering spinning off or selling its Nextel unit, according to the Journal's sources.
Countrywide (CFC 5.36, -0.62) was back in the spotlight after Friedman Billings said Bank of America (BAC 38.97, -0.82) may renegotiate its deal to acquire Countrywide from $7 per share to $2 per share or less. Friedman noted Bank of America faces $20 billion to $30 billion in loan write-downs on the close of the Countrywide transaction. The financial sector (-1.5%) was a laggard throughout the session.
The April ISM services reading was the sole item on the economic calendar. The services reading unexpectedly rose to 52.0 from 49.6, which topped the consensus estimate of 49.1. Since the number is above 50 it reflects the services sector expanded in April, albeit at a slow pace. The stock market got a short-lived boost from the report, but quickly slipped back into negative territory.
Stocks may have had a subdued day of trading, but that was not the case for commodities, which rose 1.4%. Crude oil spiked 3.3% to an all-time intraday high of $120.21 per barrel, before settling at an all-time closing high of $119.94 per barrel. Crude prices advanced on the 0.40% slip in the dollar, and reports of unrest in Nigeria.
Eight of the ten economic sectors ended the day with a loss. Financials (-1.5%) and utilities (-1.4%) were the main laggards. The gain in commodities and oil helped lift the materials (+1.5%) and energy (+1.0%) sectors into leadership positions.DJ30 -88.66 NASDAQ -12.87 SP500 -6.41 NASDAQ Dec/Adv/Vol 1620/1242/2.08 bln NYSE Dec/Adv/Vol 1777/1331/1.11 bln
3:30 pm : The major indices are attempting to recover, although there is not much conviction behind the buying interest. As has been the case for the majority of the session, the energy ( +1.3%) and materials (+1.4%) sectors stand alone in positive territory.
Airlines (-2.6%) are underperforming in the face of record crude oil prices. Transports as a whole are faring better with a 0.5% loss. The Amex Airline Index is down 31% this year, while the Dow Transports are up 16%.DJ30 -84.59 NASDAQ -13.35 SP500 -5.81 NASDAQ Dec/Adv/Vol 1686/1159/1.73 bln NYSE Dec/Adv/Vol 1786/1314/854 mln
3:00 pm : The major indices remain in the red, and have not been able to put forth a substantial recovery effort.
Crude ended the day with a gain of $3.62 to $119.94 per barrel, which marks a new all-time closing high. Gold ended the session higher by $16 to $874.00 per ounce. Commodities as a whole are up 1.3% in today's session.DJ30 -89.80 NASDAQ -14.91 SP500 -6.59 NASDAQ Dec/Adv/Vol 1703/1125/1.60 bln NYSE Dec/Adv/Vol 1855/1220/769 mln
2:30 pm : The major indices are trading slightly above their session lows. Buyers have not been showing much interest.
A Federal Reserve study showed tighter standards on mortgage loans compared to January, according to Dow Jones. The survey indicates 60% of domestic respondents have tightened lending standards on prime mortgages.DJ30 -88.66 NASDAQ -14.09 SP500 -6.97 NASDAQ Dec/Adv/Vol 1693/1141/1.47 bln NYSE Dec/Adv/Vol 1860/1214/704 mln
1:55 pm : The major indices are trading at or near their session lows, with the Dow down more than 100 points. Financial stocks (-1.5%) are acting as the main drag on the broader market.
The stock market has spent nearly the entirety of the session in negative territory, with a brief stint in the green following the better than expected ISM services report at 10:00 AM.DJ30 -109.67 NASDAQ -17.48 SP500 -8.52 NASDAQ Dec/Adv/Vol 1711/1093/1.35 bln NYSE Dec/Adv/Vol 1855/1183/636 mln
1:30 pm : The major indices are trading in a relatively tight range in subdued trading. Market breadth leans negative with decliners outpacing advancers by 3-to-2 on the NYSE and by 7-to-5 on the Nasdaq.
The Dollar Index (-0.33%) has given back some of last week's gains, with the euro up 0.57% against the dollar. The dollar is up 1.7% in the last 30 days.DJ30 -97.29 NASDAQ -14.04 SP500 -7.42 NASDAQ Dec/Adv/Vol 1633/1143/1.25 bln NYSE Dec/Adv/Vol 1788/1225/588 mln
1:05 pm : Stocks continue to trade sideways, largely unchanged from earlier levels and holding on to modest losses.
