Stocks finished a volatile session on a mixed note mirroring a likewise volatile and mixed performance for the first quarter, with the Dow Jones Industrial Average now in negative territory for the year so far, while other stock proxies hold on to meager gains. The market initially took a sharp downturn after news that the U.S. has imposed trade sanctions on China and as tensions over a stand-off between Iran and the UK kept oil prices near $66 a barrel.

Today, the Dow Jones industrial average closed up 5.60 or 0.05% to 12,354.35, the broader S&P 500 closed down 1.67 or 0.12% to 1,420.86, and the Nasdaq composite closed up 3.76 or 0.16% to 2421.64. For the week, the Dow lost 1%, the S&P lost 1%, and the Nasdaq lost 1.1%. For the month, the Dow gained 0.7%, the S&P 500 gained 1% and the Nasdaq composite added 0.2%. For the quarter, the Dow lost 0.9%, the S&P 500 gained 0.2% and the Nasdaq composite gained 0.3%.

Market breadth was positive. On the New York Stock Exchange, winners topped losers 9 to 7 on volume of 1.58 billion shares. On the Nasdaq, advancers beat decliners 4 to 3 on volume of 2.06 billion shares.

Stocks rose following a series of strong readings on personal income and spending, manufacturing and construction. However, news that the U.S. Commerce Department is reversing a decades-old policy and will begin to impose tariffs on some goods from China, became a damper.

Both consumer spending and personal income rose faster than expected in February, showing that the economy was stronger than Wall Street forecasts. However, there also was an inflation reading that was higher than hoped. Spending was up 0.6%, compared to the 0.5% rise in January. Economists had been looking for growth to slow to a 0.3%. Income was also up 0.6%, compared to the 1% rise in January. Economists had been looking for slowdown in income growth to a 0.3%.

Stock of Dendreon (Nasdaq: DNDN) closed up $7.71 or 150% to $12.93, after a FDA panel said that its treatment for advanced prostate cancer is reasonably safe and effective. Its novel cancer therapy Provenge is a therapeutic cancer vaccine designed to stimulate the immune system to fight an existing cancer. It differs from traditional vaccines meant to prevent disease in people not yet sick. The FDA is scheduled to decide by May 15 whether to approve Provenge for sale.

Shares of PMC Sierra (Nasdaq: PNCS) closed up $0.71 or 11% to $7.01, after the chipmaker said that it was closing two R&D centers in Canada and cutting jobs as part of a restructuring effort. The company also said that first-quarter revenue will be in the middle to high end of its previous forecast.

Shares of Dell (NYSE: DELL) closed down $0.18 to $23.21, after it said that an internal audit of its accounting showed errors in its financial controls, which could result in restatements of past quarters. This means that Dell would not file its annual report with securities regulators by the April 3 due date, or by an extension date of April 18.

U.S. light crude oil for May delivery fell 16 cents to settle at $65.87 a barrel in New York Mercantile Exchange trading after having risen in the morning. Prices have been on the rise recently amid worries about the conflict with Iran.

Posted by Manuel Backus to The Markets at 10:38 PM | Permalink

Stocks threw off losses to close higher. They were bolstered by news of an unexpected upward revision to fourth-quarter growth as investors looked past a rise in crude oil prices above $66 a barrel. It is evident that the process of rallies and pull-backs would continue for some months.

Today, the Dow Jones industrial average closed up 48.39 or 0.37% to 12,348.75, the broader S&P 500 closed up 5.30 or 0.39% to 1,422.53, and the Nasdaq composite closed down 0.78 or 0.03% to 2417.88.

Market breadth was positive. On the New York Stock Exchange, winners beat losers 5 to 3 on volume of 1.509 billion shares. On the Nasdaq, advancers topped decliners by a narrow margin on volume of 1.943 billion shares.

The final read on fourth quarter GDP indicated moderately strong U.S. economic growth than previously thought, primarily because businesses added more to inventories than was estimated a month ago. GDP rose at a 2.5% annual rate instead of 2.2%. There was also a drop in the number of Americans filing new claims for unemployment last week. The number of U.S. workers filing new claims for jobless benefits dropped to a seasonally adjusted 308,000 from an upwardly revised 318,000 the prior week. Analysts were expecting claims to edge up to 320,000.

Stock of Boeing Co. (NYSE: BA) gained 0.4% after Colombia's largest airline, Avianca SA, said it would buy 10 of Boeing's 787 Dreamliner aircraft. Avianca SA will spend $1.5 billion to replace its aging aircraft. The company also plans to buy another 35 airplanes with an additional investment ranging from $1.2 billion to $1.5 billion.

Sprint Nextel Corp. (NYSE: S) was shut out of the first part of a two-part federal contract that could reach $48 billion over 10 years. However, Sprint could win a share of the U.S. government's upgrade when the second part of the contract is issued in May.

Shares of U.S. Steel (NYSE: X) closed up $3.61 or 3.4% to $101.22, on news that it is buying Lone Star Technologies (NYSE: LSS) in a deal worth $2.1 billion in cash. Stock of Lone Star Technologies closed up $17.66 or 37% to $66.11. U.S. Steel will pay $67.50 a share, a 39% premium to Wednesday's closing price.

U.S. light crude oil for May delivery rose $1.95 to settle at $66.03 a barrel on the New York Mercantile Exchange, a gain of 3%. Prices have been on the rise recently amid worries about the conflict with Iran.

Posted by Manuel Backus to The Markets at 10:46 PM | Permalink

Stocks pared losses but still ended lower after the chairman of the Federal Reserve reiterated concerns about inflation and disappointed investors hoping that weaker growth would soon push the Fed closer to cutting interest rates. Federal Reserve Chair Ben Bernanke said the U.S. economic outlook has become more uncertain in recent weeks, reviving recession worries.

Today, the Dow Jones industrial average closed down 96.93 or 0.78% to 12,300.36, the broader S&P 500 closed down 11.38 or 0.80% to 1,417.23, and the Nasdaq composite closed down 20.33 or 0.83% to 2417.10.

