News That Moved Monday's Market

U.S. Markets

Dow -88.66 (-0.68%)
Nasdaq -12.87 (-0.52%)
S&P 500 -6.42 (-0.45%)

News That Moved the Market

Merger Issues. Markets finished the day lower, after two major merger deals looked less likely. The major news of the weekend was Microsoft (MSFT, -0.7%) pulling its bid for Yahoo (YHOO, -15.2%). Microsoft increased its bid, but refused to match the $37/share offer price Yahoo's board insisted upon. As a result, shares of the search giant fell the most since July 2006. Bank of America (BAC, -2.0%) fell after Paul Miller, an analyst at Friedman Billings Ramsey & Co., advised the bank to walk away from its deal to purchase troubled lender Countrywide (CFC, -15.7%). Miller believes the deal will "prove a drag on earnings." Stocks bottomed in early afternoon trading, but buyers did not have the conviction to attempt a full recovery.

Crude Jumps Over $120/Barrel. Oil hit another all-time high, hitting $120.36/barrel in intra-day trading. It ended up $3.65 at $119.97/barrel. Oil has increased 28% this year, with driving and hurricane season still to come. Tension in Nigeria along with weakness in the U.S. dollar were blamed for the move.

Quick Tics: The nonmanufacturing sector grew unexpectedly in April…According to the Wall Street Journal, Spring (S, +10.6%) is considering spinning off or selling its Nextel unit.

Tomorrow

Notable Earnings (Full List Here):
Cisco Systems(CSCO) After Close
Fannie Mae (FNM) Before Open
Legg Mason (LM) Before Open
NYSE Euronext (NYX) Before Open
UBS (UBS) Time Not Supplied
Walt Disney (DIS) After Close

Economic Events:
None