Stock Market Wrapup Mar. 30
Stocks rebounded from a volatile morning session to essentially close flat. A change in U.S. tariff policies towards some goods from China put a scare into investors in the morning who feared the start of a trade war, but stocks were gradually able to rebound in the afternoon and push into positive territory. Crude oil prices eased modestly. Overshadowing crude was a sharp drop in corn futures prices following an upbeat corn crop forecast from the government. The 10-year Treasury note closed unchanged.
Stocks dropped sharply in the morning after the Commerce Department announced it was reversing a long-standing policy and that tariffs will be imposed on some Chinese goods. The Bush Administration also said it is considering a request from the U.S. paper industry for protection from cheaper imports from China. In economic news, the Commerce Department earlier reported February personal income rose at a seasonally adjusted rate of 0.6%. Personal consumption grew 0.6% from the prior month.
Corn futures fell sharply on the Chicago Board of Trade after the federal government released its crop forecast. The Department of Agriculture said farmers will plant 90.5 million acres of corn this spring, above its earlier estimate of 87 million acres, and about 15% more than the 78 million acres of corn planted last year. Ethanol producers like Archer Daniels Midland (NYSE: ADM - News), who are expected to be buyers of the additional corn output, will benefit from the lower prices.
Shares of drugmaker Novartis (NYSE: NVS - News) shed -3.9% after the Food & Drug Administration asked the Swiss company to stop selling its irritable bowel treatment Zelnorm after it was linked to an increased risk of heart attacks and strokes. Zelnorm generated $561 million in sales in 2006, about 80% of which came from the U.S. market. The drug had been approved for the short-term treatment of constipation in women with IBS, and for patients younger than 65 with chronic constipation.
In merger news, two Los Angeles billionaires joined forces to bid for Tribune Co. (NYSE: TRB - News), which owns the Chicago Tribune, Los Angeles Times, numerous broadcast and other media properties, and the Chicago Cubs baseball team. Eli Broad and Ron Burkle submitted a bid valued at $34 a share that includes an employee ownership provision, according to reports. Tribune was pushed to seek a buyer by its disgruntled major shareholder, the Chandler family. Tribune shares gained 1.9% today.
Shares of game maker Take-Two Interactive Software (Nasdaq: TTWO - News) slipped -4.6% after a group of shareholders that control 46% of the company's stock succeeded in efforts to replace the current board with six new directors. The maker of the "Grand Theft Auto" game was caught up in an options back-dating scandal that resulted in a guilty plea to related charges from former Chairman and Chief Executive Ryan Brant.
PC maker Dell (Nasdaq: DELL - News) traded lower after the company said an internal investigation of its accounting practices had revealed evidence of misconduct, but the company did not say what it found. Dell, which faces federal investigations into its finances, said it will likely need to restate prior financial results once its internal probe is complete.
By the BullMarket.com Staff
Stocks dropped sharply in the morning after the Commerce Department announced it was reversing a long-standing policy and that tariffs will be imposed on some Chinese goods. The Bush Administration also said it is considering a request from the U.S. paper industry for protection from cheaper imports from China. In economic news, the Commerce Department earlier reported February personal income rose at a seasonally adjusted rate of 0.6%. Personal consumption grew 0.6% from the prior month.
Corn futures fell sharply on the Chicago Board of Trade after the federal government released its crop forecast. The Department of Agriculture said farmers will plant 90.5 million acres of corn this spring, above its earlier estimate of 87 million acres, and about 15% more than the 78 million acres of corn planted last year. Ethanol producers like Archer Daniels Midland (NYSE: ADM - News), who are expected to be buyers of the additional corn output, will benefit from the lower prices.
Shares of drugmaker Novartis (NYSE: NVS - News) shed -3.9% after the Food & Drug Administration asked the Swiss company to stop selling its irritable bowel treatment Zelnorm after it was linked to an increased risk of heart attacks and strokes. Zelnorm generated $561 million in sales in 2006, about 80% of which came from the U.S. market. The drug had been approved for the short-term treatment of constipation in women with IBS, and for patients younger than 65 with chronic constipation.
In merger news, two Los Angeles billionaires joined forces to bid for Tribune Co. (NYSE: TRB - News), which owns the Chicago Tribune, Los Angeles Times, numerous broadcast and other media properties, and the Chicago Cubs baseball team. Eli Broad and Ron Burkle submitted a bid valued at $34 a share that includes an employee ownership provision, according to reports. Tribune was pushed to seek a buyer by its disgruntled major shareholder, the Chandler family. Tribune shares gained 1.9% today.
Shares of game maker Take-Two Interactive Software (Nasdaq: TTWO - News) slipped -4.6% after a group of shareholders that control 46% of the company's stock succeeded in efforts to replace the current board with six new directors. The maker of the "Grand Theft Auto" game was caught up in an options back-dating scandal that resulted in a guilty plea to related charges from former Chairman and Chief Executive Ryan Brant.
PC maker Dell (Nasdaq: DELL - News) traded lower after the company said an internal investigation of its accounting practices had revealed evidence of misconduct, but the company did not say what it found. Dell, which faces federal investigations into its finances, said it will likely need to restate prior financial results once its internal probe is complete.
By the BullMarket.com Staff
posted by Stock Administrator @ 5:36 PM
0 Comments:
Post a Comment
<< Home