Stock Market Wrapup Mar. 26
A weaker-than-expected government report on new home sales, plus some profit taking after last week's consistent advance, pressured stocks for much of the day before buyers returned in the afternooną„¤ When trading stopped, the Nasdaq composite and S&P 500 indexes posted slight gains, while the Dow Jones Industrial Average recouped most of 100-plus point drop it recorded earlier in the day. The 10-year Treasury note inched higher, shaving 2 basis points off the yield. Crude oil advanced.
The markets were rattled at the open by the Commerce Department's report on new home sales, which fell by -3.9% to a seasonally adjusted annual rate of 848,000. Wall Street expected sales to increase 6.7%. The drop followed a -15.8% plunge in January. The median home price dipped to $250,000 and inventories grew. The disappointing results were in contrast to a report last week that showed sales of existing homes rose last month by the sharpest rate in three years.
In market news, Citigroup (NYSE: C - News) announced plans to cut up to 15,000 jobs as part of its efforts to refocus its business on growth opportunities overseas. The shares slipped on the news. See our earlier story for additional details. On the technology front, PC-maker Dell (Nasdaq: DELL - News) added 3.5% on positive comments and an upgrade from Goldman Sachs, which suggested the company will start to see positive returns from its restructuring efforts over the next 12 to 18 months. Goldman raised its rating on Dell to "buy."
Microsoft (Nasdaq: MSFT - News), meanwhile, was up after the company announced that Vista was selling briskly. According to a company statement posted on its website, during the first month of its wide release to the public, sales of Vista "exceeded 20 million licenses, more than doubling the initial pace of sales for its predecessor, Windows XP."
Shares of telecom equipment maker Alcatel-Lucent (NYSE: ALU - News) gained 3.4% after the company announced it had signed a three-year, $6 billion contract to upgrade the Verizon Wireless network. The wireless operator's owners closed mixed, with Verizon (NYSE: VZ - News) declining and Vodafone Group (NYSE: VOD - News) posting a modest gain.
One of the day's sharpest gains was recorded by Biosite (Nasdaq: BSTE - News), which jumped 51.3% on news that it has agreed to be acquired by Beckman Coulter (NYSE: BEC - News). Both companies are in the business of developing diagnostic medical tests. Beckman Coulter said the Biosite management team would remain following the merger. Biosite's products include tests used to detect conditions such as cancer and congestive heart failure.
By the BullMarket.com Staff
The markets were rattled at the open by the Commerce Department's report on new home sales, which fell by -3.9% to a seasonally adjusted annual rate of 848,000. Wall Street expected sales to increase 6.7%. The drop followed a -15.8% plunge in January. The median home price dipped to $250,000 and inventories grew. The disappointing results were in contrast to a report last week that showed sales of existing homes rose last month by the sharpest rate in three years.
In market news, Citigroup (NYSE: C - News) announced plans to cut up to 15,000 jobs as part of its efforts to refocus its business on growth opportunities overseas. The shares slipped on the news. See our earlier story for additional details. On the technology front, PC-maker Dell (Nasdaq: DELL - News) added 3.5% on positive comments and an upgrade from Goldman Sachs, which suggested the company will start to see positive returns from its restructuring efforts over the next 12 to 18 months. Goldman raised its rating on Dell to "buy."
Microsoft (Nasdaq: MSFT - News), meanwhile, was up after the company announced that Vista was selling briskly. According to a company statement posted on its website, during the first month of its wide release to the public, sales of Vista "exceeded 20 million licenses, more than doubling the initial pace of sales for its predecessor, Windows XP."
Shares of telecom equipment maker Alcatel-Lucent (NYSE: ALU - News) gained 3.4% after the company announced it had signed a three-year, $6 billion contract to upgrade the Verizon Wireless network. The wireless operator's owners closed mixed, with Verizon (NYSE: VZ - News) declining and Vodafone Group (NYSE: VOD - News) posting a modest gain.
One of the day's sharpest gains was recorded by Biosite (Nasdaq: BSTE - News), which jumped 51.3% on news that it has agreed to be acquired by Beckman Coulter (NYSE: BEC - News). Both companies are in the business of developing diagnostic medical tests. Beckman Coulter said the Biosite management team would remain following the merger. Biosite's products include tests used to detect conditions such as cancer and congestive heart failure.
By the BullMarket.com Staff
posted by Stock Administrator @ 7:45 PM
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