Monday
Stocks ended Monday mixed on the heels of merger and acquisition activity and further corporate earnings announcements. Shares of
Ford Motor (F) rose amid speculation that members of the Ford family may sell part of their controlling stake in the company. Fellow automaker
DaimlerChrysler (DCX) rose after the company agreed to sell an 80% interest its Chrysler Group division to a private equity company for approximately $7.4 billion. For the day,
crude oil rose to $62.46 per barrel, the Dow rose 0.15%, and the
Nasdaq fell 0.61%.
Tuesday
The equity markets again finished mixed on Tuesday. In economic news, the April
Consumer Price Index rose 0.4%, below the expected 0.5%. In corporate news,
Ingersoll-Rand (IR) said it is considering the sale of its Bobcat machines and construction-related businesses.
Home Depot, Inc (HD) and Applied Materials (AMAT) each fell on Tuesday after Home Depot reported lower-than-expected earnings and Applied Materials gave a cautious outlook. For the day,
crude oil rose to $62.99 per barrel, the DJIA gained 0.28%, and the
Nasdaq fell 0.83%.
Wednesday
Stocks finished higher on Wednesday as energy prices moved lower. April
Housing Starts rose to 1.528 million versus consensus of 1.48 million. April
Building Permits fell to 1.429 million versus an expected 1.52 million. In corporate news,
Sony Corp. (SNE) rose after the company posted a wider quarterly loss but forecast a sharp rise in profits on sales of televisions and digital cameras.
Federated Department Stores (FD) fell after the parent of Macy’s and Bloomingdale’s posted lower-than-expected quarterly earnings. For the day, crude oil fell to $62.36, the
DJIA rose 0.77%, and the Nasdaq gained 0.88%.
Thursday
Thursday was mixed on economic data and higher energy prices. In economic news,
initial jobless claims for the week ended May 12 fell to 293,000, below consensus. In corporate news,
Advance Auto Parts Inc (AAP), J.C. Penney (JCP), and PetSmart, Inc (PETM) all rose after posting better-than-expected quarterly earnings. For the day,
crude oil rose to $64.80 while the Dow fell 0.08% and the Nasdaq fell 0.32%.
The week ended on a positive note following Microsoft Corp’s (MSFT) agreement to acquire
aQuantive Inc. (AQNT) for approximately $6 billion, joining others such as
Google (GOOG) in the online advertising acquisition race. For the day,
crude oil rose to $64.88 per barrel, the DJIA rose 0.59% and the
Nasdaq gained 0.75%.
Summary
Merger and acquisition activity drove the markets into positive territory again this week with Chrysler, Bausch & Lomb, and Microsoft all making news. The Dow again reached record highs this week and the S&P 500 Index is approaching its record high.
For the week: the DJIA gained 1.73%, the Nasdaq lost 0.15%, and the S&P 500 gained 1.12%.