Market breadth was negative. On the New York Stock Exchange, losers beat winners by 21 to 11 on volume of 1.522 billion shares. On the Nasdaq, decliners topped advancers 19 to 9 on volume of 1.905 billion shares.

Bernanke's address for the Joint Economic Committee of Congress. stated that core inflation remains uncomfortably high. The Fed chief said that while inflation was still likely to moderate over time, the risks remained to the upside. He also said that the near-term outlook for the housing market is uncertain, and that the impact from the sub-prime mortgage fallout has raised more questions. The bottom line is that he expects moderate economic growth to be sustained, but there definitely is a sense that the downside risks to that forecast are growing and the likelihood of an upside surprise is shrinking.

Tomorrow, the fourth-quarter reading on the gross domestic product growth, is expected at a 2.2%. February durable goods orders rose 2.5% versus a 9.3% decline in January, missing expectations.

Shares of Beazer (NYSE: BZH) fell 8.4% after it sated that it is the target of a federal criminal probe into its role in arranging mortgage loans for buyers in its subdivisions. Beazer said the U.S. Attorney hasn't alleged any wrongdoing, but just asked for documents.

Stock of Wal-Mart Stores (NYSE: WMT) dropped 1.9% after news it has shelved its plan to open a New York City store, The New York Times reported, citing a meeting CEO Lee Scott had with editors and reporters of the newspaper.

Shares of Circuit City (NYSE: CC) closed up $0.35 to $19.23, after stating that it will consider the sale of its Canadian unit InterTAN and will lay off 3,400 employees and replace them with lower paid workers as part of a broader restructuring.

Oil prices trimmed some gains after the release of the weekly oil inventories report, but still settled above $64 a barrel on the New York Mercantile Exchange. Prices have been on the rise amid worries about the conflict with Iran, the No. 4 oil exporter.

Posted by Manuel Backus to The Markets at 08:50 PM | Permalink

Stocks closed lower as concerns about the stumbling housing market and the economy resurfaced after an uncertain outlook from homebuilder Lennar Corp (NYSE: LEN) showed widespread drops in home prices. The weak profit report revived worries about the housing sector and a big drop in consumer confidence fed concerns about the broader economy.

Today, the Dow Jones industrial average closed down 71.78 or 0.58% to 12,397.29, the broader S&P 500 closed down 8.89 or 0.62% to 1,428.61, and the Nasdaq closed down 18.20 or 0.74% to 2,437.43.

Market breadth was negative. On the New York Stock Exchange, decliners topped advancers 11 to 5 on volume of 1.382 billion shares. On the Nasdaq, losers beat advancers 19 to 9 on volume of 1.73 billion shares.

The March Consumer Confidence report added to the spate of weak economic inputs. The index fell to 107.2 from a downwardly revised 111.2 in February. Economists shad thought that it would fall to 109 in the month. The week will see reports on durable goods orders, the last revision to fourth-quarter GDP, personal income and spending, Chicago PMI, construction spending and University of Michigan consumer sentiment. Additionally, Federal Reserve Chairman Ben Bernanke's testimony to Congress on Wednesday is also awaited. He is expected to clarify whether the central bank has leaned closer to cutting interest rates, should the economy weaken too much.

Stock of Lennar (NYSE: LEN) closed up $0.03 to $44.57, despite reporting a big drop in quarterly profit and withdrew its 2007 forecast due to housing weakness and uncertainty over the sub-prime mortgage mess. Its profit fell 73% in the latest quarter, and the net income sank to $68.6 million. Revenue dived 14% to $2.8 billion. Last year, the company had posted net income of $258.1 million, on revenue of $3.2 billion.

Stock of Bristol-Myers Squibb (NYSE: BMY) rose 0.6% after a report that Sanofi-Aventis (NYSE: SNY) is considering making a bid for its partner on the Plavix blood-thinning drug. It is reported that Sanofi's chairman and chief executive are split on whether a bid should be launched, but the pro-deal chairman is reported to have greater sway on the board.

Shares of DaimlerChrysler (NYSE: DCX) rose 1.8%, after the company said it was pushing back its first-quarter results release date to May 15 from April 26, blaming the delay on the time needed to switch to IFRS accounting from U.S. GAAP accounting. It is also reported that the possible sale of Chrysler could occur within just a few weeks time, with the first bids due by week's end.

Stock of biotech Nuvelo (Nasdaq: NUVO) closed up $0.76 or 305 to $3.85, after the company's experimental colon cancer drug received "fast-track" status from regulators. The process can speed up the review of drug marketing applications.

U.S. light crude oil for May delivery rose 14 cents to $63.05 a barrel on the New York Mercantile Exchange after hitting a high for 2007 Monday on heightened geopolitical fears.

Posted by Manuel Backus to The Markets at 08:32 PM | Permalink

Stocks reduced their losses to close mixed after investors took heart from the close of crude futures below $63 a barrel and some positive brokerage talk about technology bellwethers like eBay Inc. (Nasdaq: EBAY) and Dell Inc (NYSE: DELL). Earlier in the session, stocks dropped sharply after news that sales of new homes unexpectedly fell to a 7 year low in February, fueling concerns that the stumbling housing market might derail economic growth. However, gains in technology and commodities offset the impact of the weak read on new home sales.

Today, the Dow Jones industrial average closed down 11.94 or 0.10% to 12,469.07, the broader S&P 500 closed up 1.39 or 0.10% to 1,437.50, and the Nasdaq closed up 6.70 or 0.27% to 2,455.63.

Market breadth was negative. On the New York Stock Exchange, losers edged winners by a narrow margin of 16 to 15 on volume of 1.468 billion shares. On the Nasdaq, decliners topped advancers 16 to 13 on volume of 1.764 billion shares.