Energy (+1.2%) remains the session's best performing economic sector, helped by spiking oil prices. In turn, energy exploration and production company Apache (APA 132.67, +3.86) is a leader among sector members.
Oil reached a new intraday record high of $120.21 per barrel earlier in the session, but is now trading at $119.70 per barrel. The current price is up 2.9% from the session's start.DJ30 -73.93 NASDAQ -8.38 SP500 -5.30 NASDAQ Dec/Adv/Vol 1585/1174/1.15 bln NYSE Dec/Adv/Vol 1730/1273/541.90 mln
12:30 pm : The major indices continue to trade with modest losses. The Dow is underperforming with only five of its 30 components posting a gain. Chevron (CVX 95.91, +0.59) and American Express (AXP 50.50, +0.10) are the main leaders. 3M (MMM 77.48, -1.07) and AIG (AIG 47.78, -1.26) are the main laggards.DJ30 -87.17 NASDAQ -12.00 SP500 -7.32 NASDAQ Dec/Adv/Vol 1591/1138/1.05 bln NYSE Dec/Adv/Vol 1763/1221/487 mln
12:05 pm : The S&P 500 spiked 12% from March 17 to Friday's closing level, so traders are taking some profits on Monday. Losses are modest at midday, with eight of the ten economic sectors in negative territory.
News that Microsoft (MSFT 29.68, +0.44) has decided to abandon its bid for Yahoo! (YHOO 24.63, -4.04) has dominated headlines. Microsoft raised its offer to $33 per share from $31, but Yahoo's management rejected the offer, saying Yahoo was worth more. As a result, shares of Yahoo have plummeted 14%, but remain well above the $19.18 Jan. 31 closing price the day before Microsoft's original offer -- indicating traders feel there is still a chance a deal will be made. Shares of Microsoft have gotten a 1.5% lift, and shares of Google (GOOG 592.88, +11.59) are up 2.0% on the news.
In additional merger and acquisition news, shares of Sprint Nextel (S 8.28, +0.39) are up 5.0% on a Wall Street Journal report that indicated Deutsche Telekom (DT 17.93, -0.18) is pondering an offer to acquire Sprint. The German-based Deutsche Telekom already has a U.S. wireless presence with T-Mobile.
Warren Buffett's Berkshire Hathaway (BRK.A 131,910, -1,690) reported first quarter net income fell 64% from last year, largely due to a $1.6 billion unrealized loss in derivative contracts. Operating income, which excludes this loss, fell by 13% to $1,247 per share. This fell short of the expected earnings of $1,477 per share. Because it is a holding company, Berkshire is not included in the S&P 500.
Countrywide (CFC 5.13, -0.85) is back in the news after Friedman Billings said Bank of America (BAC 39.03, -0.76) may renegotiate its deal to acquire Countrywide from $7 per share to between $0 and $2 per share. Friedman notes Bank of America faces $20 billion to $30 billion in loan write-downs on the close of the Countrywide transaction. The financial sector (-1.2%) has been a laggard throughout the session.
Only one item was on the economic calendar, and it was better than expected. The April ISM services reading unexpectedly rose to 52.0 from 49.6. Economists expected the number to come in at 49.1. Since the reading is above 50 it reflects the services sector expanded in April, albeit at a slow pace. The market got a short-lived boost from the report, but quickly slipped back into the red.
In commodity trading, crude oil has spiked 3.3% to $120.21 per barrel, eclipsing its previous all-time high by roughly $0.30. According to reports, prices are up on continued unrest in Nigeria. As a result, the energy sector (+1.2%) is showing some strength. DJ30 -70.18 NASDAQ -7.36 SP500 -5.24 NASDAQ Dec/Adv/Vol 1532/1193/961 mln NYSE Dec/Adv/Vol 1684/1276/443 mln
11:30 am : Selling pressure eases, as the major indices trade slightly above their recently reached session lows. Market-moving news has slowed considerably.
The Volatility Index (VIX) is up 5.1%, indicating increased expectations of the size of the S&P 500's expected movement over the next 30 days. At current levels, the VIX indicates the S&P 500 will move up or down by 5.5% over the next 30 day period.DJ30 -97.02 NASDAQ -10.94 SP500 -7.26 NASDAQ Dec/Adv/Vol 1578/1114/830 mln NYSE Dec/Adv/Vol 1772/1179/382 mln
11:05 am : The major indices fall to session lows, as the financial sector extends its loss to 1.6%. Dow components AIG (AIG 47.89, -1.15) and Bank of America (BAC 39.29, -0.50) are the main laggards. Friedman Billings said AIG may report $12.7 billion in CDS losses. Friedman also reported that Bank of America could face $20 billion to $30 billion in loan write-downs when it closes its deal with Countrywide (CFC 5.26, -0.72), and may renegotiate the transaction down to the $0 to $2 level.
