Stock Market Wrapup June 5th
After six days of climbing, the S&P 500 was down today, along with the Nasdaq and Dow. Stocks were affected by a scare that the Fed might be preparing to raise interest rates again for the first time since last June. Fed Chairman Ben Bernanke, speaking via satellite at an international money management conference in South Africa, suggested that the economy was set to rebound even though the housing slump might continue for some time. Coupling that with the news from the Institute for Supply Management (ISM) and there were concerns that rates might be on their way up.
The ISM released its May index of business activity in the non-manufacturing sector. The new reading of 59.7 beat both April's number and Wall Street expectations of 56. New orders were at 57.4 and employment was at 54.1, both up from April. Numbers higher than 50 indicate expansion, while numbers lower indicate contraction.
After yesterday's meeting with News Corp (NYSE: NWS) Chairman Rubert Murdoch, the Independent Association of Publisher's Employees, which is the union that represents Wall Street Journal employees, has reached out to other potential buyers. One surfaced as billionaire investor Ron Burkle has indicated that he might be interested in purchasing Dow Jones (NYSE: DJ). Union president Steve Yount indicated that Burkle was the first person to respond, but that overtures were made to a few potential buyers.
Avaya (NYSE: AV) has agreed to a buyout from TPG Capital and Silver Lake Partners. The total value of the sale is $8.2 billion, or $17.50 per share. This deal has been in talks for some time, and while it is no surprise that it has come to fruition, there was speculation about when the offer would be made.
Housewares retailer Bed Bath and Beyond (Nasdaq: BBBY) lowered its guidance for the quarter, saying that a consumer spending drop-off was responsible for the company failing to meet expectations for the first time since it went public in 1992. In today's announcement, Bed Bath and Beyond released earnings expectations of 36-38 cents per share, down from the 39 cents it said was "reasonable" on its previous conference call. While the company said that same-store sales would be up, the growth is now only expected to be 1.6% instead of the 3-5% previously suggested.
Amazon.com (Nasdaq: AMZN) shares rose 4.6% after the company said it would increase its investment in Chinese Internet company Joyo.com. Proctor & Gamble (NYSE: PG), meanwhile, rose 0.46% after it reiterated its previous guidance.
By the BullMarket.com Staff
The ISM released its May index of business activity in the non-manufacturing sector. The new reading of 59.7 beat both April's number and Wall Street expectations of 56. New orders were at 57.4 and employment was at 54.1, both up from April. Numbers higher than 50 indicate expansion, while numbers lower indicate contraction.
After yesterday's meeting with News Corp (NYSE: NWS) Chairman Rubert Murdoch, the Independent Association of Publisher's Employees, which is the union that represents Wall Street Journal employees, has reached out to other potential buyers. One surfaced as billionaire investor Ron Burkle has indicated that he might be interested in purchasing Dow Jones (NYSE: DJ). Union president Steve Yount indicated that Burkle was the first person to respond, but that overtures were made to a few potential buyers.
Avaya (NYSE: AV) has agreed to a buyout from TPG Capital and Silver Lake Partners. The total value of the sale is $8.2 billion, or $17.50 per share. This deal has been in talks for some time, and while it is no surprise that it has come to fruition, there was speculation about when the offer would be made.
Housewares retailer Bed Bath and Beyond (Nasdaq: BBBY) lowered its guidance for the quarter, saying that a consumer spending drop-off was responsible for the company failing to meet expectations for the first time since it went public in 1992. In today's announcement, Bed Bath and Beyond released earnings expectations of 36-38 cents per share, down from the 39 cents it said was "reasonable" on its previous conference call. While the company said that same-store sales would be up, the growth is now only expected to be 1.6% instead of the 3-5% previously suggested.
Amazon.com (Nasdaq: AMZN) shares rose 4.6% after the company said it would increase its investment in Chinese Internet company Joyo.com. Proctor & Gamble (NYSE: PG), meanwhile, rose 0.46% after it reiterated its previous guidance.
By the BullMarket.com Staff
posted by Stock Administrator @ 8:58 PM
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