The housing market report, showed that new home sales in February eased to the slowest pace in more than six years. The government's latest reading on the real estate market showed the glut of homes on the market reached a 16-year high. New homes sales were down about 4% from the 882,000 rate in January. The pace of sales tumbled 18.3% from February 2006. This shows that the housing market has not yet hit bottom.

Stock of Citigroup (NYSE: C) closed down $0.18 to $51.54, after reporting that it is looking to cut 15,000 jobs, as part of a broader restructuring plan that could cost the bank $1 billion. This cut would represent about a 5% reduction in Citigroup's worldwide work force of 327,000. Some of the reduction could be achieved by not filling positions opened through normal attrition.

Shares of Intel (Nasdaq: INTC) closed up $0.02 to $19.29, on news that it will invest $2.5 billion to build a chip plant in China, with the production of chipsets to begin in 2010. Groundbreaking is scheduled for July in Dalian, which will be Intel's first semiconductor plant in Asia. The 12-inch wafer plant will have a monthly capacity of 52,000 wafers and will use 90-nanometer technology to produce chip sets.

U.S. light crude oil for May delivery added 63 cents to $62.91 a barrel on the New York Mercantile Exchange after the U.N. tightened sanctions against Iran amid ongoing worries about the nation's nuclear program, and its capture last week of British military personnel.

Posted by Manuel Backus to The Markets at 06:04 PM | Permalink

Stock of Citigroup (NYSE: C) closed down $0.18 to $51.54, after reporting that it is looking to cut 15,000 jobs, as part of a broader restructuring plan that could cost the bank $1 billion. This cut would represent about a 5% reduction in Citigroup's worldwide work force of 327,000. Some of the reduction could be achieved by not filling positions opened through normal attrition.

Posted by Manuel Backus to Stock Ideas at 06:04 PM | Permalink

Shares of Intel (Nasdaq: INTC) closed up $0.02 to $19.29, on news that it will invest $2.5 billion to build a chip plant in China, with the production of chipsets to begin in 2010. Groundbreaking is scheduled for July in Dalian, which will be Intel's first semiconductor plant in Asia. The 12-inch wafer plant will have a monthly capacity of 52,000 wafers and will use 90-nanometer technology to produce chip sets.

Posted by Manuel Backus to Stock Ideas at 06:03 PM | Permalink

Stocks closed slightly higher as investors rested on strong weekly gains that came on hope that the Federal Reserve has moved closer to cutting interest rates should the economy weaken too much. News that existing home sales rose also helped soothe immediate concerns about the housing market. However, worries about rising oil prices limited gains.

Today, the Dow closed up 19.87 or 0.16% to 12,481.01, the broader S&P 500 closed up 1.57 or 0.11% to 1,436.11, and the Nasdaq closed down 2.81 or 0.11% to 2,448.93. For the week, the Dow gained 3.1%, the S&P rose 3.6% and the Nasdaq closed up 3.2%.

Market breadth was mixed. On the New York Stock Exchange, winners topped losers 18 to 13 on volume of 1.3 billion shares. On the Nasdaq, advancers topped decliners 15 to 13 on volume of 1.7 billion shares.

While investors were happy with housing news, they also remained cautious about the latest news from Iran. An Iranian naval patrol seized 15 British marines and sailors who had boarded a vessel suspected of smuggling cars off the coast of Iraq. The British government had immediately demanded the safe return of its troops.

On the economy, signs are that we will continue to see the economy slowing. We're going to see slower earnings growth. While, existing home sales rose 3.9% versus forecasts for a decline, and the gain was the biggest in nearly 3 years, the median price of a home fell for the seventh straight month, a sign that the housing market's problems are far from over. Economists had looked for a slowdown to a 6.3 million pace.

Shares of Amgen (Nasdaq: AMGN) closed down $2.45 or 4% to $58.02, after it cancelled a late-stage trial of its colon cancer treatment after finding that it hurt chances of survival. An interim look at the trial found that colon cancer patients treated only with chemotherapy and Avastin, were more likely to live than patients who also received Vectibix.

Stock of Daimler Chrysler (NYSE: DCX) closed up $4.77 to $82.37, on a report that auto parts supplier Magna and a private equity partner may have offered to buy its Chrysler unit for as much as $4.7 billion.

Shares of General Motors (NYSE: GM) closed up $1.63 to $31.95, after saying it will pay stock bonuses to its top executives for the first time since 2003. Chairman and Chief Executive Rick Wagoner received restricted stock valued at $2.8 million and 500,000 options, according to a filing with the SEC.

Stock of Citigroup (NYSE: C) closed down $0.11 to $51.73, on news that it may be considering a rival offer for Dutch bank ABN Amro (NYSE: ABN), which is already in discussions with British bank Barclays (NYSE: BCS) about a potential merger. Barclays has signed an exclusive agreement to negotiate with ABN AMRO and has drawn up a broad merger outline for a combined bank worth more than $166 billion.

U.S. light crude oil for May delivery rose 59 cents to $62.28 a barrel on the New York Mercantile Exchange. A situation in the Persian Gulf contributed to oil worries: 15 British marines were taken captive by Iranian naval vessels.

Posted by Manuel Backus to The Markets at 10:08 PM | Permalink

Stocks closed mixed and little changed as investors consolidated strong gains from the previous session, when the Federal Reserve left interest rates unchanged but opened the door for possible rate cuts later this year. The tepid action came a day after markets rallied on hopes the Fed will cut rates and stave off a housing-led hard-landing for the economy. However, concern about the sub-prime mortgage market resurfaced as banking regulators were grilled about the issue in the Senate.

Today, the Dow closed up 13.62 or 0.11% to 12,461.14, the broader S&P 500 closed down 0.50 or 0.03% to 1,434.54, and the Nasdaq closed down 4.18 or 0.17% to 2,451.74.

Market breadth was positive. On the New York Stock Exchange, winners edged out losers on volume of 1.6 billion shares. On the Nasdaq, advancers beat decliners by a slim margin on volume of 1.9 billion shares.

