Monday
Profit-takers weighed on the equity markets Monday, sending shares into negative territory. In corporate news,
Harley-Davidson (HOG) boosted its quarterly dividend by 19% from $0.21 to $0.25. Shares of
Wm. Wrigley Jr. (WWY) moved higher after the company posted better-than-expected first quarter earnings, citing new product launches and the weak U.S. dollar. Light crude oil deliverable in June slid $0.75, to $65.71 per barrel. For the day, the
DJIA slid 0.44% while the NASDAQ dropped 1.26%.
Tuesday
Equity markets rose on Tuesday on strong economic data and lower oil prices. April’s
ISM Manufacturing report came in at 54.7, above the 51.0 estimates. In corporate news,
Circuit City (CC) fell after the company stated it would post a fiscal first quarter loss.
Liz Claiborne (LIZ) posed weaker-than-expected earnings and also fell sharply.
Dow Jones (DJ) added 53.9% for the week following an unsolicited offer from
News Corp (NWSa) for $60 per share. Light crude oil deliverable in June fell $1.31 to $64.40 per barrel. For the day, the
DJIA gained 0.56% and the NASDAQ added 0.26 %.
Wednesday
Continued merger and acquisition activity and solid corporate earnings boosted the broader equity markets on Wednesday. Shares of
Cablevision (CVC) rose after the company agreed to be taken private from $36 per share. Shares of
MetLife (MET), Time Warner (TWX), Prudential (PRU), and
Yum Brands! (YUM) all moved higher after posting better-than-expected first quarter earnings. For the day, the
DJIA gained 0.58% and the NASDAQ added 1.04%.
Thursday
The markets continued their modest gains on Thursday on strong economic news. A preliminary reading on
nonfarm productivity rose 1.7%, higher than the expected 0.7%. Preliminary
labor costs rose only 0.6%, below the 3.8% estimate. In corporate news, shares of
General Motors (GM) slid after the company’s earnings came in lower than expectations.
Talbots Inc. (TLB) also fell after the company lowered its fiscal first quarter earnings guidance. For the day, the
DJIA rose 0.22% while the NASDAQ rose 0.30%.
The equity markets rose for the fourth consecutive day on the heals of continued merger and acquisition speculation. In economic news, the economy added 88,000 jobs in April, less than the expected 100,000. In corporate news, shares of
Yahoo! Inc (YHOO) rose on news that Microsoft (MSFT) was interested in a “creative partnership” with the company. Shares of
Career Education Corp (CECO) rose after the company posted stronger-than-expected earnings. For the day, the
DJIA gained 0.18% while the NASDAQ added 0.30%.
Summary
The equity markets had another positive week with solid corporate earnings and merger and acquisition activity boosting the markets. Oil prices dropped to $62 a barrel from $66 last week. The 10-year note yield dipped to 4.64% from 4.70%.
For the week: the DJIA rose 1.10%, the S&P 500 rose 0.77%, and the NASDAQ rose 0.58%.
