Monday's Closing Update

by: Midnight Trader

4:09 PM, May 11, 2009 --

NYSE down 151.1 (2.5%) to 5,848.29

DJIA down 155.8 (1.8%) to 8,418.85

S&P 500 down 19.9 (2.2%) to 909.28

Nasdaq down 7.8 (0.5%) to 1,731.24


Nikkei +0.2%

Hang Seng -1.7%

FTSE -0.6%


(+) PCLN profit rises 82%, boosted by strong bookings

(+) CNO swings to a profit in the first quarter.

(+) ABK says Q1 loss narrows vs year-ago levels.

(+) NEXM reports Q1 income, will not be delisted.

(+) HBAN raises stock offering to $120 mln.

(+) AZN heart drug reportedly beats competitor in trial.

(+) T selling certain Centennial Communications assets to Verizon.

(+) CF gets raised buyout offer.

(+) MSFT announces first-ever bond issue to raise $1 billion.


(-) GM CEO says tasks are large to avoid bankruptcy.

(-) GS settles investigation over subprime mortgages.

(-) KEY selling $750 mln in stock.

(-) COF also among banks slumping after detailing issuance.

(-) CPSL reports Q3 results sharply below year-ago levels.


Broad stock indexes traded mixed Monday before settling in the negative column by the time the closing bell rang. Wall Street cashed in part of what has been a two-month rally for stocks. Banking shares, led by Citi (NYSE:C) and Bank of America (NYSE:BAC), were largely under pressure as investors take profits on the hefty gains seen in the battered sector leading up to government stress test results.

Financial stocks were also lower after U.S. Bancorp (NYSE:USB), Capital One Financial Corp. (NYSE:COF) and BB&T Corp. (NYSE:BBT) said Monday they planned to issue common stock to help repay loans they received last fall as part of the government's Troubled Asset Relief Program.

The government has said that those banks had enough capital to handle a deeper recession, helping to fuel a banking shares rally last week.

Elsewhere, General Motors (NYSE:GM) fell after CEO Fritz Henderson said that bankruptcy protection is becoming more probable with a deadline just over two weeks away. Henderson said he is still holding out hope that the company can restructure without court protection, but that the tasks to complete before a June 1 government-imposed deadline are large.

The tech-concentrated Nasdaq Composite bobbed between positive and negative territory. Friday closed out the Nasdaq's ninth street weekly gain, the longest such streak since 1999.

A mid-day rebound erased much of an earlier sell-off for PC makers and software shares. Germany's SAP (NYSE:SAP) gained some 1.6% in its U.S.-listed shares after its chief executive said he sees improved economic growth for the second half of the year. Rival Oracle (NASDAQ:ORCL) was also up about 3%. Microsoft (NASDAQ:MSFT) is trading just in positive territory after earlier announcing plans to raise $3.75 billion with its first ever corporate bond offering, proceeds from which may go to stock buybacks.

Dish Network (NASDAQ:DISH) rallied and helped the Nasdaq outperform the broader market. The nation's second-largest satellite TV provider reported a 21% increase in Q1 profits, topping the Street, but is facing erosion in its subscriber base.

Energy stocks (NYSE:COP) (NYSEARCA:USO) (NYSE:XOM) closed lower. Crude for June delivery ended down 13 cents, or 0.2%, to $58.50 a barrel, taking back some ground after faling more than 3% to $56.78 earlier. The contract ended at $58.63 on Friday, the highest closing price for a front-month contract since Nov. 11, 2008. Crude rallied more than 10% last week despite government data that showed U.S. inventories at their highest level since September 1990.