The Fed decision to hold key interest rate steady at 5.25% seemed to hint the bank was more likely to cut rates than raise them in the near term. Today, investors displayed more caution and are likely to continue to do so. However, choppiness is likely to continue for another 2-3 weeks. The market has been rocked amid concerns that a meltdown in the sub-prime mortgage market will restrict financial liquidity, worsen the downturn in the housing market and further slow economic growth.

The jobless claims report showed a surprise decline. The claims unexpectedly fell 4,000 last week to its lowest in six weeks. A separate report, the index of leading economic indicators, declined 0.5% in February after sliding 0.3% in the previous month. Tomorrow, investors will be focused on February's report on existing home sales.

Shares of Motorola (NYSE: MOT) closed down $1.24 or 6% to $17.50, after warning that it will post a first-quarter loss and that full-year sales will miss forecasts, owing to weak sales of mobile devices. It also cut its revenue view to a range of $9.2 billion to $9.3 billion, from its January estimate of $10.4 billion to $10.6 billion.

Stock of homebuilder KB Home (NYSE: KBH) fell 0.3% after reporting that first-quarter profit dropped 84% and cautioned that problems in sub-prime mortgages and imposition of stricter lending standards may put more stress on a wobbly market. Its first-quarter net income fell to $27.5 million, from $173.3 million earned in the year-earlier first quarter.

Stock of News Corp (NYSE: NWS) closed down $0.05 to $24.75, and that of GE (NYSE: GE) closed up $0.33 to $35.81, after stating that they are creating an online video site that will seek to compete with YouTube. These two companies own Fox television and movie studios, and NBC Universal.

U.S. light crude oil for May delivery jumped $2.08 to $61.69 a barrel, a gain of more than 3%, on the New York Mercantile Exchange.

Posted by Manuel Backus to The Markets at 07:19 PM | Permalink

Stock of homebuilder KB Home (NYSE: KBH) fell 0.3% after reporting that first-quarter profit dropped 84% and cautioned that problems in sub-prime mortgages and imposition of stricter lending standards may put more stress on a wobbly market. Its first-quarter net income fell to $27.5 million, from $173.3 million earned in the year-earlier first quarter.

Posted by Manuel Backus to Stock Ideas at 07:18 PM | Permalink

Shares of Motorola (NYSE: MOT) closed down $1.24 or 6% to $17.50, after warning that it will post a first-quarter loss and that full-year sales will miss forecasts, owing to weak sales of mobile devices. It also cut its revenue view to a range of $9.2 billion to $9.3 billion, from its January estimate of $10.4 billion to $10.6 billion.

Posted by Manuel Backus to Stock Ideas at 07:17 PM | Permalink

Stocks rallied and lifted the Dow Jones Industrial Average by over 160 points, after the Federal Reserve left interest rates unchanged as expected, but also opened the door for the central bank to consider risks to the economy on an equal footing with inflation risks. The Fed no longer said that data are suggesting firmer economic growth, instead describing those indicators as mixed. It also dropped a previous reference that additional firming of monetary policy may be needed. This implies that the central bank is more likely to cut rates than raise them anytime soon.

Today, the Dow Jones industrial average closed up 159.42 or 1.30% to 12,447.52, the broader S&P 500 closed up 24.10 or 1.71% to 1,435.04, and the Nasdaq closed up 47.71 or 1.98% to 2,455.92. The Dow saw its best one-day point gain since July of last year.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by nearly 27 to 5 on volume of around 1.63 billion shares. On the Nasdaq, advancers beat decliners 22 to 7 on volume of 2.21 billion shares.

The Fed policy-makers concluded their two-day policy meeting by keeping the fund rate unchanged at 5.25%, in line with expectations. In the closely watched statement, the central bankers changed the language to suggest that they were a bit more worried about the slower economy than previously, noting that "recent indicators have been mixed." The statement no longer said "additional firming may be necessary." Investors took this omission as implying that the Fed was more likely to cut rates going forward than raise them.

Shares of Morgan Stanley (NYSE: MS) closed up $5.22 to $81.33, after the bank reported higher earnings that topped estimates. It posted a 70% rise in profit for the first quarter, handily beating Wall Street estimates.

Stock of Oracle (Nasdaq: ORCL) closed up $0.62 or 3% to $18.17, after it posted quarterly sales and earnings that rose from a year ago. Earnings were released after the close Tuesday. Its CFO Safra Catz cited a strong global performance across all product lines and said the world's biggest database software maker turned in its fastest third-quarter growth in more than five years.

Stock of Adobe Systems (Nasdaq: ADBE) jumped 6.3% after it posted a 37% profit rise, even though sales dropped more than predicted. The net income for the quarter rose to $181.9 million, from $156.3 million a year ago as sales rose 34% to $682.2 million, helped by revenue from Macromedia.

Shares of FedEx (NYSE: FDX) closed down $1.30 to $110.99, on reporting lower quarterly earnings that topped estimates and issued a 2007 forecast that is short of expectations. The company cited a slower economic environment, lower fuel surcharges and severe winter storms. FedEx reported net income of $420 million, compared with $428 million a year earlier.

U.S. light crude oil for May delivery rose 1 cent to settle at $59.61 a barrel on the New York Mercantile Exchange. Oil prices were volatile after the release of the weekly oil inventories report.

Posted by Manuel Backus to The Markets at 09:16 PM | Permalink

Stocks rose today, boosted by merger news and speculation that more deals were in the works, which helped offset caution in the market as the Federal Reserve's two-day meeting on interest rates got underway. Return of deals is a sign that confidence is returning to the marketplace. Investors welcomed a strong report on housing and the start of the two-day Federal Reserve policy meeting.

Today, the Dow Jones industrial average closed up 61.93 or 0.51% to 12,288.10, the broader S&P 500 closed up 8.88 or 0.63% to 1,410.94, and the Nasdaq closed up 13.80 or 0.58% to 2,408.21.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by 23 to 9 on volume of nearly 1.46 billion shares. On the Nasdaq, advancers topped decliners 19 to 10 on volume of 1.73 billion shares.

