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