Stocks Flatten After Strong Start
Wall Street flattened Monday as investors theorized that last week's robust jobs data lessens the likelihood that the Federal Reserve will cut interest rates. Their disapppointment offset upbeat speculation about a takeover bid for Dow Chemical Co.
Since the market was closed for Good Friday, traders got their first opportunity to react to Labor Department data that showed stronger-than-expected job growth in March. The numbers indicated the economy might be in better shape than previously thought, and helped offset concerns about a continued slowdown in the housing market.
That initially lifted stocks, but investors apparently had second thoughts about the data, and so the market turned lower.
Takeover news provided some lift to the markets, with reports that Dow Chemical has been targeted by Middle Eastern investors and U.S. buyout firms in a deal that could be worth $50 billion. It would be the biggest leveraged buyout on the books.
In addition, Citigroup Inc. expanded its Asian operations by acquiring a Taiwan-based bank for $426 million. Warren Buffett's Berkshire Hathaway Inc. said it became the largest shareholder of railroad company Burlington Northern Santa Fe Corp. In midmorning trading, the Dow Jones industrial average rose 1.46, or 0.01 percent, to 12,561.66. The Standard & Poor's 500 index was up 0.04, or less than 0.01 percent, at 1,443.80, and the Nasdaq composite index fell 4.67, or 0.19 percent, to 2,466.67.
The Russell 2000 index of smaller companies was down 3.27, or 0.40 percent, at 810.08. The Labor Department reported showed nonfarm payrolls rose by 180,000 in March, above forecasts of 135,000. The unemployment rate fell to 4.4 percent, a five-month low. Bonds did regain some traction from the selloff, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.75 percent. The dollar rose against other major currencies, while gold prices edged higher.
Oil continued to fall, with a barrel of light sweet crude dropping 63 cents to $63.65 on the New York Mercantile Exchange. Dow Chemical spiked $2.72, or 6.1 percent, to $47.19 after British tabloid The Sunday Express reported it could receive a buyout offer of $50 billion as soon as this week. Citigroup fell 5 cents to $51.52 after it announced the acquisition of Bank of Overseas Chinese to broaden operations in Asia, and particularly in the greater China region. The bank also said it will detail a long-expected cost cutting plan on Wednesday.
Burlington Northern Santa Fe rose $6.56 cents, or 7.9 percent, at $88.28 after Berkshire Hathaway announced it bought a 10.9 percent stake. Berkshire's class A shares rose $141 to $108,890.
Advanced Micro Devices Inc. expects its first-quarter revenue to miss Wall Street expectations due to sharply weaker sales results at its computing solutions unit. However, shares rose 46 cents, or 3.6 percent, at $13.32 after the chip maker said it will cut costs.
Sanmina-SCI Corp. fell 15 cents, or 3.9 percent, to $3.66 after cutting its second-quarter revenue forecast. The contract electronics manufacturer said it was seeing weaker demand in the communications and the high-end computing markets.
Advancing issues outnumbered decliners by about 8 to 7 on the New York Stock Exchange, where volume came to 218.3 million shares.
Source: AP
Since the market was closed for Good Friday, traders got their first opportunity to react to Labor Department data that showed stronger-than-expected job growth in March. The numbers indicated the economy might be in better shape than previously thought, and helped offset concerns about a continued slowdown in the housing market.
That initially lifted stocks, but investors apparently had second thoughts about the data, and so the market turned lower.
Takeover news provided some lift to the markets, with reports that Dow Chemical has been targeted by Middle Eastern investors and U.S. buyout firms in a deal that could be worth $50 billion. It would be the biggest leveraged buyout on the books.
In addition, Citigroup Inc. expanded its Asian operations by acquiring a Taiwan-based bank for $426 million. Warren Buffett's Berkshire Hathaway Inc. said it became the largest shareholder of railroad company Burlington Northern Santa Fe Corp. In midmorning trading, the Dow Jones industrial average rose 1.46, or 0.01 percent, to 12,561.66. The Standard & Poor's 500 index was up 0.04, or less than 0.01 percent, at 1,443.80, and the Nasdaq composite index fell 4.67, or 0.19 percent, to 2,466.67.
The Russell 2000 index of smaller companies was down 3.27, or 0.40 percent, at 810.08. The Labor Department reported showed nonfarm payrolls rose by 180,000 in March, above forecasts of 135,000. The unemployment rate fell to 4.4 percent, a five-month low. Bonds did regain some traction from the selloff, with the yield on the benchmark 10-year Treasury note falling to 4.73 percent from 4.75 percent. The dollar rose against other major currencies, while gold prices edged higher.
Oil continued to fall, with a barrel of light sweet crude dropping 63 cents to $63.65 on the New York Mercantile Exchange. Dow Chemical spiked $2.72, or 6.1 percent, to $47.19 after British tabloid The Sunday Express reported it could receive a buyout offer of $50 billion as soon as this week. Citigroup fell 5 cents to $51.52 after it announced the acquisition of Bank of Overseas Chinese to broaden operations in Asia, and particularly in the greater China region. The bank also said it will detail a long-expected cost cutting plan on Wednesday.
Burlington Northern Santa Fe rose $6.56 cents, or 7.9 percent, at $88.28 after Berkshire Hathaway announced it bought a 10.9 percent stake. Berkshire's class A shares rose $141 to $108,890.
Advanced Micro Devices Inc. expects its first-quarter revenue to miss Wall Street expectations due to sharply weaker sales results at its computing solutions unit. However, shares rose 46 cents, or 3.6 percent, at $13.32 after the chip maker said it will cut costs.
Sanmina-SCI Corp. fell 15 cents, or 3.9 percent, to $3.66 after cutting its second-quarter revenue forecast. The contract electronics manufacturer said it was seeing weaker demand in the communications and the high-end computing markets.
Advancing issues outnumbered decliners by about 8 to 7 on the New York Stock Exchange, where volume came to 218.3 million shares.
Source: AP
posted by Stock Administrator @ 10:37 AM
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