Today's gains were fueled by technology, transportation and commodity shares and sparked partly by the housing report. Housing starts rebounded from a nine-year low, but ongoing weakness led builders to pull back on plans for more housing. Starts of new homes jumped to an annual rate of 1.53 million last month.

Investors are keenly looking towards the two-day Fed policy meeting, with a decision due tomorrow afternoon. The Fed is expected to hold interest rates steady at 5.25% for the sixth meeting in a row. Investors will be attuned to what the statement says about the outlook for economy and interest rates.

Shares of Halliburton (NYSE: HAL) closed down $1.90 or 4.7% to $30.50, on profit warning from the oilfield services company. The oil services company said first-quarter earnings would lag Wall Street's estimates.

Shares of Accredited Home Lenders (Nasdaq: LEND) closed up $1.82 or 20% to $10.77, on news that it has received a $200 million loan. The sub-prime mortgage lender has seen its stock battered over the past few weeks as it has struggled to raise money, with many of its partners cutting the company off because of the fallout in the sector.

Stock of Affiliated Computer Service (NYSE: ACS) closed up $8.66 or 17% to $59.95, on news that it is being taken private by a group that includes the company's founder. The deal is worth $8.2 billion in cash and debt. They have submitted a proposal to buy all the shares at $59.25 each, equivalent to a 15.5 percent premium over its closing price on Monday.

Stock of ABM AMRO (NYSE: ABN) closed down $0.13 to $41.23, on news that it is discussing to be acquired by Barclays (NYSE: BCS) for for $80 billion. Shares of Barklays closed up $1.85 to $55.20. No details of the structure of any deal were released, but at current values a combination would create a $166 billion financial services giant.

U.S. light crude oil for April delivery rose 14 cents to settle at $56.73 a barrel in volatile trading on the New York Mercantile Exchange.

Posted by Manuel Backus to The Markets at 09:07 PM | Permalink

Stock of ABM AMRO (NYSE: ABN) closed down $0.13 to $41.23, on news that it is discussing to be acquired by Barclays (NYSE: BCS) for for $80 billion. Shares of Barklays closed up $1.85 to $55.20. No details of the structure of any deal were released, but at current values a combination would create a $166 billion financial services giant.

Posted by Manuel Backus to Stock Ideas at 09:06 PM | Permalink

Stocks rallied, lifting the Dow Jones Industrial Average by over 100 points, as a boost from Asian and European markets overnight and a flurry of deals -- including talk of a big merger between two European banks -- helped investors set aside recent concerns about the sub-prime mortgage market. The advance was pretty broad-based, thanks to a slew of corporate deals. Investors are also gearing up for the start of the two-day Federal Reserve policy meeting.

Today, the Dow Jones industrial average closed up 115.76 or 0.96% to 12,226.17, the broader S&P 500 closed up 15.11 or 1.09% to 1,402.06, and the Nasdaq closed up 21.75 or 0.92% to 2,394.41.

Market breadth was positive. On the New York Stock Exchange, winners beat losers three to one on volume of 1.5 billion shares. On the Nasdaq, advancers topped decliners by 19 to 10 on volume of 1.6 billion shares.

Investors are looking forward to the Fed policy meeting, with a decision on interest rates expected Wednesday afternoon. The central bank is widely expected to keep interest rates steady at 5.25%. But what the bankers say in the statement about the outlook for rates through the rest of the year will be closely watched by investors.

Shares of TXU (NYSE: TXU) closed up $1.52 or 2% to $64.27, as it is reportedly being wooed by a private equity group, led by the Blackstone Group. This could upset the record-breaking $32 billion bid for the Texas power company from competing buyout shops. TXU had agreed to be acquired by a private equity group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group last month in the largest leveraged buyout ever.

Stock of Community Health systems (NYSE: CYH) closed down $1.95 to $34.85, after stating that it was buying Triad Hospitals (NYSE: TRI) for $5.1 billion in cash, ending an existing $4.5 billion deal for Triad to be taken private by a group of private equity funds. Shares of Triad Hospitals closed up$2.52 to $51.88. The deal pays $54 per share in cash, plus $1.7 billion in debt. This is a 9% premium over Friday’s close at $49.36.

Shares of Service Master (NYSE: SVM) closed up $1.67 or 12.3% to $15.14, after it agreed to be taken private by an investment group in a deal worth $5.5 billion in cash and debt. Shareholders will receive $15.625 a share, a premium of 16% over Friday's closing price.

Stock of Take-Two Interactive (Nasdaq: TTWO) closed up $1.76 or 7% to $22.61, after the video game publisher said it was considering putting itself for sale. The company said that there was no guarantee that it would make any specific alternative proposal to shareholders.

U.S. light crude oil for April delivery fell 52 cents to $56.59 a barrel on the New York Mercantile Exchange.

Posted by Manuel Backus to The Markets at 05:46 PM | Permalink

Shares of TXU (NYSE: TXU) closed up $1.52 or 2% to $64.27, as it is reportedly being wooed by a private equity group, led by the Blackstone Group. This could upset the record-breaking $32 billion bid for the Texas power company from competing buyout shops. TXU had agreed to be acquired by a private equity group led by Kohlberg Kravis Roberts & Co. and Texas Pacific Group last month in the largest leveraged buyout ever.

Posted by Manuel Backus to Stock Ideas at 05:45 PM | Permalink

Stock of Community Health systems (NYSE: CYH) closed down $1.95 to $34.85, after stating that it was buying Triad Hospitals (NYSE: TRI) for $5.1 billion in cash, ending an existing $4.5 billion deal for Triad to be taken private by a group of private equity funds. Shares of Triad Hospitals closed up$2.52 to $51.88. The deal pays $54 per share in cash, plus $1.7 billion in debt. This is a 9% premium over Friday’s close at $49.36.