Shares of Warren Buffett's Berkshire Hathaway (BRK.A 131,500, -2,100) are down roughly 1.6%. The company reported a 64% drop in net income, largely due to unrealized derivative losses. Meanwhile, operating earnings also fell, but by a smaller amount of 13%.DJ30 -105.11 NASDAQ -13.16 SP500 -9.35 NASDAQ Dec/Adv/Vol 1567/1094/708 mln NYSE Dec/Adv/Vol 1782/1106/322 mln
10:30 am : The Nasdaq and S&P 500 briefly traded in positive territory following the better than expected services sector economic data, but have since retreated near their session lows.
The tech sector is performing in-line with the broader market with a 0.3% decline, even as Yahoo! (YHOO 23.97, -4.70) plummets 16% on the pulled Microsoft (MSFT 30.00, +0.76) bid. Yahoo's decline is taking 0.72 points off the S&P 500, but is being offset by Microsoft adding 0.70 points. Further, Google (GOOG 594.02, +12.73), is adding 0.34 points as traders bet the search giant will benefit from the failed takeover.DJ30 -77.02 NASDAQ -7.58 SP500 -5.26 NASDAQ Dec/Adv/Vol 1447/1143/542 mln NYSE Dec/Adv/Vol 1632/1197/243 mln
10:05 am : The April ISM Services Index, a national nonmanufacturing survey, unexpectedly rose to 52.0, from 49.6. This was higher than the expected reading of 49.1, and reflects expansion because it is above the 50 level.
The stock market remains in the red despite the better than expected data. Eight of the ten sectors are posting a loss. Utilities (-1.1%) and consumer discretionary (-0.8%) are showing the most weakness. The energy sector (+1.5%) is posting the largest gain, as crude spikes 2.2% to $118.83 per barrel. The materials sector (+0.7%) is also showing strength, as gold advances 1.3%.DJ30 -55.69 NASDAQ -3.08 SP500 -2.41 NASDAQ Dec/Adv/Vol 1268/1216/348 mln NYSE Dec/Adv/Vol 1532/1229/160 mln
09:45 am : The major indices open modestly lower. Shares of Yahoo! (YHOO) are down a steep 19% after Microsoft (MSFT) pulled its offer to purchase Yahoo. Microsoft decided to not pursue the takeover after its raised offer of $33 per share (up $2) was once again rejected by Yahoo.
In other merger and acquisition news, struggling wireless telecom company Sprint Nextel (S) is seeing a lift of more than 7% on a Wall Street Journal report that Deutsche Telekom (DT) may consider putting in an offer to acquire Sprint.DJ30 -63.02 NASDAQ -5.04 SP500 -3.98
09:16 am : S&P futures vs fair value: -5.7. Nasdaq futures vs fair value: -3.8.
08:59 am : S&P futures vs fair value: -5.5. Nasdaq futures vs fair value: -4.0.
08:30 am : S&P futures vs fair value: -7.0. Nasdaq futures vs fair value: -4.8. Futures continue to indicate a lower start for the stock market. Sprint-Nextel (S) is trading more than 6% higher on a Wall Street Journal report that Deutsche Telekom (DT), which operates T-Mobile, might consider putting in a bid to buy Sprint.
08:05 am : S&P futures vs fair value: -5.4. Nasdaq futures vs fair value: -4.5. Futures point to a lower start. The top story this morning is news that Microsoft (MSFT) decided to withdraw its bid to acquire Yahoo! (YHOO), sending shares of Yahoo down more than 20% in premarket trading. The decision came after Yahoo rejected Microsoft's raised offer of $33 per share (up from $31 per share). In earnings news, Berkshire Hathaway (BRK.A) said its profit fell 64% due to reduced rates from insurance operations and $991 million in investment losses related to markdowns in derivative contracts. Separately, the only major item on the economic calendar is the April ISM Services report (10:00 ET).
06:18 am : S&P futures vs fair value: -5.2. Nasdaq futures vs fair value: -6.5.
06:17 am : FTSE...Holiday......... DAX...7043.16...-0.07...0%.
06:17 am : Nikkei...Holiday......... Hang Seng...26183.95...-57.07...-0.2%.
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