Posted by Manuel Backus to Stock Ideas at 05:44 PM | Permalink

Stocks fell and posted losses for the week, as investors seeking stability after a volatile week weighed news of rising consumer prices in February, which dimmed hopes that the Federal Reserve can cut interest rates to give the economy a needed boost. Investors have been hoping that Fed, will soon cut rates to prevent a drying up of liquidity in the financial system, as fear of a credit crunch were fueled by the meltdown of the sub-prime mortgage market. Rate cuts have been taken out of the near term picture because of the inflation number.

Today, the Dow Jones industrial average closed down 49.27 or 0.41% to 12,110.41, the broader S&P 500 closed down 5.33 or 0.38% to 1,386.95, while the Nasdaq closed down 6.04 or 0.25% to 2,372.66. For the week, the Dow dropped 1.3%, the S&P lost 1.1% and the Nasdaq lost 0.6%.

Market breath was negative. Trading volumes showed 2.1 billion shares exchange hands on the New York Stock Exchange and 2.1 billion on the Nasdaq stock market. Advancing issues outpaced decliners by 5 to 3 on the NYSE, and by 18 to 11 on the Nasdaq.

Mixed economic news and technology stocks continued to dampen the market. The quarterly options expiration, in which stock index futures and options and individual stock futures and options all expire at the same time, contributed to the choppiness. It appears that for the near term, all selling is over and we're probably going to consolidate for the next few sessions. The next big focus for investors will be the two-day Federal Reserve policy meeting next week.

The inflation numbers that came out were above the Fed's targets. The CPI rose 0.4% in February, against the expected 0.3%. The Core CPI, which strips out volatile food and energy prices, rose 0.2%, as expected. Industrial production rose 0.1% in February, versus forecasts for a rise of 0.3%. The University of Michigan's consumer sentiment index, fell to 88.8 in March from 91.3 in late February. Economists thought it would fall to 89.

Shares of Caremark RX (NYSE: CMX) closed down $0.46 to $62.29, after it approved a $24 billion takeover bid from drugstore CVS (NYSE: CVSX). Stock of CVS closed down $0.44 to $32.90, after CVS won the battle over the company against Express Scripts (Nasdaq: ESRX). The deal will allow CVS, to expand its prescription benefits business and mail-order operations at a time when traditional pharmacies are under pressure from mail-delivery facilities.

Shares of Wal-Mart (NYSE: WMT) closed up $0.29 to $46.29, after it stated that it was withdrawing its application for limited banking operations, after critics said the world's No. 1 retailer might use the bank as a stepping stone to offer a broader range of financial services. They have decided to better focus on other ways to serve customers.

Stock of Accredited Home Lenders (Nasdaq: LEND) closed up $1.55 or 17% to $10.98, after saying it will sell $2.7 billion in loans at a discount as a means of buying time while it contends with a cash crunch. The loan sale is expected to be completed within days, and will result in a pretax charge of about $150 million. The loans are being sold at a substantial discount to alleviate pressures from margin calls.

U.S. light crude oil for April delivery fell 44 cents to settle at $57.11 a barrel on the New York Mercantile Exchange.

Posted by Manuel Backus to The Markets at 04:56 PM | Permalink

Shares of Wal-Mart (NYSE: WMT) closed up $0.29 to $46.29, after it stated that it was withdrawing its application for limited banking operations, after critics said the world's No. 1 retailer might use the bank as a stepping stone to offer a broader range of financial services. They have decided to better focus on other ways to serve customers.

Posted by Manuel Backus to Stock Ideas at 04:55 PM | Permalink

Shares of Caremark RX (NYSE: CMX) closed down $0.46 to $62.29, after it approved a $24 billion takeover bid from drugstore CVS (NYSE: CVSX). Stock of CVS closed down $0.44 to $32.90, after CVS won the battle over the company against Express Scripts (Nasdaq: ESRX). The deal will allow CVS, to expand its prescription benefits business and mail-order operations at a time when traditional pharmacies are under pressure from mail-delivery facilities.

Posted by Manuel Backus to Stock Ideas at 04:54 PM | Permalink

Stock of Accredited Home Lenders (Nasdaq: LEND) closed up $1.55 or 17% to $10.98, after saying it will sell $2.7 billion in loans at a discount as a means of buying time while it contends with a cash crunch. The loan sale is expected to be completed within days, and will result in a pretax charge of about $150 million. The loans are being sold at a substantial discount to alleviate pressures from margin calls.

Posted by Manuel Backus to Stock Ideas at 04:54 PM | Permalink

Stocks closed higher as investors found comfort in the market's ability to bounce back from recent heavy losses, helping them ignore data pointing to both waning economic growth and rising inflation. The market had come down so far that it got a little oversold and we're also in the middle of options expirations. Tomorrow's quadruple witching expiration of options on stocks and bonds forced a lot of investors to buy back shares. Merger news and strength in the financial sector overshadowed concerns about sub-prime mortgages.

Today, the Dow Jones industrial average closed up 26.28 or 0.22% to 12,159.68, the broader S&P 500 closed up 5.11 or 0.37% to 1,392.28, while the tech-heavy Nasdaq closed up 6.96 or 0.29% to 2,378.70.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by 23 to 9 on volume of 1.5 billion shares. On the Nasdaq, advancers topped decliners by 18 to 11 on volume of 1.7 billion shares.

The surprising jump in the Producer Price Index (PPI), was cause for concern for investors ahead of next week's Federal Reserve policy meeting on interest rates. However, tomorrow's Consumer Price Index, is expected to hold rates steady at next week's meeting. The PPI jumped 1.3% in February after falling 0.6% in January. The New York Empire State Manufacturing index fell to 1.9 in March from 24.4 in February, versus forecasts for a drop to 17.0. A report on manufacturing in the Philadelphia region, also showed surprising weakness. The Philadelphia Fed index fell to 0.2 from 0.6 in February. Economists thought it would rise to 3.5.

Former Fed Chairman Alan Greenspan stated that the problems with sub-prime mortgages could spill over to other sectors. Investors have been worried that problems with sub-prime loans - made to borrowers with weak credit - will hurt the already troubled housing market and, by extension, the economy. It is expected that market's choppiness would continue at least until the Fed meets next week.

Shares of Cisco Systems (Nasdaq: CSCO) closed down $0.04 to $25.81, after stating that it would buy WebEx (Nasdaq: WEBX) which makes online collaborative software, for about $3.2 billion. Stock of WebEx closed up $10.18 or 22% to $56.38. The deal will position Cisco to move deeper into the growing market for online software, especially for small- to medium-sized businesses. Cisco will buy all outstanding shares of WebEx for $57 a share in cash, a 23% premium over Wednesday closing price. WebEx, which generated revenues of $380 million in 2006, provides Web-based conferencing software and systems and other collaborative online applications.

Shares of General Motors (NYSE: GM) closed down $0.87 to $29.38, amidst warning about accounting problems, saying that its internal controls over financial reporting are ineffective and could make it hard for the company to execute its business plan. It acknowledged that the company had not maintained a sufficient complement of personnel with an appropriate level of technical accounting expertise and said it would make greater use of outside experts while it added staff with that necessary level of knowledge.

U.S. light crude oil for April delivery fell 61 cents to $57.55 a barrel on the New York Mercantile Exchange.

Posted by Manuel Backus to The Markets at 09:47 PM | Permalink

Shares of Cisco Systems (Nasdaq: CSCO) closed down $0.04 to $25.81, after stating that it would buy WebEx (Nasdaq: WEBX) which makes online collaborative software, for about $3.2 billion. Stock of WebEx closed up $10.18 or 22% to $56.38. The deal will position Cisco to move deeper into the growing market for online software, especially for small- to medium-sized businesses. Cisco will buy all outstanding shares of WebEx for $57 a share in cash, a 23% premium over Wednesday closing price. WebEx, which generated revenues of $380 million in 2006, provides Web-based conferencing software and systems and other collaborative online applications.

Posted by Manuel Backus to Stock Ideas at 09:46 PM | Permalink

Shares of General Motors (NYSE: GM) closed down $0.87 to $29.38, amidst warning about accounting problems, saying that its internal controls over financial reporting are ineffective and could make it hard for the company to execute its business plan. It acknowledged that the company had not maintained a sufficient complement of personnel with an appropriate level of technical accounting expertise and said it would make greater use of outside experts while it added staff with that necessary level of knowledge.

Posted by Manuel Backus to Stock Ideas at 09:45 PM | Permalink

Stocks closed in positive territory after a volatile session that can be described as technically-driven and tested by more evidence of the meltdown in the sub-prime mortgage market. The sub-prime is unfolding in a worse way than was expected, but trading was more technical than fundamental.

Today, the Dow Jones industrial average closed up 57.44 or 0.48% to 12,133.40, the broader S&P 500 closed up 9.22 or 0.67% to 1,387.17, and the Nasdaq closed up 21.17 or 0.90% to 2,371.74.

Market breadth was positive. On the New York Stock Exchange, advancers topped decliners 19 to 13 on volume of almost 2.07 billion shares. On the Nasdaq, winners beat losers 15 to 13 on volume of 2.29 billion shares.

Today's volatility was partly because of Friday's quadruple options expiration, a quarterly event in which stock index futures and options and individual stocks futures and options all expire at the same time. Tomorrow, investors would watch the February Producer Price Index, the weekly jobless claims and the March Philadelphia Fed index. Investors have remained concerned about how badly problems with sub-prime loans - made to borrowers with weak credit - will hurt the already troubled housing market and, by extension, the economy. Nonetheless, after the most recent sell-off, investors opted to move back into stocks in the late afternoon.

The US fourth quarter current account deficit narrowed more than expected to $195.8 billion, as lower oil prices took a bite out of imports and U.S. exports continued to rise. The quarterly shortfall was well below the midpoint estimate of $204 billion made by analysts, and it was also the smallest since the third quarter of 2005, when it totaled $183.4 billion.

Shares of GM closed down $0.26 to $30.25, despite swinging into profit. While its North American operations recovered, the problems with sub-prime mortgage lending hit its finance unit. The company posted net income of $950 million, but that was helped by the sale of 51% of its GMAC finance arm during the period. Excluding special items, earnings came in at $180 million, a big improvement from the loss of $936 million a year earlier.

Shares of Lehman closed down $0.28 or 5% to $71.72, despite reporting higher quarterly earnings that topped estimates as strength in equity markets tempered any fallout from sub-prime. First-quarter profit rose 14%, as real estate and strong equity markets helped lift trading profits. Its net income rose to $1.15 billion, from $1.1 billion a year earlier. Net revenue was $5 billion, up 13% from last year.

U.S. light crude oil for April delivery rose 23 cents to settle at $58.16 a barrel on the New York Stock Exchange, seesawing after a mixed weekly oil inventories report.

Posted by Manuel Backus to The Markets at 03:52 AM | Permalink

Stocks sank and caused the Dow Jones Industrial Average to give up 242 points, as the rising tide of problems in the sub-prime mortgage market spurred fear of contagion across the whole financial sector, while weaker-than-expected retail sales confirmed a slowing economic outlook. The downturn accelerated in the early afternoon after news that a number of homeowners were unable to meet mortgage payments and were entering the foreclosure process.

Today, the Dow Jones industrial average closed down 242.66 or 1.97% to 12,075.96, the broader S&P 500 closed down 28.65 or 2.04% to 1,377.95, and the tech-heavy Nasdaq closed down 51.72 or 2.15% to 2,350.57.

Market breadth was negative. On the New York Stock Exchange, losers beat winners by 27 to 4 on volume of 1.96 billion shares. On the Nasdaq, decliners topped winners by 5 to 1 on volume of 2.20 billion shares.

The main issue impacting the markets has been "sub-prime". Worries about sub-prime mortgage lenders dominated trading after the SEC subpoenaed documents in an accounting probe. The New York Stock Exchange suspended the New Century's (NYSE: NEW) stock and is having it de-listed. Basically, selling is being driven by worries about the sub-prime contagion and the weak carry trade.

The weak retail sales report - the latest in a string of sluggish economic data - also revived fears about the economy slowing abruptly, and possibly falling into recession. Retail sales rose a smaller-than-expected 0.1%. Sales excluding autos fell 0.1%, versus forecasts for a rise. January business inventories rose 0.2%, as expected.

Investors also have to brace for inflation numbers on Wednesday and Thursday. Still strong inflation pressures might fuel concerns that the Fed will refrain from cutting interest rates. There are increasing fears that perhaps we're headed for slower economic growth coupled with higher inflation. Additionally, we also have the expiration of options this week. We'll see continued volatility.

Stock of Goldman Sachs (NYSE: GS) closed down $3.57 to $199.03, despite reporting earnings that rose from a year earlier and topped estimates. The robust results helped ease concerns that the recent market rout and growing problems in sub-prime lending could hurt the firm. Its net income surged 29% to $3.2 billion, and the net revenue climbed 22% to $12.7 billion.

Shares of Viacom (NTSE: VIA) closed down $0.05 to $39.50, on news that it is suing Google (Nasdaq: GOOG) and its video sharing site YouTube for more than $1 billion regarding unauthorized use of its copyrighted programs. Stock of Google closed down $11.72 to $443.03. Viacom is seeking more than $1 billion in damages and an injunction against further violations.

U.S. light crude oil for April delivery fell 98 cents to $57.93 a barrel on the New York Mercantile Exchange, giving up earlier gains.

Posted by Manuel Backus to The Markets at 09:42 PM | Permalink

Stocks closed higher as fresh concerns over the sub-prime lender market failed to lead to heavy losses and a batch of big mergers helped to give investors an upbeat tone. Market found some momentum owing to the deals news and lower oil prices.

Today, the Dow Jones industrial average closed up 42.30 or 0.34% to 12,318.62, the broader S&P 500 closed up 3.75 or 0.27% to 1,406.60, and the tech-heavy Nasdaq closed up 14.74 or 0.62% to 2,402.29.

Market breadth was positive. On the New York Stock Exchange, advancers beat decliners 21 to 11 on volume of 1.468 billion shares. On the Nasdaq, winners topped losers 17 to 12 as 1.608 billion shares traded hands.

Investors recovered a bit from the previous week's steep sell-off, but the focus remained on the sub-prime lenders. The bearish predictions about how stocks would see a much bigger decline for several weeks have subsided, and now the market is trying to move beyond all of that. This week has reports due on retail sales, producer and consumer prices and manufacturing, among others. However, stocks are apt to be volatile for the next few days, because of ongoing concerns about sub-prime and because Friday is a quadruple-witching day.

Stock of Schering Plough (NYSE: SGP) closed up $0.14 to $23.99, after announcing that it is buying Akzo Nobel's drug unit for $14.4 billion in cash. This gives the company a near $5 billion-a-year business in women's health and central nervous system drugs, and marks the breakup of one of Europe's last hybrid chemical-pharmaceutical companies.

Shares of Dollar General (NYSE: DG) closed up $4.23 to $21.01, after agreeing to be taken private by Kohlberg Kravis Roberts & Co. in a $7.3 billion cash and debt deal. Shares holders of Dollar General will receive $22 in cash for each share, representing a premium of about 31% over closing price of Friday.

UnitedHealth Group (NYSE: UNH), the No. 2 health insurer in the U.S., announced plans to buy Sierra Health Services (NYSE: SIR

Stock of Ford Motors (Nasdaq: F) closed up $0.01 to $7.94, after it decided to sell its luxury Aston Martin line for $925 million. Aston Martin was founded in 1914, and makes several different sports cars with prices starting at $110,000. As part of the deal, Ford will retain a $77 million stake in the car brand.

U.S. light crude oil for April delivery fell 90 cents to $59.15 a barrel on the New York Mercantile Exchange.

Posted by Manuel Backus to The Markets at 11:01 PM | Permalink

UnitedHealth Group (NYSE: UNH), the No. 2 health insurer in the U.S., announced plans to buy Sierra Health Services (NYSE: SIR

Posted by Manuel Backus to Stock Ideas at 11:01 PM | Permalink

Stock of Ford Motors (Nasdaq: F) closed up $0.01 to $7.94, after it decided to sell its luxury Aston Martin line for $925 million. Aston Martin was founded in 1914, and makes several different sports cars with prices starting at $110,000. As part of the deal, Ford will retain a $77 million stake in the car brand.

Posted by Manuel Backus to Stock Ideas at 11:00 PM | Permalink

Stocks rose today, posting gains for a volatile trading week after a report of limited jobs growth in February helped ease concerns about a slowdown in the economy but raised fears that inflation might prevent the Federal Reserve from cutting interest rates as early as expected.

Today, the Dow Jones industrial average closed up 15.62 or 0.13% to 12,276.32, the broader S&P 500 closed up 0.96 or 0.07% to 1,402.85, and the tech-heavy Nasdaq closed down 0.18 or 0.01% to 2,387.55. For the week, the Dow gained 1.3%, the S&P 500 added 1.1% and the Nasdaq rose 0.8%.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by a margin of 19 to 13 on volume of 1.43 billion shares. On the Nasdaq, advancers topped decliners by a margin of 16 to 13 as 1.95 billion shares changed hands.

The Labor Department reported that 97,000 jobs were created last month, and the unemployment rate unexpectedly dropped to 4.5% from 4.6%. Investors welcomed this job report as well as readings on trade and wholesale inventories that all suggested that the economy is holding up fairly well.

Additionally, the January trade balance narrowed more than expected. The U.S. trade deficit narrowed to $59.1 billion, as U.S. exports rose to a new record and imports declined. The monthly trade gap shrank 3.8% from December and was less than the median forecast of $59.7 billion.

Stock of New century Financials (NYSE